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RM has raised £3m over the last 15 months and the Company said in it's latest update
' The Company is dependent on receipt of further funding to continue operations'
This suggests critical financial challenges are maintained within the Company.
People think with the publishing of the financials the Company will automatically complete further funding, the Company said in its latest update
'The delay in completing the Company's audit for the period ending June 2023 (as announced 9 May 2024) has affected the Company's ability to complete the financing'
This does suggest any funding agreements can only progress so far without the published financials and therfore they will be unable to close a deal without them.
The Company also stated
' We have continued to engage with possible JV partners for or on a sale of our assets in Tanzania'
This suggests that the current funding path could take considerably more time than expected and or the funding being offered is much less than previously agreed/asked.
PKF will do there thorough audit and entities like the FCA (due to the prolonged suspension) will make sure the Company's processes are followed correctly.
Unlikely this will return anytime soon.
Were Goldstone waiting on PKF to get their act together as well??
Goldstone back trading tomorrow so surely GCAT can get their house in order....?
I think its 90/10 Mickey in favour of coming out good
If you check out my posting history join me on another board for a different chat
I think its 50/50 JC
Keep checking in here SW
All good thanks, just getting on with other things whilst we await a meaningful update at some stage
Nice to see you back SW - hope all is good.
Hi All,
Why is everyone arguing over nothing, value your time and don't spend it in little spats here.
Nothing will change until there is an RNS of some type, we can then debate the state of the company which we all sort of know at the moment
ouch. you are on fire sono***un!
Yes JC, knowing you would probably be his first customer.
sono***un…
feel better for that?
Unlikely to return any time soon.
Robbie would be more suited working within a second hand car dealership.
TheMoss
You make some very high level observations without context or elaboration.
-Routine tasks - please elaborate
-Unable to offer security - what is your point within the confines of Kenyan law?
-Investors over their heads - what do you mean?
-One big rights issue? Why are you limiting to one form of finance?
If you are an accountant you will understand that even a set of accounts need accompanying notes for context - perhaps you can supply the notes to your post please.
Thanks
All I see is a company incapable of doing routine tasks, unable to offer any security for desperately needed finance and investors in over their heads.
If this company is such a winner the answer is surely one big rights issue.
Surely, in crude terms, if the AISC is less than the POG, they are a going concern. Im not sure why you are worried about million Pound holes.
Although its fair to admit that none of us are here for a tiny operation chugging along just able to keep everyone employed. We're here for the company to get the finance they need to expand to get the critical mass to make lots of money and be worth multiples of what it is now. I'm not saying that's a given. Just saying that it's what the game is for investors. But, to circle back, that has sweet fanny adams to with running as a going concern. They might not be setting the world on fire, but appear to be meeting their day to day operational costs.
TheMoss - what do you actually know about the current operations here please? Why are you talking about digging a hole that is going to be written off against future revenues?
I wouldn't touch this audit with a bargepole. It's easy enough checking figures but it's the going concern that's the crunch.
So you spend a million dogging a hole. The intention is to write that off against future revenues. If there is lots of gold there that's fine. If there isn't enough gold to generate sufficient profit to write off the capital cost it's just a hole and worth nothing.
Saying that you agree that is a valuable asset leaves you open to action should someone rely on the audited balance sheet to advance a loan. There is plenty of reasons to doubt if it's a going concern.
Checking the receipts and payments is easy. Agreeing it's a going concern is a big shout.
UK Listing Rules
Listing Rule 9 (Continuing Obligations): Requires listed companies to maintain high standards of disclosure and transparency. It mandates timely publication of financial reports and disclosures of significant events.
Listing Rule 10 (Significant Transactions): Governs disclosures related to significant transactions and ensures that shareholders are informed about major changes affecting the company.
The Financial Conduct Authority (FCA) Handbook
Disclosure Guidance and Transparency Rules (DTR): Set out the requirements for disclosure of inside information, financial reporting, and significant shareholdings.
DTR 4 (Periodic Financial Reporting): Requires timely and accurate publication of annual and interim financial reports.
DTR 7 (Corporate Governance): Outlines requirements for corporate governance statements, including compliance with the UK Corporate Governance Code.
The Companies Act 2006
Directors' Duties (Sections 171-177): Imposes legal obligations on directors to act in the best interests of the company, avoid conflicts of interest, and exercise care, skill, and diligence.
Shareholder Rights (Part 13): Provides shareholders with rights to information, to convene meetings, and to take legal action if their interests are prejudiced.
UK Corporate Governance Code
Principles and Provisions: Sets out standards of good practice in relation to board leadership, effectiveness, remuneration, accountability, and relations with shareholders.
International Financial Reporting Standards (IFRS)
IFRS Compliance: Listed companies must prepare financial statements in accordance with IFRS, ensuring transparency and comparability of financial information.
Over six months suspension and the Company is hitting every indicator :
Investor Confidence
Severely erode investor trust and confidence in the company's management and operations.
Market Perception
Negative perceptions about the company’s stability and future prospects.
Financing Challenges
Inability to raise funds, lenders will also view the suspension as a significant risk.
Operational Constraints
Cash flow issues and project delays.
Regularity and Legal Risks
Compliance issues and legal consequences. Shareholders and creditors might take legal action if they believe the company has mismanaged funds or failed to meet its obligations.
The audit process may not have been initiated within a timely fashion as required in following regulations.
Clued - if you have a background in accounts you will understand that this is an audit. But please offer the auditor your services - sounds like they could use the support.
RNS 9th May 2024
As part of the Group Audit an independent review of the Kilimapesa 3 year mine plan was required to be undertaken.
Seeing that it's currently being reviewed and we have enough data for the actual Gold production, I thought I'd run the numbers through the computer on the estimated production from the mine plan and compare the two.
Whether the independent review will do this, I've no idea but it would highlight discrepancies and areas to look further into.
While the operational data indicates that the mining and processing volumes are consistent with the plan, the actual smelted ounces are significantly lower than the calculated recovery based on grades and recovery rates.
Estimated production 49,155 oz
Operational production 34,847 oz
So there's a discrepancy of 14,298 oz
While smelting losses are a significant factor, the overall discrepancy between calculated recovery and actual smelted gold can stem from a combination of factors throughout the entire production process.
Losses during processing or smelting.
Inefficiencies in recovery methods.
Delays between recovery and reporting of smelted gold.
The result of the independent review will be interesting.
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Oops, my mistake... Subject is POG not year so POG 2404 correct !! Adverts here popping up and down are very distracting and make it hard to post comfortably and concentrate. Wonder do any of the LSE site owners ever try using this site themselves to see how bad an experience the adverts create. TEMU seems to be a major culprit and I'll NEVER buy from them as a result !!