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The question is will the production figures increase in line with the hopes and timeframe of investors?
bald_eagle on 24-07-2022
"...due to almost zero chance of a loan at the moment .."
Altyn on 25-07-2022
Behold our shiny new loan.
Humble pie for breakfast? ;-)
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The issue the auditor stated in their qualified opinion in the annual report has been read and discussed by those interested, the prepayment has largely been converted into increased production. Derampers will have to look elsewhere for rocks to throw.
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If this loan is converted into an increase in the operational mill capacity from 605,724 t p/a (q1 2022)
to 1,000,000 t p/a
then that 65% increase will be reflected in increased turnover
turnover for year to 31-12-2021 = $50m
The loan and interest should be easily covered by the increased cashflow, well before the end of the term of the loan.
Two other companies reported fund raising today at 12% interest and share warrants and risk of bond converting into shares. Altyn's 6% loan says that it is not viewed as being on the risky end of the investment scale.
"The auditor did sign off the accounts and has applied to continue in their role as auditor for the company. "
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StoneFold, Just for clarity, what was the issue with the auditor that caused the delay in the posting of the final results?.....and why did the SP drop after the issue with the auditor was uncovered?
If the auditor signed off the results then they must have been 'happy'.....so why all the fuss?
Excellent news.....and the CEO even mentioned a dividend policy (again).
What was all the fuss about funding? They trawl the financial markets of the world and come back empty handed. Then they go to their local bank bramch and get a big loan at very good interest rate!!
No more excuses not to deliver 1mtpa within 2-3 years.....to infinity & beyond.
Outstanding result and credit where it is due. I expect Altyn has benefitted here as the Kazakh banks are being directed to take a more active involvement in financing key Kazakhstan projects due to the substantial loss of Russian capital, but frankly who cares how and why - its the money needed to move the development on, the interest rate is excellent and repayment over a 6 year term is comfortable.
The auditor did sign off the accounts and has applied to continue in their role as auditor for the company.
The interest rate they have now got for the loan is probably better than they would have got from bonds, worth waiting for.
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Today's RNS
"Funding update
AltynGold plc (the Company) is pleased to announce that its application for an additional credit line for an amount of US$40m from Kazakh Bank JSC “Bank Center Credit” (BCC) has been approved by the bank’s credit committee.
The loan is repayable in instalments over a term of six and a half years and bears interest at 6%.
The loan will be used to expand the capacity of the processing plant to 1mtpa in anticipation of the expected increase in mining production at Sekisovskoye.
The signing of the loan agreement will be carried out after passing the necessary internal procedures of the Bank. The Company will update shareholders as plans progress.
Altyn’s CEO Aidar Assaubayev commented:
“The goal was to obtain the necessary financing at competitive terms and in the best interest of shareholders. After exploring a number of opportunities and an extensive due diligence period we are very pleased to update our shareholders on the funding approval. The proceeds will accelerate our growth strategy by expanding production and processing capacity towards our midterm target of 1mtpa. Timely execution of this ambitious plan should set the stage for a sustainable dividend policy.”
What was that, Baldy? LOL.......
With debt to repay and mine development coming from profits - due to almost zero chance of a loan at the moment - it seems that any chance of a dividend seems remote.
Capital gains requires that the SP increases from the historic lows we are seeing.....and that is due to confidence that the management has to restore. Having an auditor that will sign off the books is a 'good' start.
The BOD have about the lowest wages out there (CEO on $41k) and if you look the main shareholding family have been lending the company money in the past rather than taking it. Dividends can't be done for now as there are accumulated losses from the past, despite being highly profitable now, and the rules say you can't. So you can get capital gain instead as they build up the company, then eventually a dividend when profits exceed past losses (maybe 2 or 3 years). If you need the money you just sell a couple of shares and pay CGT at a lower rate than income tax. Hopefully with the current pe ratio where essentially the company makes profits of what you pay for the share every 1.5 years, capital gain will be coming.
Look even some one bought 2 shares , what on earth is that ? probably to risky and 28 shares that must be very risky or pushing the boat out ? shows no one trust these clowns at all ?
Just bought some more gold shares but it def not this one ? I want a dividend ? I want to invest in a company that delivers ?
Buy these and see your money disappear into the B.O.D clowns pockets ? They sit on their arse holes laughing all the way as we suffer years of drops !
When they sell the Co, the main market listing will be very attractive to many suitors....
The listing allowed them to raise money via convertible bonds (which have been repaid/converted) and non-convertible bonds which will be repaid later this year ( share options incentivised full bond issuing). Service providers have also been paid with shares instead of cash. All the broker has to do is convert the prospectus for the russian bond into english and sell bonds in the UK.
"The chances of them raising significant funds in london now are virtually zero with that qualified audit report.....therein lies the issue and is why we still sit at 90p mid."
And nothing as far as I can see to stop them making a tender offer to take the company private or simply delist the shares. The company is cash generative and the London listing isn't offering any route to capital, why bother keeping it especially if you pick the rest of the shares up so cheaply.
You say all that but the company is making money. The only issue is the share price. Over time as results get better that has to improve. There is a price for everything. Right now this is trading at under 20% of the PE of much worse companies....I believe that more than allows for any issues
Who would invest in this the record speaks for itself , Years of misleading operations , Years of mis-targets , Years of false declarations . On reflection this has been a shambles and anyone thinking to invest my advice would be " WOULD NOT TOUCH IT WITH A BARGE POLE ."
Since 2009 the share price has gone down thanks to mis management !
Don t trust these Clown of Directors they are money grabbers stealing your hard earned dosh !
"It would help if they issued a half-yearly report not just production figures."
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jt321, they did issue a half-year report on 6th September 2021. You will have to wait until September for the next half-year report....unless it is delayed of course!
It would help if they issued a half-yearly report not just production figures. That would start to restore investor confidence. Not that I'm worried but I do think current sp is mad
The point is why go to all the effort and expense of obtaining a main market listing to try and attract capital and liquidity to then throw it all away with a "misplaced tick in the box"!.
The chances of them raising significant funds in london now are virtually zero with that qualified audit report.....therein lies the issue and is why we still sit at 90p mid.
jt321, I hope you are right....that this was simply a misplaced 'tick in one of the boxes of life'.
With no realistic source of external funding - apart from a loan from dad - every penny is important & must be accounted for.....rather ironic because this is a gold mine!
I was being a little facetious bald eagle. Of course credibility is important but it's also important not to lose sight of the big picture. This was not a bad deal against the interests of the company. It was a good deal just incorrectly documented. You have to tick a lot of boxes in life. Your passport application will be rejected if you use blue not black ink. But it doesn't mean you're a crook. Hopefully they'll pay more attention to proper documentation from now on
"Who cares?"
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jt321, lots of people. Credibility is really important....especially when they need funding.
Who cares? Water under the bridge as far as I'm concerned. So they lent some money to a supplier so they could carry out the work. Supplier has nearly finished the work. Who has lost? No one....in fact the supplier dug up lots of gold for the shareholders. Can't really see the problem here.
The biggest issue with this is they are a main market listed business seeking large investment to fund their expansion plans. Up until now they have failed to get any institutions on the register in part due to management credibility and part geopolitical risk. Consequently strong governance and adhering to regulatory requirements should be of paramount importance to them in order to rectify these perceptions.
Funding options have obviously dried up in Moscow and hence they are now talking about getting a UK broker. They have completely shot themselves in the foot with this qualified audit report as it will now be nigh on impossible to attract funds in London; even more so than before.
Remain invested, admittedly at a reduced level, just because the valuation is crazy low on a pure PE basis; nevertheless they are not helping themselves and personally think the road to recovery is going to be a long one. We have not even really bounced back from the recent lows.
The company made it very clear in the last AGM that this problem won't be happening again. My view is that they're a growing business, and very busy just making it work and with the problems brought in by the last couple of years. In circumstances like this sometimes you get behind on paperwork - I certainly do - but they'll make sure this isn't a problem in the future.