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I do remember that a long time ago the company issued new shares and the Assabayeu family bought those shares for something like the equivalent of £3....which turns out to have been a poor investment. At the time the SP did increase quite a lot....but that could have been the confidence the market got that the company had sufficient funds to invest in the mine (unfortunately they needed a lot more).
I don't see any fund manager paying 100% above market rate for new shares.
RB, is there a name for this sort of a deal?
I've not heard of UK companies doing this before....it sounds too good to be true. Basically they are creating new shares and valuing those new shares above market rate. So they are creating value out of nothing. In a normal market the new shares would dilute the value of existing shares. Sounds odd to me.
Bald Eagle - my whole point is that they issue new shares to enable such a transaction to happen.
Right now somebody trying to buy 10k shares would probably move the market, 50k would definitely, so 1mm shares would see price rise rapidly. I believe a small to mid sized fund manager would be prepared to pay £30m for 12mm shares and a 30% stake in a miner with every prospect of reaching 100k oz within 2-3yrs. At that point this could be a $200m+ revenue producer with $50m+ net profit ...Mkt Cap rises from £100m to £200m and the new investor as well as Assaubayev's and us have all doubled our money to £5 per share and we're still only on a p/e of 5 !
"There's no way somebody could come into the market and buy 12m shares without the price going way beyond £2.50......"
Yeah, but it isn't likely to happen, or are we living on Fantasy island?....although sometimes in the UK it feels like it.
"It's not possible for a start....I agree RB, simple solution...."
That's as clear as mud.
PS. This is the same company who changed their name but forgot to secure the rights to the new name....so they had to pay some person in a small village in Wales who read the RNS and licensed the name before they did. I don't think they do fine detail....hole in the ground needed, buy big machines to dig it!
I agree RB, simple solution....
It's not possible for a start, that's more than the free float...
There's no way somebody could come into the market and buy 12m shares without the price going way beyond £2.50......
"I think they should offer to list 12m new shares at £2.50."
===============================================================
RB, I don't understand how they would do that. Who would buy those 12million shares and why would they pay £2.50 for shares they could get for circa £1.10.
I agree that having a shareholder that owns 70% of the company isn't good.....but I'm not sure how they could dilute that holding without people who want to purchase.
Hopefully if the company start to get near 100,000 oz per year then investors will start to take the company seriously and the Assabeyeu family can start to sell into that interest.
I really cannot understand Assaubayev's motives right now but their oversized holding is certainly negatively impacting on the value of this company. I think they should offer to list 12m new shares at £2.50. That would still leave them with 50% of the enlarged capital, but would give a new investor 30%. It would also enable them to pay-off almost all of the long term debt saving £5m annually in interest expense. Market would almost certainly re-rate to that new price instantly. 40m shares, £100m mkt cap - still a p/e of 6 on current production with lower financing costs. Assaubayev holding valued at £50m instead of under £25m (which is about their av cost) and much more liquidity in the shares, since either they or the new investor could sell for a profit if they choose
What a pain that Altyn's RNS's no longer appear on 'London South East'.
HTTPS://www.londonstockexchange.com/news-article/ALTN/annual-financial-report/16441795
Not really its a risk like all shares and its upto each own person on how much they can afford to lose or not and a little bit of luck as no one knows what is going to happen in resources but its going to be worth a punt if you want high rewards then thats what you get but you could get high losses as well so GLA
SOLG been a dreamers share for years no disrespect to holders
HAD A CHANCE TO GET THIS AT AT APPROX 1 POUND A SHARE IN APRIL live and learn
Nice updated, if somewhat random, but all adds to the momentum here.
Now they need to release the financial results, on time and ideally not at 5pm on the 30th April and hopefully the financial results don't contain any unexpected surprises.
At 50k oz production with current gold price, without the geopolitical and concentrated ownership risk, you could easily make an argument that £10 per share for a market cap of £270million is not undemanding. Do the geopolitical and ownership risk warrant an 85% discount? Not in my book, this could move very quickly if they can keep progressing operational, maintain decent communication and not have any nasty surprises in the financial statements.
For ALTN, the last few weeks releases equate to positively verbose communication!
The company is ludicrously undervalued, probably due to a combination of geography, ownership structure, slow progress and lack of communication. Not much to be done about the first two but if they address the last two, this will have good reason to rerate.
To me this is the gold miner that has the most potential on the LSE in a gold bull market. Today's release gives some suggestion that they may actually realise at least some of that potential.
Lostinthedark1 - good timing with ALTN releasing very positive update with detail today:
https://www.londonstockexchange.com/news-article/ALTN/update-on-expansion-of-processing-plant/16425717
ALTN is significantly undervalued purely on its current annualized gold production of 38k oz (Q4 2023 9,600 oz poured), let alone processing 1mt ore processed p.a., which dependent on grade (2.2 - 3 g/t) and recovery (82%), would be looking at range of 58 - 79k oz p.a.
You then of course have separate Teren-sai open pit potential and long-term goal of Sekisovskoye 2mt ore processing p.a. After few quarters / year at 1mt, I wonder though if ALTN would look to instigate a dividend as prior presentations alluded to? A 10% dividend at these levels would only cost £3m. At 58-79k oz, AISC $1,000 - 1,300 (economies of scale will mitigate the inflation experienced in last couple of years) and gold price of $2,300, you could have Net Free cashflow of USD 58 - 103m (excl Capex, Tax, Interest payments etc.).
Thanks Buster and I had a quick look at SOLG. But whilst it may be a more liquid share it's also at a much earlier stage of its development than Altyn with continued losses and shareholder dilution (as per last years accounts). It has taken Altyn a long time to get to this stage and it's not moving as quickly as most of us would like. But Altyn has been consistently profitable for a few years with retained losses being repaid on the balance sheet and the prospect of dividends in a couple of years. P/E is very undemanding so overall I think this is a lot less risky proposition with a very good potential upside. But usual DYOR etc applies.
Your be better of splitting with SOLG very good prospects and can be day traded .
At £31m market cap, the 1.5m oz at Teren Sai is worth that alone valued at c $25 per oz in the ground......
Been holding these for 3-4 years and may finally get back to breakeven unless gold has topped out at 2430. A really low free float and moves fast with any decent buying but always doubted any serious players would risk their capital given the geography and company structure. Chart looks good though. GLA
Well this years ISA fully loaded with Altyn. All the fundamentals look solid so hopefully no surprises in the full year numbers and some decent production numbers for Q1 and I can finally enjoy all my gains tax free! Well good to start with a plan.
Some news worth reading .
Teren-Sai subsoil exploration area contract extension
AltynGold is pleased to announce that following the approval of its work program, Teren-sai subsoil exploration contract has been granted an additional two-year term in order to conduct further exploration and testing. The addendum to the main contract will allow the Company to perform exploration works to March 2026.
Since the award of the initial exploration contract in 2016, AltynGold conducted a Competent Persons Report (CPR) in 2019, which estimated 1.48moz total mineral resources in area No 2. Subsequent detailed drilling confirmed prior results and further defined the ore bodies. As part of this process, the original exploration area was narrowed to targeted zones and non-required area returned. Further details of the CPR are available on pages 17-20 of the 2022 Annual Report available from the investors section at www.altyngold.uk.
A work program is being currently executed on area No 2 with the aim of commencing open-pit production as soon as sufficient data has been gathered from further exploration activities.
Further Information:
For further information please contact:
AltynGold Plc
Rajinder Basra
+44 (0) 203 432 3198
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014, as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018.
Information on the Company
AltynGold Plc (LSE:ALTN) is an exploration and development company, which is listed on the Main Market segment of the London Stock Exchange.
To read more about AltynGold Plc please visit our website www.altyngold.uk
View source version on businesswire.com: https://www.businesswire.com/news/home/20240411552343/en/
Contacts
AltynGold Plc
Altyn has a golden cross lets hope it sticks ?