Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Small mistake in my maths, to be accurate, $14.3 million was paid of the debt in 2023 Q1, so if we have an additional $5.25 million free flow cash from both a higher gold price and lower interest amount, $14.3 plus $5.25 = $19.55 million that could be paid off the loan if all other parameters remained the same, with $0.9 million in the bank at the start of the quarter, we could actually pay down the remaining $19.8 million and be debt free from our Q1 production.
The possibility of clearing the debt in 2024 Q1 is based on the 2023 Q1 results:
2023 Q1 results:
Gold sold - 21,442 ounces at an average realised gold price of US$1,887 per ounce.
Gold revenue of US$40.5 million.
Positive free cash flow of US$17.8 million
Mezzanine debt repayments of US$14.3 million
Net debt as at 31 March 2023 was US$69 million.
Gold production of 21,299 ounces recovered from 546Kt at a head grade of 1.30g/t.
Gold recovery was 93.4%
Darren Bowden told us the average gold grade remaining in the 4 years LOM is 1.29g that’s about the same as 2023 Q1 grade of 130g/t
Assuming the 1.30g/t last year produced over a 21k ounce quarter, its clear we can achieve the same this Q1, but at an increased average gold price of $2075 an ounce it could create a $43.5 million income, an extra $3 million, debt interest on $19.8 million is only $0.35 million for the 3 months, where as last year it was $2.6 million on the $69 million outstanding, that’s another $2.25 million in our pockets, so $5.25 million extra free flow cash more than 2023 Q1 which was $14.5 million would give us $19.75 million free flow cash this quarter if all the other parameters were equal, enough to clear the loan.
Wouldn’t that be fantastic news? It’s certainly possible.
Good afternoon everyone, it definitely looking brighter on this side with the paying off of the debt. Also there is still information to come on the reduction of interest rate that was agreed on the rest of the loan. Hopefully we will also get some clarity on if it did happen or not as final payment may be adjusted by this.
Cheers Lee. With all that is going on in the world there seems to be agreement that gold will remain at a $2150 base level for the near future, and even mention of $2500 by summer. Interest rates could be cut later in the year too.
If the April update could combine the zero or near-zero debt with more updates and news on the recent acquisitions it could be lift-off big time for the SP.
Have a good weekend everyone. Interesting times.
Gold has averaged $2060 this quarter so far, but the next 2 weeks should raise our average to around $2075 if gold stays around the $2150 dollar area, that extra income may be enough to pay off the debt in Q1, 20k ounces would generate $41.5 million income, is that enough before costs to pay down the $19.8 million outstanding? It will be bloody close, but if it’s not quiet there, it will be a matter of when in April, what a milestone.
Indeed ..... quite a rare event actually, witnessing a junior productive gold miner achieve debt-free status & then seeing just how quickly the cash pile builds once the debt-chains are cast off - particularly at a time of new record all time highs in the price of gold.
They will have to adjust their valuations very soon as debt will be completely paid off within 2 months max:
'Net debt as at 31 December 2023 was US$19.9 million'.
Marching through record gold prices debt free means even accounting for the reduced ounces from Runruno, MTL will be offsetting a lot of the lost ounces with nigh on $200 per ounce more income from the ounces they do sell.
If we are lucky and gold holds above $2150 for most of the year, between 70-75k ounces recovered and sold would provide considerable free cash flow for further acquisitions.
See where we are when the wider market starts seeing what a debt free gold producer can earn in just one quarter.
All the best
Is listed as a superstock on stockp..a, with a rolling P/E fwd of 3.5.
ROCE of 86% , and a ROE which are 1st out of 149 companies in the metals & mining section for both measurements. An ROA of 36%.
Net dept lowered from 81.1m in 2022 to 48.8mm. It looks as if all is on a roll.
Apparently he/she did have a position after calling the company blind but then had trouble selling out but that was under a different moniker but using the same broken English, if you fancy a laugh you just need to look at the post history one minute ramping a share then he's gone short its laughable he/she has more faces than big ben and that was on top of how gold was going to divebomb back in November.
Probably because gold is still c100 higher than it was a couple weeks ago. Lol.
It doesn't need to climb further, if it just lingers around 1100 & 1200, gold miners are making quite a lot more revenue and profit. Average price matters. Last time we got a spike to 2100+ and then a quick fall down to 1950, benefitting no miners. This time it seems to be staying above 2100, which bodes very well!
Probably because the gold price declined by 1% today while Mtl sp increased by 5% today ....JW
HOC
She is on other boards too spouting rubbish. I found her on HOCH.
Does JWBellamy have a position in MTL? His observations have been repeatedly addressed on this board but he keeps popping up, making the same stale points, wrongly claiming no one here is addressing them. @JW - please can you refresh us with something worth reading if you are going to pepper this board. Much appreciated.
Read broker notes, they forecast declines ahead
How comes none of the rampers on here are talking about the drop in gold today?
JW your banner heading is grammatically incorrect , perhaps you need to also double check the logic of your
post - just in case !
Postscript, today sp, fell to low of 3.75, so a stop of 3.79, would have triggered. On second thought. I would have revised the stop level, to standard deviation 3.82-ATR(average true range) 0.185=3.64-0.1#(1/2 x spread 0.2)=3.54. Alternatively Standard deviation- 2x ATR. It is important to check the spread, if much larger than ATR, stop requires to be further down, in which case maybe 3x ATR, or higher.
Some hilarious comments. I hope you get your entry point. Meanwhile the rest of us will sit back and watch our wealth dramatically increase as it has done for the past 5 years. Good luck with your £500 trade
Sanctioning a country for sale of metals such as gold doesn't seem to significantly impact pricing. Look at Russian sanctions and prices of metals.
Market cap is now £80m
Company still is net debt
With grade declines, ounces lower this year and beyond you will be lucky to grow cash that would fund another cash generating asset. Holders here are dreaming and also ramping as they know this…
Production results normally 2/3 week after quarter end. So almost certainly after new tax year
Does anyone know if the Q1 results will be before or after the new tax year please?
Brian Thanks for engaging. I appreciate your views and opinions. My concerns are not with the price of gold or global instability, its regional instability, with a world economic super power that causes my concern. Potential imposed economic sanctions that attempt to coerce the state into conforming or changing its behaviour by disrupting its economic exchanges. This in turn affects the performance of the whole economic environment of a country not just mining. Which has been seen recently with Taiwan as previously mentioned. This tied with a very ambitious uncertain future and little sign of dividend leave me challenging this share as I'm not a day trader or shorter.
Stay safe and good luck trading!
Nice post smooth rain tbh though not sure why anyone is taking any notice of what Jennifer Bellamy is saying what’s that the fourth nickname in six months look at his post history almost 1000 posts in less than three months he’s like a serial lurker he was saying the same thing when the sp was 1.5 and how gold was about to fall off a cliff and he’ll be saying the same thing when the sp hits 10p albeit with a different username.
Increased global instability increases the price of gold. Higher rates of persisting inflation tend to push up to the price of gold. So more profit is likely inbound in the near to middle future. If you want to exit Chris, please go ahead. If the SP drops, we will all add a little more to our holdings.
As for JWBellamy, your argument is basically that the share price is going to go up even with less gold left in the mine? Predicted mining output from remainder is already significantly above current SP and total value of the company. Even an exit dividend for the company at current remain values and calculations exceeds current share price.
Then not considering stage 4 and 5 of current site, new site, new resources to mine - the end isn't imminent. I also think that they will purchase a series of further plots in the next 1-2 years. I admit nothing but my gut for this, but looking at local nearby mines and sites, valuations available and their output make them easy takeover targets. I said this before, and then soon afterwards they declared their first additional land purchase for quite little relative to current output.
As all pacific ring deposits, the local geology is ssimilar to Runruno, and some containing alkaline basins similar to where MTL started which is a good source of volcanic deposited mineral with higher concentrations.
Then we have Darren, who has transformed with both direction and efficiency, based in expertise. Strong leadership is key to all of this, and is now reflected in good work force and local community engagement, as well as mine productivity and safety. This reflects well in government, and likely means that any further licenses and business expansion should not be difficult to achieve. So upwards seems to be the direction of travel for me, as most variables accounted for.
I am actually struggling to see a downside to a share holder for any of these, and I would appreciate an actual breakdown to summarise your concerns other than "mine short life afraid".