Member Info for adamsmithfreethi

Following on from my post I wonder what the respective economics of Mari versu Plat are? The Board are on record for stating what it costs to deliver the Plat oil. I don't think we have a handle on the Mariposa cost do we? If it was anything like the costs of Plat pre OBA then I would have thought their margins would be halved perhaps more...

The economics are not the same though. 28% increase from Mariposa onto an existing output from Plat does not necessarily mean a 28% increase in profits. Given the OBA a barrel of Plat oil must be more profitable than one from Mari?

We've seen them all on this BB Daisan - having read your comments I rather nurse half a pint of optimism than glug the Kool-aid and reap the inevitable consequences. Still it'll be interesting to see what happens if and when this stock is seen as having "momentum". Many moons ago I invested a pitifully small amount in CEY and am sitting on a tidy return. If this gets anywhere near that then it's a serious payday for me. Note that is NOT a prediction

I was one of the hardy souls at the AGM. Pretty much the whole Board was there and the chief production manager/geologist. I must say, the whole Board gave a pretty good impression on being keen on getting a payback for their investment. Apparently, Gadabek was the largest copper mine in the world before WWI and they have a large prospecting area beyond the 3 mines which are are already starting to explore. They clearly think there is much more to come. Finally,JC1234 apologies - you were right we are not due a formal production/finance update for another month. I was getting ahead of myself. A month of doubled gold production should go some way to counteracting an increased costs incurred

I think visitor has given a very balanced view of the situation and whilst on balance I'm very optimistic I think some are getting ahead of themselves. I suspect costs have increased substantially and net debt has taken a hit. Often important things announce themselves by their omission. I noted that no net debt figure was given in today's RNS. Also a question for visitor. I don't suppose you know the amount of profits to be earned before sunk costs are paid off and the levy goes up from 12 to 50%?

I've stuck with the stock through thick and thin and it looks like my faith in the management is being finally rewarded. Let's see whether the market starts putting a premium on the company NAV since the quality of the guys at the top are way ahead of many of those running the show ponies in the FTSE100

I was at the recent AGM and had a long chat amongst others with the guy in charge of production and exploration. Seems they are spending a lot of time optimising their resources with the consequence they run a pretty tight ship so the cash flow doesn't lie. They can make money on lowered production volumes so it will be interesting to see if the reduction in debt accelerates as they start paying less interest and even more so if they can ramp up production if (a big if obviously) Ugur delivers

I wonder whether they will be able to build the new road using existing heavy earth moving equipment and staff or whether they will need to use outside contractors and if so what impact on finances? I must confess reducing debt by $2m given the awful production figures is pretty heroic. Question as raised below - is this sustainable?

Yes - sorry forgot that everything is in Troy ounces. This news may be unofficial but has proven accurate hence my point about the RNS. Understand your point about Chovdar but its not yet an issue. I might try contacting them. Don't expect a response though...

I make it 2684ozs. They will be bleeding cash at this rate - not making it! Jeez! Are they responsive to requests about an RNS. It's a significant drop and I'm sure material enough for them to say something. Question is what have they got to say?

Thanks - I'll wait with baited breath. Also HH1 I'm no expert but I'm not sure replacing generators with grid electricity will help production? Maybe more reliable - not intermittent? It will save them $2m apparently...

Yes I think much of the same is to be expected. Obviously lower production increases costs and and slows debt repayment. Do you have a link to the site please? I guess they may not yet have an explanation for the lower production. Or it could be lower than expected grades in which case that new geologist they hired needs to be get drilling closer to the main activity to ensure they have what they say they have rather than disappearing off into the blue yonder in search of Eldorado

lower output, lower output, lower output. When are the next monthly figures out?

Yes it looks like the company are doing all the right things but they are hostage both to the POG and ore grade. We will have to pray these hold up. The two positives are that copper production continues to ratchet up and are current production rates constitutes about 20% of the gold production by value. The second is the financials with debt again falling in a meaningful way. Extrapolating the $2.5m Q4 reduction results in a $10m pa reduction. Add to that the savings on interest and also electricity and you are looking at a debt free position in 3 years. Ceteris paribus - as any economist would say...

Zanthus - please keep up your commentary. I'm free to take or leave your opinion but the facts you post are both interesting and verifiable. Buzzardstubble - if you are trying to promote a company that has coal to gas projects - fine just lay off the insults we should all be big enough of this board to exercise caution on any subjective opinion irrespective of he/she who purports to give it. Looking forward (gulp) to the next production figures. Also Zanthus when do you reckon audited reserves might te out?

Over exuberant buyers or something more profound e.g. buyout. In either case I would recommend holders to hold. I am and won't sell until all the good news is out.!

I just love it. Nothing has changed about this company since it announced lower costs against a higher (hedged) sale price and lower debt. But because one person buys so does everybody else! Still I'm not complaining Baaaaaaaaah!

I recall losing money on this stock because it was being crushed by debt. I sold out at a loss because I thought shareholders money would be working for the creditors. However, I changed by mind when I saw the RNS showing debt reduced by £10m in a space of, I think, six months. It looks like for the moment shareholders are in a good position as long as debt continues to reduce. However, any sign that this dynamic is being reversed then I'm out again

Thanks HT that's very informative. So really if AAZ produced "only" 4,500 oz (or is that 5K?) then they were only producing at around 60% of capacity for July. I wonder what the problem was? No doubt we'll find out in due course...

I guess the answer to my question is buried somewhere in the various RNSs but does anyone know what the theoretical maximum output of gold is assuming grade quality stays stable? I.e what are the chances of the company making up for lost production assuming they haven't hit a bad patch of dirt?