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Agreed bald_eagle - there is a very relaxed attitude to this that its just because things are done differently in Kazakhstan and the fact that a coach and horses has been driven through any acceptable form of minimum governance is neither here, not there despite investor confidence clearly having been hit further hence this trades on a PE of 1.5, with little sign of any change and a likely long road to winning what little there was anyway, back.
I also find it unacceptable they published financials via an RNS without disclosing the qualified audit opinion - its one thing blaming the local subsidiary, but those responsible at PLC level should have been aware.
ResearchCentre, I cannot understand why they cannot do both.....the best of both worlds!! Use a 'family' company to supply goods & services AND have the paperwork (contract presumably) to show what was agreed.
Would it be such an insult to have a piece of paper signed?!
Altyn have to realise that there are reasons why such 'formalities' are required by UK accountancy law....it protects management as much as it protects investors.
Hopefully the company is proactive on this matter and they communicate the resolution to the market. It is an unnescessary distraction from getting gold out the ground.
As a point of interest, there's no real temptation to act badly for the controlling family. Because they own so much of the company, if they take money themselves, it reduces the value of their shareholding by a multiple of that. They've taken ridiculously low wages for ages and were I believe quite upset by not getting the paperwork in order this last time. Mistakes happen but I think we will find this the last of that type
I think it's just a question of getting the right paperwork that makes UK pple happy. Over there they worry more about making sure they know suppliers they are dealing with well, that they've proved themselves before if it's a big contract and that they are trustworthy. For that environment where you depend on good families (ie if someone doesn't deliver they are in trouble with not just you but their own family) it's a very good system. In the UK you could do business as a plc with a bunch of pple you felt distinctly uncomfortable with and it would apparently be the right decision ie you wldnt get into trouble if the paperwork was right altho the supplier didn't deliver. I think the Kazakhs system is better but they will take more trouble from now on to get the paperwork right.
RightOn, I have read that about a lot of countries....that there is often a heavy drinking culture in business (perhaps slightly dated now). One needs to be able to handle one's drink. Personally I wouldn't last 5 minutes!
ResearchCentre, I'm not saying there is any here? It was more a general question about things in Kazakhstan.
For Altyngold it would seem the auditor has encountered an irregularity that they didn't like....possibly perfectly normal and OK. However financial practices need to be reviewed and 'possibly' tightened (which is what the company are doing according to the AGM Q&A).
However the company is owned & run by the same family and the temptation is there....so a strong finance officer (chosen by the family!) is required. Hopefully this is a wakeup call and not a sign of things to come.
Yes, bald-eagle, there is much, but it is often possible to avoid through the use of friends. I never made a corrupt payment in my times there (I was in senior management), but I did have to drink a lot of vodka on occasions!
I don't think there's any question of that here. Production costs per oz at $800 are amongst the lowest out there and this contract is being fulfilled, as it was last time.
RightOn, is there much corruption in Kazahstan?...to ensure speedy & positive outcomes.
In the UK one donates to the Conservative party!!
Yes, it's cultural in the region. I know because I lived there for over 10 years. Many the time I had to pay taxi drivers early so they could buy fuel, or in advance with a restaurant booking, so they could buy in the raw materials for meals. It was a shock at first....
Prepaying is perfectly normal behaviour anywhere and the company had done it before with the same subcontractor. I see no issue with that, especially when the subcontractor needs to buy new equipment. I think Altn were surprised by the auditors stance but knowing that now will ensure it won't happen again. Anyway the subcontractor have largely worked their way through the prepaid amount and given the good production figures, it was clearly a good plan - just needed to be tied up better considering Altns a plc etc..
7, Website. When can we expect a new improved company web site?
A) The Company believes the website is generally good but the point is taken on board that that the Company needs to update and refresh the design and layout – this will be addressed.
Many thanks to poster Palisz from the other site for this update.
HawaiiFiveO, thanks for the AGM feedback. It was interesting!!.....apparently pefectly normal behaviour in Kazakhstan that isn't acceptable here. Go figure.
6) Share price & PR related question
There are a number of factors that will affect the share value of the Company. But the the current level of the share price is disappointing. From its previous level of trading and development - the current management have
been progressing the development of the Company - The Company sees the main driver to the share price as being results - it is agreed PR is an issue and this will be addressed - but we have generally found that the PR firms as
providing very little value at a high cost. The Company is currently in the process of appointing a UK based broker.
5) Teren-Sai. Significant detailed drill results here have never been released to my knowledge unlike for other miners. Any results given are in a summary form only. Why is this?
A) This is being considered at the moment - the Company is in the process of licence renewal and agreeing a detailed exploration program and a detailed RNS to outline the future developments is to be sent out once the process is complete.
4) Could the management give guidance of the expected reserve grade going forward (Latest 1.97)- in 2022/2023
A) The expected grade is 2.2 in the forth coming year - and set to rise after that but unable to give definitive time scales after that in relation to moving up-to the CPR grade - at present with the gold price at its current level, it is the
Company’s objective to maximise ore throughput.
3) Reporting continues to be disappointingly slow and minimal. In these uncertain times the company really needs
to be making more regular and timely updates. Especially drilling results, and other relevant information.
A) The point is taken on board that there needs to be an increase in the dissemination of information in relation to the feedback of the Companies activities - the current format of quarterly reporting is to be expanded to make
it more encompassing and detailed - and the aim to is disseminate the information within 4 weeks of the quarter end.
2) With Renaissance effectively out of action does the Company intend to appoint a new company broker?
A) Renaissance/Rencap were initially appointed as the Company were looking at raising finance in Russia - the broker had connections in the Russian market - the attraction was a source of cheaper funding with a favourable exchange
rate. As this market is now no longer viable - the Company has been looking at the appointment of a UK Broker.
1) Can the Company explain the background to the qualification in the audit report.
A) The Company has been progressively growing turnover year on year. In 2021 alone, the company managed to increase the sales of gold by more than 68% compared to the previous year.
In line with the Company’s plans of continuous growth and to achieve its operational objectives for the current period
and looking forward, one of Altyn Gold’s subsidiaries in Kazakhstan made a prepayment to a contractor (an external independent service supplier), for mining services which is a normally accepted practice in the mining sector
in Kazakhstan.
The contractor has been providing its ore mining services for a number of years, providing a good level of service in terms of meeting agreed volumes and the quality of services provided.
On completion of the 2021 contract a further prepayment was made to maintain the continuity of operations and further the production growth into 2022. This was to enable the acquisition for the contractor’s for additional equipment and machinery required.
The principal area of concern as noted in the auditors’ report was the prepayment made to the contractor raised the risk of non-recovery in the event of a default on the prepayment in case of their bankruptcy or other issues. The
Company did mitigate at the time in relation to the recovery of monies by way of guarantees to reduce the exposure to the issue..
In relation to current trading the contractor has already carried out works in the amount of 70% which will be offset against the prepayment amount, and the risk of non-performance or default has subsequently decreased.
Management recommendations as noted by the Auditors and the Audit Committee are being acted on and are being implemented.
In order to prevent a recurrence of the situation from occurring again the company’s management will review, develop and implement the internal control policies with respect to advance payments to suppliers of
goods or services.
By the way reason we have no update on the additional resource is because they will try flogging us that next or diluting it and selling everyone down the river in future years ! To much dodgy back room dealing go on here ! Be warned new investors the DOD infestors will take your money from you and dilute yours shares to F uk All . GLA , May the force be with you .
Probably one or two bit like the trades of today virtually nothing this what happens when you take the market for a fool .
The market is a forward thinking mechanism which these cowboys have totally trashed their reputation . A leopard does not change it spots so those who still believe will end with probably nothing . Say it as it is !or what s on the tin .
Did anyone go to the AGM?....(unfortunately not me)
I would not trust these lot one bit they have a history of lies , Directors of this company are all snakes . Look at share price always down , diluted shares , down , more dilute , Better odds going to the bookies then buying here !
Totally peed of with years on year downtrend in share price ! Worst investment ever !
They may be asked some difficult questions.....hopefully they have some sensible answers.
Seems the auditor haven't received the assurances they need to be 100% happy. Replacing an auditor in the situation could be tricky. Better for the company & investors for financial controls to be tightened going forward....but the controlling family will decide that and they might like the situation as it is.
Thanks for your input StoneFold. Personally, I'm not very concerned, marginally more so than I was before, considering the corp gov risks at any such small mining op in Kaz. Progress has been slow at Altyn but the numbers are improving and I don't see a strong argument for the Assubayevs to screw minority shareholders at this juncture.