Register
Login:
Share:
Email Facebook Twitter

CGH Share Chat - RSS Feed

Chaarat Gold Share Chat (CGH)



Share Price: 15.00Bid: 14.50Ask: 15.00Change: 0.625 (+4.35%)Riser - Chaarat Gold
Spread: 0.50Spread as %: 3.45%Open: 14.75High: 15.50Low: 14.75Yesterday’s Close: 14.375



Share Discussion for Chaarat Gold (CGH)


Thread ViewThread View
Please Login or Register to post messages
Posts per page:


pablo2
Posts: 5,294
Off Topic
Opinion:No Opinion
Price:14.25
View Thread (2)
Spoke to Numis again
15 May '13
This time to James Black the broker at Numis who seemed a lot more up to speed on goings on at Chaarat. He confirmed that the limited production will not take place this year but the company has not stated when larger scale production might begin and it is Numis's analyst's personal opinion this will be late 2016. The completion of the DFS will continue alongside planning, rather than large scale expensive construction, of the infrastructure. This is not to say some infrastructure will be actually set in place. Looking back over the company's RNS's and the only presentation (May 2013) now on their website, it is not clear when production was to ramp up except :

From the website - Investors - Research Reports, we had Numis Research Note June 2012 :
"We forecast production of growing from a modest 8koz in 2013 to 40koz in 2014, then
ramping up to peak production of 180-200kozpa in 2017 as Stage 3 is completed."
-----------------------------------------------------------------------------------------------------------------------
So, they are not going to go for production this year and it does seem the sp has been slashed because of this. However, IMO this company is playing a very good game of poker or selling a business. Should one spend all one's cash getting the business going small scale and start getting in about £4m profit a year, if all goes to plan. If it doesn't they'd start getting into cash trouble soon. OR should one start dressing up the house, showing the potential of the business, making it clear to potential major investors or takeover companies that this business is all ready to go, all the boxes now ticked and with an investment of, say £100m this business will really start to return a big profit in a short period. Less risk, less wasted time/money on small scale start up and getting ready for the big one. The Chinese have not gone away, they just take their time. What's the rush if the gold is in the ground.

To me this company has still got to be a great investment, at this sp an incredible investment. The timescales have been extended to first production - have they altered much to large scale production. They are not suddenly an explorer, they've found 5.5m oz, they are just starting to lay out a beautiful table for all to see.

Meanwhile, I'm obviously in shock with a 30% drop in the sp in 3 days, but what has changed with the company? Same gold, different tactics to getting it out and showing off their stall.
 
jollyspeculator
Posts: 12,902
Off Topic
Opinion:No Opinion
Price:14.25
Cash burn looks on the high side
15 May '13
yep...made some sense when cashflow imminent

...now

...change of gear required imv (multiples of US$10m spent to produce what so far?????).

...look at cash preservation strategies of AAU and other explorers (and of non preservation by NYO lol)
manxdragon
Posts: 53
Off Topic
Opinion:No Opinion
Price:14.50
Jolly
15 May '13
The way I've interpreted it is that the infrastructure was an ongoing plan and not part of the revised strategy. Agreed it's not wholly clear though! Cash burn looks on the high side to me otherwise - I may just be trying to find something to be optomistic about though!!!
jollyspeculator
Posts: 12,902
Off Topic
Opinion:No Opinion
Price:14.50
Text
15 May '13
"Cash reserves of approximately $24 million are available to fund the revised strategy."

...I think it is clear they only have 24m left

....but given you have different interpretation maybe they shd issue a clarifying rns or final results lol
manxdragon
Posts: 53
Off Topic
Opinion:No Opinion
Price:14.50
Jolly
15 May '13
You're probably right on the price, pure guesstimate on my part! If you read the rns though I think they've said they have $24m that could be used on the DFS. My interpretation is that other cash is allocated to the infrastructure projects et al, so they have more cash in the bank at present. I can't imagine the DFS will cost anything close to $24m but no experience in this.
jollyspeculator
Posts: 12,902
Off Topic
Opinion:No Opinion
Price:14.50
$20m issued at 20p
15 May '13
Manx, they would not have got that price??..

...but agree that move away from production is baffling
jollyspeculator
Posts: 12,902
Off Topic
Opinion:No Opinion
Price:14.50
Cash burn
15 May '13
of av US$3m/month over past 10 months??? ...Can that be right?

...My calc based on US$54m as of 30.6.12 and now "US$24m to do DFS"

...are they holding loads of dosh up their sleeve? I want to know lol
rhjoyes
Posts: 474
Observation
Opinion:No Opinion
Price:14.50
RHPS
15 May '13
Yet another Red Hot Penny Share recommendation down 70%.How do they do it.I've no doubt they will soon be dropping this from their portfolio.If nothing else they are very consisant.That's a polite way of saying they are useless.
manxdragon
Posts: 53
Off Topic
Opinion:No Opinion
Price:14.25
Ouch
15 May '13
This hurts. At 25p we'd have had a 62.6m mkt cap. $20m issued at 20p surely wouldn't have hammered the SP this much!
jollyspeculator
Posts: 12,902
Off Topic
Opinion:No Opinion
Price:14.25
Had US$61m
15 May '13
in last annual accounts...and now this...bad journey



Share Trading BrochureRequest your Free brochures on share dealing, spread betting and CFDs

Sign up for Live Prices
Home  |  Contact Us  |  About Us  |  Careers  |  Advertise with Us  |  Sitemap  |  Terms & Conditions  |  Cookies  |  Privacy


Datafeed and UK data supplied by NBTrader and Digital Look. While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.