Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Many thanks most helpful and informative. I think it is reasonable to say there MUST surely be a reasonable floor under the SP at this level, though we may have said this before! That was part of my justification for buying back in anyway. I note they want 5.4 for even a small parcel of shares this morning. I'm tempted to pick up some more but might wait and see if they dip it again. Not bothered atm if there's a further wait. I can hold.
I asked Linda could she expound on : "In the planned economy of the Chinese mining sector the client is not the company but the state, hence studies tend to be overly conservative." and secondly the difference between our Reserves and Resource. She kindly replied and agreed for publication : 1. Dekel was trying to communicate that the Chinese economy is still a centrally planned economy. Effectively all companies, and not just mining companies, are associated with the state even if they are listed on foreign stock exchanges. The strategy executed by a company is always the one directed by the government, and for the benefit of the state, which may or may not be the same as the interest of the shareholders. Even if the client is an overseas company, the “real” client is always the Chinese state. For that reason forecasts are typically conservative as if they are not achieved the failure can have personal repercussions. So what Dekel tried to communicate is that the habit of providing a conservative study is engrained within organisations like NERIN and they will always try to paint a conservative picture. 2. Resource is the amount of gold which has been demonstrated to be in a particular section of the deposit. Reserves however are the portion of the Resource which it has been proven can be extracted profitably under a certain set of conditions (gold price, fuel price etc.). There is a strict definition of Reserves. For example a Resource in the inferred category cannot be included in the Reserve base. Therefore the Reserve will be mined from the larger Resource. As a Reserve is extracted it is usual to undertake further drilling to again increase the size of the Resource and begin again the whole process of establishing the Reserve within the Resource. To quote Dekel “The Reserve base of Chaarat is relatively very large and of very high grade. This is a big deal!!” As Dekel mentioned again in the video the decision to use a Chinese group to prepare the DFS had two objectives which have both been achieved: 1. To put a value on Chaarat by a qualified Chinese body. 2. To show that a reputable Chinese body confirms that the project is technologically viable. I hope the above is helpful. Kind regards Linda Naylor Finance Director ------------------------------------- Well that spells it out quite clearly that we really needed a Chinese DFS for the way forward and they were always going to be very conservative - "personal repercussions". I later asked her about possible director buying at this low sp level and she replied : "The directors cannot buy shares as we are in a close period." This, presumably, is because of the outstanding DFS soon to be ratified as Results are not expected until June, unless there is some other reason (!?!). I have asked her can she give the 'closed period' reason but, frankly, I think I'm p
Gold price is on an upward spiral according to many economists. This project will shorty be very attractive to the Chinese. Presently they are looking to buy on the cheap as per the sentiment within the market with mining stocks is low. The board of chaarat are not playing in the Chinese hands. Share price will be at 20p level within a few months.
Yep pog sliced through $1180 np now testing $1200. If I wanted to buy £10k's worth here this afternoon (dummy buy) I had to pay 5.8p so offer has been rising today. Looking pretty good although wide spread.
Not sure what's happened to your 11:46 post as it doesn't seem to list anymore except under your member name list of posts. POG will be $1200 in a heartbeat it seems. Just waiting for Linda to give the OK to post her reply to me which ain't that important but thought I'd OK with her as I want to keep onside.
I think it's always been the case that if gold soars (or is 'allowed' to soar) with all the plethora of macroeconomic and geopolitical issues around the world the game would be up. A rapidly rising gold price would be a signal something is badly wrong. So, TPTB genuinely have a vested interest in gold remaining subdued. It keeps the thermometer cool and helps the whole 'everything's ok' narrative from the Fed. I've seen at least one analyst talk of $1800 as being a vital number and another $1200 as being the signal for start of a new bull market. So we're close, there's a lot at stake currently.
Great find of the Feasibility Study Executive Summary which you link to. For anyone who wants to find it themselves look on Chaarat site then under Tab 'Projects' 'Chaarat Gold Project' then scroll to the bottom for link. It's a good read and the All-in cost of $817.9 per oz compares very favourably to other projects I think. Today ACP announced their FS had estimated $866 an oz. However, I think our cost has been exaggerated as discussed before by Dekel and the All-in cost includes all the Cap-ex for life of mine (except the later tunnel I believe at $92m). We surely won't be going into this project with all guns blazing and need such a huge initial Cap-ex. I also note we have included $87m contingency costs(15%). With the Chinese New Year we can relax with regards any sign-off this week but hopefully soon. DIBS - we're now at $1175 an oz POG, does your Bull-run kick in above $1200 an oz.?
Good morning. Thanks for the link. I've read through it and it looks pretty good. Two things not 'so' good I noted were:- 1. The recovery rates could be improved and that is considered important (naturally) to the economics/profitability of the mine. It looks like they think they can optimise. 2. The KR tax rates go up as the gold price increases. No details provided. That said its a fantastic resource at a decent grade and they've probably still only scratched the surface of what could be something beyond humongous. So def on balance its well worth holding here and accumulating at these absurd valuations.
Found via the Chaarat website. Dated January BUT is was completed in December 2015 showing Chaarat were sat on it waiting for Chinese approval - eventually they released it as it did not warrant waiting any longer.
Hey Oli, Where did this report appear from? Is it a recent release.
Well worth taking the time to read the link below. Sheds light on the project past, present and future.
http://www.chaarat.com/userfiles/file/Feasibility_Study_Executive_Summary.pdf
For the clarification and your thoughts. As always sensible and considered opinions. How refreshing. According to gold analysts we are only $27 away from the start of a new gold bull market. If that happens that should concentrate a few Chinese minds. Charaat must be strategically a no brainer purchase for them right on their doorsteps and in the certain knowledge that there is a lot more gold there than so far defined.
It's good to see previous holders buying back in here at what is a bargain basement price and indeed more posters expressing their views both ways. One of the interesting statements in the RNS was Dekel's comment that a company remains interested in buying and is currently sourcing funds. Whilst Dekel's time-related targets (eg imminent, shortly) leave a lot to be desired, he is normally spot on in his assessment of what actually happens with the company. Whilst I personally prefer an outright sale in the short term (who wouldn't?) options 2 and 3 are almost as attractive given the very cheap predicted mining costs. If we do see gold up at $1500 an ounce this year, as some analysts predict, that is just the kind of macro issue that could seal a deal.
We were always going to do a DFS but we decided to change to the Chinese to complete it part way through. The logic was the Chinese would need their own standards (and language) to decide on funding. Dekel is not against selling off but I think he realises as commodity prices and gold miners have got really depressed over the years a good price is now unrealistic. Therefore he is considering developing the mine, still with hopefully a Chinese JV. Banksy does have a point about not being engineers. Think we will get a definite way forward in the next few months though - Christmas at worst - lol.
the initials refer to Chaarat BoD - GD - Dekel Golan (wrong way around) AN, Alexander Novak and CPT Christopher Palmer-Tomkinson. Irrespective of Bankside's agenda his opinion cannot be completely ignored. We have spend years producing a DFS which is in NO WAY definitive by any means!
Bankside -hmmmm just two posts - one yesterday and the last one May last year which was entirely different in view - v.bullish. Suspicious. And for goodness sake clarify all the initials youve quoted - are they names of people or companies?? Most people won't have a clue what you're on about and the comparison to Apex is bizarre. I'm always very suspicious of people who just turn up out of nowhere and come out with all this stuff and then disappear again. And anyone with 'bank' in their user name? Well, say NO more.
http://www.brunswickrealestate.com/ Martin Andersson is the founding partner his bio is on the main page.
who you ask? he is indirectly the beneficially of our biggest shareholder - Labro Investments (formally Fasanara Fund). current holding - 25.2% of shares however they have exercisable warrants that could take them to 31.27% Mr Andersson was on the board of this Russian mining company www.suek.ru and I am sure has many contacts in the mining industry. HIS support / opinion will be vital in where CHARAT goes next. Patience must be wearing thin with Dekel and the BoD - his investment has currently more than halved in value - he is someone who can influence the BoD he could also just SELL forcing a take over OR make a bid to take us private. This man IMO will decide where we go next. This must be a screaming buy at these prices however I cannot bring myself to buy more. I currently have over 500,000 shares in this so I am in deep.
well..perhaps...but they have spent a lot of time and money during a golden period for gold and not greatly advanced the prospect, no? ...on the other hand it is now v v v cheap
You surprise me. Not difficult to counter. For starters not sure what he's blathering on about. I'll respond more fully later but CGH have zero debt. They are smack bang in China's Silk Road Gold harvesting fields. This will be bought out.. It's just a question how much they (the Chinese) pay.
and v difficult to counter ...management has new challenge now: negotiating not engineering ...perhaps they are better at that!
The gold is in the ground and luckily a good portion is near the surface but the mgmt have failed to deliver on every promise to date. Mgmt are not engineers and they have never developed anything before. Since brining Chaarat to the market in 2007 with a 20.5 share issue at 60p declaring Chaarat had 1.9m ozs at a grade of 4.1g/t, mgmt have burnt thro $100m and have only moved on to 4.7m ozs at 2.79g/t. GD, AN and CPT have been in control from the beginning. They have changed plans a few times thereby buying then selling plant and equipment at a loss. The project is back where it was 9 years ago. No money, no technical expertise and no plan. Chances are it will go the way of Apex Silver Mines where GD worked and possibly identified the Chaarat potential for himself - Apex had a prospect in KG called Jamgyr, what ever happened to that? Chaarat copied Apex by incorporating in the Caribbean let’s hope for the small investors sake Chaarat doesn’t go the same way >>> https://en.m.wikipedia.org/wiki/Apex_Silver_Mines
calc would be US$/oz of resource divided by current margin/oz in this case (all figures v approx/dyor): 4/(1100-600)...less than 1%!!!!!!!
Done some more research. Market is currently pricing this at $4 per oz based on EV per oz which is a standard industry calculation of resource value. So if you buy at this price you are paying just $4 per oz for every ounce of gold that Charaat has in the ground. I haven't yet been able to establish the current approx EV per oz market payable but I can guarantee it is a lot higher than $4. At a guess I'd say about $30 minimum. Whatever, this is a bargain and sales don't last for ever.