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"Re funding. He clearly stated any raise would be for kilampesa and not for Tanzania."
Thanks for your posting Penzance and for confirming the above.
Hmmm.
My thoughts exactly.
It really could be tomorrow, or first thing Monday?
That is a great cue for the Q1 production figures Joff - fingers crossed tomorrow maybe?
Confidence has gone across the whole market full stop. The drop in SP is not entirely due to anything Caracal has or hasn't done.
I think everyone is shocked and as investors we look at the stocks we are in and ask why has this dropped so much but if you look at the whole market it's nothing different to any others.
Confidence is low but we all know when we are in a slump now is the time to load up.
I think confidence will return here quickly as the many pieces of news that are expected start to drop.
GLA
I was on the Zoom meeting last night. I’ve never posted before so you can take from this what you will. Firstly I am invested here. I am holding so no agendas.
This is what I took from it.
Robbie sounds like a very decent bloke. He was very honest and didn’t hide behind anything. Was forthright in his answers. Fronted up. Apologised for the RNS mess up without blaming anyone but you knew what he was thinking. I think a fair bit of confidence was lost in Germany as a result of this
Re funding. He clearly stated any raise would be for kilampesa and not for Tanzania .
He spoke as honestly as he could about the seller but couldn’t give exact up to date details as was waiting on the next report.
As I said I will be keeping my holding. I won’t be increasing my holding at this point. I just didn’t get the full confidence from Robbie. For me it was hope albeit strong hope rather than true belief. That was probably on the back of the SP taking a good kicking. He is clearly putting the work in to drum up interest but I’m just not as confident as I was. I want GCAT to do well obviously selfishly but for him too. I just hope it’s not the kind of hope of supporting Tim Henman at Wimbledon. i.e. you know he’s not really got it but hope he gets lucky. That’s how I feel about it at the moment. My hope is there hence keeping my holding. My belief has wavered a bit so won’t be getting more
@Legalwolf
All will be revealed as they are working on the details, costs, expansion plans etc. as we speak. First waiting for the resource update statement to be published then we will all find out.
In the meantime if you have any questions you need answers to like that, I would strongly suggest you ask Robbie directly, he's easy to contact and there have been a few opportunities recently to put questions forward to him (stockbox interview for example and he kindly too part in the TG zoom meeting last night).
He's a very approachable guy and will give you any info he's permitted to give, but your question certainly can't be answered by any member on this BB
Not a clue, legalwolf but we have some results released. Robbie and the team will have more info than has been released (I think they released the highest grade strikes as a bit of a feel to the results). They will already have some idea of what the results will do to the measure and inferred numbers.
That Robbie is in town, enthusiastic, upbeat, banging the drum about Kilimepesa suggests he thinks the drill results are good enough to support the mine expansion plans.
According go the presention:
Kilimapesa Gold
Measured 61,462
Indicated 123,190
Inferred 486,796
Total 671,446
What sort of uplift do we realistically need to see from this next JORC upgrade to the measured category to support the 24Koz expansion?
ID78 - agreed about the need for a pragmatic and staged approach. I understand the current resource is 671 446 ounces, with a target to increase it to 1 million ounces in the short term, and eventually 2 million ounces (but improving on the quality of the resource and not just the quantity). I believe very little of the current resource has already been mined at Kilimapesa.
RM comes across as well and credible. I think the jury is very much out on whether he is switched on. I personally would question the 'wisdom' in talking about a possible market raise several weeks/months in advance of it being needed. Better to simply bury such questions under a general 'we are well funded for now but will look at future funding needs and options in due course', like most other CEOs would do. I would question how his approach is consistent with his desire for share price growth in advance of the next stage of funding?
Red Roy - thanks and I agree. I've taken a bit of stick on here for suggesting funding might be needed to get us to 24Koz. IF it is, this doesn't mean that there are not alternative options. Interesting that there was no mention of Tanzania when RM was just asked about immediate plans.
@Legalwolf - I should add that if Robbie is taking this pragmatic approach then funds were raised for getting the mine up and running to the point of heap leach pads.
The final step of stage 3, to get to 24,000 oz per annum, the board perhaps decided not to raise the money until they were able to show it is worth doing the mine expansion (by increasing the measured resource). As such, the fund raise in Q3, all being well, is for the final stage of expanding Kilimepesa. It suggests a pragmatic and prudent approach to the mine expansion.
All eyes on the updated resource numbers next month! I think that it should include 5200m of RC drilling on the hill. The intial intention was to drill 12000m, which has (encouragingly) been increased to (I think) 16000-17000m RC drilling. So the update next month should include approx 1/3 of the hill drill results.
Again the hill is one of 10 (I think) potential drill targets at Kilimepesa.
Hi Trek - here's the thing - it wasn't a clique - the invitation went out to 250 members of the Telegram group - it was short notice because it was arranged at the last minute but open to a wide audience. You are welcome to come and join the group - not elitist in any way. I am teaching you to suck eggs but these are BB's and unless you hear from the horses mouth then wait for official news. Nothing was discussed last night that was market sensitive. Check out the link below - Robbie has just been interviewed - short but good. Lets wait for the Q1 results and of course the forthcoming assay results and revised MRE - in the meantime hope to see you on Telegram and if another Zoom meeting is arranged which I hope it will be, you will be able to grab a front row seat.
ATB
My sincere apologies, I didn't realize that this would cause such a storm. Yes as you all now know there was a last minute investor meet set up on TG and I am in both TG Groups. All questions were answered and If I'm correct about 40 people are now very happy investors who had their sometimes questionable questions answered. My firm belief is that the selling leading to the sp being down has been due to yes a number of factors which I am happy have now been resolved to a manageable level. It seems that ex partner is not very good at figures which I would say lead to some shareholders questioning the stock.
Caracal has gone from strength to strength and its value has gained with it. SP has had a weird time of it recently after said ex left and the reshuffle but I do believe this is now the beginning of a very strong and successful story. Robbie is a CEO with passion, tenacity, honesty and a CEO with the shareholders at heart. A set of qualities I admire and I will be putting more money in as and when it becomes available. Sooner rather than later hopefully as I strongly believe this will be over 2 before the next 3 months is out. Considering Reports and news rich period that we have to come.
Totally agree Trek, any Company CEO should not be revealing Market sensitive information without an appropriate RNS containing that information .
Legalwolf, if the existing process plant does not have the capacity to produce up to the 24kozpa, then upgrading/purchasing of more grinding, classification, concentration, CIL tanks, elution and electrowinning plant will be required. The extent of this has so far not been revealed, but it is likely to require Capital funding at some level, if the targets are to be met by the end of 2022. This does not necessarily mean by means of purely Equity raise, but may be done by Streaming Pre-Payment and/or secured Debt. I expect this information will be RNS'd in the near future.
Hi JC,
I posted Nrin’s comments.
This is the problem with ‘cliques’. Like it or not hares are set running. Not switched on. Flipping naive!
Yes I have emailed Co before. No reply but I will again over this and suggest he does an interview for all!
I also have a big position here for me. 4m shares which I intended to build on as the company grows.
Good luck with your investments
Trek
@legalwolf- the more resource the better I suppose wrt funding and funding options.
Or perhaps it suggests a pragmatic approach, we have 61,462 oz of measured gold at Kilimepesa. If we invest to upgrade the mine to process at 24,000 oz per annum that is a short mine life (and we have already processes some of the 61,000 oz). So- why invest in the mine to double the throughout?? I believe the board want to increase the measured resource to have confidence the money is well spent in the final upgrade to get to 24,000 oz a year.
As I said though, yes it may help with funding. It may lift the share price, or maybe it will help with an alternative route to funding (debt). Time will tell
Trek - there was nothing in anything that Robbie said last night to the best of my recollection about any 'issues' that has caused the SP to drop. When I refer to 'issues' and I am presuming you are referring to 'issues' I am referring to issues that the company can influence - not the SP movement which they can not control. There has been selling - no one knows the underlying reason why holders have chosen to sell - how would anyone unless the seller told the company? - Robbie did also point out that this is a very liquid stock at the moment with the volumes of boys and sells. I don't think he used the word 'traded' but that was my impression for a number of the transactions going on and frankly my words, not Robbies but I am in other stocks where this is prevalent at the moment as well. He did mention that the company are trying their best to understand any large stock movements and have engaged with Vickers to produce reports but it is not an easy endeavour to always identify beneficial holders with layers of nominee companies etc. But they are trying and from my understanding, if they identified any wrong doing during the course of their investigation re TR1's for example then appropriate action would be taken. I don't think we can ask more of the company personally. I doubt very much whether they can share the detail of any report given the confidentiality agreement between Vickers and anyone engaging them - again my thoughts only.
In summary I don't believe that there was any market sensitive discussion last night - Robbie is far too experienced to fall into a trap like that. Remember that you are reading a BB and the thoughts of some who were on the call last night - none of us speak in an official capacity for the company. If you have any specific questions I would suggest you email the company.
For my money and I have a sizeable holding here - Robbie is very switched on and a great CEO.
“ I'm very happy that all seller issues are being if not have nearly been resolved and we can move forward.”
So what seller issues? Which ones are yet to be resolved?
It’s ok saying RM is ‘switched on’ but it doesn’t sound like that from where I am sat. If there were issues that have been so significant to cause this SP drop then why is only a select group of investors in the know and not the market.
This should be followed up with an RNS reach or interview. It really isn’t the way to run a business.
It just leads to miss information and against this selling that is not helpful. Far from switched on!
Usual caveats
Trek
Thanks Ba55Man - that does tend to confirm that funding is indeed required to get us to 24Koz at Kilimapesa. Hopefully, RM will say more about this in due course and the options they will explore.
ID78 - on your earlier point about the JORC upgrade, could it be that they also need the upgrade to secure alternative funding options?
Thanks again Ba55Man.
Off topic- interesting username. I may be well off the mark, but if I get the 55 correct, you’ll be the same as me this morning, very disappointed after last night.
I'm not sure if specifics were given, but he did say that some would be required to get us to 2000 Oz p/m.
Thank you Ba55Man, much appreciated. Can I just ask one more question about this, which is that when RM was talking about the possibility of funding in Q3, did he specifically say whether this funding was in relation to Kilimapesa or was it for Tanzania?
To put it another way. The board need a decent increase in the resource to have confidence it is worthwhile spending on the full mine expansion… at Kilimepesa and this is why there are 3 steps to phase 3
I had previously thought the mine expansion funding was for Tanzania. However if we are waiting on the MRE updated from Kilimepesa this suggests the mine expansion is a consequence of having more ore (increased MRE) and so increasing mining capacity. This also makes sense when we consider phase 3 at Kilimepesa I think is in 3 stages. Presumably depending on how much gold we find.
So my feeling is fundraising is for Kilimepesa and Tanzania is in addition. Nevertheless, we have a mine, we have the heap leach pads and are a lot further down the road than the likes of CORA…. additional fundraising on Kilimepesa will not be as great as if we were starting the mine from scratch.