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Good advice.
Overall I can't make up my mind whether there scheme is genius or a green plan by green around the gill youngsters to grub up gold in Greenland. Appalling alliteration is know....
Did you post the same anecdotal story on Greatland Gold as well?
Some forty years ago I paid high fees to the school of hard knocks, in the form of the Vancouver Stock Exchange, "investing" (read gambling) in junior gold miners.
One day I met an accomplished and honest broker. I poured out my many disappointments. He was a student of gold mining plc's worldwide and asked me if I knew how many junior miners ever became serious producers, paying dividends and listed on major exchanges? I hadn't a pup's notion, so he told me - One in ten thousand. You've a better chance of getting struck by lightning.
He concluded with a sensible recommendation; keep following junior miners and as many fall by the wayside, the odd one will have a sufficiently good prospect, sufficient capital, and sufficiently skilled management to bring a company close to the point where it's going to start producing. That's when you invest your hard-earned cash. When the mine is actually under construction and ready to start selling it's production within 12 months - Not before!
@ShearClass
very good post. It really was a kitchen sink RNS wasn't it. I think Covid is one of the lesser issues raised in this RNS, even if it was presented as the 'headline news'.
Other posters here don't seem to be considering the price of the placing to come, they just seem to be seeing the drop today and thinking 'it must be oversold' so buying in. I'm not convinced, and agree with you that placing is likely to be at a lower price than 30p. At that point I may also buy in, however the RNS hinted at a can of worms imo, and you know this site has history (Angel Mining), so I'm waiting for more clarity on the various issues raised in this morning's update.
I really want to these guys to do well and for Greenland to prosper, but just a question at what price to early investors before it finally comes good.
This dead cat isn't bouncing :(
Why this is not moving go down or go up simple as that
Wow, I have a stalker.
Difference is this company is open and honest with its shareholders. Good value to be had if your patient.
GLA.
@starbright - yes I followed him here to say that as quite frankly I tire of people that come on to a board to bad mouth a company and create havoc. Actions have consequences. If he doesn't behave like that here then I'm pleased for you and the other board members but be aware he has an agenda. Take care
Ob, afraid Robbie is a TW cult member,so was probably invested here before as it's in the cults profit makers , he slams Zoe because Tom tells him to, he'll praise here because Tom tells him to simples
I can’t find this stock on share.com for some reason?
Would like to purchase. Any thoughts??
@agfo, this seems like a kitchen sink job RNS? Using the Covid situation to break the news of issues in the mine is poor form though (speaking as someone who hadn't looked into this company before today).
The below is what will damage the share price in the short term.
"In addition to the above cost increases, there are two notable areas of specific overrun, which in aggregate would require further external capital to resolve."
Once they complete the placing to allow this work to be done, I'll consider investing. What price will that placing be? Almost certainly below the current level.
Let's hope this is just a bump in the road. The fact that covid restrictions cause a delay I can fully understand. Also sea freight prices are going trough the roof at the moment, I've heard prices of 6 times more or higher compared with last year.
Mining equipment also went up a lot (Just look how much caterpillar shares went up the last 6 month)
However I wonder what is meant by 'a change in civil engineering requirements' of the floatation circuit. Does it mean they need replace equipment or make a complete new design ? This can have serious impact so would like to hear more information on it
Also The bulkhead issue worries me a bit. In interviews the CEO said the mine was left in stellar condition so I assumed they did an inspection of the construction.
I just hope they don't skip too many steps by trying to run into production. in my opinion the 2 points above are setbacks not related to Covid or price increases.
You've followed him here to say that...? Somewhat unhealthily stalkerish...
I'll form my own opinion on him, thank you. I have already formed my opinion on you.
Its a shame really as they have got a fantastic exploration portfolio. There are licences with great gold grades, strike and depth potential that could become easily another mine or few!
I think this a slight over reaction by the market, understandably given the range of other developers but I am seeing this as more of a buying opportunity! They are cashed up, and have a solid team to run this operation when underway. I have been closely following these guys since 2015/6 and am impressed by what Eldur has achieved for the company and shareholders. This will bounce back, but we may have to all be patient and let this settle down.
Remember these guys control huge swathes of land and there are more deposits to be found. If gold stays up and travel disruptions ease this will be an easy long term hold. GLA
For all genuine holders here I'm sorry to see that you now have the pleasure of robbieishere - it doesn't bode well for you. He has a tendency to go on to share boards where he isn't invested to bad mouth companies. His business acumen is not great - when ZOE were at 66p he was shouting that it was heading to 2p yet 3 days later it hit 83p. Just beware and do not trust anything he says. Good luck
Upside to me is limited. Risk of this going through the floor is highly likely. We have all see it before!. Take the win now, grab the cash and move on to the next one. Anyone who holds with a 2x has done really well. Make sure you keep it.
Whirlaw..bought 1/3 of what I ideally want..will wait on news in case we dip again. I have been watching this one for a while and this is just a gift down here IMHO. If they need some more cash (they have a lot anyway) then I can put in more. I think at high 50's it was a mild risk, here it's just a question of time.
I am in. Drop is way over done and will be 40s again by the end of the week
I'm loaded here.its a no brainer
I agree, they will need more cash. However, Nalunaq is a redevelopment project with massive infrastructure and producing in the past, there is massive amount of data I expect they have from that operation to learn from. They will explore and further develop the resource at Nalunaq, potentially infill drilling to expand the resource. The company has enough cash now for exploration which should be very exciting news for investors. The delay of production in the current environment with transfer of resources to Greenland, is in essence irrelevant in my view, and actually a good decision to make! The company sits on one of the most exciting exploration portfolio in the market which they will now spend money on! Very exciting season ahead for the current shareholders!
This company will need more cash to complete this venture, as a MTL holder, I’ve seen first hand how long it takes to get up and running, the first investors of MTL paid heavily and its those buying now that will have the easy ride, now that the gold mines running and producing cash, I like to watch other Gold explorers but rather invest in ones that have travelled a lot further down the road than AEX, this set back will not be the last, and dilution will inevitably effect early holders, not for me but I hope things level out for those holding. GLA
I agree they would need more funding if this is the case. The timing of the funding is crucial, I would not expect it to happen until after the exploration season and results following that. Also the company is completely unleveraged so they should be in a good position to do some sort of hybrid funding of equity/debt in the future. The exploration should give current shareholders the most value.
Been looking at this company for a while and didn't have the funds to justify the investment. But although today's news is disappointing it's understandable and has gave me a fantastic opportunity to get some stock. I'm only interested in long term so this is now sat I'm my ISA ready to grow.
GLA
While it’s positive that exploration will not be impacted and will continue as planned, the deferral of the mine development is a blow, particularly the cost overruns that will now need new external funding. The question is how much funding is needed and at what price. Existing big shareholders should support this but they may require a good deal to cough up more cash in view of the additional risk
58m CAD or 33m GBP!!!