Our latest Investing Matters Podcast episode with QuotedData's Edward Marten has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Q1
54,121t of ore was processed at an average grade of 1.75g/t Au, resulting in gold sales of 1,226 ounces
Q2
A total of 58,722 tons were processed through the plants for gold production of 746 oz of gold during the quarter
Is this simply a reflection of lower return rates of heap leach ?
If all Q2 production was via heap leach at the advised recovery rate of just under 50% then that would mean an input grade of around 1.26 g/t I think.
I suppose that is news out so bound to be a drop in price now.
If they have moved from Maghor to Vim-Rutha then it suggests to me (as they now have the 10 year mine life) they are trying to drill the entire prospect quickly to raise the inferred value, then return later to improve the quality (raised the measured and indicated figure). Anyone else have a view?
I wasn't expecting much from Q2, steady as she goes then.
Q2 Operational report is a welcome update and lots of good progress across the board with further reiteration of the 2koz gold production target for Dec-22.
Known Knowns:
> Nyakafuru project acquisition now confirmed & paid for
> plants 1, 2 & 3 are now effectively working at very low 265oz/month combined average throughput
> Plant 2 Tailings is now offline for optimisation
> Plant 3 HL has 2 pads confirmed as operational, but judging by 16kt reported as loaded onto 7.5kt max load pads implying 3 are now in use going into Q3
> Q2 Mine output was lower as ore storage is full as Processing plants not using as much ore
> Mined ore grades to respective stockpiles consistent with Q1 mined output
Known Unknowns:
> Combined production output =746oz so no idea which plant produced what, at what grade or %efficiency
> HL cook cycle time linked to 49.2% recovery figure has not been stated
> Red Ray exploration licence confirmation outstanding and no update provided
> Plant 1 main plant uptime and/or upgrade scheduling not reported
> Nyakafuru project mine build costs & funding details not provided
> Acquisition of Nyakafuru Reefs and/or Simba project details not provided
In Summary:
No analytical production updates can be sensibly provided due to paucity of data provided, but mined ore output reduced as no space to store anymore. We also know that Plant upgrades progressing to 'plan' to achieve 2koz/month by Dec-22 with good pipeline for expansion drilling due over coming few months to inform Oct-22 updated MRE.
ATB APR
On the subject of MRE 2 (or 2nd update, whatever you want to call it).
Does batch 4 contain just infill drills i.e. move over more inferred into indicated
OR does it also have expansion drills in it? and if so, does anyone think it will have enough to take us over that 1 mil mark?
Indeed - Last 4 months should be really exciting.
Going from the June Presentation you have some key stuff to look forward to before the years out:
-MRE upgrade 2 - includes batch 4 samples
-Drilling started for regionals in KPG - RNS today confirms
-1st results from regional drills in KPG
-Drill start in Tanzania projects
-More ongoing drill results from Tanzania and KPG Regionals
-Finalize and commence commissioning of KPG
And of course ideally hitting the 2k oz per month target (although that figure getting hit may well not be released within the year, but just after depending on if they release as part of quarterlys or as a one off we hit it RNS).
Thats a nice flow of info if all ends up positive.
Decent RNS today all gearing up for a grand finale to 2022
The recent research note gave a heads up that the Oz would be up and down due to programme works and so I am not at all worried by that.
Main detail is on course for year end target of being able to achieve 2k oz in a month.
The drills are coming into their own too allowing us to drill other areas etc. Great to see.
"leg up"
Might see another leg as on full asking price.
I wonder if someone actually read the numbers of the tons processed on the heap leach plant.... The potential go figue...
Not a bad update still feel there's plenty more to come!
As expected the production would be lower you just can't go by grades to make figures work.
I'm in the black on my main account. Still a bit to go on the others. Fingers crossed for this to break .90 today. It looks on.
The spread was put out following the RNS as it’s SETSqx and the MM didn’t know what to do! That way they cover all basis until some orders come in.
IMO Not clear blue water yet financially but sentiment is definitely lifting with buyers looking to take a position below a penny.
Usual caveats
Trek
A minute later and 86 vs 89.
The spread started at .8 this morning. Now, 20mins later, I can buy for 84.8 and sell for 85.2...... all over the place!
Agree JC , we are right on track.
Very happy to.
This is a very good RNS in my view. For me it was never going to be about produced numbers for the quarter - it was always going to be the case that production would fall as they progressed the updates. To use the old analogy of Formula 1 - try changing the tire when the car is still moving! The company has made great progress on all fronts and importantly they are hitting the milestones to achieve their stated strategic targets. The 24K oz pa run rate is on track for the end of the year. A reminder to anyone sitting on the fence here - look at the progress - consider the Market Cap (ridiculously low) and the goals and aspirations of the BoDs. I am very happy personally. ATB
Processing etc was a little dissapointing, was expecting more but a lot of good news/positive statements are in there.
I got into GCAT with a several year commitment so as long as they are progressing the bigger picture I'm happy to take a hit in quarter whilst they upgrade etc
I am pleased well surprised they have increased their targets against a market that was not convinced they’d get there next year…
“ Output from the underground mine and the open pit are planned to steadily increase of the next six months with mining and processing capacity planned to reach the targeted rate of 24,000oz pa by year-end.”
Pretty impressive from a lay persons perspective
Usual caveats
Trek
Initial thought Is that the heap leach recovery rate is a bit disappointing at 49.2%. The earlier pilot results had a slightly higher return over a (assumed) shorter 14 day period.
Update has landed !