Shaun Day, Greatland CEO gave an upbeat presentation to over 800 London South East investors. Watch the full video 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 and have access to Premium Chat. 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.
I have spoken with the sprott guys about their thoughts on the Gold price movements and their thoughts are that it will bounce around the $1700 mark for a while could even dip below before rebounding with further strong upwards pressure being seen into 2022. If China starts purchasing aggressively then all bets are off.
At around $1700 it allows most organised producers to operate on healthy GPM's and anything above $1900+ and you are printing cash
What they did say is that if you are looking to make gold aquisitions it would be a good idea to treat the next few months as an opportunity to buy whilst the price is trading toward the bottom of the present range.
If you have read the business plan, aquisitions form a part of the growth strategy here.
I'd rather get any purchase contracts buttoned down now while there is a narrow window of opportunity to aquire gold assets at a discount.
I'm also more than happy to see the production increases take off next year into a rising gold environment.
Worked really well for all the oilers I picked up for nothing at the start of this year that were acquiring development assets for distressed valuations.
They have all seen rapid SP gains since.
P.s for shifting political reasons I can see a scramble for Tanzanian assets over the coming months.
Those that have seen the pro mining speech by their PM will know exactly what I'm referring too.
If we are close to a deal there, I'd like to see this concluded ASAP before the mining licences over there become the next 'hot' property in global exploration.
I think the BoD have the right strategy here.
I would prefer them to leave the dealing well alone until they’ve shown they can deliver with the digging.
Nothing from GCAT on Twitter today is that a sign of RNS in the morning? Potential asset maybe did say in the interview a month ago we’re in advanced talks.
Thank you for the detailed response.
Not with the existing plant hence the multiple upgrades planned which I detailed in an earlier post that I took from one of my German sources.
It will be a combination of ongoing enhancements to the existing plant whilst all the while growing the resources base from the planned exploration and aquisitions.
Shanta are planning to move from a guided 50,000-60,000oz output this year to 100,000oz next near and that is with 1.8Moz of which 1.1Mox is I inferred with ongoing drilling.
So. In essence if they prove up from a combination of exploration and buying in ounces to reach a target of between 2-3Moz+ they will have more than sufficient resource to warrant further cap-ex on a additional mill equipment.
Alongside drilling for ounces from the surface drilling they will continue to drill for structure to improve the economic recovery but at these levels of output you really do start to throw off a significant amount of cash which one would expect an element to be continued to be re invested in continued improvement to infrastructure, capital equipment and workforce.
If they can create a regional hub & blueprint for production at Kilimapesa then aquisitions of surrounding gold land holdings can all feed in creating much larger scale mining operation.
For clarification, the 1000 ozs is production per month and the 25,000 and 100,000 figures are annual production.
You seem to know your way around the goldies.
I've just listened to the First Look Ventures video as attached below.
I note that at around 27 mins 50 seconds Gerard Kisbey-Green says that 1000 ozs should be achieved by the end of the year but 25000 ozs will be a bit further out than 12 months. He then goes on to say at 45 mins 13 seconds that he sees Caracal producing 100,000 ozs in a couple of years. Is such a leap forward feasible ? A further 75,000 ozs in 12 months.
I like to simply maintain a focus on the growth opportunities that exist in the core business over both the near, mid and long term and we certainly have numerous catalysts here which clearly resonate with the institutions position building
I've just been scaling in at this level because there are some very near term updates due on both the ongoing optimisation of the plant, which is in the process of being upgraded & switched to mains grid connection (delivering a cost saving and ESG benefits) alongside additional grading equipment and the new tailings reprocessing plant which will improve the gold recovery further.
We then have the multi target exploration programe, further licence aquisitions, further II investment (both European and African Ii's) and further expansion in production operations.
Well reasoned response, S-T.
Just for the record, I hold ggp as a lth having re-entered at 16p-18p after reading out above 30p, and also recently gcat for a few million, for a short term higher capital gain position. I am a long term gold bug so always looking for new undiscovered or oversold ideas in this sector. Yes, Cora is a good one too. This sector is vastly overlooked, globally, but its time will come as the shine finally comes off the tech-led general market and there is an almighty rush of capital for this tiny sector, MC-wise.
And the 'thing' with GGP is that until they do release their increased JORC the market will continue to consider them 'fully' priced.
Whereas GCAT are a very long way away from reaching anything like a fair valuation.
So if you are seeking out growth opportunities that are undervalued and have further additional catalysts to unlock significant value this is a truely excellent opportunity.
GGP have ready made processing plant and mine development team & workforce based a simple truck journey away at Telfer, which is a significant value add and therefore they definately deserve a valuation of $200/oz+ and with the market being future looking and all that it is clearly 'pricing in' a SIGNIFICANT uplift in there MRE, and whilst we don't yet have any details on that increased JORC over there, they have announced some stellar drill results which suggest a decent JORC Increase will soon be on the way. The 'unknown' is at what rate they will be able to produce the Ore, but I wouldn't have any concerns over that given the facilties at Telfer. Hence why they are presently valued at $440/oz based on their present JORC.
I can do sector peer analysis, thanks.
When I got into Cora Gold. I thought this is a nice little Africa explorer with a JORC of just 260k oz BUT which had an exploration target modelled out at 1-2Moz and some of the proven team from Hummingbird with a strong understanding of the local geology (same as GCAT have here) I bought in over there earlier this year when there was next to no one on their bb, No messages posted for days on end and prior to their exploration program you'd be lucky to see one or two trades all day!!
Take a look at their subsequent summer exploration drill results. Again delivered by a team with knowledge of the local geological structure (same as GCAT) They are still to build out a mine, but have a term sheet to do so and the development will happen but it will take a bit of time until they are processing albeit there is clearly future value yet to be unlocked and their summer drill results are yet to be modelled into an increased JORC and their resource will undoubtedly grow as the mine is built out.
Now back to GCAT...
> We are just about to commence on our own 20,000m program and we have probably one of the best local Geo's you could possibly hand pick for such an exercise.
> I'm looking forward to packed exploration program and having taken a look at the targets which have already been surveyed & include high grade test drills results I expect a bumper Q4 program ahead, which will provide additional ounces to map into our JORC which will continue to grow towards the 2Moz+
> I also expect us to 'buy in' ounces to add to the resource and will add significant further 'marriage value'. towards the target of 3Moz all 100% owned.
Agreed K , CGAT is looking the best thing to come online since pat.
When you put it like that, the current 22.18 Mill MC here looks rather undervalued then!
Mickey that is the case but GGP will only own 25% we have 100% of the asset which is in production!
If your talking about ggp that’s another story . Havieron is a monster .
Fixation is there not producing anything and valued at £630m!
What's with your fixation with GGP?
Makes absolute sense to me . Looking ahead where the real money is to be made here 12-18 months imo and a 2m oz resource we are looking at life changing gains never mind anything else.
Always good to do some sector peer analysis!
Be keen to hear what you think a fair valuation is for GGP with their JORC of 4.2m of which 25% = 1.05Moz is net to GGP @ a valuation of $25/oz?
What should their share price be if your not making any allowances for the ongoing drilling of inferred resources??
Ultimately our new Geo (who was on the discovery team responsible for shanta Gold's Kenyan Gold asset) has modelled up to 2Moz+ within the existing licence area and there is some exploration drill data held demonstrating high grades at shallow depths across the targets which should be fairly low hanging fruit to model into the present JORC as part of the first 20,000m planned exploration programme.
As you know this process is done whilst moving through the production phases.
Take a look at our neighbours Shanta 1.1moz sat in inferred which they have recently converted circa 10% of through ongoing drilling
If you have a list of producers with around 1Moz that are valued at just $25/oz
Please list them?
"At the point of listing the JORC Resource of 671,000oz equated to just $25/oz.
Most Gold producers trade at a price nearer to $200/oz."
S-T, not quite that simple.
Yes, $25/oz is still the rule of thumb for inferred Au resource, with proven generally in the $100-200/oz parameter range.
What's the current breakdown of Gcat's JORC resource? And how likely is it that they can move 1mn+ oz into the proven category in the next year through the drillbit?
Don’t think there crazy! :) That’s with no news. If we get the right news of production then could be anything.
Love all the crazy figures could be a good year from now?.
Nothing would surprise me with price movements
Zephyr went from 0.55p to 3p on a couple of months ish
9p Sounds nice short term.