Member Info for AG1989

itsyou - Great find and if true, even better

Goldcrazy, i have absolutely no experience in mining haha, but thanks. I work as a mechanical fitter and I'm just on my break. As of March 2020, i had never made an investment in my life. My first was Greatland Gold and the terminology was foreign to me, some still is. But take your time reading through the RNS announcements, ask questions and do your research and you'll pick it all up. It's all I've done and I'm not ashamed to admit there is still a lot of work to brush up upon. But instead of chasing 15-16 different stocks, Zone in on a couple and you'll really pick it up faster

The Heap Leach operation, i recently learnt about watching Aussie Gold Hunters and the Dirt Dogs of all places. It's quite an interesting process with a lot less moving parts, than operating a CIL plant. They're 2 completely separate processes which can run side by side, or on their own.
At first, i thought the were implementing this to increase the oz's long term, a logic which is still true. But if the CIL plant is down for 6 weeks, the Heap Leach system will keep a certain about of income and revenue coming in, which is crucial when your running a mine with 400 employees relying on you

https://www.bing.com/images/search?q=heap%20leach%20diagram&qs=n&form=QBIR&sp=-1&pq=heap%20leach%20diagram&sc=0-18&cvid=93F5A591576F4983ACADF9346B41732B&first=1&tsc=ImageBasicHover

This may give you a better understanding. The Heap, or Ore Heap, is just the stockpiled low grade material the company have talked about. This Heap is fed/sprinkled with a solution which filters through it and pumps away to a recovery Column

https://www.bing.com/images/search?q=cil%20plant%20gold&qs=n&form=QBIR&sp=-1&ghc=1&pq=cil%20plant%20gold&sc=0-14&cvid=493B4E3E17B242E6A0FA400ED20CCBB5&first=1&tsc=ImageBasicHover

The above link gives you an insight to a CIL plant which is what you see on the companies twitter and presentations. A lot more machinery to negotiate but the returns are better

https://www.youtube.com/watch?v=4WFqq0IWBRw

Just a clip, towards the end of the Dirt Dogs before they recover the Carbon based material to be processed for Gold at an external plant

Anything above 569 is an improvement, I'm only expecting 1,000 oz for December and nothing else. Improvements can be made beyond "Oz's produced and Sold". Look at Hummingbird hitting 80,000 oz levels in 2021, but a ridiculous AISC, thats why the Market isn't reacting as it should. Getting those costs down is equally important to the bottom line, growth and future prodit

"· Commencement of construction of a new heap leach plant operation, which will initially be loaded with approx. 40,000t of currently stockpiled low-grade material, and thereafter treat up to 10,000t of ore monthly from low-grade open pit and low-grade underground ROM feed."

- A master stroke, which I've mentioned before. It makes even more sense now knowing there will be a 6 week blackout period with the mine, as the new ball mill comes online. The Heap Leach is loaded with an acid, and usually works on Carbon recovery based process, which if I'm right, can still run whilst the CIL plant is down. Tailings and low grade material as the recovery rate is a lot lower, around 70%. And when the Heap Leach and CIL plant are running side by side, with a new Ball Mill, the oz's will dramatically increase.

"· Work on the detailed engineering design for the accelerated development plan has already commenced, with the appointment of an experienced engineering company to implement the works programs to be made following final site inspections to be undertaken later this week with the Company's newly appointed General Manager, Mr Riaan Lombard."

- Ties in very well with the ongoing expansion at Kilimapesa

More CIL tanks to keep up with new levels of throughput and activity within the plant

Expecting at some point during Q2, maybe Q3, for the downtime and implementation of the upgrades.

"The development and operational actvities are forecast to increase annual gold production to approx. 24,000oz and also improve operational efficiencies " - May give us an insight into the extra oz's that the Heap Leach will give us for production. With the new Ball mill, 1,500 oz predicted giving annual returns of 18,000 oz. Will the excess 6,000 oz come from the Heap Leach? Maybe. Time to get excited

Is that all ;)

- Production
-Resource growth
-cost savings per oz
- new acquisitions

Just get content with your holding between 1-1.3p. Don’t go chasing it with the pack when the operational updates pile in. I’ve read the report twice now. Going in for a third look, it’s packed with all kinds of expansion plans.

“ "The decision to move to this next phase of development has been made significantly ahead of schedule and within the first 6-months of our stock exchange listing in London.”

Sums it up for me. The pace is frantic

Brilliant news and a very detailed report

A lot waiting for Q4 results but this is about more than that. It’s a thorough report and you don’t want the details being lost within the Q4 update. There are huge plans ahead here and many moving parts. It’s going to be one hell of a journey and they’re moving at a pace even they are surprised by.

Great chat today. Just ask away Goldcrazy. Becoming a very interesting board this with plenty of traffic and productive discussions.

With an estimated revenue of £24,000,000 and projected profit of £6m(just under), does that mean they’re giving total costs per oz around the $1300-1400 range ? Around 75% of the POG

if so, that’s brilliant to start with. Later on it does expand on this after future upgrades, that the company could be operating around the $1100 AISC mark, potentially lower

It is plain to see that management plans to make a lot more acquisitions in this region before
competitors wake up to the opportunities that East Africa offers. We are led to believe that in the
acquisition pipeline are a whole host of exciting assets which includes another potential Kilimapesa
plus another one in Tanzania. Apparently, one project comes with a BFS which has just been finalised
and is close to production, while the Kilimapesa look alike is already in production. Vendors seem
more than happy to take paper as they see what the team is doing in rapidly adding value. There is
still a long way to go but to help in this journey the board is expected to be strengthened. So too will
the management team with the expected appointment of a new General Manager and Chief
Financial Officer. We see excellent opportunities being created for investors and initiate coverage
of Caracal Gold with a Conviction Buy stance and a share price target of 2.73p.

Love this paragraph

Plans for Nyakafuru between 50,000-100,000 oz, plus an additional Kilimapesa lookalike acquisition, Could we be talking 150,000-200,000 oz per annum years down the line?

And this is why the risk/reward down here intrigues me more than any other investment right. If all of these future acquisitions and growth factors were in place, we'd be trading at 4/5/6/7p, but investors are loading up for the future

We have
Kilimapesa: 671,400
Nyakafuru: 1,059,231 - If Nyakafuru Reefs are accepted
Simba: 320,000 oz

Over 2Moz

with further exploration from all 3 projects, i believe the company will easily breach the 3moz mark within 12-18 months

And then theres this from today

"The acquisition pipeline includes one project that is close to production coming
with a recently finalised BFS. Plus there is also a Kilimapesa look alike which is
already in production. As before, vendors seem more than happy to take paper
as they appreciate that the Caracal team is successfully & rapidly adding value. "

With each acquisition being bigger and better, or value accrediting to the company, i have no doubts in my mind that 5Moz is a real opportunity within 2-3 years with 3 Gold producing mines. This is a unique investment

Can't agree more Mickey - On second glance, that's a tremendous read this mornings report

itsyou

That’s a fantastic read and insight of what’s to come on Tanzania

If you base today’s price of £1327. £24,000,000/£1327 =18,085 oz. divided by 12 months =1,507.

All dependent on the price they used though. Very, very promising all the same :)

Also at the bottom.

Estimated Revenue for 2022. 24,000,000. And that’s £’s, not $s

£24,000,000!!! For a £17m market cap. On top of increased acquisitions and resource growth

A screaming buy !

More Kilimapesa style acquisitions in the pipeline.

If they hit and are very confident of getting 2Moz at Kilimapesa, Caracal IMO could target 5moz within 3 years with ongoing Gold exploration & acquisitions

Although, an interesting listen

Why bring a research note out on the Eve of updating the market on operations and targets being hit ?? It could all change straight after the update. Back to bed for me.

One of the big things I'm looking for is total costs per oz produced, that's key when moving forward and seeing how sustainable operations are.Anything in the $1200-$1400 range medium term, maybe even lower will give the company sufficient profit per ounce to reinvest back into the mine for upgrades