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Thanks gavster. I'm no expert and haven't found a decent mine plan to confirm those calcs. Still, is feels so bloody odd that the RNS was so wrecking to a potential fantastic investment. They had done all the hard work and nothing (tho sub-optimal) had changed. So why suddenly give up and take the ball away. So close...
Yeah, I have seen the fb vid. Seems to me they never got far past the gate. Not impressed.
Still searching for meaning here. I smell fish.
Hi Baritone. I do not feel sorry for Mr Phelps in the slightest. His actions have caused many people to lose a lot of money in the value of their investments, whether thats a small ISA holding for the kids or large institutionals, and those who gambled and could afford to lose.
He also has many opportunities to bolster our investment and missed the boat. Right now I'd rather get a new motivated CEO or someone at least on board that can kick backsides, get things done and entice the marketplace.
Laserbrain. Interesting. Why don't you email Roland with the info@galantas address and just ask him ?
In your calculations, do you also have an estimate or can verify as to how many hours blasting they need above the restrictions in place.
Did you also notice the break in by activists that I presume was sent to the council ? A movie of it was shared on their anti-mining facebook page. Well not quite a break in, they just walked through the gate.
For a bit of fun (sorely lacking here) I thought I'd calculate the length of the drivage they'd still need to do.
Formula is L=Sqroot(H^2+C^2), where H is the height of each twist (for us the height between levels, and C is the circumference, which for us is pillar diameter plus width of shaft (or 2x half shaft)
C= 24.5m
H is given thru the 1:6 grad = 24.5pi/6 = 12.82m
Thus, L = sqroot(12.82^2=(24.5pi)^2) = 78m per revolution.
We're on level 5 now so just 3x78 = 234m
Seems a strange place to stop after 2000m so far.
Feel free to point out what I missed. Show your working hahahah
TT I read the RNS over and over again. Watch the Proactive vid too. Seems to me not as negative as on first reading but the emphasis has shifted. They could have continued the drive based on current PSNI arrangements except they are burning cash too quickly. That's why they've stopped. I can't help wondering where to 2m from August has gone.
Hi LaserBrain - I would not necessarily say an unexpected bonanza more that the "expected" veins are better than originally thought in depth, width and grade. How deep they eventually go could be an unexpected bonanza! But either way it adds time and money to the development phase.
In terms of the PSNI we can do nothing more than wait for the resolution and put our trust in Roland and his team to deliver. Either that or a sale to a well known local Gold mining company that can afford to sit and wait it out whilst coming up with a local strategy.
Alas, we have been here before where there are delays outside of the control of Galantas. All we can do is sit and wait for it to be sorted. There is still the same amount of Gold in the ground (more in fact) and at some point it will come out. It is just very frustrating that we are so close and yet so far. I would still liked to have seen a much more positive RNS but that is now history and it's only the future that matters.
Let's hope for some positive news soon.
Posted on Stockhouse, USA. Expresses my feelings exactly: "Big No
It is clear now that the Police Service of Northern Ireland and their hidden backers are blocking the development of the mine by not providing routine guidance for blasting. These people don't care about jobs; wealth for the community--possibly $billions--they don't want this mine, period.
Think about this: Galantas was founded in 1996--23 years ago. During this time, China built mines, great cities, becoming a tech giant and world class economic/military power. Northern Ireland? I watched Roland Phelps, head of Galantas, on latest Proactive Investor YouTube interview. He seemed on the verge of tears over this police obstruction. So sad. Don't the people of Northern Ireland deserve better?"
Read more at https://stockhouse.com/companies/bullboard?symbol=v.gal&postid=30285227#O2fOGS5L1MdjodFz.99
LK505
Do you think there is, or want to be a connection with this recent set back news to Galantas and the 28th October facebook post about rate strike by residents against mining in Omagh ?
https://www.facebook.com/CAMIO2018/posts/523217308240759
I am assuming this blasting constriction for Galantas has you jumping in joy. A blow to the local economy, peoples savings and pensions, but who cares right ? The UK's premier gold mine is a blight on the landscape where people should be walking their dogs, is that how you think ?
I am simply curious to know and open to debate.
Fools and their money are easily parted....
I meant continue the drive, of course. But if the 'bigger mine' case was true I guess he wouldn't be blaming the PSNI. Still confused but holding in hope. Does anyone see a reason to add at this price?
TotalTrader. So its plausible to you we hit an unexpected bonanza at level 5 - Higher grades, wider vein? It could explain a lot of the RNS. They realise that the mine is just to big for them to handle alone. Still can't understand why they'd just stop stopeing tho. Would have been better to crack on and do a fund raising off the back of a bullish RNS.
I think even with the negatives he seems honest about situation and also positive for the future maybe I reading into his personality too much but that’s my gut feeling from the interview he means it. He does point to me tho that there will be a placing in the near future unless things are resolved quickly. But at least he’s telling everyone instead of just slapping a placing rns like most other companies so fair play to him for that
Base: Q2 - $ 460k revenue on 3 levels. @ $1280 Gold price average for Q2 aprox
Q3 - $670k revenue on 4 levels. @ $1400 gold price average for Q3
Q4 - $ 715k revenue on 4 levels @$ 1500 gold price average for Q4
question is how long will it last?
Roland wont want to dilute. Ball is in Dalradian's court. I hope they are motivated to get into production more quickly through a merger. maybe a possible reverse takeover.
I decided to add some Galantas to my portfolio.
Here are some of my reasons:
It seems to me that a lot of bad news and negativity has already been priced in at these levels.
There's still around 2 months of 'lock-up' remaining from the last placing, ...which was at much higher prices anyway.
Company is at the producing stage, ...where many others in this space are no where near it.
I think a JV/merger, or perhaps even an outright sale of assets or take over, is clearly in play now, ...and the company just announced they're beginning to "seek strategic alternatives...".
GLA!
just my opinion
I think you guys are being far too generous. This plan has been many years in the making and should be fee from problems like this and the plan being exercised with within rules updates to the market. To be marked down millions in value by the non showing of local police and their clipboards is either complete and total ineptitude or another obvious conclusion.
Roland has had loads of chances to inform and entice the market with interest and in doing so make the price high for any agreeable fund raising. Decent presentations. Website updates showing progress and mining, the recent and current gold sales are not being described and what this money is being spent on, neither the progress on upgrades, web movies , social media updates etc etc. If this is some sort of RNS to send a message then that is childish as and also ineptitude of the highest order. I hope to eat my words and see this as some sort of great chess move in hindsight, but let's face it, when has Galantas ever played games like this. We invested in an honest plodder.
If there is another shareholders meeting in the future, I will definitely be there to pose some questions.
Not happy. Not happy.
Unfortunate and agree the RNS was poorly written. I think this is Roland's call out to Dalradian either as partner or for help dealing with PSNI. They have the means to take this 60k oz/yr . but at how much dilution going forward? This isnt the first time with issues with PSNI & the Omagh mine. Roland wanted to sue them 2 years ago bc they need 5 days a week for 2 hrs each day. PSNI agreed to 3 days a week for 2 hrs only for short term in May 2017. Lets hope this can get resolved quickly.
Dalradian also had dispute with PSNI for unpaid explosive escorting.
https://www.bbc.com/news/uk-northern-ireland-39690874
https://magazine.cim.org/en/news/2017/troubles-beget-troubles-northern-ireland-mine-development/
https://www.belfastlive.co.uk/news/belfast-news/gold-mining-northern-ireland-started-13039309
Agree CP52 - I would say this is a definite over reaction. I very much doubt this is a political move - the Police really could not give a damn about the SP of Galantas, maybe some pressure from the local MP because jobs might go but no need for an RNS to sort this. We have to remember this is NI and we are talking explosives - anywhere else and it would not be an issue, perhaps there was more to the intruders last week than meets the eye.
But what did Galantas expect to happen with an RNS such as today's so shortly after a fundraising that we were all not expecting anyway. It's the way it has been written that is the problem for me.
The company now has 5 levels for stoping - better than was expected - maybe that will carry on for 6,7 or 8 who knows. I doubt even Galantas know, I need to check if the 5th level is now deeper than the original drilling results. I understand the requirement for a JV partner or a direct sale, if the Gold is now deeper and more widespread than thought, at high grades then naturally it costs more to develop the mine. If the number of levels is not known then the final costs for development are not known.
Or maybe none of that is true and 5 levels is the maximum but without the explosives permissions then they can't blast to stope efficiently or at anything like the throughput required.
What we do know is that we are sitting at a market cap of £5m for a company that has gold and a mine - it just needs explosive permissions and maybe some extra cash or a JV. What I certainly do not want to see is either a fund raise at these levels or a JV partner taking 40% at a miserly £2m.
Maybe a bit of clarity will come over the coming weeks.
It sounds like they are kicking themselves on the balls and maybe bringing it to attention maybe to try and sort the issue out quickly. I mean no police to check explosives?
Do we this this is an over reaction or not?
Oh wow. GAl has been illiquid for weeks, even months. I hold 250k shares and just did a test trade to sell all and it was accepted no problem. Price 2.18p. Something fishy here. That RNS seemed deliberately negative. Roland is a major holder and was set to make a fortune. So close to the goal. Yet they talk down their prospects even to the point of a JV. Seems so odd.
The sluggishness of the police will be down to a person quite low in seniority. 'Computer says wait', sorta thing. Feels like tactics to me.
There are inconsistancies here. They can't go on because lack of INCREASED explosive. Yet they've been making pretty good progress so far. Almost as if they're trying to put pressure on politicians to sort it.
What the **** am I reading ? A policemen cannot be found to come and check box some forms whilst the blasting is done,m and this has somehow taken them by surprise to the extent of laying off workforce.
This smacks of complete incompetence by Roland Phelps and there is a foul stink in the room left by the missing details of gold sales paying for equipment upgrades.
So. Why not send a message to investors that the operation is being run by fools, so Galantas can then become market valued to go bust when it most likely now needs funding.
Send out the CEO to mumble through their plans to upscale operations, ten years in the planning.
Message to management. "Go to the AIM market though sluggard, learn its ways and be wise"
Not the news that we were hoping for.
The blasting was supposed to be a mere formality - a formality that had taken a lot of time and work to get to but a formality. It appears that we are at the same blasting levels as earlier in the year.
The point of raising more money is also very poor. December 2019 was supposed to be the last placing, then we had the recent one - now we have more funding needed. That is just poor financial planning at best.
I see we are at 5 levels now - that is great and shows the extent of the strike at depth. I also understand that that no Gold wants to be missed, but how many levels will we get to, 5,6,7,8?? Each level takes a few months and more money to achieve. Would we have been better staying at 4 or if the plan is sell the mine then by all means carry on but issue a better RNS.
A note to Galantas Management - perception is reality and perception is fueled by marketing. In this area Galantas have a big big fail. The last few RNS's have been drab and give no direction as to where the company is going. They could have "fueled" a much different story - a story of much more gold than originally thought, a story of increased levels at great width's and grades increasing gold reserves, a story of maximising gold recoveries with the increase in gold prices and a story of interest from the major player in a JV or outright purchase. Instead we have had a story of - we are continuing, doing our best, got a few things wrong, need more money but now plan a different strategy.
That's bad. Almost suspiciously bad. I think Roland is trying to get me to sell. hahaha. Oh dear.
I might add that 3 of those early buys yesterday were mine. Happy to be on board.