Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
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Martin Andersson, Executive Director and majority owner of Chaarat with his 46% stake, has attained this holding through a mix of converting loans to the company and buying on the open market.
The conversions and the buying has taken place over the past 6 years or so at prices between 5p at the lowest and 39p at the highest. His VWAP breakeven is 15p - 4x current share price.
He more than anyone will want to see this succeed and the $150m funding package with shares at 20p get over the line.
Deal is over a year in the making, legal agreement sign off and political risk insurance remain as the last few items to tick off. Sign off appears imminent.
ED has options at 20p, Xiwang funding package (which we await signoff for) is for equity at 20p, broker targets are averaging around the 50p mark, CFO said based just on reserves the mc should be around the $130m mark, the loan notes convert at 30p per share.
Whichever way you look at it this company is severely undervalued. $150m funding package signoff once legal agreements are signed and political risk insurance policy in place will be the catalyst for the rerate.
Exec Director and acting CEO owns 45% of the company, has put money in as recently as December at 5.25p and has most of his options at 20p per share - fully incentivised to get the $150M funding package over the line and the see the share price re-rate.
Excellent news, Moody's today upgrades Kyrgyzstan credit rating to stable - 'the change to a stable outlook reflects Moody’s assessment that the balance of risks has returned to stable.'
This will improve prospects for a competitive Political Risk Insurance policy that is required as a condition to finalising the Xiwang funding package.
Further to the previous post, with the increase of the price of Gold from $1,990 to $2,400 since this deal was first announced back in May 223 equalling an additional $400m from the Tulkubash asset alone, this $150M funding package from Xiwang has literally paid for itself almost 3 times over.
CGH hit 16p last year when the funding package was announced. The deal is so much closer to completion now since then. The latest RNS indicates it is paperwork items remaining i.e. the insurance policy and the legals - with all the relevant approvals and contracts (PowrChina etc) now in place. The comment regarding working with PowerChina to commence construction activities within a short time frame is also highly positive. Given the expected finalisation for this deal was in Q1'24 signoff would now seem to be imminent once these paperwork items are in place.
CGH hit 16p when the deal was first announced in May last year. Gold was then trading at $1,990 per oz. It has risen to $2,420 per oz since then. Tulkubash has 1m oz, thats an additional $400M this deal is now worth to Xiwang.
AISC for Tulkubash is c$1-1,100 per oz. That's $1,300 per oz PROFIT. Thats $1 billion in profit alone just for Tulkubash. Kyzyltash is 5x bigger than Tulkubash! Market cap of CGH is £29M. No wonder the CFO is saying this is undervalued and should be about 4x current price with where CGH is now. Average price target across 3 different brokers is 52p.
5p today? Lets see.
Yea struggling to see how the CGH shareprice doesn’t respond much much higher from here. This is a company making transformational deal
Company has circa $0.8M as at end March '24 plus access to $3M in working capital funding to see them through to sign off of the $150M deal
Fantastic RNS on Friday afternoon. CGH has 6.4M oz of Gold across it's two main assets; Tulkubash - 1m oz at 0.87g/t and Kyzyltash - 5.4m oz @ 3.8g/t - plus more in 'satellite deposits'.
Original financing package announced May '23 was for a $250M cash injection via equity issuance at 20p per share. for 60% of the entire company. Funding has since been revised to $150M but, importantly, is now 60% for the Tulkubash asset ONLY i.e. $150M for 1M oz at 0.87g/t. Partnership discussions on the Kyzyltash project continue implying signoff for that asset will be separate and CHG sees that as worth more than the $100M given the baseline used for the Tulkubash.
Tulkubash alone generates circa $133M a year PROFIT at current gold prices. Market cap of the company is £28M. Go figure. No wonder Xiwang is prepared to pump $150M into this for 60%.
Can someone explain if the company still has these shareholders funds from December 2023?
Cash in bank 1.69 million
Shareholders Funds 44.91 million
https://www.lse.co.uk/share-fundamentals.html?shareprice=CGH&share=Chaarat-Gold
Looking forward be a good move here,
Superb RNS. $150m is no joke and at the current Mcap should do multiples from here
Was trading at 6-7p in anticipation. Placing was at 5.25p
Crazy it’s still sub 4p. Assume that will change Monday. Maybe head towards 10p short term
Late Friday night rns. Monday it flys
Would be flying lot higher if it appeared on Top Risers board to get on people’s radar. Why isn’t it on Top Risers board?
;-)
From recent accounts,
"The convertible loan notes are due on 31 July 2024 and the Company is evaluating its options."
Does anyone know off hand the terms of conversion? I presume they will change the debt to equity, but not researched properly. Any feedback from 'informed' observers would be useful. Cheers NR
Upside imo is massive.
Anderson owns 45% so he's in full control
He paid 5p for 4m this Yr,so he needs this much higher
Market will come in on finance news personally I think the bottoms reached.
I can remember this from 12/14 years ago,when you first stated posting on leg(i think it was leg)...i didnt know chaarat was still around till a few months back.
i guess he means,funding for the 100k ounce mine,first
then the bigger 300k ounce underground mine,at a later date.
that's a big yearly tonnage that.....i think cey's only capable of 500k ounces per year,maybe a tad more
come o dave,where's that funding.lol.
Well under the radar Tro,
Big trades a couple of days ago,
Could be exponential rise here anytime soon
Finance news due,was talk of 20pps for the Chinese stake.
Let's see
And a 3 year bear trap low chart,gorgeouse chart that
2.90 looks to be the bottom...imo
well off the radar too,