Firering Strategic Minerals: From explorer to producer. Watch the video here.
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Toro Gold CEO and founder Martin Horgan said: “This acquisition provides our shareholders with the opportunity to realize immediate value for their shareholding in cash while also receiving a meaningful interest in a premier African gold producer as shareholders of the enlarged Resolute.
“The contribution of our highly profitable Mako gold mine and prospective exploration portfolio with Resolute’s portfolio of large scale, long life assets creates a compelling African gold investment proposition.”
Upon closing of the transaction, Toro Gold shareholders will own 15.8% of the enlarged Resolute business.
The deal value comprises $130m in cash and 142.5 million Resolute shares.
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Somebody involved in Mr Horgan's company's sale 'due diligence' process was :
Timothy Strong
Senior Exploration Geologist
Resolute Mining Limited · Full-time
Oct 2016 - Jun 2018
But, the purchase didn't work out well for Resolute - they kinda bought a dud - not as advertised
---->>>
Still, Timothy is now doing this:
https://www.kangariconsulting.com/
Due diligence, resource estimation, geo modelling, prospectivity, exploration management
--->>
And he was poking around in Egypt a few weeks back for an undisclosed client, pictures here:
https://twitter.com/timothystrong88/status/1550115250673922050
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Of course none of this means anything, until it suddenly does
PS - I love Goldgnome's assessment of Centamin's latest results - especially the bit about the Sukari area still being mined 50 years out - exactly why current shareholders need to be confident that management will not sell us out at this ridiculously low share price !
Cowichan don’t you ever leave here!
Martin certainly did a good job at selling bag of fruit to Resolute Mining, for a great gain to Toro shareholders (and some pain to Resolute shareholders). It does suggest, that he is good at sales, and very good at selling mines for a good price. It infers that IF there is a sale of CEY it would have to be at a good price, which is the narrative he is building now. It is taking more than 6 days, but this is because he is a mere mortal.
best
the gnome
I would take £3 now.. (let hope Martin builds strong and quick)
but still prefer golden flip flops £5 plus yearly divi....back to the real world
Hi Cowichan,
I remain suspicious that we shareholders aren't being told as much as we should and that the analysts involved in these presentation sfor whatever reasons never seem to ask enough of the right questions!
I won't go into details at this stage, but after Wednesdays Q2 2022 update I am somewhat concerned because it seems ever more apparent why the high grading grading in the open pit carried on for so long, or until the crack in the open pit wall brought about some forced admissions!!
The board in Jersey claimed they were unaware that the waste ore wasn't being cleared in the open pit , so admitted complacency or laziness on their part, even so a failure by them to carry out their responsibilities of acting in the best interest of share holders, which is bad enough, but hard to believe, although better to admit to that failure than to admit being complicit in or condoning such bad mining practice at Sukari to bump up the guidances, at least until the crack appeared in the gloss!
The BOD must have been aware since 2015 of the grade problems in the open pit, and again in 2018, Andrew Pardey was certainly aware since 2015, he was challenged by an investor on the 2018 Q & A quarterly update where he lied, claiming he was unaware of the Kees Dekker reports, he also tried to play down the importance of the contributions from the underground mine and the pole axed underground LHDR
in the light of what has been disclosed in this latest update possibly all that money and time spent on the open pit clearance would have been better spent on developing the under ground operations and possibly potential new reserves elsewhere?
With the current gold price much lower than the average price of US$1863/oz achieved in Q2, they will need to do much better production wise in Q3 to improve on Q2.
Noted -More open pit material mined, but with a drop in ore pushing the strip ratio up.
Being 11 is very high for open pit operations at a grade of around 1 g/t Au.
So difficult to make money as things stand!
On the plus side there is stockpiled material in both periods and at relatively good grades.
-Substantially more underground ore mined at a better grade which likely means all the free cash flow comes from underground mining.
I am told reporting such as “cash cost” and AISC per is pretty pointless as these can be manipulated and are to a large extent out of control of management with grade having a major role as has book entries to re-allocate cost to capex.
Far more preferable is unit cost for:
- Underground Mining
- Open Pit Mining, preferably distinguishing between ore and waste, and before any reallocation to Capex as “deferred stripping"
- Re handling Cost
- Processing Cost
- G&A - annually
Technical reports on reserves usually give such costs, but financial and/or MDA reporting does not.
Centamin has relatively very low open pit mining cost compared to their peers,which is good!
Yes an upbeat presentation, unfortunately not enough of the right information!
In reality its only going to be possible determine whether the Open Pit is really worthwhile when the company produces a long term plan for it that is made public.
Centamin need to make available their long term plan and studies in which they motivate resources/reserves, there really is no good reason they shouldn't do this.
Tibbs Not sure I agree with the comment regarding Sukari having relatively low mining costs in their open pit. With a strip ratio over 10 to 1 their costs are currently much too high and this is where I would like to understand in more detail the cost per ounce of Capital's waste removal. This will then hopefully provide us with something to look forward to at the end of the contract, a more realistic strip ratio and reduced cost per tonne/ounce. Or will it and is this high strip ratio more realistic given the age of the open pit?
Unfortunately I was laid low with covid so wasn't able to participate in the phone in maybe next time especially as next quarter will hopefully provide some important updates.
I think it is interesting they are getting high grade quartz veins (more of?) than they were probably expecting? If these quartz veins are subvertical there is a high chance they did not know much about them if the resource drilling was subvertical.
potentially could be very nice
the gnome
Good to see that its living up to its name Sukari ( sugar mountain)
Google translate always refers to Sukari as diabetes, exposure has had a wearing affect on my health but thankfully nothing so extreme.
Diabetes unable to absorbe sugar ie glucose.
But so much produceds in Pharoes times from Sukari Mountain ,Hamash and Wadi al Aqui, by artesan miners .
120 ancient mine sites in those areas.
Hi Dasut, sorry to hear that you had Covid, really glad you are back and getting upto steam again!
Sorry Dasut, thank you for pointing this out, the post should have read "relatively low UNIT mining cost!"
From Kees supplied calculations the overall mining cost was high because of a strip ratio of 10.
As you rightly pointed out - For a grade of around 1.0 g/t this strip ratio is way too high!
Tibbs