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Bfdinvestor……let me spell it out further:
Here is the RNS related wording……”Initially the mill will process approximately 35 Tonnes per day and has the capacity to be expanded at minimal cost to 200 Tonnes/day”
The key word to note here is “MILL”…..There is a whole lot more needed for expanding the overall “PLANT” for processing 200 Tonnes / Day in addition to the expansion of the “MILL” component.
When something sounds too good to be true then it usually means it is too good to be true.
Must admit first time I quickly read the RNS this morning I also thought same as you but it did not make common sense to me that you could increase overall capacity by such a large factor with only minimal overall cost impact. So I read through the RNS again a few more times and then I spotted the smart (you may prefer to call it deliberately misleading) use of wordings that the BOD has used.
My view is that this wording was aimed towards getting a strong SP pump today, which was achieved. Let us wait to see what happens next.
Bfdinvestor……I did mention the 200Tons/Day future potential……In my view this is a pipe dream and it’s naive for anyone to believe that you can expand the plant throughput by circa 4 times for minimal cost impact (if it truly was the case then surely they would have gone straight away for installing this much larger capacity basis). Anyway GWMO will likely not survive long enough to try & implement it.
Furthermore, the Environmental permit delay for the gravity separation (phase 1) facility is already causing them problems so can only imagine what they will face from authorities when they try to pursue for permitting on phase 2 which involves leaching process.
I fully expect a heavily discounted placing notification from GWMO at perhaps 0.025p within this month. They needed todays SP pump to even get it away at this lowly price.
My motive for posting here today is that I made a promise to myself after I had failed to post on the HZM nickel Company bulletin board back in June 2023 that their released site photos at that time were to me visually indicating a significant construction progress delay (which was the reality subsequently declared by the Company several months later which caused a 90% drop in their SP), that whenever I observed a similar situation on a stock where shareholders were at high risk then I would post my views for others to take into their consideration and accept that I would get branded by many as a de-damper. I have a thick skin and I have confidence in my viewpoint so this is no issue for me. If I can save some on here from big losses then it is worth it.
In any event everyone should DYOR. This will be my last post here today, I have said my piece.
Thanks aprogerson……..yours is a much more detailed version of the calculation versus my simplified version but the outcomes for the daily ounces / revenues are in the same ball park.
So I would maintain that this is a crazy white elephant path that GWMO has gone down and I foresee it will ultimately be their financial undoing. The maths tells the story.
Cesarmonty.
I have captured the 50/50 JV aspect in my posting. Yes the costs are shared but so is the access time to use of the facility.
Please show your different calcs.
RNS today states initial operating period foreseen at 35 Tons/Day (equates to circa 1.5 Tons/hour).
Assuming they initially target to use higher grade feedstock then we can predict extraction on average of 2 grams/Ton of gold equivalent. Hence would optimistically achieve 70 grams of gold recovery per day. That is just over 2 ounces of gold/Day, worth around 4500 USD at the current gold price.
Once you take account of the operating costs etc for the processing/transportation & handling and noting that it’s a 50/50 JV and so GWMO only gets 50% of the plant running time and hence the gold amount then I would foresee a FCF profit during this initial operations period being only a few hundred bucks per day at best (and that assumes no significant start-up teething problems that would need to be fixed).
On this basis, this is not as some people posting here today would have us all believe going to be in the near term a serious revenue generator to deliver any meaningful amount of free cash flow to support other ongoing GWMO costs for exploration, working capital, admin, etc.
Looking further out after this initial period of operation, the RNS mentions 200 Ton/Day as being a future potential capacity scenario (I assume when the phase 2 (leaching) etc is implemented, etc). This scenario is a long term goal & is irrelevant for the short to medium term.
What they should have reported (but didn’t) in today’s RNS is what the current completed processing plant (phase 1 gravity separation only) will achieve once ramped up to its nameplate capacity after completion of the initial operating period. This is the medium term target of what would actually be achievable and hence allow revenue/profit estimates to be assessed by shareholders. In the absence of these details in this latest RNS you have to go to the 6th June 2023 RNS (link below) where some related info is given as follows:
https://www.greatwesternmining.com/greatwesternmining-com/_img/pdf/230606-processing-update.pdf
This earlier RNS speaks of running the plant at upto 5 Tons/hour for 70 hours/week (total for JV). This equates to 50 Tons/Day (average). Using the same 2 g/T grade gold equivalent as used above then it gets you to a gold amount of 100 grams (overall for both parties of the JV) and so that gets them to just over 3 ounces of gold per day (average) which is valued at around 7000 USD. This increased amount is hardly moving the goal posts versus the initial start-up period amount.
Happy to have anyone pull my back of an envelope numbers herein to pieces…..but if true then this processing plant is a crazy white elephant and could very likely lead to GWMO going tits up. They should have stuck to the relative safety of exploring & hoping to hit a motherload somewhere.
Finally, I have always been suspicious of the lack of visuals from GWMO for this processing plant facility. No photos in their presentations/ RNS for shareholders to get clear understandings o
They were trying for 4 million GBP and achieved only 0.27 million GBP. That’s just over 5% take-up. Not surprising with the current SP at a circa 10% discount to the open offer price.
We will need to hear from management whether this circa 15% shortfall in their overall planned funding value receipt (assuming the GM voting goes their way today) would cause them any detrimental issues going forward and if so how they will mitigate. Perhaps they will cut back on the extent of new exploration they had planned as a cost saver to offset the funding shortfall ?
576.9 million is only 1% of 57.69 Billion 😉
Assuming the sold drilling rig had an associated work crew on ECR books then I guess this sale will also take their salary costs off the books which is a good saving going forwards. Although the caveat is that I don’t know whether in the short term there would be a hit for making any redundancy payment? I guess that depends on their employment basis and Aussie rules. Anyone with related knowledge can enlighten ?
I agree about this RNS being very confusing. I have read it a dozen times trying to find anything actually as “new” news here. They are simply re-quoting Diamond Drill (DD within the holes numbering) results from a year ago. Where are the drill results from the latest RC drills ? Or are these just placer holes for the deeper Diamond Drilling to be positioned next year?
Feel this RNS is a pump attempt by RP as they could have burnt through that August placing cash fast with drilling at both red setter and cottlesoe. Time will tell.
FFS sell the Yacht Ayman and buy buy bloody buy……..
Ukraine war: Russian diamonds set for ban under new EU sanctions https://www.bbc.co.uk/news/world-europe-67413029
Shaun comes across very well in these interviews. It’s likely he will have representatives from TiO2 related mining majors sitting up and taking notice of EEE when presenting at the mining conferences as recently announced. Why else to be attending at such events when so busy with Pitfield etc…..bodes well.
Interesting that Argo has got the monthly operational update out timely for a change. Hope this is a positive sign for more robust management going forward.
Yep. The 25000 at 2.125p at 12.05.33 was a buy (showing as sell).
Interesting pick up in volume yesterday. I know this Company has its issues but being down at just 4 million mcap with their exploration assets and couple of million in cash seems oversold to me. DYOR
Tricky Dicky
It was my post of 3rd October (19.30) about the RNS photos showing visual lack of progress.
If you revisit my post you will find that it was highlighting lack of visual signs of progress on piping, conveyors and E&I. As for my O&G industry friend he is a construction manager so is very hands on in the field at job sites and his experience was for onshore based plants and so reasonably comparable to the HZM onshore facility.
That QBT would be the only bright sparks targeting enhancement to bitcoin miners performance.
Here is link of news today from Cathedra one of the smaller miners based in Canada who are rolling out to the market a firmware product for mining performance enhancement.
It’s likely that the big miners like Mara, Riot, Hive, etc with their R&D budgets will also be having these type of enhancements well in hand. They could be already up and running in-house with no publicity fuss.
It is naive to believe that QBT doesn’t have competition…..The miners have the major benefit of direct access to their own commercial scale mining facilities for performing ongoing mining enhancement developments and testing. No brainer really.
https://ceo.ca/@businesswire/cathedra-bitcoin-launches-bitcoin-mining-firmware-product
Question….why did they stop at around 400m drill length on the first hole when their plan was for doing 500m lengths? Would have been nice to have gotten the extra depth of confirmed mineralization. Perhaps they encountered a drilling issue….Hope Shaun explains reason during any upcoming interview.
https://www.lse.co.uk/rns/EEE/drilling-to-commence-at-pitfield-project-fjo1754myeryoe7.html
RNS original version from Empire’s website. Shows all the Figures/photos….
https://polaris.brighterir.com/public/georgian_mining_corporation/news/news_rns/story/w6m52lx
That last RNS…..strange content/timing…..was it done for facilitating to drop the SP back into the 0.3s so that whomever was loading up a few weeks ago could have another run at it on the cheap… good amount of buying today. What do they know is coming here I wonder 🤔
When I saw the mid June photos RNS I was struck by the lack of any real visible progress on the “connectivity” crafts that usually take the biggest technical effort to execute timely at a job site. These are the piping, conveyors and E&I aspects. What was visible was civil, structural steel (with nothing yet mounted on it) and some equipment all of which are usually pretty straight forward early stage crafts to assemble/install at site. I showed the pictures to a 40 years experience oil and gas construction manager friend of mine and said this is targeted to commission in Q1 2024. He laughed and said looks more like it will be Q1 2025 and it would be miracle to finish within 2024. I sold my 10,000 shares at 140p that very same day for a small profit. Just wish I had put a message here at that time but didn’t want to get the de-ramper abuse so didn’t bother. Sorry to the LTH here for that and I have learnt a lesson this week and will not keep quiet the next time I have something important I believe is worth sharing that can save folks savings if they choose to listen. I would hope others who have important knowledge to share would do likewise.