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Tried to top up this morning couldn't get a quote on Hargreaves, left a limit buy at the offer which was unfilled, slightly p'd off at the moment. Won't pay more than 25p, limit live until close of play tomorrow.
As I said before this shouldn't have any effect on AEXG but small country sentiment and politics can a be a little unpredictable. So just an added potential risk however small.
Also there was a lot of environmental research done at the Nalunaq mine. See: https://dce.au.dk/udgivelser/vr/nr-351-400/abstracts/no-386-environmental-monitoring-of-the-nalunaq-gold-mine-south-greenland-2004-2019/#_ftn1
and the AEX news release on it last year: https://www.accesswire.com/597465/Environmental-Report-Declares-Historical-Nalunaq-Mine-a-Blueprint-for-Future-Mining-in-Greenland
You can't compare AEX with Greenland Minerals (GGG.AX). From what I understand is the main concern the pollution that can be caused when the uranium is mined. A quote from the Inuit Ataqatigiit party that won the election:
"We must listen to the voters who are worried," Egede continued. "We say no to uranium mining."
So they mention uranium and not mining in general.
See article: https://themarketherald.com.au/shares-in-greenland-minerals-asxggg-dive-as-greenland-election-threatens-kvanefjeld-project-2021-04-08/
This news can have certainly some impact on the SP of AEX but Greenland politics is not against mining in General.
hmmmm...... looks like the snap election went against AEXG.
It shouldn't have much effect on AEXG. The only thing that worries me is the government might want the gold ore processed offshore (as I think Angel Mining did).
The market doesn’t like the election outcome.
I see Greenland resources share price on asx halved on the news, although their mine is uranium and rare earth minerals so much more polluting and controversial.
I see this environmental party aren’t opposed to mining per se but I wonder if this will slow aex gold down having to deal with a new government with a new agenda?
https://www.google.com.au/amp/s/www.nytimes.com/2021/04/07/world/europe/left-wing-greenland-election-mine.amp.html
Thanks. Grabbed a few more today in my isa. Although I’m not expecting news anytime soon I think the price of gold will trend higher.
Your article highlights just how much they need to diversify their economy. They must be hurting even more with no tourism.
Apologies; repeated thread first one didn't appear for over an hour.
https://www.telegraph.co.uk/news/2021/04/04/superpowers-eye-greenland-vote-scramble-earths-treasures/
Gist of the story is that Greenland Minerals an Aussie Rare Earth Metals company backed by the Chinese wants to start mining at Kvanefjeld Mine just round the coast from AEX's Nalunaq mine. The locals are up in arms about possible pollution tempers are rising and a snap general election is being held today.
https://www.telegraph.co.uk/news/2021/04/04/superpowers-eye-greenland-vote-scramble-earths-treasures/
General election in Greenland brought about by the Kvanefjeld Rare Earth Metals mine just up the coast from AEXs's mine. Kvanefjeld mine owned by Greenland Minerals an Aussie Company backed by the Chinese.
For just over 100,000 shares. I think on a risk/reward this looks good as well at this price. The next 6 months should be interesting with this report and hopefully some drilling. If they continue to find good grades all will be forgiven and this will be a temporary setback.
Southwesterner ... Took not of this last year after the listing and held off as often new lists take a while to stabalise their share price... seems to have been the right move currently, not in any major rush to take the plunge as reading back through the news there doesn't seem to be any major developments forethcoming and drilling may be a few months away, Summer season will be drilling season so certainly will be looking at building over the next 4/8 weeks...
Looking at their financial posirtion... they had $68.7m as of September 2020 with a reported net loss of $4.6 million in Q3 2020 ... if we assume the same run rate going forward, would be - $9.8m for Q4 & Q1 respectively & that gives us $58.9m heading into Q2.
Current Mcap £48m at todays conversion $66m
Far more attractive and realistic than the initial listing valuation set out last year. Will be keeping an eye out and joining in the foreseeable.
Interesting they are presenting the deferral of development as a "prudent decision" by the Board - truth is they had no choice. They couldn't have developed this mine even if they had wanted to, no matter how much money they threw at it - there isn't the labour or expertise in Greenland to do this, they have to bring in external labour and expertise to develop this mine, and with the travel ban that isn't possible.
"Continued geophysical work and geological mapping over the wider exploration portfolio is currently being undertaken to ensure drill-readiness, and the Company looks forward to further updating shareholders on this exciting set of prospects in due course."
Disappointing that there isn't even any exploration drilling go on currently, you'd have thought even with Covid they would have enough domestic presence to do this. Basically over the past 9 months they have spent how much money doing nothing of any consequence?
"With respect to the review of the Nalunaq development plan, the Company has engaged the global mining consulting firm Ausenco to conduct a thorough, independent, review of all technical aspects of the mine development. This third-party review will assist the Company in determining what, if any, amendments are needed to the plan and schedule, and allow the Board to present a revised plan to shareholders that reflects such amendments as we consider appropriate. This revised plan will clearly also address costs and any potential further capital requirements, with an assessment of how the Company intends to meet them. The review is currently ongoing, and the Company will report its revised plan to shareholders as soon as reasonably practicable."
This makes more sense, I said this would be necessary from Day 1 of the listing on AIM, all on the record here in past posts. Really quite incredible that so much equity was raised without a technical study of any kind really, shows how overheated the gold junior mining market was 9 months ago, and the lack of due diligence by people throwing money at gold juniors. Probably a second equity raising required to bring this into production now.
I think delaying accounts gives them time to focus on the review and to plan drilling.
Seems sensible, I expect news on drilling commitments to be with the results next month. Might be a boring couple of months but summer should be interesting.
Hmmmm......
Plenty of comments about support from shareholders.
"The Company has consulted with the holders of the vast majority of its shares and has been greatly encouraged by the high level of support expressed. The Company believes that there is widespread acceptance among its shareholders that the Board's decision to defer the development plan and avoid committing the bulk of the Company's available liquidity during a period of such high uncertainty, was the correct one."
This part looks ok to me, although it appears to flag a capital rather than debt-based solution:
"With respect to the review of the Nalunaq development plan, the Company has engaged the global mining consulting firm Ausenco to conduct a thorough, independent, review of all technical aspects of the mine development. This third-party review will assist the Company in determining what, if any, amendments are needed to the plan and schedule, and allow the Board to present a revised plan to shareholders that reflects such amendments as we consider appropriate. This revised plan will clearly also address costs and any potential further capital requirements, with an assessment of how the Company intends to meet them. The review is currently ongoing, and the Company will report its revised plan to shareholders as soon as reasonably practicable."
I don't see an obvious reason for this though:
"Furthermore, and in line with the above update, the 2020 Full Year Results, which were due to be announced on 25 March, will now be deferred until 29 April 2021. The Board expects the results for the year ended 31 December 2020, to be in line with management expectations."
Whilst the 2020FS are probably uninteresting, the decision to delay publication doesn't inspire confidence.
Yep. Crossroads is a Dublin based company. This particular fund (one of many supported by Crossroads) is registered in Luxembourg.
Are you sure this is a Dublin company?
This one is Crossroads Holdings Sarl. BDO and Ang bank seem to have offices at the same address 1 Rue Jean Piret (I suspect there are quite a few companies using that address). Google earth is 12 years out of date at that address.
miningintelligence.com may hold some information about the company
They were involved in the company pre listing holding 7.12 pre listing 3.32% post listing
https://www.londonstockexchange.com/news-article/market-news/schedule-one-update-aex-gold-inc/14630391?lang=en
Crossroads is a Dublin based AIFM. For those unfamiliar with the arcane structures beloved of the fund management world, an AIFM is a company providing services to fund managers; an outsourced back office if you like. They are not the people raising the capital or making the investment decisions; they are a service provider to small fund management businesses. I haven't yet found any info on the fund or fund manager behind the holding (this info may not be available) but I will share here if this changes.
We appear to have a new investor with a 3.25% holding. Looks like a Lux fund of some sort. I will investigate today....
Indeed, clearly a black mark against TW :-(
Well done TW, played a blinder on this one, perhaps if you had spent more time interviewing Kevin McCloud from Grand Designs he could have given a better insight on what is required in building a gold mine. Probably would have said a proper survey is essential & what ever cost you have in mind, to treble it. With the obvious dilution involved over the coming years, if the share price is above 10p by the time this mine is producing, I will be very surprised.
Huge trading volume on TSXV today.
I think explorers beat producers right now but spot on re AEX
@leehardcastle Enough already, I'm in!
(In MTL that is :))
I think we are in agreement that AEXG is not the most attractive investment at this moment, especially at this share price, with so much uncertainty as to when production will actually commence.
P.s thats 100k ounce gold per annum proven resource, the recent Q4 2020 update with Covid restrictions had them pull out 20k ounce making $37 million in sales, and paid down $15.3 million to reduce the debt, which at that rate will take 10 quarterly payment when you include interest on the $122 million outstanding, with no debts and a dividend a market cap of £200 million would be very fair, that’s 10p, with 85% of the land bank to extend the LOM for decades, MTL are a great leveraged play on gold.
Yes. with Angel Mining, of which I feel is over looked to easily by the young CEO, Greenland is a harsh environment, and the low costs he announces per Gold ounce are completely unrealistic, MTL is a gold miner in the Philippines, and they quoted similar numbers when they were starting the project a decade back, I’m heavily invested with them and in 2020 they have managed to turn a profit for the first time, so are now paying back the loans taken to get the project developed, but they are running at costs nearer $1100 an ounce, which leaves enough gravy to pay down the loans in 2 to 2.5 years at current gold prices, then we can expect a dividend, but it’s taken over a decade to get to making money, and the share price is under 2p from over 40p highs back in the early adopters, hence why I caution AEX investors to be careful ploughing more cash into AEX, this is a very high risk play in gold, and you don’t need to, as an example, MTL are fully funded, no more cash required, market cap just £37 million, secure debts of $122 million with 2021 free cash flow potential of $50 to $60
Million in 2021, $8 million in the bank, 6 years Life of Mine remains at a proven 100k ounce resource, of which is only 15% of the land bank that’s fully owned to go at in the future, does that sound a better bet? too many unknowns will only batter the share price, it’s facts and results that lift share prices, IMHO