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So here we are - the key to unlocking the prospectus and funding is the audit - it's what the company are waiting for - then the share can come out of suspension - prospectus can be issued and funding finalised. The company get share the new mining / business plan and they can then undertake the expansion. The potential of this company will be unlocked by achieving the scale of production - the resource is there. The AISC was certainly relatively low and we have the unfolding POG story adding to future profitability.
So others will have a different view and there are certainly some posters that have written this off and even if it does come out of suspension (I strongly believe it will) then they will sell and move on as they have lost all trust. I understand their frustration and sentiment but personally for me it's about the future and having an understanding of how we have got here. OCIM have a lot to answer for but again that my personal view.
Keep watching Bonkers - you might be investing yet and there could be an opportunity to get in at a bargain price if there is an initial sell off.
Bonkers - you raise some legitimate questions which have been discussed at length here and there are a range of views as you would expect.
In terms of a finance deal - I believe that negotiations were at an advanced stage before the shares went into suspension in November last year but to the best of my knowledge we weren't told what the possible composition of that package was. It is only natural that any potential investor would be unwilling to invest when question marks remain over financial accounts and the long term viability of the company. It might also be the case that the funding was in part or in full reliant upon the prospectus being delivered to the market and of course that can not be produced until there is a straight line drawn under the accounts and the shares are out of suspension. So in short the suspension has brought funding to an abrupt halt.
So then we have 2 other questions of course - what lead up to the suspension and why has it taken so long to get out of suspension.
Its no secret that the company has been cash strapped since OCIM walked at the 11th hour of providing funding at the start of 2023. We have the resource in the ground but we have a lot of aged kit being worked hard and susceptible to break down through simple wear and tear. The company was focusing their limited resources on cash generation and obtaining a new independent mining plan that they could meet the needs of a potential investor. The cost constraints means that the company is operating on a skeleton management team and they had to concentrate on plate spinning and juggling at the same time to keep the lights on and in fact move the company forward in some of the activities such as a new access road and uncovering a new high grade zone. So they were certainly not sitting on their hands but obviously something had to give and it seems that being fully on top of the accounts was the Achilles heal - investors have to make their own decision on whether this was incompetence or just the harsh reality of trying (successfully) to keep the lights on.
So the next question and its a very good one - why has it taken so long to deliver the audit? You might want to scroll down the posts here and look for an email that the company sent an investor and then it was shared here. There is clearly issues with the auditor in my view - others might think that there are issues with the audit and it might of course be a combination of the 2. From what I can glean this is not a straight forward audit - cross jurisdictional, obviously internal financial accounts not being in the optimum state, the auditors wanting another independent mining report on the independent plan already there and subsequently inaction from the company commissioned to do that and for whatever reason a reluctance for the auditor to commit to firm delivery dates. The frustration is clear from the company in its communication to the investor and means that they can't plan forward in confidence (c
Bebeto noted with thanks.
I take notice as and when of this share as I very very nearly invested a short time before the shares uspended.
However I noticed ahares had already suspended a year before and wanted to see what accounts looked like this time and if they would be done on time before investing. (I simply got lucky)
I'm no troll , i have my own history of some bad picks , I do however try and learn on the way and very much prefer the balanced outlook, far too many of these forums are filled with with nonsense. I choose tobspend a bit more of my time on telegram rather then lse now.
F.c.m another one recently suspended and I keep my eye on it via my investment with pow , icon while another I wasn't invested in I kept a eye on to see what happened to the s.p when it relisted , (all learning right).
Something for me and my limited knowledge isn't right here and I'm sure it's been talked about many times by regular posters that know a hell of a lot more then me.
8 months to do finances is a hell of a long time , even if the day they suspended and the reason they said were they forgot to do them , you would still expect them to have been done a long rime before now.
But to say in October 2023 there is just a "delay " to publish accounts after making good progress , and still suspended and waiting for same said report in May 2024 is incompetent at best.
Good luck all with luck you will be trading again imminently
I would also because we are a bit of a destressed seller and any buyer will know that, thus again, it doesn't lend itself to favour our court.
Swampy, because I don't believe its a sellers market right now.
Yes the price of Gold is up, but against that most gold explorers and producers have been struggling SP wise. In addition money markets have been a lot harder to obtain and again, if you look at deals across the sector, its favoured the buyer in large of late.
That leads me to expect a lower price. It doesn't mean it will be lower, but its what I would expect right now.
A earn in JV could work whereby we retain say 20% in exchange for a smaller amount upfront (circa 400k ish) and milestones attached for new JV partner to fund drills etc.
That takes time though, and money to do the legal work, neither of which we appear to have in abundance.
.
Bonkers0801, there's several posters here that totally fell for everything the CEO was saying and they over invested as well as encouraging their family & friends to do the same.
They don't like anyone saying anything negative, even when it's so plainly obvious, they specialise in discrediting other posters and try their very best to intimidate them from posting again.
Might work with some people but not me as I strongly believe in everyone is entitled to air their views and respect opposite views by others.
Jerseycrew. Would youbhave prefered I lied and said I had millions locked in here.
I'm not invested, doesn't mean if I comment I must be a troll , its a public forum for posters yo post their opinion.
I ONLY saw this due to the hive telegram group , otherwise it wouldn't of made my radar
Good luck to you all
Zan, considering Tanzania was gold in the ground purchased at a far lower gold price than today's, why do you consider it a given that we would sell it for less than we bought it?
I've always said I wanted more comms and as such, am happy with us getting a new RNS.
It made for interesting reading tbh. Clearly, money is as tight as its ever been and it feels like if this audit hangs on to much longer the company might struggle. That is of course concerning, but tbh not something we didn't really know deep down anyway.
The plant feels like it really struggles to operate well, consistantly, which again, we kinda new. Old equipment and needs updating.
I'm not fully sold on some of the figures for the heap leach etc as they were worth the money and time put into them, but if they can sort everything else, a decent addition, just maybe with hindsight (a wonderful thing), some funds could have been used wiser, in terms of order.
Same goes for Tanza. If it does get sold, almost a given it will go for less, given the hard finance markets right now, and as such makes you question why we ever picked up in the first place, but I agree with bebeto here that its not going to add anything to the balance sheet for many years and viewing the bigger picture, maybe selling and sorting todays issues out and allowing the company to progress from there is smarter.
Certaintly better than going under.
Lastly, high grade (well higher than prssent) stuff has gone from the figures for sure. Again, we knew that would be the case.
Thanks for copying the RNS Bonkers and as someone who has no vested interest , your heart felt sympathies.
'The timeline on the audit and recommencement of trading is driving the timeline on the expansion funding.'
The above is because any potential corporate lender would want to complete their due diligence before making or agreeing an offer, which also suggests that any funding is NOT as close to being finalised as touted on here.
'We have continued to engage with possible JV partners for or on a sale of our assets in Tanzania.'
Said all along it was a complete waste of resources (money & shares) we paid around $3.3m if they could get that money back, it would really help the near-term situation.
The Company's working capital position is constrained. The Company is dependent on receipt of further funding to continue operations and is working with its stakeholders in this regard
another raise incoming
what a **** show , suspended for god knows how long ,was the report even started when it was due
glad i didn't invest and generally feel sorry for shareholders
This statement is a little more positive
The timeline on the audit and recommencement of trading is driving the timeline on the expansion funding.
Bit of dark humour which hopefully won't come true.
Wouldn't it be ironic if the auditor taking longer to complete the audit led to the company collapsing and funding not being received .
On a serious note, I hope this has been clearly pointed out as based on this RNS, their delays appears to be placing a level of jeopardy.
My other question is where has the chairman been in all of this?
Netbox - agreed - unthinkable that Robbie would go looking for funding only after the audit was completed. My expectation is that as soon as the audit is complete the domino’s will fall and that includes the funding but there is an order to the steps / dominoes.
From the two most recent updates basically covering Q1,
Estimated total gold production is around 700 ounces, The heap leach process contributed nearly 60 ounces to the overall production.
Additionally, the overall grades have decreased, as indicated by the lower average gold grades and strip ratios reported in the updates.
The above suggests a decrease in the overall quality of the ore being processed.
There is no mention of high-grade material in the provided information.
Good to have a type of a production update though.
Fingers crossed it is holding up completion rather then the funder walking away, I guess time will tell.
I'm not going to worry about it too much as there is zero I can do either way
Totting up the 'gold recovered' figures stated in the RNS for February and March is around 16000 grams. At current price of a gram of gold of $75, that's around $1,200,000. That seems quite good to me ? (not sure how much of it is actual profit though !).
@sw10000
Your point:
"3. Is the finder still there or not? The statement states it's impact the ability to GET funding which is essential"
RNS reads:
"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."
Get Vs Complete
Read it as you will but you could argue the funder is there but nothing can progress until the audit is finalised?
CCC - in your view. Time will tell whether you were correct or not.
Agreed. Also answers the question where the money has gone. Hopefully a series of one off costs (with appologies for the oxymoron).
What is frustrating about this is this has all been done at the expense of GCAT with no come back for the funders or auditors
Probably a wise decision in hindsight, the questions I have are quite simple
1. Caracal have raised several large quantities over the last 6 months - What has this been used for?
2. With the price of Gold in addition where has the money gone?
3. Is the finder still there or not? The statement states it's impact the ability to get funding which is essential.
Despite having a large amount invested, this is a binary 1/0 , either if comes back to the market or doesn't IMO.
If / when the auditors sign off can it produce without receiving the funding ?