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Poor backer. Wonder if Phil has flown back to tell the wonderful tale
Hopefully just dotting the I's and crossing the T's on the agreement with their new backer, whoever they are.......
Is the axe about to drop - it seems to be taking a long time - or is there life in this old dog yet?
Indeed Andrew, Scotgold and NLR had ambitions that were fine, but those in charge could not deliver them.
Shychap, almost all of the vein was exposed in the main adit, except at the western end which was still open, though not expected to go much further and east end splays were of dubious worth. I agree that PD's initial and promising reorganization appears to have been diverted by short term production gain in CAF1 & 2 stopes whilst not providing timely development for preparation of LHS1. It would have been better (IMO) to have sought more funding when the SP was higher to provide development for orderly progress straight to LHS as originally planned.
A lifeline needed by Halloween or only pumpkins will be left!
ATB, R.
What they needed to do, but couldn't afford, was open up the full length of the vein before extracting any gold. Instead they tunnelled expensively all over the place like a mad mole chasing short-term gold production which they needed in order to raise the next raft of finance. They probably need £10m and an investor who is happy to wait for any return. Maybe Gina Rinehart is their only hope but she would want to take majority ownership away from NFL.
Rockhead, we’ve all seen the geo reports on Beinn Udlaidh and when I said I thought it was a deception, I didn’t mean in terms of what it may hold. I meant, in terms of it ever being viable to commission anything that would resemble extraction. If you remember, every time there was trouble, it would often be put to shareholders that Beinn Udlaidh is there in the background. Dangled as some carrot that it will always come good. Tb often shared the 2d density maps of entire glens. When in reality, the prospects of doing anything there were always slim at best.
An interesting take on it from herald on most recent funding.
https://www.heraldscotland.com/news/23858155.argyll-scottish-gold-mine-owner-scotgold-new-talks/
All the assets are pledged as security for existing loans (unless NLR releases them) and any reputable lender would certainly want some asset-backed security with this basket case. Some kind of off-take deal might be possible but with profitability a long way off, that would just make the business less viable.
I'd be surprised if they were negotiating a further loan, debt level is already too high. More likely to be further shareholder dilution IMO
'...many hurdles...'? Sadly the last hurdle or last ditch!
Just for info.
Beinn Udlaidh was no 'deception' as it has the geological potential to be as good or possibly better than Cononish. That from historical sampling and limited drilling, doctoral research thesis, plus the ion leach surveying by geos Charlie and George a couple of years ago:
https://www.scotgoldresources.com/wp-content/uploads/2021/01/Exploration-and-Production-Update-29.01.21-WEBSITE-PDF-VERSION.pdf
As no recent drilling was done by SG, it remains a 'pipe dream'.
It also showed the evidence for further veins nearby Cononish, first identified by a previous owner and the topic of more recent controversy on this board about PD's reference to another vein. There are a number, of which a couple were drilled, though none has been proved to have mining potential.
Ironically this RNS also contained the first admissions of the abortive production start-up after the St. Andrew's Day gold button and papered over by SG's Twitter Xmas card!
However, as Andrew has previously posted, all the potential is for nowt if you fail to get it mined and processed.
Perhaps a miracle needed:
https://www.youtube.com/watch?v=JIN36NweL6I
They do happen. I got married that year! LoL!
GLA, R.
Diggit, I would agree with that sentiment. One of the saddest aspects is the community was promised massive investment, economic growth and hundreds of jobs. Generational wealth.
Now, it's almost no investment, little economic benefit and the jobs arn't much better paid than others, if they're even suitable. For example, some workers have left to become mechanics. Mining jobs should always be better payers than car mechanics but here they arn't. The conditions arn't great either from what i've heard.
A lot of locals also invested at the start, and no doubt they're will be a lot who lost never mind gained. The people of tyndrum have been let down.
Blakeney, I think the Ben Luaidh story was either a pipe dream or a deception to keep interest in this hole.
Even if a funding partner is found, and even if it's a viable mine, which i'm yet to see.... the terms of the new partner will be onerous. It won't be the 2.5% on your mortgage from 5 years ago rates.
I wonder if the strategic investor has looked at the embarrassment that was the video of the AGM.
Would you invest big bucks in those guys?
As for what new funds would be used for....that Ben Luaidh (is that right?) was supposed to be massive and it's been mentioned for years. So have the other areas contained in our licence area.
Imagine the f*ck up this shower could make of something vastly bigger than Cononish!!
The first thing the new (diverse, of course) procurement team should buy is a giant broom to sweep the place clean. The shops should be full of them in the run up to Halloween.
Let's hope Andrew that for the sake of at least some jobs being retained, and for the local micro economy that SGZ survives in some shape or form. Only ever been there as a stopping off point/watering hole 🍺on the road to bigger places. :o).
Even if they secure funding. Say 10M. Will it be enough. Or will it just buy a few more years of misery. We've raised as much in previous rounds. I can't see what can be changed fundamentally by taking on millions more in debt obligations than they have already. If it can't support it's current obligations, I don't see how it will support them with payments on debts either.
Realistically, I don't see anyone investing 10M not wanting a significant return for the risk. Will it push shareholder divies to year 24? If the national park even let it live that long.
Many hurdles yet.
Fingers crossed 🤞 🤞 SGZ pull it off enabling survival. Strangers things have happened - Spain's victory against Norway last night securing Scotland early qualification to Euro 2024. Well done lads. :o).
Better keep all your fingers crossed. If this guy pulls out…
Thanks for your response, Shychap. You're right, I don't much do Twitter as I put little reliance on what is posted and so was not aware of your source.
I take your point on mining experience as I'm sure you do mine on management in the last few years. Let's hope someone can salvage this project.
Have a good weekend, R.
Rockhead, I take it you haven't been following the Scotgold whistleblower on Twitter?
As for training, it doesn't give you experience. I'm not willing to take a 400 mile road trip in difficult conditions with a driver who has just passed his test. Most of Scotgold's miners were catering workers according to the mole.
Of course, Scotgold had promised to give jobs to local people so they were hoist with that petard. It also saved them money since experienced miners don't come cheap.
Shychap, who alleges shortcomings of the workforce? If so, it would come down to inadequate training.
Surely this pales beside management/executive failings? The St Andrews day gold button followed by silence papered over by the Twitter Xmas card was the start. Ripping the 'eye teeth' out of the richest parts of the mine with CAF1 and 2 while not pushing on with development and LSH preparation prompted my withdrawal before the winter floundering. Then the damage was done and even the revival of production by LSH1 and 2 this summer to nearly P1 level came too late.
Oh well, perhaps a predator will pop up like AAL did with SXX Woodsmith mine and as they previously did with the now ICL Boulby mine back in the 1970s when ICI no longer wanted to put in any more money. If so, it might benefit employees, but not shareholders.
Anyone want to buy a gold mine for a song? Sugar daddies preferred!
GLA, R.
According to my understanding, but i might be wrong, if the mine is dormant for 12 months, restoration of the land automatically kicks in, which would make reopening virtually impossible. Can anyone confirm this?
If this is the case, they better get a shift on with administration as the clock is ticking.
I may have been a bit out on my dates Baz. I remember my father telling me several decades ago that typical pay on the coal face was around £20K and I assumed that was 80's, but could equally have been 90's.
Looks like the going rate on coal face was £40K in 2012 https://www.bbc.co.uk/news/uk-england-15445418
Some seemed to be diversity hires.
Imagine that not working out.
They have to pay the going rate when they bring in experienced miners but many of the personnel are trained on site with no prior experience so they earn a lot less. The lack of experience in the workforce has allegedly been a major contributor to their downfall.
Ie
''That's interesting. I remember coal miners in the north of England earning £20K back in the 80's.''. Bismark, I left the mining industry in 1983.I was a coal face electrician at the the time and the national wage at the time for the coal face was £26 /shift ie
That's interesting. I remember coal miners in the north of England earning £20K back in the 80's. That would surely be equivalent to £40-50K nowadays. I guess that's why so many of the pits were uneconomical so were closed by Ian MacGregor with Mrs Thatcher's blessing.