Chris Heminway, Exec-Chair at Time To ACT, explains why now is the right time for the Group to IPO. Watch the video here.
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Buster - the problem with the auditor has been solved.
The auditor quit.
BALD EAGLE The share price has never recovered from the revelation of these very large forward payments to the mining contractor.
The very fact the company had been warned, was clearly aware of the concerns of the auditor but has ignored the matter, they are still carrying on with the practice - poor form and clearly concerning.
I have been investing in the sector for many decades and have never ever come across a situation where a company hands over $5m/$6m/$7m+ to a third party in advance of work.
The value destruction the forward payments have created is totally self-inflicted, any 'normal' company would have changed policy instantly, assured the auditor, assured the market, assured shareholders, they continue unabated.
I continue to hold, albeit a smaller number of shares but am unsettled about the aforementioned practice, we know management has delivered on operational matters but this company would be valued 20%/$30% higher if they had that $7m+ in the bank as opposed to handing it to a unknown third party.
"I think you're a little unfair even joking abt a company yacht. If directors are guilty of anything it's long-term investment. The haven't diluted stock and take amongst the lowest wages in the lse. They've build up this company successfully and I think they shld be given a break."
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Researchcentre, as you correctly spotted, it was a joke about the yacht. I sometimes joke about gold plated toilets in the executive washroom.
I would agree that the management should get credit for taking mining underground and increasing production. But I reserve the right to criticise because they have made some very odd decisions. But progress is being made. They don't have any more excuses now and the ultimate mark of success will be gold poured. Good luck to all shareholders.
The market hasn't spotted the potential here....that's what I keep telling myself!!
I think your a joke giving a break to what rubbish updates and more lies and false dawns ?
baldie is right i would not trust these clowns as far as I could throw them you included !
I think you're a little unfair even joking abt a company yacht. If directors are guilty of anything it's long-term investment. The haven't diluted stock and take amongst the lowest wages in the lse. They've build up this company successfully and I think they shld be given a break.
"..... but if it doesn't happen maybe the family will be happy to approve a 20p p.a dividend instead !"
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That would be nice. But we have heard the 'dividend' rhetoric before....and there is always something to spend the cash on e.g. another processing plant & mine infrastructure at Teren-sai....an even bigger company yacht!!
I guess with so much of the company held by Assaubayev family there is minimal chance of a decent sized fund manager buying in, because they won't sell below about 250p minimum ... which is my estimate of their average holding cost.
However I also feel the 1mtpa run rate gets us to something like a 60k oz p.a producer and at current prices / costs I really would expect that to equate to a market cap somewhere north of £100m
... a re-rating has been a long time coming, but if it doesn't happen maybe the family will be happy to approve a 20p p.a dividend instead !
In theory this should remove one of the shackles that has been holding back ALTN for many years.
Spike - agree, massive news and as you say great terms on interest rates which vary 3-7%. For me it's a very clear RNS and with the Assaubayev family owning 65.5% their interests should align with all other shareholders in terms of both increasing shareholder value of company in both capital and dividends as CEO Aidar Assaubayev summarised at end of RNS:
“Securing the development funding at attractive terms, indicates our partners’ confidence in the prospects of AltynGold. We are now in a position to implement the expansion plan towards 1mtpa production within two years in line with our strategic growth plan. Achieving this milestone will significantly increase shareholders value and set the stage for a sustainable dividend policy.”
At 1mtpa run rate, 82% gold recovery and 2g/t, I calculate gold production increase to 53k oz p.a. However a 2.5g/t would provide 66k oz p.a. and 3g/t 79k oz p.a.
Very significant news, I’ve been critical recently but this is hugely significant.
1. Removes any risk of a default on the upcoming note maturity.
2. Gives a tick for corporate governance from an independent source
3. Favourable financing rates - this is proper development finance not speculative notes.
4. Gives a clear path to the next increase in production up to around 60000 Oz per year.
5. Given the prepayments they have made, their free cashflow generated in the next 2 years should almost fully cover the development anyway - it allows for acceleration and not just cash in, cash out development, but net debt in 2 years time should be reasonably minimal.
Big step forward
Baldie you talk gibberish your bullish then bearish , get the feeling your becoming a bear !
Everything is dcodgy with this share , always has been since early days 2007 .
they take the salaries and water down the resources and make a crap job each time promising better times and always goes back to missed production , lies more lies and same old story . bunch of clowns could nt organize a pis up in a brewery !
Lasrerbrain, I don't have anything specific...other than it is run by the Patriarch. He has sons, one of whom runs ALTN.
There was a rather strange interview with the ALTN son where he discussed the antics of a sibling & it sounded a little odd, he distanced himself from such behaviour (sorry, don't have a link).
They want to be seen to be doing things correctly. Lots of building schools & investing in local communities....they probably plant trees too. But I suspect the father has the final say.
Recent clash with the auditor who got upset, something about handing over money to contractors before work completed & no signed contracts....probably the Kazakh way!! But the work was done, apparently.
In the past Pan African have invested quite heavily in ALTN by buying shares, but that source of funds has dried up.
ALTN now need quite large amounts of money to increase gold production. Seems to be taking ages. Also there are bonds to repay quite soon (£10m I think). So not for widows & orphans IMO.
TY bald eagle. Has anyone any info on African resources? Seems a bit dodgy. Happy to be proven wrong.
These bunch of liars do whats s best for them ?
Go kid your self ? Baldie locks talks a load of crap on share price uptrends / downtrends .
Maybe a director himself ?
RTB is quiet , probably given up hope !
Https://uk.finance.yahoo.com/news/altyngolds-lon-altn-returns-heres-060007919.html positive analysis. According to this fair value is 3 times current price. Actually I'd have thought it's more
Yes you are correct, they are the same. Think Succession!....Kazakh edition.
Yes. You need to change your name.
Just read back thru the chat here and RetiredBanker back on 31JAN22 states the Assaubayev family hold 70% of the stock. Can anyone explain this? Are they in fact African Resources?
Seems odd. Any opinions?
Also, looked up African Resources and viewing the RNS back in 2012. Can't get much info on this deal or the company.. Anyone?
Spike, I may have got it wrong that it was money from the government. But I thought it was a scheme 'encouraged' by the Kazakh regime because financing had dried up because banks had become too cautious & reluctant to lend.
Obviously access to Russian money - the Russian bond - was ended by the war in Ukraine.
Its in the half year report
"As of 30 June 2022, the Company had cash balances of US$1.1m. A loan in principal has been agreed with Bank Center Credit in Kazakhstan, there are sufficient projected funds from this and from current trading to meet the Company’s medium term plans. This includes the repayment of the US$10m bonds that are due for repayment in December 2022"
Is it Kazakh Government backed funding - I don't recall that?
spike, how could they used Kazakh govenment backed investment to repay bonds?...surely there would be some stipulation that it has to be spent on infrastructure or a new company yacht!!
They need to close the funding - thats all that matters now. They have the bonds expiring at the end of this year and are relying on the funding to repay those bonds.
Unsurprisingly there is a complete lack of trust at the moment, hence the SP being where it is.
Reading between the lines it looks like they have decided - whether for strategic or practical reasons - to mine less ore, hence the 'normalisation' statement in the update.
The limit on gold production seems to be in processing the ore. It probably makes sense to reduce their effort on mining and utilise the quite significant stockpiles (according to my estimates). This may free up resources & personnel to work on upgrading the processing plant (it may also be a way to reduce costs).
The news of the Kazakh government backed financing is hopefully expected soon, again an important requirement for the upgrade of the processing infrastructure.
It would be good to know what their plan for the processing plant upgrade actually is. But I suppose they need the investment first before announcing it.
Purely my own thoughts.