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"There will be 3 plants, two at Seki at 1mtpa each and one at Teren Sai, size yet to be announced."
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Where in the latest presentation document does it say that 3 processing plants are to be built and/or the long term goal is 3Mtpa?
This is incorrect and based on a misreading of the April financial report....which to be fair was slightly ambiguous. The latest presentation document is much clearer IMO....upgrade current plant to 1Mtpa and build a brand new plant - most likely IMO at Ternen-sai - to reach a long term goal of 2Mtpa.
There is no mention of a 3rd processing plant.
From the 2020 accounts released in April this year:
The long term plan still consists in operating the Sekisovskoye Mine at 850kt annual capacity for three years then ramping up production to 2Mtpa over a six year period. The initial target is an important milestone and with the purchase of the new equipment this is now progressing as planned. The longer term plan involves obtaining further funding and the Board is constantly looking at the best way to finance the business going forward. In this regard, the Company has recently appointed Renaissance Capital to operate as a Corporate Broker as well as produce independent research on the Company in order to increase its profile with potential investors. In order to achieve the longer term goal outlined, the Company has estimated that it will require an initial funding of US$40m-US$50m to attain 1Mpta target. Further funding will be required for the secondary 2Mpta target.
Mining operations at Teren- Sai are planned to run in parallel to Sekisovskoye development and will initially include surface mining at Area No.2 before moving underground at a later stage. It is envisaged that at the initial costs of open pit operations can be kept low by making use of the existing equipment as far as possible. The significant expenditure relates to the planned Teren-Sai processing plant which will be a conventional carbon-in-leach (“CIL”) gold recovery plant, similar to the existing one at the neighbouring Sekisovskoye Mine.
There will be 3 plants, two at Seki at 1mtpa each and one at Teren Sai, size yet to be announced. Hopefully the penny will drop soon......
The question isn't really about where they are building the second plant....it could be either Teren-sai or Sekisovkoye, I don't care. The problem is some people are extraploating the mixed messages from the company into a long term plan for three 1Mtpa processing plants. I cannot see any plan to reach 3Mtpa.....even one new 1Mtpa plant will be hugely expensive and time consuming to plan & build. They can build it where they like. But don't pretend there is a third plant planned based on a misreading of previous ambiguous company reports (2014 was a joke). The latest company presentation document is perfectly clear IMO.
The 'problem' is that some people think they are never wrong....me, I'm more than happy to be proven wrong because it means I have learned something new. But I rarely am wrong!!!
No, this is from the 2019 CPR:
"The Sekisovskoye LoM shows a considerable ramp up from current production levels to the
anticipated target of 2Mtpa RoM production. RoM production is planned to be ramped up to 1Mtpa
using the upgraded processing plant, with a further ramp up to 2Mtpa RoM requiring an additional
processing plant.
The ramp up will require commissioning of a rock hoisting shaft and associated cage and
ventilation shafts and skip and ventilation shafts planned to follow. Initial ramp up production will
be achieved using the two transport declines. Production in these years will be from two levels
above +100masl, with planned hauling distance for the ore through the two transport declines
being 2.0-2.2km. Ten trips per truck per shift have be scheduled for each of the seven trucks
dedicated to the two production levels, to achieve a daily production of 3.36ktpa"
Teren Sai is on top of this .
It will all become clear to you in due course! You can always get in touch with Gallagher or Basra for confirmation, I have direct contact with both.
I tend to side with Bald_Eagle on this - I believe the intention has always been 2MTPA of processing, originally both at Sekisovskoye with material trucked in from Teren-Sai, but I think recently they have decided to switch the location of the second plant over to Teren-Sai, which has caused the confusion.
"A small incremental processing plant expansion is planned to be completed by 2018, which will increase throughput from 0.85Mtpa to 1Mtpa."
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Quoting reports from 2014 made me laugh. The company making promises that it couldn't keep even back then....even the 'small incremental processing plant expansion' is delightfully naive. Thanks for putting a smile on my face.
A poster on another forum confirmed your misconception....another gem!!
You are confusing the company target - Sekisovkoye plus Teren-sai - of 2Mtpa with the individual target for Sekisovkoye (IMO). I thought the latest presentation document was perfectly clear.
http://145908.selcdn.ru/files.altyn.uk/2014/CPR_Announcement.pdf
Baldy, ramp up to 2mtpa been planned since 2014.........
Hey Baldy, here it is, in the Company's own words:
"The plan consists in operating the Sekisovskoye Mine at 850kt annual capacity for three years then ramping up production to 2Mtpa over a six year period. This will be achieved by increasing the capacity of the existing processing plant to 1Mtpa from 0.85Mtpa for US$8.4m and constructing a new 1Mtpa metallurgical plant and tailings dumps for US$45.7m. The 2Mtpa production level is planned to be achieved with the development of vertical skip, cage and ventilation shafts down to the -430masl level. As such, while the mine is being currently accessed via two declines, a capital expenditure ("Capex") of US$204m is planned for the Life of mine underground expansion in order to develop a new vertical skip, cage and ventilation shafts as well as the associated infrastructure".
Look at the Advfn board. A poster there has confirmed Seki plans for 2mtpa having also watched the Presentation. Teren Sai is on top of that. They haven't disclosed the plant capacity at TS yet.
There seems to be some confusion between long term goals at Sekisovkoye and the long term goal for the entire company (Seki plus Teren-sai). It is important as investors that we know what we are investing in. The long term goal for the entire company is 2Mtpa, the long term goal for Sekisokoye is currently 1Mtpa (to be achieved in 2-3 years).
You can see it in the numbers. Nowhere is there a long term goal of 3Mtpa. There is no 3rd processing plant currently in the long term plan.
Also the life of mine (LoM) for Sekisovkoye is >30 years, the 2P ore reserves are 33.45Mtpa. IF the 'plan' were for 2Mtpa processing at Sekisovkoye then the LoM would NOT be >30 years...it would be >16 years. Do the maths...see the light!!
Baldy, you obviously didn't watch the presentation, they confirmed the intention to expand Seki to 2mtpa. You don't know your arse from your elbow!
Bald Bullocks Eagle you have multiple habits of talking bullocks now go fly away or go under your troll bridge .
Dofmeister, are you trying to mislead people on purpose? You are quoting two seperate sources and making 2+2=99.
It is obvious from the latest presentation that the 'company' has a long term goal of 2Mtpa. This will be achieved by upgrading the current processing plant at Sekisovkoye from 850Ktpa to 1Mtpa over the next 2-3 years. Then a second processing plant may be built at Teren-sai. It is all laid out in the latest presentation....it is clear & simple to understand. Why do you have a fixation with 3 processing plants and 'presumably' 3Mtpa? It is wrong & misleading to continue repeating this falehood.
I have said that it wasn't entirely your fault you got it wrong because the annual report was ambiguous....to continue trying to justify your original mistake just makes you look foolish (IMO).
Hey Baldy, now talking about another plant at Teren Sai as well !
From the presentation:
"Construction of the second gold processing plant at the Teren-Sai deposit"
Get your small nodule around that one !
Hey Baldy, from the 2020 AR:
"The long term plan still consists in operating the Sekisovskoye Mine at 850kt annual capacity for three years then
ramping up production to 2Mtpa over a six year period". Confirmed in the presentation. Where is the ambiguity ? LOL.
"The company did say in the annual report that long term plans envisage two 1million tonnes/annum processing plants at Seki plus the possibility of a separate plant at Teren-Sai."
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Panda, as I said at the time the annual report was ambiguous....it could be read two ways. The latest presentation has IMO provided clarity.
PS I don't think the annual report had a long term goal of 3Mtpa....which is ambiguous IF their long term goal was three 1Mtpa processing plants. The latest presentation seems to suggest the long term goal is the new processing plant at Teren-sai....it "MAY be required". Perhaps there is a 'LONG long term goal' of 3 processing plants....longer than long term!!!!
The company did say in the annual report that long term plans envisage two 1million tonnes/annum processing plants at Seki plus the possibility of a separate plant at Teren-Sai. However this is a long-term goal so it's best to focus now on the more immediate plans to increase output to the current plant capacity of 850k TPA and then to upgrade this to 1M TPA which would have the potential to boost gold production to 60,000 oz per annum
"Read it once more Baldy. Sekisovskoye is being upgraded to 2mtpa. That will be using a shaft they are currently sinking and s second CIL plant."
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DofM, read what once more? The latest presentation is quite clear I think. Have you seen something else that nobody else has?
A new shaft & CIL plant doesn't mean that Seikisovkoye will be able to process 2Mtpa.
Read it once more Baldy. Sekisovskoye is being upgraded to 2mtpa. That will be using a shaft they are currently sinking and s second CIL plant.
Spike, I suspect you may be right. Although I sort of had the idea - from reading previous communiques - that Sekivoskoye plant was for upgrade & the new plant was at Teren-sai. The dead giveaway was the long term goal was 2 Mtpa NOT 3 Mtpa. The latest presentation does make things clearer & remove a layer of ambiguity.
To be honest I think until the presentation this week the company didn’t know how many processing plants they would need and where they should be.
" I suggest you read the report carefully again - it is proposed to construct a separate plant at Teren Sai and upgrade Seki via 2 x 1 M tpa plants. I give up........."
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It was Dofmeister....apparently he gave up.
Hey Badie Eagle R.N.S.
Seems the board of clowns read your post mate .
Opportunity for those who like to ask questions?
L.O.L..
Badie has fixed this for us cheers ! G.L.A.
Based on their track record is market price for continued lies !
This is what you get for broken promises going back to 2007 !
I invested here then and still waiting for return of idiots clowns running this company ?
Baldie stop complaining and get real , sell if you need to and stop moaning . prepare for long term as most of us have put up with this non performance for years .
".....it's an extremely clear policy.... there will be no divs until late 2024/ 2025, depending on gold price and repayment terms + timetable for any finance/loan packages."
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I can understand that to some people it is a clear policy.....but then you add "depending on gold price and repayment terms + timetable for any finance/loan packages.". So the headline is a dividend but the small print says otherwise....which I suppose is why they framed it like that.
Why not just say (like most other companies) that the BOD aim to have a dividend as soon as possible BUT the investment in the mine makes that unlikely for the next 2-3 years? That would be clearer IMO.