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This is a test. Am I being blocked? My posts don't come through...
Pablo you got your 34p my friend did you sell any yet
34p paid! I'm getting giddy now! Should be 70-80p this time next year. Bring it on.
Have a good weekend long term holders.
A steady rise and another pleasing RNS. Directors are being paid bonus in shares. If the shares don't work hard, they don't get a good bonus. A great incentive to the Team to get this gold out the ground and earn a few bucks!
And yet your every post suggests otherwise. Intriguing.
I really don't care whichever way it goes, Daisan
I see your offensive is getting more vociferous as the share price gets higher.
Casual, I keep enjoying your pearls of financial wisdom:
“All this anxiety about the short term loan will evaporate once they secure the $80m capex financing.”
Really? I though $80m they need to build the mine, not to repay short term loans. Or you think the nice project financing folk would be kind enough to let them spend project funds on repaying existing debts? By March this debt alone will be $18m (incl interest) and they would have burnt that money on G&A. They’d need another $15-20m for another year. Kapan barely generates enough to pay its own debt on time...
Equity raise is inevitable. Hence SP pumping by Mr A
Presumably nobody is selling because they see what a sparkling investment opportunity this is. :-)
OK, so we have moved on from the 'default' statement so that is one step. I have no idea who is behind the notes but I can tell you that our Chairman (and our CEO) has extremely rich contacts. A more pertinent question would be do I want an association with those contacts?
Whether you think they would be able to raise the money is, once again, moot as the fact is that they have whether at arms length or otherwise (Ciftay for example). I refer you to the previous paragraph as an indication as to where this has likely come from. In the areas where these people operate I suspect that a great deal of the financing is based on who you know. Whilst I do not know, I suspect that your experience does not extend to the FSU.
The amount raised over the course of the company's history is, of course, relevant but you do have to consider the periods PM and PD (pre-Martin and post-Dekel). The earlier period is ancient history and the amount of money spent on defining the resource ultimately came in quite high as they could never actually do anything with it subsequent to the definition despite raising funds that were supposedly allocated to building a production facility. I think that the money spent since has not been wasted (I completely disagree about Kapan by the way but you would expect that of course).
Casual47, who is Shakalak you keep referring to? ))
On a more serious note, Çiftay... We are reading same things but obviously seeing different things. "Contract mining", "bulk material handling", "operating capability", "ability to opeprate small equipment" , "minimise strip ratios", "appreciation for the importance of ore control in gold mining operations, which distinguishes them from many other contract earthmovers"
Where is CONSTRUCTION here?
If mining was just about, well, mining, then they'd be perfect for the job! They know how to build a man camp, how to buy trucks and shovels and how to OPERATE these in a mine on a steep terrain. Great! Well, let's just then go and start mining, shall we?
What about PROCESSING? Are they going to build the processing plant too, or are we planning to sell leach solution?
Quick glance to their website. "road construction", "locker washer buildings", "transformer building", "packaging building". Where is INDUSTRIAL FACTORIES? Processing plants? Electrowinning workshops? Concentrators?
Maybe I didn't spent enough time researching them. I admit, I didn't. Just 5 minutes looking through their rubbish website. But from what I saw I was not impressed. I saw nothing to suggest they can build a processing complex. Mining? Yes, they can handle that part.
Good to see Mercedes Benz is their preferred supplier. At least they can get Martin a nice Maybach at a discount )))
One question I would like people's help with, though, is this - where is liquidity?
I've done a lot of research on this company, but one thing I haven't done is to trace where the free float has gone, and I can't be bothered going through 12 years worth of RNSs )) And Bloomberg has nothing on this either.
I mean, 37% is now in the hands of the current management. 11% is with Martin's friends and previous management. NFC has 5.4%, Polymetal 3.5%, UBS Wealth Management 3.1%. That's 60%. Where is the remaining 40%? Why is this not trading? I just don't get this. 167 MILLION shares gone missing somewhere in dead long-written-off accounts? Would someone explain to me where they're gone and why nobody's trading any?
Thanks for the reply Shakhtar and for posting your views.
To have an opinion on SXX worthy of attention one needs to know what type of person Gina Rinehart is, and that I don't know. The government will never bail them out (even if there was no Brexit, this would never happen). The only outcome is for a strategic partnership or, what is more likely, a take-private. And she is best placed to do this. Will she be greedy and drive them to the wall before picking it up for nothing or will she be nice and pay a half-decent fraction of the NAV? That depends on how charitable she feels. And, being a cynic, somehow I doubt that, but then you never know. I'm going to watch for now, let it slide over the coming few months, and then maybe it's worth a punt, but be prepared to lose the whole lot.
I disagree Daisan. The history behind this loan doesn't mean endorsement by the lender at all. I work in finance, in mining finance. I speak to risk and credit committees and other lenders on a daily basis. The way this loan has been rolled and rolled, to me, means only one thing - it is not an arms length loan. Again, just my opinion, but I really suspect something dodgy is going on behind this loan. No lender in their right mind would give Chaarat an unsecured corporate loan at this stage. I even doubt they'd able to raise project finance (despite their assurances). So why is this rolled and increased? I mean I would understand if the lender was a small fish that has been cornered and beaten into submission, so to speak, but the amounts are not small. This can't be explained by either commercial logic, or stupidity. The only other alternative is that it is a connected party staying in on personal assurances from Martin. But that would have to be one hell of a friend! (They would have to trust Martin implicitly, not to mention being willing to co-conspire in shareholder fraud.) So instead, I suspect it is Martin's money fronted by someone. And high interest rate would help him keep that average down when eventually this loan and accrued interest are repaid with shares. Again, just my suspicions - nothing more - call me conspiracy theorist, I don't mind.
Fun Fact #2 for you:
Since 2006 Chaarat has issued shares for net proceeds (after issuing costs) of over $155m, convertible notes (net of interest and net of redemptions) of $27m and loans (net of repayments and net of interest charges) of $55m - that's just shy of $240 million of financing. YOU COULD HAVE BUILT TWO MINES WITH THAT BY NOW!
Since Martin took charge, almost $100m of new money has been raised (and I ignore roll-overs). Half is for Kapan, of course (and my opinion on this is clear - that was a waste of effort). The remaining half - that's $50m - what do they have to show for this? Some resource increase and a JV with a company that's never actually built a mining production complex? (they do some contract mining work and build some mine camps - that's about it). This is a disaster waiting to happen. In no way this business is worth $200m now!
And here is a walk back into a now distant past:
https://www.investegate.co.uk/chaarat-gold-holdings-ltd--cgh-/gnw/fundraising-of--51-6-million/20110207070000H5805/
Yes, I know, this was a different company back then, different management. But it all reads so much similar to what I am reading now, it makes me lough - I just had to post this...
What is your opinion on SXX are they worth a punt now
Oli, I have never held, although I wanted, but after a lot of research and months of monitoring I decided against it. That decision was based on the quality of the Kyrgyz asset and the risks associated with it ever becoming a mine. I have remained interested since my first deep dive, and the more I observed the behaviour of the company, and by that I mean the lead team (Martin and Artem), the more I got convinced that posing my warning to shareholders is a good idea. The share has been ridiculously ramped up. The value is just not there. I am not saying that it does not have a value, and perhaps even for the Kyrgyz asset the risks will be overcome one day and it will be a producing mine, but it's just not worth the price it is at. Whatever anyone says.
Daisan, of course I understand this, I am not naive. This report is not why I am accusing Chaarat of market manipulation. Every company has a right to promote itself. It's just Chaarat goes way beyond promoting. And it is so obvious, I don't understand why others don't see it.
And just to be clear, this is all my personal opinion, based on my own research, and I am neither long nor short, nor I receive any compensation from anyone for posting my opinions. So, totally unbiased. Everyone should do their own research and rely on their own opinion. I just want my opinion out there. If I am wrong - great, all holders make lots of money holding. If I am right - perhaps I saved a few from people from investing and loosing lots of money (or even exiting now, having made money). Look at what happened to SXX. I didn't post anything on their board in the last couple days - I'm not the type to rub it in - but I did look closely at SXX in June and posted my negative views on the board. I actually said I'd be buying below 6p, and was promptly accuse of wishful thinking, but now I won't be buying at all... well, maybe a punt below 2p ;)
Artem selling the cause in Denver.
http://www.denvergold.org/company-webcast/dgf19/379/
I confess that this is your weakest point so far.
As was pointed out previously, nobody defaulted on a loan here and this convertible note has been increased steadily over a period of time. I would consider that an endorsement to be honest.
The fees that have been received in shares are hardly out of line with market rates for the services provided I would have said. Whether he would have done them for nothing is moot (and I am sure that you would understand the business adage of anything free has no value). I am sure that we have all done something for a price when we probably would have done it for free and vice versa!
There is no market abuse in these transactions.
shakhtar,
This is standard AIM fare. Most notes that go around are either from house brokers or those that have been retained in one capacity or another. Actually, it is not even just AIM fare. The world is littered with these kind of things. So if you are accusing Chaarat of market manipulation you would have to level that at any company that has had a positive note and are in some way connected to the company (i.e. every listed company).
My advice would be to just ignore them and rely on your own research.
Shaktar some interesting well researched posts on Chaarat - you have clearly done some research. Out of interest have you ever held here? Are you familiar with Martin A from some of his other ventures ?
I don't post on advfn for a reason, but for those reading CGH thread there today, and noting Hannam & Partners' analyst report - at 65 pages no less! - a very relevant question of their independence was raised. My sources tell me Hannam & Partners have been retained to advise the company on financing. So, no, out of 4 analysts out there, there are NO independent ones covering this company. I did read some of H&P's report and having done so have no respect for them for participating in this blatant market manipulation.
Fun fact for CGH fans: Martin A (according to my fairly accurate estimate) spent approx. £18.3 million buying his current position in CGH. This translates to just over 13p per share on average.
$18m investment is a very respectable number, as far as skin in the game goes, no doubt. But the way he does it smacks of market abuse. PRA should look closely into his purchasing history.
He has become smarter, though, lately, since about a year ago. I mean why pay 33p per share in the market when you can keep that average down by charging the company all sorts of fees for what you'd have done anyway, free of charge, and then get those fees paid in shares. He got 543,888 shares in "loan commitment fees" , 34,435 shares as a "drawdown fee" for a $500k drawdown (which btw was repaid within a week by issuing shares - hmm...), 250,000 shares in "loan guarantee fees". He'll get further 200,000 shares as a fee for the the latest 2.5m drawdown (I wonder how quickly that one gets repaid, and I'm guessing by issuing shares) and circa 825,000 of shares for guaranteeing $17m loan (probably from his buddy, or, worse, from himself or his proxy - because who on earth would increase a loan by $7m to a borrower who just defaulted on the previous $10m?!! Bet you that loan will be repaid by Martin eventually)
This is all a nice new smart way of keeping that average down whilst driving the price up, maintaining his stake whilst new investors pay at 30p - 33p - 36p - 40p ... Charles Ponzi springs to mind here...
13p average is not bad (given my fair value calculations earlier), not bad at all
To be honest Pablo, share dealing these days is always going to be a bit of a gamble, there are too many unrelated world events that can change a companies share price in the blink of an eye.
I'm not sure whether Martin A has actually ever taken his full waiver entitlement, with his latest purchases it gives him just over a third of the total company stock, he may well think that's all the control he wants or needs, the significant shareholder list now owns 50.36% so between them they can do what they want.
I see we've got some traders amongst us! Good luck but not sure it's wise to go 'all out' to think about getting back later. If, big IF, Martin A. decides to go all the way with his 4m waiver, he needs to Buy 252,729 daily on average for the 13 trading days up to 5pm Fri Oct 4th !