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That's Military agro for you! Hopefully now it's over we should steadily rise back towards 40p.
I genuinely thought that PoG would have seen this back at 25p at least by now.
Anyway, have a Happy New Year one and all.
pablo2
I’m not a great fan of guys in Artem’s position expressing a view on the share price - that’s our job, not his. Hopefully he is right though. It will take some time for the likes of CGH and AAZ to recover the sentiment lost through the recent conflict.
That's a decent Top up!
Reckon that's great news today re-organising the loan so it's all settled till well after the gold starts pouring from Tulkubash.
Got an email back from Artem yesterday, after I asked anything taking the sp down, any news coming or are they hunkered down for winter :
Hi Pabs,
We are still working - in our countries of operations, holidays start from 1 Jan.
Share price is unjustifiably low. No particular reason, may be after-march of the war in Armenia, but we are doing very well there in spite of all. Yes, we plan for operational update as usual early in the new year and working hard on all other fronts as well
Merry Christmas and Happy New Year!
Best,
Artem
*50,000 shares in fact
Well, FWIW I bought 5,000 shares and also topped up my SB on the back of it.
Any thoughts?
Lobsi,
You need to understand the nature of the assets. The Armenian operation has only recently been acquired and was underperforming. This is gradually being improved and the EBITDA contribution is growing but it is polymetalic so the gold price alone is not the only factor and capital investment is ongoing.
But the larger asset is in Kyrgyzstan and this requires a lot more capital.
It is hardly surprising that the company as a whole is not profitable even though Kapan is. Better to judge on the assets (which are very large) until Tulkubash is operational.
I asked Artem what he thought of the political situation re. Armenians dissatisfaction and that article maybe suing us in the Krygyz. He quickly replied last night :
Hi pabs,
Armenia: the peace is likely to hold given the presence of Russian peacekeeping force. The politics is politics and will follow a proper democratic process.
KR: The legal case is not against Chaarat, we are not being sued and there is absolutely no grounds for any legal action against Chaarat. It is just that our name was mentioned in the press and we need to stand up for our clean reputation, which we will absolutely defend.
Best,
Artem
-----------------------------------------------------------
Hope he's right in Armenia and doesn't seem unduly worrying now in the Krygyz
This is a gold producing company however inspite of rising gold prices they have made a LOSS !!
Why ?
What is the 142m valuation for - even after the fall it looks expensive
Conflict in area now looks to be over. Great RNS for holders but is strangely quiet here
On track despite Covid and area tensions - looking to mitigate risk to ensure target achievement. I’d say the recent insider by was a very good one
Significant?
They have assets in a war zone and a country that has just changed power in dubious circumstances so it is not surprising that there is some disquiet!
Yet share price continues to fall? Anyone any idea why such large drops?
The military action in Armenia must be pretty bad!! The share price as nose dived over the last few months?
I think that if you are aware of the history here you would probably be more appreciative of what MA has done but let's not kid ourselves - if this works out he will be amply rewarded for taking the risk of working with projects in difficult regions.
I would slightly disagree with your assessment of timescale. This is not an annual thing as I recall - these loan notes were taken out before 2019 I believe. But, yes, he has been amply compensated. Of course, if it doesn't come off then he will be up the proverbial creek, although quite often these principles seem to manage to avoid the worst of it somehow.
So, no, I don't believe that this is a scam but I would become less impressed if we don't see a financing package in place in time to see progress on Tulkubash in the spring.
By the way, what do you consider 'true value'?
The original Lender is not Labro but someone else. Labro just guaranteed the loan of which $13.5m is now being repaid to the Lender with Labro taking on the Loan. The Lender's remainder of $7m will be repaid by year end with a further debt being arranged.
Martin has not been 'averaging down' as we think his average is definitely under 20p so he has been averaging up the last few years. Political trouble in Armenia (v Azerbaijan) but miles from Kapan, and now trouble in the Krygyz but completely not affecting anything to do with Tulkubash on the ground is concerning - get through these troubles, get the extensions at Kapan accessed and get the major project financing done and the company will go from strength to strength imo
Admittedly, it is rather like spinning plates but nothing untoward. Martin A is and has been supporting the sp and long may it continue, why wouldn't he? Having a Chairman with a 40% stake to me is a guarantee this will not be allowed to fail.
Perhaps someone from this group can help me decipher the "debt Restructuring" announced by the company. having looked at that what I see is the following;
1. The company was unable to repay its debt which was already extended once.
2. The major shareholder who initially guaranteed the loan, therefore, had no choice but to repay the loan and in return has been granted in total 27.5 million shares for free. Those are worth 11.35 million dollars.
3. In order to replace a 13.5 million loan the major shareholder is getting 11.35 million in cash plus interest of 1.3 million per year plus fees. So in one year, he is been getting the full loan back but the company still owes him 13.5 million at a ridiculously high-interest rate.
4. This "drill" seems to be repeated every year with the major shareholder getting more and more free shares.
5. At the same time he spends some money in "keeping the share price high".
6. its very nice that the company has a large supportive shareholder but he sems to be lowering his average share price all the time preparing fr the day the shares will fall to their true value.
7. what wil lall the suckers who bought the shares basen on its "supported level" do when that happens?
does it smell like rot to me only?
The fighting is just over 90 miles from Kapan, that's not far considering there are some field armaments that can fire that distance.
261k oz silver produced in H1. silver prices soaring.
"With US$4.2m Kapan EBITDA contribution in July and a similar expected profitability for the remainder of the year"
$4 million ebitda per month. 60p target.
Chaarat Gold - Armenia update
Chaarat Gold (AIM: CGH), the AIM-quoted gold mining Company with an operating mine in Armenia, and assets at various stages of development in the Kyrgyz Republic, provides an update on the current situation in Armenia.
Military action started several days ago between Azerbaijan and Armenia in the Nagorno-Karabakh region which is about 150 kilometres away from Kapan. After the events of Sunday, 27 September, the government of the Republic of Armenia declared martial law in the country.
The impact on the Company's operations has to date been minimal. Management and the team on the ground continuously monitor the situation, have business continuity plans in place to react quickly to any new developments and monitor supply chains on a daily basis. The Company will provide an update on the situation as and when appropriate.
Not holding but worth noting both AAZ (Azerbaijan) and CGH (Armenia) are exposed to this conflict escalate. If Turkey continues with it's sabre-rattling it may well draw in larger military forces to the conflict, namely France who have condemned Turkish military support of jihadists in Libya and more recently Mali.
https://www.bbc.co.uk/news/world-europe-54356334