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The logistics involved with the expansion must dictate the progress. Sourcing materials manpower and maintenance within a fluctuating budget. The situation must be fluid whilst the work programs are carried. One day the production will be up and next day it will be down. It's only when the phase is complete we'll receive a truer picture with the production side. I don't understand why the impossible/changeable answer questions are being asked tbh
I'd give a left arm (not neccesarilly my own) for a reasonable explanation for this fall. It looks like a plain old sentiment capitulation. But on a new outfit with presumably relatively fresh shareholders, even that looks like an unlikely scenario. For a company to be already cheap, with an output rising in both volume and price and no bad news whatsoever, to lose half its market cap.... very strange, even for the current basket case times. People aren't willing to buy an actual producing gold company at less than its value, but will happily buy (and show off) a fractional ownership of a piece of crap "art" that only exists as an intangible asset in the metaverse? World gone mad. If this market were an episode of South Park, I'd think it a bit far fetched.
The amount of gold sold is anomalous as against gold produced. It is also hard to explain given the financial needs of the company. Hopefully, the Stockbox interview might have covered some of these issues. Sometimes they do step up to the mark when it comes to these interviews and ask the pertinent questions, rather than just give a free ride to the CEO to pitch. If this one is 40 minutes, we should learn something about something.
It would be useful (to me) for Robbie to clarify what the mine is currently capable of processing per month, the mix between tailings and CIL and why if the capability of the mine is 2000 oz per month, why is the gold sales are closer to 1000oz for 3 months.
But the interviews are done, hopefully the Stockbox interview answers some of this. If not the next clue to progress (albeit on the resource to be mined) is the MRE….
I think there's some confusion about the results but how I see it is, Production, after phase 1 they proved they could reach 1000 oz per month, Now they're in expansion phase 2 at the end they'll reach 2000 oz per month and in the meantime whilst they carry out their work programs the production & costs will be up and down.
Exploration, they have given the best 6 results so far as they continue to increase the strike length and depth. There's more results to come and it will increase the JORC resource as we move forward towards the end of the year they'll probably be another JORc increase inline with production increase
I think the declining share price has at least drawn out some discussion around some of the potential difficulties and challenges that still lie in the way of achieving the 24Koz, and maybe explained why the re-rate criteria and milestones still lie ahead of us here? The discussion has certainly helped me in terms of my expectations. In summary, we have some critical milestones to achieve over the next 4 months (increase measured resource, finance the plant upgrade, increase gold sales, etc), which if they go well, should mean that the share price will take care of itself within this period and upon successful outcomes.
Serious question, if you were having your car engine rebuilt and upgraded would you be concerned about the MPG along the way? It looks to me like they're doing a thorough job and will be completed before Xmas.
Yeah. It's a small, new company with a fairly simple setup and proposition. It's hard to imagine where there scope for some sort of gremlin hiding in the works. They don't have a carpet to sweep anything under or any history to have skeletons. For now, I'm still buying (got .68 this morning) but each buy is starting to feel more tricky, despite the fire sale prices.
Well im not selling got to be some blue days soon enough hopefully and some good news, but i also agree with wolfy i wont be adding to lower my average just going to sit on my hands and hope this plays out well. GLA, and that was me thinking when i averaged down before i was doing well so i thought to myself haha.
I hear you on the cash position. - On drilling, 2/3 of the initial drill holes are complete. - On production expansion 2 heap leach pads are just about good to go. - Once I use we could be at 3000 oz a quarter, 12000 oz per annum - That should pay for any drilling and I hope (if needed for additional HL pads - The expansion of the CIL and tailings production - this is where I suspect money is needed.
Again wait and see, however I being in the cusp of production from the HL pads helps boost the cash position. ..
Not wishing to go from one elephant and towards a herd, but I suspect some might also be waiting for clarity on the finances as well. (It's one of the factors that's keeping me from adding to my position here). It seems to me that it will be Q3/Q4, when all things being well, we can expect the ramp up in production. Hopefully, it will also be accompanied by an equal ramp up in gold sales, which are low at present (and need explaining by RM?) What we don't know, because this last update didn't really go into it (unlike the last one, which did, but without any figures), is our current cash position as against our costs and expenditure into Q2/Q3. And therefore, we don't know whether and what any shortfall might be, other than RM confirming that they will need to return to the market.
Thanks for the replies, really good points there. I took the 61Koz from page 15 of the Q12022 corporate presentation which is for Kilimapesa (Kilimapesa Hill and the Red Ray deposits). For me, that helps to explain the SP movement somewhat. lol Suggins - think they meant 1875m. GLA, Dan
This discussion has left me thinking the following: 1) Is it a bit early for a JORC update, when they have so much drilling left to undertake? 2) Will they have enough drilling results to make it a meaningful exercise? 3) Will it be independent consultants who are producing the JORC update for us - and if not, does that matter?
A lot of the measured would have been mined already, that's why the converting to measured is key in the upcoming resource statement, which is what they are doing.
As always you have to remember they are doing things the other way around by having a plant, but not enough measured to feed it. Which is the opposite of he usual progression of a company building a Resource, converting those ounces to Reserved, after being backed by a feasibility study, to then be able to submit a business case to get funding to build a mine/plant.
Maybe that's some some are waiting before investing.
It certainly can't help and I fear that you have overstated the current JORC resource which is only 13,000 oz in the measured category for Kili Hill (and that statement goes back to 2011ish). It was reviewed at purchase but I think that review was by the same person who made the original statement so hardly truly independent.
From recent sampling and drill results it seems clear that the modest 'measured' JORC levels simply reflects a lack of evidence/sampling rather than a lack of gold though.
Maybe in error, but I know what you were referring to! The interview where Robbie said 'a promotor like me' is interested in drilling new targets, but Mr Lombard and Mr Bizouerne are as excited to convert ozs from inferred to indicated etc. It was an interesting comment.