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I take your point about share buyers not affecting dilution, and I stand corrected. However, the main point I am making refers to the situation if a bid for our assets is made- in which case the number of shares in issue is critical. CGH is, by definition, a Holdings company, not a mining company and one reason for investing here is that I have always felt the board would prefer to sell the company, not develop into a mining company. I still feel this is Chaarat's preferred option, but of course, that is speculation on my part. The 'sourcing of funds' by other parties may/may not relate to an outright bid and only time will tell us what is currently going on behind the scenes. Cheers.
Alligin - what Tractor is saying is that an increase in people buying shares doesn't increase the shares in issue. A 'run on our shares' will not increase the shares in issue but will put the price up with sufficient demand. Only a placement to raise funds by Chaarat issuing more shares would lead to dilution. We might have to do this at some point but we haven't since Dec '14 when we issued over 22m shares @ 15p. A JV, if we got one, would probably result in dilution with further shares issued. An outright bid for our company would be divided by the shares in issue so, yes, it's good to keep the number down.
Tractor- happy to explain my perspective. CGH currently have around 272 million shares in issue. Any potential bidder will look at the DFS and assign a value to the assets and then table a bid that they consider represents a good investment v risk price. Let's say they make a bid of £150 million pounds- that would represent a price per share of 55p per share. If there was a run on CGH's shares and this raises the number in issue to say 400,000,000 then the same £150 million bid equates to 37.5p per share. This is why I believe the lower number of shares in issue, the better and this is a strength of the company that is under-rated.
What? How do people buying shares in CGH dilute your holding? Other people buying shares means they are buying existing shares off of people who are selling. It does not mean issuing more shares. Please explain what you mean. If there is a rush of people wanting to buy these shares, it can only be good for existing shareholders as the price will inevitably go up! Now, if there is a new partner coming in - then yes there will be dilution but in return for csh injection. At that point, the JV deal price will be what is relevant short term. Idelly we would not want to sell a % of the company at this low price. I would hope for minimum 40p but that is perhaps wishful thinking given how long the price has drifted. In an ideal world IMO, we get a new partner for say 30%of biz and that new parnter also proivdes access to funds that can be borrowed to meet remaining cash requirment for build out.
Just before close quoted way above quoted bid again @ 6.63p
I think we've had potential suitors for a long time but that statement about 'group...raising funds' did sound pretty strong. Perhaps the market has ignored as they, like us, have heard of potential suitors being shown round the place before. L's email to me does imply though that it all must be very near (JV/Buyer) and some unpublished financially sensitive info is on Mgmt's table. Can't guess when we'll know but I reckon it'll surface with or very soon after official DFS sign-off.
Encouraging thoughts and analysis. Happy to see the spread narrowing. Unfortunately no more available funds to add ATM. Lets hope more news is only days or weeks away, not months.
There is no doubt that Dekel would have needed evidence of 'funds being raised' for the adviser to allow the statement about a potential buyer to be included i the RNS. Although the market response to the latest news was flat to say the least, it is in our favour that the herd have not arrived, purchased lots of shares, and diluted our holdings. Interesting times ahead.
As always some sound thoughts and ideas. Taking up your point about the 'closed period' I note the following line (of which I know you're well aware) of the RNS dated 3.2.2016 quote: "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." Seriously, any other sector at any other time, this stock would've gone ballistic, well plenty of interest any, at such a statement?? Its very evident what it means!
Just been mulling over what info. I was given in my last communication with Chaarat that they are now in a 'closed Period'. Looking at Aim Rules, at this time, we can only be in a closed period for the following reason : "any other period when the AIM company is in possession of unpublished price sensitive information". So what can that unpublished info be? We've now published the final draft of the DFS and indicated "Chaarat now considers that further delay in publication of the results of the FS is not justified as the results are sufficiently certain." So that's all known. So surely the unpublished info must relate to financing, quite possibly a bid nearly on the table but needing the DFS sign-off. (Or some other big finance news). I think my Lady was trying to do me a big favour in dropping me the wink - anyway, I've got another 18,015 shares on this hunch.
I see the quoted bid raised by a full .5p this morning. I can dummy sell well above that @ 6.52p so looking good here.
it would be good to see a little more volume at the ask of 7p to push the price up further. It would also be nice to get the Chinese regulatory sign off for the DFS - this could lead to a tick up in the SP>
In theory could be 2017 but depends when financing can be found and also which model is pursued. Smaller scale open pit as phase 1 would lead to earlier production than full blown developement of mine in one go. Obviously the latter requires larger financing and depends on finding suitable JV partner or entity prepared to lend large amount of cash. JV more likely. Of course, BOD could sell whole business to someone else in which case we shareholders will never actually mine! POG of gold does not have much support. As soon as stock market wobble stabled, POG fell off again...
Hi 9124344. Who's to know the real answer except MMs. I guess the current spread will dissuade both buyers and sellers, so a natural conclusion is the sp is being 'held' I stopped trying to figure out how Aim works a long time ago as there often appears to be zero logic attached to sp movement at times. Lets hope the sp holds at a reasonable level until we hear some transformational news re jv or buy-out.
Does anyone know when we are likely to start production please
Why is there a big spread this morning? 6.99 to buy & 5.75 to sell????
think big...20p at least...still only tiny fraction of value of gold in ground
Heading towards the dizzy heights of 7p!!!
As the Gold price edges up… So the economics of the Charaat project become more favourable by the dollar.
Welcome to you. This is a well-informed and patient board with holders like me being involved for a number of years. You have bought into huge potential.... and tedious progress in real terms. However, I believe you have timed your entry well as the crucial news we are awaiting is months rather than years away. Close association with the Chinese gives CGH an enigmatic quality that is frustratingly slow, but ultimately should deliver the goods. Whilst a slowing Chinese economy may appear to be negative for potential investment into Chaarat, there is no doubt that the Chinese are increasingly keen to get their hands on as much gold as they can. Good luck to you.
Sorry, hello ! You're in ? Now you wait. Chinese New Year is over, POG has recovered somewhat to steady around $1200 and we've got plenty of it in the ground. Shouldn't be too long now.
Well, here I am. What do we do now?
to MMs means tighter spreads imv...so disagree with petition
Petition for greater transparency of share trades https://petition.parliament.uk/petitions/112044 We believe the current system works against the private investor as buys are shown as sells and vise versa according to the ask and bid price set by the market makers at the time of trading. We believe this is wide open to manipulation and misinterprets the facts. We would like to see a new, fair system that will report a trade factually. In turn this will lead to greater transparency on the London Stock Exchanges. AIM in particular seems manipulated by the Market Makers. Actually defeating their roll of creating a real and fair market for investors. Altering spreads to hide the status of transactions isn't transparent.
to see, slow steady rises will do us fine before Big news.