Jindalee’s global search for its next project
Lindsay Dudfield
Managing Director
Jindalee Resources Ltd
at 12 times the IPO price, Jindalee shareholders were rewarded
with a $0.55 fully franked special dividend.
Jindalee’s Managing Director Lindsay Dudfield said that
after paying the dividend and associated tax, Jindalee still holds
significant cash reserves (boosted by accepting a cash takeover
for Anchor Resources in May 2011), which, combined with its 30%
residual stake in Energy Metals and other investments, places
Jindalee in very good shape to secure the next opportunity to grow
the company.
“
Securing a new project is our primary focus,” Mr Dudfield said.
“
We have an open mind about both commodity and jurisdiction,
and the quality of the asset will ultimately be the deciding factor.
“
Over the past couple of years we have looked at a wide
range of projects spanning North and South America, South East
Asia, Africa and Europe, but so far none have met our ambitious
criteria. We are very disciplined in the way we approach potential
acquisitions – the bottom line is that any new project has to be
capable of transforming Jindalee and creating significant value for
our shareholders.”
Mr Dudfield said that it is this same discipline that has
allowed Jindalee to grow without the need to go back to the market
to raise money since its original listing in 2002 when it raised
$2.6 million, mainly from family, friends and industry colleagues.
“
As a result we have a very tight capital structure with fewer
than 35 million shares on issue, which provides fantastic leverage
for our shareholders once we secure the next project. Furthermore
all of the management team have significant stakes in the
company, which helps to keep us focused on achieving the best
return we can for our shareholders,” he said.
Mr Dudfield believes that market conditions today are similar
to those existing when
Fat Prophets Mining
first recommended
investors to buy Jindalee shares.
“
In 2003, most investors were risk averse and many well
run companies, including Jindalee, were trading close to cash
backing, presenting great buying for counter-cyclic investors.
Market conditions today are similar to those in 2003; investors
are nervous and Jindalee is trading at a significant discount to its
liquid assets.
“
But it is in challenging times that the best opportunities
become available, and we are excited by the opportunities that are
appearing. Needless to say we are very confident about the future
for Jindalee,” concluded Mr Dudfield.
Inspecting a zinc project in South America
“
Junior explorers represent a high risk, volatile end of the equity
market. Spectacular leverage can be achieved through exploration
discoveries, but statistics on success rates (and cost) can
be daunting. When participating in this end of the equity market
we need to try and improve the odds. One way this can be
achieved is by holding a diverse portfolio of ‘honest explorers’
that are purchased during low points in their price cycle – and
then be patient! One such opportunity that currently fits
these criteria is Jindalee Resources.” (Source:
Fat Prophets Mining
,
July 2003).
These words of advice, written 12 months after Jindalee
Resources listed on Australian Securities Exchange when the
company was trading at $0.11 and close to cash backing, proved to
be highly prophetic. Within two years, Jindalee shareholders were
offered a priority entitlement to initial public offer (IPO) shares
in Jindalee’s wholly owned subsidiary Energy Metals, ahead of
Energy Metals’ successful listing on the Australian Securities
Exchange as a dedicated uranium explorer.
Priority entitlements to junior explorers Anchor Resources
and Alchemy Resources soon followed and in July 2010, following
a cash takeover of Energy Metals by Chinese utility CGNPC
Openmindforgrowth
Minesite 2013
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