Member Info for Andrew1987

Alas, a joker. And a poor one at that. Perhaps you're powers of deduction are as good as your powers at investing. Your "sudden knowledge" of absolutely nothing, with absolutely no contribution to anything worthwhile, makes you look worse than I ever could. "All public".

Ginoir, ask me a strait question and i'll answer it? Is that so difficult? Just because you've averaged down to above the current price, probably investing a fair amount, don't try to besmirch my name for your losses. Ask strait and i'll answer strait? Grow a set

Bismarck, i'm still not sure I follow, sorry? I've not been involved in any administrations or bankruptcies, never worked in a mine etc if that's the questions. I've got a broad understanding of business in general and i'm a good chess player. If anyone wants to ask a question, i'll be happy to answer it.
My goal isn't to bring down SGZ. Quite the opposite. It's to bring some truth, clarity and answers to the table if we can collectively deduce them so that we can all make good decisions and make money. If its going to fail, lets be honest and get out or put it right. If it's not, lets hear about it and put our money in. I want everyone to be a success but it's not going to happen being silent about issues which need clarity or probing. Many minds are better than one which is why this chat is here.

Sudden detailed knowledge? I'll take the compliment that it's knowledge and it's detailed, but perhaps when things were fine, we didn't need to examine the detail as publicly or waste time looking for answers or debating the issue's. If you're happy with the current state of affairs, a company deep in debt, mining below planed grade material, secretly engaging with bankruptcy solicitors, asking to borrow 500k based on ton bags of ore sitting at the gate because it's all we've got, killing the exploration phases etc etc etc then please, by all means, share YOUR detailed version of events so I can pour my cash in. Otherwise, take your half ****d posts and jog on.

Ginoir I don't follow your point?

TB, Should I bring some steak to feed the wolves at the door of the mine? Going on past form, i'm surprised I won't be offered to ride shergar up the track. But let's see how it goes.

TB nice to see you back. I thought you'd vanished. Almost going to do the "reveal yourself" sketch to get you back.
In all seriousness, the situation is bad, lets admit it, but that doesn't mean I want it to fail. I'm out in terms of i've sold off a hell of a lot of shares I had here. I had too. I want it to win, but I also want to be truthful about the current reality. No matter how good or bad it sounds, at least its honest and transparent.
If we can get a small group together, i'd visit the mine with a view to investing further IF it tallies. It would be nice to meet some of you in person.

We should get together in the Tyndrum inn for some food and discussion. Invite the directors. If they turn up fair play, if they don't, that will speak volumes. At least we would leave with some clarity and could either sell up, or buy in. 500k could come from existing shareholders if we had the confidence.

Rockhead, thanks for clarifying. If the testing as as good as we are going to get, we need to get cash behind us to indemnify against mining poorly graded material again imho. We need time to do this, which we don't have. I was hoping they would have mined the area of most confidence to get cash in. It worries me that if they did, and the grade fell to zero... what else will. I do believe there is gold up there, it's just if we can get it out, in time, at a good cost.

Samson, I said the debt that Bridgebarn/NLR had would not recieve pennies in the pound. Their debt would be repaid by the newco because they would own it. What i actually said was that the shareholders/SGZ debtors would be paid pennies in the pound as the oldco.
Yes the newco bought rangers assets from the administrator for next to nothing. The same would happen here. Newco would purchase the assets for next to nothing leaving US with nout but pennies in the pound.
Hope that clarifies your lack of understanding.

BlakeneyP You're right. Talk of administration is not helpful at all. It dents confidence and is terrible. I'd rather be a realist though about our future than bury my head in the sand like the last 13 years waiting for pockets full of gold.
Remember, i didn't raise the threat of administration. It was your BOD who said in an RNS it was a possibility. Only after the leak forced their hand.

Samson, Really? You think that a company who enters administration can't be left with HMRC debt but the assets hived off? Look at Rangers Football Club for a well publicised example. Owed HMRC tens of millions, stadium, training club, brand etc were transferred for a few million to a new company who continued as normal. Leaving behind the debts that didn't suit them. Renegotiating the debts that they needed in the new co. Not rubbish, just reality. In the leaked e-mail seeking guidance, the question was specifically asked, how to leave behind HMRC debts, from memory. Go research how administrations/liquidations work.
If the business can't continue as a going concern, the assets, not the debts, will be sold off. The administrators would select a preferred bidder who would be bridgebarn because they would offer to wipe their priority debt. The assets would transfer in a newco (probably private company). Liquidation of SGZ would then happen, post the hive off of the assets to realise as much cash as possible for the shaeholders and debtors. It would be pennies in the pound. Simple stuff really. Just because you don't like the story, doesn't make it rubbish.

Blakeney.... in the words of a famous face... just you wait and see

Bismark, the resource is an estimate of course. Look at the most recent mining plan, the areas of high confidence make up a low proportion of the area. Perhaps 15-20% as a guess. The confidence of the grade reduces as it flows away from the area's of high confidence. This leads me to believe, the estimates on the value of the resouce, could be flawed. The most recent grades in feb and march tailed off to zero when the mining plan and testing indicated that this shouldn't happen. If this followed throughout the mine, what exactly is the value of the resource? Will we always hit costly time consuming misses mining poor grade material in the future? To my mind, 101 in mining is to mine a proven resource, not mine where the grade falls to scrap at a time we needed it to produce. Remember phil telling us we are on the good stuff now... not so much perhaps.
Also, with stoping, grades are diluted due to mining ore you wouldn't normally target. Diluted grades from the mining plan won't help with costs or inspire confidence.

Bismarck. They're MAY be gold in the mountain. Whether it can be extracted at a profit has so far proved elusive. We have been mining for quite a while now and havn't yet covered costs. Worrying. What is the break even point? It's never discussed and was one of my unanswered questions to TB. What's the burn rate and why no transparency. What if they need 21,000oz and we just don't know.
It might be a restructuring is there best option for them but not us. Take the company private, run it slower and more profitably over a longer period. I'm not convinced the boards interests align with ours at the moment. They could cut us out and would profit from doing so.
Also don't be surprised if upcoming results are poor due to lack of cash, bad weather or any other reason. Administration is then entered and the "only way to save jobs" and "secure the communities and mines future" lines are trod out. The PR spin will be some excuse of bad grades, run out of money, but we will save it for the community and jobs line.

Samson, the loans wouldn't be paid off at pennies in the pound. The loans would transfer to the new co.

The debtors who would be left behind would be HMRC etc.

The parent company has guarantees but as far as i understand, no personal guarantees.

It's notable the board never denied the content of the leak. Never denied they had explored administration. Rather, they said that the company might not be able to continue. Add's up to the e-mail being correct.

If you understand how administration works, it essentially means, the new company starts again, picks and chooses the good bits of the business and leaves behind the old. The only money paid to the old is what realistically can be realised. If nothing can be realised because bridgebarn is owed too much, or licences are held elseware etc, then the debtors, and those who invested in the oldco (us) would be left with scraps while the new co takes the licences, the mine etc and plods on to repay bridgebarn at 100p in the pound.

Personally I think they will force the company into administration, take it private in a new company and then crack on. Thus, the majority owners would own 100% instead of 60%, not have to deal with us, and not have to pay some of the debts.

Baz, ca'mon, it might be a bad joke, but not that bad....Board might evac/escape...

The most worrying this for me, is in the two months where we REALLY needed to pull out a lot of ore and at a good grade, the company was posted missing. The extraction results for feb and march are dire. Either they arn't capable of pulling it out, or didn't want too. Looking at twitter, time was spent on evac/escape training..... take from that what you will.

Not necessarily Bismarck. As the primary debtor, bridgebarn would be key to any new buyer taking hold. If they crystalise their charge on day 1 (Call in the loan, or threaten too), that would limit any buyer to one party.... the current BOD in a different guise. Don't be surprised if SGZ becomes Bridgebarn in all but name.
It also depends where the licences, section 75 agreement and debt sits because connonish entity is different to the parent company. Unlikely anyone would purchase one of the two via administration if they couldn't have the whole cake so to speak. This devalues the entire proposition to making one entity or the current incumbent, key.
The new co (bridgebarn) could pick and choose which bits of the business to buy, and which bits to leave behind. Shareholders and debtors may be left.
I'm not saying this will happen, just a possibility in the event of administration.

Genoir, if they had 3M coming, or hadn't spent it, why would they be looking for a measly 500k to keep the business afloat? Surely the banking facility would cover that if they had 3M just waiting to be processed. I hope they succeed but don't wish to see anyone else loose money on stories. We've had enough of them to last a lifetime while the true facts were getting discussed with bankruptcy advisors in london. Don't forget that. This board is actively exploring administration options.