Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Excellent news. Imagine it went $1300 or more! Put the peace pipe away!!!
Now up above our DFS modelling @ $1256 an oz
Charaat next?
I reckon you'll be ok. What's your average here? As I write we've ticked up a bit which is nice.
I have a fair holding in AMA but well over a mill in this one lets hope so Dibs
Anyone notice a takeover at AMA? Be nice to see something like that here, at a decent price of course...
Come of people we all get done over when buys are showing as sells and sells showing as buys. We need to see true dealings. Only 3 thousand so far signed up. https://petition.parliament.uk/petitions/112044
Thanks pabs for posting. Lets hope they don't take as long to optimise the capex etc as releasing the DFS! Numis comments are encouraging for sure. The Chinese know how to play a waiting game but clearly if the gold price continues to drive northwards that is only going to increase the value of the asset here and could force their hand.
I assume Chaarat will update the market when the Chinese regulatory approval is approved. I guess only once we have this can we negotiate with Chinese investors / suitors. It would be nice to have an update on this form the last RNS - "Sale of the asset – a mining group has already conducted thorough due diligence. We understand that the group is now in the process of raising funds" surely if they are raising funds then they know how much they need to pay to buy the asset - which means an offer must have been made.... as always with Chaarat patience!
By the old tea leaves, ouija (wee-gee) board, tarot or whatever, a 1 trade means an RNS in the next few days. Should this be right, I'd say it has until Tuesday morning to prove itself. Personally thought Linda's statement and comment from Numis are promising for our future.
Linda came back with some very re-assuring comments with regards that article Dibs posted : Thank you for your email. It seems the journalist did not read our announcement since we explained that we are working on optimising the DFS CAPEX. We also stated that: “As previously reported it is not viable to try and finance the development of the whole Project, so we continue to explore production and sale strategies.” We would never attempt to finance the whole project at once. A larger company with access to funds may be able to achieve this, particularly in the context of the Chinese government encouraging investment in China and its vicinity (what is called the one road one belt strategy). Numis has made the following comment: “Thus some good progress on cost optimisation with Chaarat’s AISC coming in at bottom quartile against global gold peers (average c.$975/oz) and demonstrating that despite the large entry capex, the project looks to have a healthy margin once up and running. …… Chaarat is in the process of securing quotes for key items which it believes will lead to a reduction in capex vs NERIN estimates. Further upside exists from improve met recoveries and Inferred Resources. All in all a decent result for Chaarat, delivered against considerable challenges. The low opex is key, as this metric is normally the harder factor to trim and optimise than capex.” ------------------------------------------------------------------------- So, she seems very confident the mine will be built and we will not take long to cut that NERIN Capex figure.
someone exited in a big way.
Yes, Dekel was rightly piqued by the high Capex and has basically said it is wrong because quotes they've actually had are about 50% lower. Plus he is thinking that we will not go the full hog straight away and therefore investor's cash is not tied up for years waiting for return. So, John Cornford may know his onions in a general sense, but reckon he doesn't know Chaarat as well as we do. I hope that is not just my rose-coloured spectacles tinting things. I've copied the article to Linda to see if she or Dekel wish to make any further comment.
Thanks for sharing your research, Dibs. Always good to hear 'outsiders' perspectives and I think his point about significant early costs is well made. However, one of the most attractive features of the company's assets is the fact that a significant percentage of gold is at/close to surface and therefore cheaper to process than underground mining. I wonder, too, how long POG will linger around these levels, given the fragile state of major economies and currencies. It won't take much to explode the gold price back towards $2000 per ounce and maybe onto new highs in the years ahead. At those levels, CGH, is a major cash cow and one hopefully the Chinese will buy into. GLA
good find Dibs. Always interesting to read other peoples opinion - John Cornford makes a fair and valid point
A guy called John Cornford wrote an article on Master Investor about Goldies the other day. Link below. He wrote a short piece about CGH which was interesting. He clearly knows his onions. The recent announcement from Chaarat Gold (CGH) regarding its planned Kygyzstan gold mine illustrates the key importance for investors of knowing how the four key metrics for a mine impact its value to shareholders. To recap, they are the IRR, NPV, capex, and market value of the shares – all relatively independent of one another so that knowing only one or two won’t help a judgement of the whole. "Chaarat has just published what look like excellent and exceptionally low $635/oz average cash costs to produce 4.7 million ounces over 18 years. However, at $1,250/oz gold the IRR is only a marginally attractive 15.3%. How so? Because the $684m initial capex is very large versus the $116m 8% NPV – which means a longer payback time than lenders will want. In its case, even a high operating margin won’t recoup the capital in a short enough time. So chances are low at present that the mine will happen." http://masterinvestor.co.uk/commodities/will-a-rising-tide-lift-all-golden-boats-or-just-a-few/ So, a mixed review from him and he doesn't think the mine will happen. Well I'm sure he has more knowledge and experience than I but I beg to disagree for different reasons. He is looking purely at economics which he admits are attractive and capex which is not. But this is about a lot more than pure economics. Its also strategic, political, and its a lot of gold at a decent grade which WILL be dug out the ground. No question. He's neglecting to consider that the Chinese have IMO deliberately over egged the capex (hence Dekels pique) in order to get Charaat CHEAPER. Its pretty obvious really. Dekel is adamant that the capex could be considerably cheaper and I'm sure he's correct. So its tactical on the part of the Chinese to negotiate a more attractive figure from their point of view. The $m question is how much will they offer?
I suppose we're drifting up on the strength of Gold. I am so looking forward to being in the Black on here - just need to reach 10.77p. We could, repeat could, just drift up to that sort of level without any news as 'No news' is so common here. On the other hand, what are those Chinese guys playing at? Can't they read, sign their name or just get out a big rubber stamp?
Bazza - where did you find that Bid/Ask data from yesterday? How long back are you going to see 193m Buys @ 7p? Think you might have a decimal place out there somewhere. Our average daily volume of trades for the last month is 284k.
seems to be little stock available on the order book - its 7p min to buy even 100 shares. If I wished to buy 10,000 shares plus then I cannot get a price. seems the upward momentum will continue with small amounts of buying. the seller seems to have finally gone. onward - upward.
Little bit of trading activity and 100% buys
Holy moly.... I thought this was drifitng off but shot up again today. Beginning to look like a solid floor on POG now. Hopefully this is the beginning of gradual increase that we have been waiting for and expecting... World economies are in a mess. Currencies debased. Gold is the safe haven.
Just looking at the Ask/Bid data which currently shows Ask 7.00 x 193,559,700 Bid 6.00 x 1,500,000 I don't fully understand what that means, but has to be a good sign, no?
We seem to be settling around 7p area at the moment. For me it's that old conundrum of : I'm now about 30% Down, but need a 50% Rise to break even. Mr Carlos - don't give anyone any idea of 'taking profit' - but as you say, some people are in profit. Alligin - no probs. Was surprised to hear Dekel seems to have changed his mind on the surface now because he always did want to Sell. Perhaps he thinks we can't get an offer from here sufficient for him to realise a significant profit as I think his average is fairly high, perhaps over 30p. Still think when we get the DFS sign-off we'll get at the same time or within a few days, an Outright Offer or JV.
A few weeks ago the sp was 4.25p. What a profit since then. We all seem to have been waiting years....!!!!
True Bid way above that quoted this morning @ 6.4p