The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma 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.
@serendipity I'll admit I'm no accountant so limit myself to assets, cash and what I can safely glean from RNSs and the like. Regardless the accounts look backwards so may indicate repeating parts of the OPEX 'burn rate' such as salaries and other fixed costs, but we have had no indication (that I can find) for the 2020 drilling and exploration programme cost. All we have from the BoD statement is that it is fully funded.
As I stated earlier @riseagain is right in that at some point the BoD will need further revenue to fund further exploration, development and/or capital to setup small scale gold/silver production facilities. However as I have tried to point out that there are a number of ways of doing this that could minimise share dilution going forward particularly if the BoD can get a small scale gold/silver tailings production underway using 3rd party contract facilities and/or labour.
I have X-referenced some of my prior musings on what this might look like and the recent Op Updates indicate that it ought to be viable subject to GWMO securing a mill and 3rd party sub-con resource to run it ... all of which doesn't sound very spectacular, but follow the numbers and if they can also sort out an economic approach to leaching the remining ore after gravity separation it could help them generate a revenue stream and turn a profit sooner rather than later.
A lot of ifs and buts in there, but I am encouraged that so far they are following their production route map they laid out. Also GWMO are developing their licences against a backdrop of an early stage gold /silver bull run which is why they are struggling to secure equipment, drilling rigs and 3rd party sub-cons ... and Covid complicates it all.
We know that GWMO licences also have historical evidence of having had very high grade, shallow ore veins which IF more were found would indicate relatively low costs per ounce of metal giving GWMO potentially high leverage to metals prices; this is why they are so keen on finding an extension to the Olympic OMCO vein.
AIMHO APR
Serendipity
I am fortunate enough to be not at a loss - but only just :(
Like you I am anxious regarding the "burn rate" and the warrant pile ...
Oh dear and yes I too think riseagain must be listened too - for balance - he has a "wealth" of experience in this companies history -( well the old one) albeit Newco has same chairman - he is like a Knight of AIM - just trying to save us all from disaster and I for one am very grateful.
I am tempted to take timyprofit now and put it in National Savings Certificates - they do now almost promise 5% annual return on your hard earned.
On reflection
Nah - believe in the trumpet ! :)
Good night sleep tight and Good Luck All
And thanks to riseagain for keeping me worried and giving balance (usually lacking on LSE)
Aprogerson - thanks so much for the thoughtful and useful post
As a recent investor sitting on a 30% loss it was encouraging and whilst you are a pro poster at least you admit as much and add some substance.
Do you have any estimates of burn rate and how long the current cash and warrant pile will last?
@riseagain I don't pretend to have the answer all I can go by is what I read in the RNSs, what is the context with gold & Silver in the real world and direction of travel plus what I think of the BoD's performance. On balance I am positive for GWMOs performance and progress to date given the Covid related delays and think the strategy they have is sound. Whether they can deliver on it and how prospective their licences turn out to be is where we as PIs 'pay our money and take our chances'.
My observation is GWMO is a micro-cap at an early stage of exploration with no revenue stream so (as we have seen) is very volatile. On the plus side if ANY of their licences produce almost anything of substance the SP will rerate dramatically and on the downside if it all goes to nothing then the Copper Jorc compliant asset underpins about 90% of the current MCap (RNS 26-Sept-20 NAV=£5.8m)
Simply no guarantees but my own research gives me the comfort to invest and all things being equal stay invested; if things change I may change my view.
AIMHO & DYOR
APR
OOF !
TKO to Joycopter lol
Was that the flow of information that lifted the SP to 2.5p?
Historical performance is not my only argument, but it certainly adds weight to it. Now had there been a takeover and a whole new team, then maybe I'd be a bit more optimistic , but with the same guy in charge, ultimately the one who makes decisions and has a dreadful track record with this company, then I don't hold out much hope. Plus the pattern of information released seems to be largely inline with what happened at sharktooth, just different material.
So your entire argument that historical performance is an indicator for future performance rests with the CEO?
IHow would their historical performance selling a Copper asset with a different BOD have any bearing on their ability to successfully explore, prove up and execute via JV, develop directly or farm in a gold and silver asset?
I believe they still have the same Chairman, the top man, the boy who calls the shots, so I would suggest it has a huge bearing on the company's ability to do what they failed to do previously
How would their historical performance selling a Copper asset with a different BOD have any bearing on their ability to successfully explore, prove up and execute via JV, develop directly or farm in a gold and silver asset?
Apro
(if majors were interested they would have bought the licence themselves. Junior explorers exist because they (and their shareholders) take the risk and/or the reward/loss depending on the outcome. Anything else is just a delusion)
So with this in mind , on the balance of probability and also taking into account their recent performance, this is a lot more likely to fail than succeed?
@riseagain We both know the reality is their is no gold or silver until it is proved up and/or GWMO decide to just dig it up and process it. The whole point of being in exploration is:
(A) acquiring one or more prospective licences,
(B) exploring licences and/or soil sampling to identify viable targets
(C) drill identified targets
(D) assay drill cores
(E) model results
(F) wash & repeat (B) to (E)
(G) prove up (or not) a JORC compliant resource
(H) sell, JV, produce yourself and/or hire 3rd party on Earn-In
If majors were interested they would have bought the licence themselves. Junior explorers exist because they (and their shareholders) take the risk and/or the reward/loss depending on the outcome. Anything else is just a delusion.
Did I miss something?
APR
Its amazing with all the gold GWMO has the potential to recover that no major has been in for them. Lets face it a hostile takeover would be fairly easy and with a market cap of circa 7m, taking your view it would be a great punt. But strangely they haven't and I don't expect they will.
nice one.
apr
chisler
GWMO is a gold/silver explorer as per RNS 13-Nov-19 when fresh BoD and strategic direction was presented with prior JORC compliant Copper resource put up for sale or JV ... there for everyone to read.
I have counted 1x RNS with a new venture (Olympic Gold) declared and a further 14x RNSs with the BoD providing operational updates on one or more of their licence areas over the last 11 months since Nov-2019 BoD & strategic change.
Junior Explorers need funds to continue and there are a number of ways that can be done as everyone invested in this sector should know and understand:
(1) raise funds directly via new shares
(2) raise funds by issuing new shares as warrants are exercised
(3) generate revenue form sales ... Copper asset up for sale & await outcome
(4) generate revenue from production ... gold/silver small scale tailings production being progressed
(5) enter into JVs on one or more licences to prove up and/or produce revenue from production
Cash position has been declared RNS 29-Sept-20 in unaudited H1 accounts to end Jun-20:
> Cash and cash equivalents = £430,952
> Placing & Warrants since 30-Jun-20 = £1,330,000
> 2x Exercise of warrants = £97,000 (RNS of 2 & 8-Oct-20 refers)
My personal views:
The BoD are doing what they said they would do and exploring these licences in order to prove them up with the aim of getting an economic return and/or achieving small scale gold/silver production not withstanding disruption from Covid earlier in the year. Any BoD worth their salt will be trying to balance cash at hand with cash going out to fund works with cash coming in from any of the above to keep the company solvent. Will they be successful? You pays your money and takes your choice.
I have produced a number of summaries IMHO since buying GWMO 15-Sept20 using available info and/or comparables wrt:
(1) outline of "Small Scale Tailings Production" revenues & costs on @15-Oct-20 post
(2) "Targets & MCap" @7-Oct-20 post
(3) "GWMO = Gold and Silver Exposure" = @3-Oct-20 post
(4) "Gold Production" = @29-Sept-20 posts
(5) "Re: Week Ahead" active warrant analysis = @20-Sept-20 post
(6) "RE: Placings vs. Warrants vs. Cash to hand" = 16-Sept-20 post
As always DYOR as I am clearly a 'ramper', but I do try to add some original thought and/or context so happy to engage in constructive discussion rather than just asserting that the company or the BoD is rubbish ... please see my posts elsewhere on other BBs if you are in any doubt.
APR