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Crystal,
some of them could be Institutional Investors who not interested in 1 or 2 Bags or HNW investors.
They can see the upside and would be looking for Multi-Bagger returns here in my view.
"I think most of the cheap shares are gone now."
perhaps, depends how many of those warrant shares are sold straight away (or perhaps forward sold ?)
Did anyone take notice the volume keep going higher
I think most of the cheap shares are gone now.
Not many would be selling low when close to news on the 3 deposits. This should move to higher bracket next week.
Well said Mr Positive :-)
They all cashed up and ready to go on all 3 deposits.
Raised £217k in May
Raised £450k in July
Raised £320k and £80k (Sep) warrants @ 0.16
Another £450k to come in from warrants @ 0.20
That's £1.517 Million cash from placing & warrants.....which makes up around 25% of current MCAP.
Which other Gold explorer has 25% of MCAP just in cash?
It's a processing Operation....not to produce just a nugget ?
.from 38 spoil heaps for starters from Mineral Jackpot.
They also have Drill targets ready to go. There are not just 1 but 3 Gold deposits they currently working on. There are further 3 highly prospective Precious Metals deposits they not even looked at. All on the super rich Walker Lane belt.
@riseagain Might something like this help answer the 'Where is the revenue coming from?' ... Please check back on this thread for Olympic Tailings & small-scale gold production conceptual analysis with scenario over 2 years generating £3m revenue using figures provided by GWMO.
All IMHO so DYOR
APR
Okay @hertstrader you've got my attention now ... 2x Buys of 37.5m 2 days apart, now that is a very particular number and looks like someone is now sat on at least 3.5% which is of course declarable. All told a LOT of shares bought
Today
37.5m buy @0.30p 08:02 30-Sept-20 = 1.75%
Tuesday ... choppy market & big price swings
2x10m +1x20m +1x15m after hours marked as Sells, but who knows
8m buy @0.30p 11:05 29-Sept-20 = 0.4%
15m SELL @0.028p 08:47 29-Sept-20 = 0.7% ... mis-type 0.028p rather than 0.28p so likely a Buy
20m buy @0.38p 08:00 29-Sept-20 = 0.9%
Monday .... steady market almost straight up with 4x buys or 9.85% shares
50m buy @0.29p 15:32 28-Sept-20 = 2.3%
37.5m buy @0.25p 13:48 28-Sept-20 = 1.75%
90m buy @0.23p 12:28 28-Sept-20 = 4.2%
35m buy @0.23p 12:27 28-Sept-20 = 1.6%
The economics of even small-scale gold / silver production add up really quickly. If we assumed that GWMO could get to 1,000oz Gold production per annum using £1,300/oz realised price (well below spot) and they could achieve 90% metal recovery. We know that the Olympic project has 41,000t of historic tailings ore grading 1.6g/t Au gives us 2,080oz Au recoverable and lets say GWMO took 2 years to process this with small scale plant. This gives 1,040oz/year production or £1,35m revenue which at a P/E 10 valuation assuming wild-guess 50% costs (including paying US$150k Olympic option) & is almost the same as todays MCap without any of their other assets or any further progress on any of their prospective licences.
Of course this is all IMHO, over-simplified and complete conjecture, but it doesn't take very much to go right for the downside risk at this SP to disappear. If any of their high grade targets are realised then the cost base also drops quickly as you are mining & processing less ore per realised AuOz so profitability per oz can rise quickly.
My view is someone has taken a straight 'punt' on a future gold / silver producer as the downside risk of taking a large stake on what was a £3-4m MCap future producer is IMHO very small given they have a JORC compliant Cu asset to sell or JV if things did not work out with a total GWMO NAV of £5.9m NAV as per H1 Results @30-Jun-20. The upside potential is absolutely enormous given GWMO guidance of 500koz to 1,500koz or at £1,450/oz equates to £725m to £2,175m total value if realised.
We know that GWMO has no established Au / Ag declared JORC compliant resources or reserves so everything is just conjecture at this point, but if it was realised and GWMO could grow its resource base across its 60km2 licence areas then yesterdays MCap would be a distant memory. If almost any of GWMOs current assertions for any of their licences can be proved up then this share would rerate in multiples very quickly indeed on an Exploration basis alone. IF GWMO can in parallel (as they have stated) get small scale production going then they could fund their exploration from free cashflow avoiding large scale PI dilution which makes them a VERY attractive junior explorer / producer with lots of room to grow.
Curiously and for the avoidance of doubt I am heavily invested ... if only it were 1%
@hertstrader, we know that 21.58m shares =1% of GWMO so the BIG transaction yesterday and smaller ones today are significant. We a MCap this small it is cheap to take a big chunk, the surprising thing for me yesterday that the sheer quantity of shares were actually available to the MMS to sell in the first place.... almost 10% of available shares!! Today there were lots of smaller transactions with the notable ones listed below albeit in a very choppy market so buys and sells are less clear.
Strategic stake, sorry only the forthcoming TR1s will tell us and we know to expect at least one of those as a 90m buy is notifiable.
Today ... choppy market & big price swings
2x10m +1x20m +1x15m after hours marked as Sells
8m buy @0.30p 11:05 29-Sept-20 = 0.4%
15m SELL @0.028p 08:47 29-Sept-20 = 0.7% ... mis-type so likely a Buy
20m buy @0.38p 08:00 29-Sept-20 = 0.9%
Yesterday .... steady market almost straight up with 4x buys or 9.85% shares
50m buy @0.29p 15:32 28-Sept-20 = 2.3%
37.5m buy @0.25p 13:48 28-Sept-20 = 1.75%
90m buy @0.23p 12:28 28-Sept-20 = 4.2%
35m buy @0.23p 12:27 28-Sept-20 = 1.6%
Apro. Whats your take on the large trades yesterday and today? Of course once we get a TR-1 notice in a day or so all will become clearer as to who is taking a position. They must be confident to purchase 7% of the company and of course they may not be done buying yet
GWMO have been very clear that they have produced gold ... yes a button! However they are also equally clear that they are planning to start gold production later in 2020 at their HQ or via contract processing and they are initially targeting spoil heap tailings.
From the Company presentation of 7-Sept-20 @ http://www.greatwesternmining.com/file-manager/presentations/september-corporate-presentation-070920-2121.pdf
(1) Mineral Jackpot - licence to extract 900t, but no grade has yet been established or total resource that I can find
(2) Olympic - Exploration & Appraisal work only until US$150k option exercised, but contains 41kt grading 1.6g/t ... this equates to approx. £3m revenue @£1,450/oz gold @90% recovery however costs and viability have not been published
RNS 29-Sept-20 H1 Post-Period End states:
• Work commenced on Olympic Gold Project where surface sampling assays up to 21.50 ppm Au and
37.30 ppm Ag in surface dumps and stope material confirm precious metal enrichment potential
• Tests in progress on spoil material at Mineral Jackpot in preparation for leaching