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This fella must be feeling the pressure
RONALD SHIKUKU WANJALA
Kilimapesa CFO
Qualified Chartered accountant with over 20 years of experience in mine finance and accounting. Covering management accounts, tax planning, regulatory requirements and both internal and external auditing in the mining industry.
I'm a qualified accountant and I would not like to audit this company. There are some tough calls to make and I can see why issues are taking time to resolve.
The largest single risk to the company at the moment in my personal view are these auditors and the inordinate amount of time they are taking. I hear they have taken on too much work and Caracal are suffering as a result. Believe what you want and if you have contacts in the city make your own enquiries.
Aye Dead Duck yous been told all monies lost
The Moss the audit will have full integrity.
'The Company is dependent on receipt of further funding to continue operations and is working with its stakeholders in this regard;'
RM doesn't give out bad news if he can get away from it, (with that in mind) the comment above, RM himself is saying it's NOT a going concern without the help from stakeholders.
The comment is directed at them specifically in my opinion.
There would also be repercussions if they audited the company on the basis of it being a going concern and it went under shortly afterwards.
Yes positive if it's been repaid.
The debt could have been paid for via the cash from the pre sold prospectus shares.
It is $250k loan with a debenture attached which would be tricky on a default.
It's unconfirmed information though via third party professional.
There's a lot of information we really don't know at this time regarding the Company's current and true financial situation.
I may not think RM is upto the job but I'm still a shareholder.
That would be positive right bebeto?
I wasn't going to share this but I do have uncomfirmed information about the CSS Alpha Global loan may have been repaid.
Fair enough guys, you all make good points (and that was a good post Zan_TM). For those of you invested here, I genuinely hope everything works out for the good. It is not beyond the realms of possibility that it could all still work out, but the situation is all rather critical in terms of remaining solvent.
Hopefully the RNS will serve as a rocket to PKF, and that PKF don't have concerns about signing the audit, which is why they are taking their time, rather than it being tardiness on their part. I find it hard to reconcile that PKF would run the risk of the GCAT going under by not prioritising its audit. As well as poor client care, there would be legal implications for them from being warned about the damage being done to GCAT and still sitting on it. All imo and dyor
Thanks
I would temper expectations AG - the last RNS talked about down time because of breakdown and power outages.
He definitely won't be my hero but that's irrelevant, he needs the heap leach to perform better, there's a lot of risk at the moment and perhaps the indepenently verified mine plan is probably more crucial than the audit at this time.
Legal - If he gets the finance over the line he will become everyones hero. Make no mistake us shareholders are fickle creatures lol.
JC - The excuses part, again, its more mindset than anything else. My own experience was if you always had a reason, always had a cause and effect and brushed things off as acceptable because of it, you just wouldn't get done what was needed. Its incredibly difficult running a successful business, spinning many plates, wearing many hats, but there just isn't any place for the softly, softly, be uber forgiving on bad outcomes mindset imo. If I messed up, I had to own it, then correct it and learn from.
I totally feel Robbies pain in many ways, but end of the day, they choose to operare via a tradeable, listed company and with that comes some level of accountability to your shareholders. I personally stayed private, and have with all businesses, because it allowed me to focus on making the business work over appeasing shareholders. Robbie to that extent seems to run GCAT in the same manner, which works and is fine for a non-listed company, but I just don't think its acceptable for a listed company. You simply can't not do accounts two years on the trot, no matter what the reasons as the moment you went listed, you made that commitment to your shareholders, to your investors, that you would run the company in good stead.
For me, I could blag, pull off, work around, take a hit on many things a listed company simply can't. Different rule books with different standards. Many benifits to being listed, namely access to capital and your wages getting paid even though your company doesn't make any money (private and no profit, no wages, living life on a shoe string till you make it), but there is a price to those bonuses. That's why I feel he is maybe more accountabile than you might feel he is as maybe we view his responsibilties and roles slightly differently.
LW - How can you take someone's word on financing when everything else he's said hasn't happened, it's been a slow grueling journey to this point and there's procedures that has to be followed, like the audit, the prospectus and financing it's never been such a case where you can say it's being finalised without procedures being followed during the process.
It's a race against time now and a lot of it is now out of RM's hands.
JC - agree with your 8:39. Right now, you can't afford to lose the CEO because it risks all else. I guess if he gets the financing over the line, the past will become the past and the market will move on and forgive. Credibility will be less of an issue, and in fact, might be restored because has he finally done what he said he would do. My fear is if this relists with mine expansion funding still being one of his awaited promises, where you once again have to rely on his word/explanation and timeline, I fear he has lost so much credibility that you will endure a sell off in those circs. That's where his lack of credibility will negatively impact.
But let's hope it does actually relist. The last RNS sounded desperate and worrying. All imo and GLA
RNS 13th May 2024
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 for the Kilimapesa expansion project.
This is because of the lending company being unable to complete their due diligence before making a decision.
'The Company is dependent on receipt of further funding to continue operations and is working with its stakeholders in this regard'
The Company is in real danger of running out of money before getting financing over the line.
RM has just about used up all of the prospectus shares to give to stakeholders.
Asset sale is one option but could also take time.
I suspect another shareholder vote at a General Meeting to allow RM to pre issue more prospectus shares. They will have to issue a notice period before vote.
By my calculations they should need a fundraising in July but there's also a race against time to get the audit published.
RNS 13th May 2024
The Company is dependent on receipt of further funding to continue operations
RNS 14th November 2023
The Company shall make monthly payments and each monthly payment shall be calculated as the higher of US $50,000 and 50% of free cash flow of the Company.
FCF comes from gold sales, the company needs to pay it's debts down ASAP
Not only is gold our life blood - the overwhelming commentary about the future probable direction (up!) of its price, simply adds to the business case and incentive for funding investment from 3rd parties.
Although I must be quick to add that I don't share that view and believe that the price of gold is the one bit of blood still pumping through our veins and is of critical importance. Hopefully we'll get an update on operations soon.
I recall one poster saying, not that long ago, that the gold price was irrelevant to us. But I'm not going to call them out, in case they feel victimised.
With the current gold price of $2390 per oz, it's really bad form and wrong for the company to not give any gold sales figures in the last two updates.
They are nothing to do with the the audits we're waiting for and shareholders deserve to know the situation unless there are no gold sales figures to release?
Morning Legalwolf - for me I agree with you last post and whilst I fully understand why you would see things as bleak given the time in suspension, I have a far more optimistic outlook - no surprise there you cry!
In another post you talk about credibility and the CEO retaining his job - I take your point but you also have to realise that at this point in time, like it or not, Robbie is the driving force behind this company. In the short term quite frankly we need him to come through for us and it's very much in his own financial interest to deliver. Any new CEO stepping in would demand a salary we wouldn't afford and is unlikely to have the mature relationships with stakeholders which I think Robbie must have been leveraging on to keep the lights on here. At the moment he is in the spotlight for all the wrong reasons - that could change as you have alluded to if / when we come out of suspension and a financed plan is revealed.
I am personally very hopeful that all will be revealed in the next few weeks as soon as these auditors deliver.
Great summary JerseyCrew.