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Contd - (other targets) - The success of the exploration progam on Vim Rutha has meant that most of the activities will be focussed on confirming it's a discovery of economic significance and then moving quickly to an initial MRE. Activities across the balance of the exploration licence will continue these include, West Kilimapesa Hill, Teng-Teng, Maghor and Olepoipoi.
Hi JC - Yes K Hill very much the factor income wise and will benefit from the increased Heap Leach Pads, although I suspect we will direct crusher revenue also . Vim Rutha clearly involves Capex and there are many targets surrounding it- These are from a 2022 RNS (13 Dec) - Caracal Gold plc, the expanding East African gold producer with over 1,300,000oz JORC-compliant gold resources, is pleased to announce sample assay results from its Diamond Drilling ('DD') programme on the Vim Rutha prospect, a shear zone of about 4.9km parallel to the known orebody at the Kilimapesa Hill deposit ('Kilimapesa Hill') at the Kilimapesa Gold and Mining Operations in Kenya (the 'Project'). The drilling intercepted, on several occasions and over a distance of more than 2km from west to east, one or more mineralised structures of significant thickness located a few hundred metres south of Kilimapesa Hill.
Highlights
· Assay results confirm the Vim Rutha prospect corridor is intensely gold-bearing, with mineralised intercepts returned from historical diamond drilling as well as the vertical and lateral extension of one or more parallel mineralised structures, over several kilometres of distance just south of Kilimapesa Hill.
· To date, 107 holes totalling 10,424m of the planned 12,000m Reverse Circulation ('RC') drilling programme and 21 holes totalling 3,637.7m of the planned 3,000m DD programme, which commenced in December 2021, have been completed.
· Results continue to demonstrate the high gold potential of the various exploration prospects located in direct proximity to the Kilimapesa Hill deposit or in the same geological environment.
· Results of 722 samples from Batch 5 have been received and results from the DD holes include:
o Hole VMRDD_001 : 13.16 m @ 1.59 g/t gold ('Au) from 45.27 m incl. 1.19 m @ 3.9 g/t Au from 49.79 m
o Hole VMRDD_002: 3 m @ 1.58 g/t Au from 72 m
o Hole NMRDD_003 : 11.44 m @ 3.15 g/t Au from 20.09 m incl. 2.75 m @ 4.12 g/t Au from 25.86 m
o Hole VMRDD_004: 7 m @ 2.63 g/t Au from 16 m incl. 2 m @ 5.80 g/t Au from 19 m
o Hole VMRDD_005: 1 m @ 84.15 g/t Au from 77 m
o Hole VMRDD_006: 1 m @ 1.29 g/t Au from 121 m
o Hole VMRDD_007: 5 m @ 3.17 g/t Au from 57 incl. 12.05 g/t Au from 57 m
o Hole VMRDD_008: 1 m @ 4.04 g/t Au from 12 m
o Hole VMRDD_009 : 18.11 m @ 3.13 g/t Au from 13.7 m
o Hole VMRDD_010 : 7.97 m @ 2.37 g/t Au from 18.05 m incl. 2.4 m @ 5.22 g/t Au from 20.97 m
· In parallel to the DD programme, which took place on the Vim Rutha prospect, 21 RC holes and 2 trenches were completed along the same mineralised corridor.
o Initial geological observations are encouraging and 1,578 samples have been sent to SGS's laboratory in Tanzania (Mwanza) for gold analysis.
· The sixth batch of RC and trench samples have been delivered to the laboratory. These include samples from 21 RC holes and 2 trenches from the Vim Rutha prospect.
Hi Zan - I have to admit that I am not close enough to the Vim potential to be able to add any value on that score. I guess it would come down to whether or not it needed drilling - if it did I doubt they had that luxury of exploration spend.
I doubt that the RNS cost would be a factor - I think they are circa £250 but they would need signing off of course. As for PR - that is certainly a luxury I would suggest but one that I hope they can afford at some point going forward = that would be marvellous.
Your point around transparency is again an interesting one and of course as shareholders we tend to see the topic through a narrow optic and we want constantly want updated info. Of course if we try and put ourselves into Robbie's shoes he has a multitude of stakeholders - work force / suppliers / regulatory bodies (not just the FCA - local government / mining ministry / health and safety etc etc- these all need to be kept on side - can you imagine his working day without a large team around him - shareholders probably have little idea as to what it takes to run a company like this day to day. So in terms of total transparency at all time I suspect he has been walking a tightrope - its one thing us shareholders venting on a chat board but things get really serious if your suppliers pull the plug on providing terms for expendables.
I keep returning to a fact that is often overlooked - Robbie has a shed load of personal investment here - more so than most CEOs and frankly as GCAT is his baby I think his commitment runs deeper than a large financial number -I think it extends to reputation and pride - 2 equally good motivators for a businessman to do what it takes to make this a success.
Just my Tuesday evening musings.
ATB
Hi JC,
I totally agree with the viewpoint on Vim and cost/finance management.
I do wonder if they started today, knowing what thry now know (or feel), then maybe Vim would have been the focus from day 1, but as it stands, that high grade at the hill, is what has kept the lights on this last 12 months, so understandable.
Its possible that RM has been reigned in, or that again finance is at play here. RNS's cost money, PR costs money.
In reflection, RM has been open about his hopes, but less transparent with deadlines and targets (as in, knowing they wouldnt be hit but not mentioning). Thats happened repeatedly.
Again though, I can understand why, even if I dont really agree, as a part of his job is to try to provide shareholders with a return (aware he is failing lol). Telling all can sometimes hammer the SP more.
Hi Zan - thanks for your post - great to have some meaningful thoughts on the matter.
I'm with you fully on the accounts issue and I think you have nailed it in that it was a financial (cost) issue. They have bolstered the team recently but when I say team, I suspect that we have had one or two people on this at best - again a cost / resource issue. Is it good - no - can it be explained - I think so - lack of cash which has been prioritised in keeping production underway and repairing infrastructure which has been worked hard to keep production going - albeit production at less than planned for volumes.
I think your comment on lack of openness is a really interesting one and can probably be seen from 2 sides - has Robbie been clear and transparent - I personally think that in the past we would almost accuse Robbie of being too transparent but too early along with it and many of the aspirations that he was expressing were in retrospect probably best kept to himself until contracts were signed. I think the recent radio silence is probably as a consequence of the new chair reigning back comms and saying that we will only announce when their are firm details to announce. That can be extended to the audit as well where the company are in the hands of an external company and frankly therefore are not in full control of the process. Now I understand that we can create scenarios to explain all of this but your point is well made that silence leads to lack of trust.
In terms of the HL Im not sure what the point is - wasn't it covered in the revised mining plan in October's RNS:
- The Phase 1 mining plan has 2,427,279t of ore mined over the 36 month period at an average grade of 1.06g/t. 529,756t at an average grade of 1.8g/t are processed through the Milling/CIL plant with 1,897,524t at an average grade of 0.86g/t processed by the Heap Leach plant. The plan assumes a 75% recovery by the Milling/CIL plant for 23,002oz recovered and a 50% recovery through the Heap Leach plant for a total of 26,153oz recovered. Combined Milling/CIL and Heap Leach production over the 36 months is 49,155oz.
I can only assume on response to your point on Vim will come back to cost - at the moment I suspect they are going for the most cost effective route to producing gold until they have sufficient funds to increase production.
Lets hope all the questions are answered in the coming weeks. All of the above might sound like ramping from me - its not - but I am hopeful!
ATB
JC, I guess its hard to fully relax given how long the accounts are taking. To my mind the accounts werent started at or before deadline day, as they needed the raise money to pay for someone to do/audit the accounts. Thats my thought pattern and it feels logical timewise too.
That explains away some of the time it has taken to prepare them and file them.
That said, it still shouldn't take a team 6 months to do either. Now, we aren't at that 6 months point yet, but it is fast approaching.
Naturally, it does cause a lot of concern that Robbie and GCAT sort of hid the fact no one was doing the accounts last year right up until the last minute, but lets be frank here, thats how GCAT has always operated so rings true to there ways.
That lack of trust in the leadership and openess from them is surely an understandable reason many might be less patient than if RM had a clear and transparent way about him.
I've said it before and stand by the fact it doesn't overly bother me (the trust element) as I know to take what RM says with a pinch of salt, thus don't invest simply on the back of a rampy TG group interview, but for others, they must feel a little cheated that so much of the talk, was just talk.
I think its important here to breakdown what was and what is.
Beb is right in that the heap leach was originally promoted as an add on, not as a standalone.
Today, its a big change. Some reasons might be because the grades just didnt cut it economically to do underground when taking upgrading costs into account, but a positive is that the opex/aisc will be much lower now its not.
I have always questioned why GCAT focuses in the Hill when Vim (according to RM) is Hav sized potential and I think the main answer likely is found in the above (that money and time went into the hill as was going to be underground, by changing point, switching might have been a tough pill to swallow).
Think that's twice folio has filtered me, wish they would make their mind up lol
I was simply replying to Swampy regarding the company was in fact set up as an underground mining with the heap leach as a secondary. Therefore half the operation.
The variable grades for underground made it unviable, therefore all the 2022 presentations (2koz per month) come into question.
So far the production, just doesn't add up and I believe it's the main contributing factor of not getting substantial funding here.
Looking forward to seeing the results.
As stated I have filtered Bebeto but it seems he is talking about the underground mining and you are correct Folio - this was shut down some time ago. Underground mining is the most expensive sort of mining - I think I am correct in saying that that they are open pit mining above the former underground mine - essentially working downwards through the hill rather than horizontally into it. There are lots of ways to skin this Caracal cat.
Bebs answers a flipped response.
Has your Tardis broken down -- babbling on about the underground part lol. Everyone knows they aren't using it - strangely enough even it was Newmont operating it they would concentrated on the cheapest part first - which is what they are doing, and expanding .
Yes sorry Bebs - Killi hill is being expanded ...... more diggers, more high grade (not your comments). However the bigger prize isn't the hill - however I am sure it will happen and you'll end up like the Best coffee - Filtered......
Swampy, I was referring to the underground operation, looks non existent now. Just open pit and heap leach.
The holding company's gazette was on companies house, they only had a week or so to rectify before being struck off.
A creditor is a creditor however small.
The old talk down to buy in cheap chestnut again lol
Suspended for several moths and weak production will influence the SP far more than anything said or discussed here, it's about time people got off their high horses and smelled the coffee.
People need to relax and wait for the accounts and news. Its that simple. Lets debate and pontificate with the facts. Anyone posting false information in the meantime - you will get what you deserve on this board - exposure and corrections.
I don't see the bears posts but why the sudden noise I wonder when we are so close to getting the accounts and forward looking news?
Could it be that they know we are just about to come out of suspension and want to plant doubt and fear in the hope that everyone sells on the resubmission? I am struggling to think about another reason at the moment given we are currently suspended. Maybe they want to drive the SP down on opening to pick up shares as they actually see good potential here?
Just a thought.
I dont want to get into a scrap. But the loan you are worried about, is small. On past experience, Im pretty sure Robbie would just repay it himself, if there was a serious problem.
Not sure what the comment about half the operation being shut for the foreseeable means?
And the holding company was not "nearly struck off". To not be accusued of online bullying again, Ill go with a euphemism and call it a "creative embellishment of the facts".
Haha - green filter equals bear poked
Ok - that's me being a little childish I admit.
Watch for the next post now!
We shall see, I'm also a holder here and for the record I do not wish the company to go under but I don't rate the CEO at all and now he has recently put a mortgage on Kilimapesa with half of the operation shut down for the foreseeable, what happens if the plant has a serious fault and they default? The holding company was also nearly struck off, I think RM is a liability.
BTW I'm delighted that JC has filtered me, he can't see anything I write so he can't be offended or feel discredited by anything I say.
At least he's stopped making up avatars to comment back though lol
If someone is accusing you are flapping - err no.
Oh dear we are going to sound like a tag team if we are not careful - I'll put it out there before someone else does!
Definition of flap in this context - to be agitated or panicky.
Having read you post carefully Hodgeyd, I am delighted to say that I find no evidence of you either being agitated (not even with the poster - well done!) or panicky.
Why is it when posters can not make their point in a logical, fact based way they resort to play ground insults? Some people find it difficult to grow up Into mature adults.
Thanks Hodgeyd - we can but try and help.
Having filtered Bebeto some time ago, I have a little more time at the moment to respond to itsyou as he or she isn't being overly rude but they are showing themselves to have a basic lack of knowledge in financial accounting and when they state numbers as facts when they are not, this requires addressing. If they continue to misrepresent company financial information then it will require addressing by the moderators I would suggest.
I fear that we have a person with limited financial understanding at a company level and whilst that would apply to many investors here, the dangerous posters are those that think they are familiar and knowledgable and then apply their limited understanding out of context and sometimes just incorrectly.
I really don't think itsyou is being intentionally incorrect - I just think its a lack of understanding as evidenced by his or her references to liabilities for example.
I do think though that he or she is being intentionally deflective in not answering very basic questions and in that, my continued patience in trying to respond and to correct false or misleading statements is being sorely tried at the moment.
A knife edge is simply your opinion.
The FCA was known to be understaffed, it was reported openly and known to be delays.
I don’t believe we’re on a knife edge here, yes it’s not the best situation right now, or over the last 15 months, but we do know a lot has been done behind the scenes and work continues apace.
Knife edge. NO.
And I’m not flapping at all. I’m quite happy with my large ish holding here and looking forward to 2024 and beyond.
Hodgey,
I contacted the FCA months ago and they got back to me quickly to say whilst the company is in breach of listing compliance the prospectus will not be authorised and at the same time RM was giving interviews (apparently) saying it's nearly there.
You now look flapping as you also know the future here is still on a knife edge IMO
Lol the point scoring squabbling over the financials below are upto December 2022 and we're currently waiting for June 2023 to be published and they won't even contain the period of the plant shut down...
They will show a net loss though.
I wish Itsyou he would defect…..to another board
@JC - Your posts have been well written and very clear imo. Don’t think you could be any clearer.
@Itsyou - Clearly you’re not grasping what JC is saying or asking and you are simply ignoring his questions and points and clearly not reading his posts properly.
Itsyou is clearly one of those people you just cannot have a reasoned, balanced and sensible conversation with.
Bebeto isn’t far behind.
We’re all frustrated with the current situation, no doubting that. We have lots of new shares to be issued, not ideal but it’s kept the company going. They had some downtime in January, again, not ideal but replacing, repairing and upgrading equipment is essential so it happens. We’re back to mining and producing so that’s a positive.
The RNS stated the audit is in final stages and two teams are dedicated to getting it completed. Another positive.
They’re pushing to get the prospectus approved. The FCA are under pressure, under staffed and have a huge backlog, that doesn’t help us but hopefully we’re nearing approval. A pending positive (Hopefully)
As soon as the audit is complete and accounts released we will come out of suspension. It’s very unlikely at this stage that this will not happen so….a positive.
Some HNW individuals have put a lot of personal cash into Caracal, these type of people don’t part with their cash easily or without knowing they will get a good return. They will have information we don’t to get them to part with their cash. Another positive.
PoG has risen nicely and currently holding around the $2180 mark. This is almost $500 above mining plan figures based on $1700, AISC at around $1200 so looking like a nice tidy profit per oz once production ramps up. Even if we’re only doing a few hundred a month it’s profit that helps keep things moving forwards. Positive.
We have Emoress waiting in the wings with $5m reserved and waiting to be handed over. This is the biggest plus as Empress are hands on, they get involved, I’m sure they’ll likely have someone on the board if they go ahead with their investment, I can only see their involvement as positive. But, how long are they willing to wait? Fingers crossed the mining plan is amended to their satisfaction and both parties sign on the dotted line. An on hold positive that we hope doesn’t turn into a negative (We don’t want a repeat of Jan 2023)
That’ll do for now. Plenty to digest if you go through the RNS’s like Jerseycrew suggested to get a good overview of all that’s happened. It’s not all good that’s for sure, lessons have been learnt and still more to learn but there’s a lot to be cautiously optimistic about.
I’m sure we’ll have news very soon, hopefully before month end but all we can do is wait, in the meantime let’s try to keep posts here balanced informative with facts, if you post incorrect info prepare to be corrected, if you get it w
Zan - absolutely - of course its a double edged sword as POG can go down but given the previously stated plan worked with POG at 1700, we had good wide margins at that stage.
For balance we know (strongly suspect) that this plan was never actioned and we should get the full story over the coming weeks.
The underlying point you make about POG though is spot on and many commentators are forecasting more rises to come. The fundamentals behind those claims are hard to ignore when we have the global tensions and the US debt increasing at a rate of 1 trillion dollars every 100 days if the commentators are correct. That is not a sustainable situation and something has to give - I subscribe to the thought that the Fed has to start cutting rates and we might already be starting to see that flight to safety reflected in recent POG increases but moreover it seems that China's central bank is leading the charge with their purchases - all for a reason.
Interesting times - not great for the world but probably good for gold and gold miners have some catching up to do then - again commentators are saying their gains might outstrip POG increases 3 fold - lets see.
Oh dear - my attention to detail is slipping this morning - I don't think I could have been more specific (not less)
More coffee required - it might be another one of those days it seems
Defected? Haha - deflected
Itsyou.
You seem to struggle with not only financial accounting but some words in the English dictionary.
Definition of waffle: tospeak or write at length in a vague or trivial manner.
So once again you have defected - I wrote at length but I don't think that I could have been less specific or trivial. What specific elements of my post were vague or trivial?
I see that yet again you have ignored the 4 questions put to you - maybe you didn't read my post properly again.
Here they are yet again:
Outstanding questions for itsyou:
- please explain the relevance of your financial ratio of market capitalisation to total liability number in this scenario
- you say that you have explained basics of mining of mining to me - what have you explained to me?
- what advice are you giving here please?
- the new question - what are others trying to hide here.
So - are you going to continue to deflect or answer very basic and straight forward questions?
I have tried to give you advice at the end of my post which you seem to have ignored.
You quote massive liabilities of £15.5M as if this was all debt as you then talk about high interest rates in the next breath and then you state it as fact.
Itsyou - you need to be very honest with yourself at this point but what do you know about financial accounting? Do you think that the word liability in a balance sheet automatically means its a loan? Have you looked at the component parts of the balance sheet and do you know how these can impact on the day to day cashflow and P&L? I pointed you in the direction of hidden assets which is particularly relevant in the mining sector - have you done this yet?
Has the company got debt? Of course its got debt - that is not being hidden. Is the debt coming at a financial cost? Of course it is - all commercial debt comes at a financial cost.
When you get your numbers correct though please make your point so we can all understand. If you want help and want to enter into some sensible debate on possible scenarios perhaps ask some questions and then you might get some better traction here. That's the best part about these forums - when used properly all of us learn from them and I very much include myself in the pupil category.