Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
Interesting RNS given I was not aware that a phased study was being undertaken although given the financing I 100% understand why it is needed BUT should have been in place already!
What we know from the study:
-- Independent Technical report providing 36 month mine plan for Kilimapesa Hill deposit;
-- 49,155oz forecast production; - average 16,385/annum not 24k
-- AISC US $1,055 per oz; - average FCF $645/oz or $895/oz at $1,950 POG so 39% more
-- Gross Revenue + US $83.5m; - average $27.83m/annum or £23m/annum
-- Total Free Cash + US $31.7m; - - average $10.57m/annum or £8.73m/annum
-- Gold Price US $1.700 per oz - currently POG is $1,950+
> Capital required =$10.5m or £8.76m ... will now be costed and expect lower costs
> Build time = 6 months from funding drawdown
> Milling/CIL plant recovery = 75% ... historically this has been nearer 90% with Plants 1&2
> Heap Leach plant recovery = 50% ... pilot plant achieved 53% but not aware of more up-to-date figures
> Mine Plan produces 2,427,279t of ore at average grade of 1.06g/t or 67.4kt/month
> Milling/CIL plant production = 529,756t at an average grade of 1.8g/t processed for 23,002oz recovered
> Heap Leach plant production = 1,897,524t at an average grade of 0.86g/t processed for 26,153oz recovered
Assumed:
Heap Leach capacity = 142.5kt capacity (pilot 22.5kt & main 120kt)
What else does this tell us from Stage 1 study?
> Average production is average 16,385/annum not 24k, but lots of room to improve especially on Mill/CIL plant
> Mine plan implies 67.4kt/month ore production
> Mill/CIL plant needs to process = 529,756t/36m or 14.7kt/month throughput
> Heap Leach needs to process = 1,897,524t/36m or 52.7kt/month throughput
> Heap Leach cycle time = 142.5kt/52.7kt = 2.7 month cooking to get to 50% recovery vs 53% after 3-4 weeks on pilot
The figures look conservative but we need to remember ...
1) we need to get financing first before we draw it down
2) build & upgrading is 6 months ... then will need ramp-up & commissioning
3) Heap Leach is a bulk operation with assumed low average grade, long cook times and modest recovery
ATB APR
Heads up ... StockBox presents Caracal Gold Telegram Q&A
Caracal Gold will be conducting a live Q&A on Telegram, from 5.00pm UK on Thursday 26th October 2023 featuring Robbie McCrae CEO
@Finch You're not kidding !
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I get why last year the accounts were late given historic issues that need to be resolved BUT this year those issues have been dealt with and anything remaining should just relate to this years transactions and auditing issues only.
I must admit this is the first time I have seen a suspension notified in advance and not just there and then as a suspension is to stop dis-regulated trading whereas here we are open to trade but know the accounts will be late but do not know why ... bonkers!
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@GTMufo Copper at 0.45% IS commercial what currently is not commercial is the amount of ore which is why GWMO wanted to drill between the 2 previously drilled areas and join them up which should 2x to 4x the current JORC as a starting point.
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Morning all, just watched DB interview and IMHO was very positive, but DB seemed more bemused rather than defensive.
Zak's point that SP is around same as 6m ago but (1) Kou built and commissioning plus (2) balance sheet boosted by pushing 1st Kou repayments back by 6m and (3) plan to aggressively overpay back debt funded by FCF from 200koz at $1250/$1300 AISC is unadulterated good news!
@Bonker you nailed it and market hasn't yet caught up probably because HUM have serially underperformed so not taking anything on trust
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@Bonker, I suspect we will get one or two more waves of even higher inflation after this one if history repeats or even just rhymes; IMHO the key POG driver will remain real interest rates and a faster rotation out of stocks/bonds back into real stuff with little or no counterparty risk ... QE and/or debt monetisation anyone?
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@Angelis Agreed but that was with just Yan mine which we know was running down with or without the many operational issues, The backdrop now is additional Yan workings and the new Kou 100koz mine coming onstream and ramping up to full production over the coming months which will change that SP dynamic. Layer in a recovering POG after the recent steep pullback and things could get interesting fast.
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Yes as as LowLife says the whole sector is hated with juniors at the very bottom of the pile as they have no revenue so they are refinancing where they can and accepting what is offered if anything as credit is now very tight. Lowlife makes a very good point about the debt timebomb as lots of companies refinanced at very low levels but on very short terms and many are having to refinance at much higher levels. I also agree that when this turns (and it will) that it will likely be very fast and very violent.
The backdrop is that POG is heading for capitulation lows as players sell gold to meet margins and/or liquidity issues. Bonds are clearly NOT safe assets but many pension funds and banks are effectively are forced to hold them or sell them to meet redemptions adding to price pressures as bond asset prices fall and %yield rises in turn increasing borrowing costs for everyone.
Gold is now a Tier 1 asset which probably explains why CBs have been buying the stuff hand over fist for the last 2 years with the Fed pretty much the only CB now net short gold. It will be biblical when they have to change stance and short cover or better still go to their gold revaluation accounts and revalue 8,000+ tons from $35/oz to whatever it is now !
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@Suggins I always say Hope is not a Plan and yet here we are hoping for some good news. On the assumption that funding discussions are indeed underway it is very very unlikely that any CEO would be willing to talk about them in detail as by there very nature (doubtless under cover of an NDA) RM would not be able to comment; worse still if he did he would risk any funder then turning the screws tighter.
RM previously stated that funding takes 6+ months to resolve so having had 9 months now pass is disappointing but hardly surprising given this had to have been restarted from scratch after OCIM exit. Until funding news arrives we are left commenting on minor "news" & X updates whilst the "Caracal team" keep the lights on.
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Always nice to get some positive updates ...
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Pacific Nickel update: Mining of Nickel Ore Commenced
Gunsynd Plc (AIM: GUN, AQSE: GUN) notes the announcement by its investee company Pacific Nickel Mines Limited ("Pacific Nickel"), which is listed on ASX (ASX: PNM) that mining of saprolite nickel ore has commenced from its Kolosori Nickel Project on Isabel Island, Solomon Islands. The Kolosori Nickel Project is a direct shipping ore (DSO) nickel laterite project. Mining of saprolite nickel ore commenced on 1 October 2023 and the ore was delivered to one of the stockpile pads developed by the Company near to the wharf in preparation for the first shipment of ore which is anticipated in November 2023.
@TakeNo Risk I think we all understand that once exploration starts that (1) payments will progress from AA to ARC and (2) assets will start to be proven up which should then reflect in SP
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@TravelCard LOL
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@Small_Holding Yes IMHO looks like one of our old "friends" is back playing games to try to queer ARCs pitch in hope of another pay out perhaps?
You couldn't make this up if you tried!
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Anyone else smell something Fishy?
@ID78 Could you post the link please?
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Lets not forget that at 50% gravity recovery this is Stage 1 plant so 31kt processed ore still contains circa 820Eqoz metal that can be fed back through Stage 2 plant when complete with expected 80% combined recovery implying a further 490oz recoverable metal or circa £780k revenue using prior calculation approach
@GoldGirl, I hope that helps?
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RNS Summary states:
Financial Highlights:
· Loss for Period €527,985 (30 June 2022: loss of €448,652 and December 2022: loss of €792,263)
· Basic and diluted loss per share 0.0001 cent (30 June 2022: 0.0001 cent and 31 December 2022: €0.0002 cent)
· Net assets at 30 June 2023: €8,845,494 (30 June 2022: €9,191,466 and 31 December 2022: €8,618,024)
· Cash balances at 30 June 2023: €410,661 (30 June 2022: €1,158,053 and 31 December 2022: €145,197)
· Placing of new shares during Period raised €913,242 before expenses
Operational Highlights:
· Special Use Permit granted to Western Milling joint venture by Mineral County Commissioners
· Diamond core hole at OMCO Mine confirms extension to the OMCO vein
· Status of copper prospects upgraded by intensive field work and mapping
Post Period End:
· Western Milling Joint Venture: concrete laid and production due to start this year
· Placing of new shares raised €581,139 before expenses
· Signing of Western Milling Operating Agreement and Declaration of Earn-In
· Rhyolite Dome (Olympic Gold project) identified as potential gold-silver play
My Summary:
>GWMO now has circa Euro935k or £810k (assumes 10% finance cost E58k) (Cash E410k +E581k-E58K costs)
> Cash burn was E528k to Jun-23 or £460k including remaining JV costs, management and exploration
> Months available cash = circa 21 months from 1-Jul-23
> JV costs likely accounted for in Dec-23 period cash burn "December 2022: loss of €792,263" as E300k above normal burn rate
> Tailing access road has been built and available to dig out JORC "ore" for JV processing
>JV plant mill build well underway and RNS states "We are expecting to commence production of gold and silver concentrates during the second half, using the significant volumes of material on our claims and, in due course, material from third parties."
>OMCO tailings MRE "Inferred Resource 31,000 t at 1.6 g/t Au and 3.0 g/t Ag" or circa 1,600oz gold equivalent contained metal implying 820oz recoverable metal via gravity separation at stated 50% recovery rate. At $1,900 gold this implies $1.5m revenue or £1.3m revenue before JV processing costs
Looking good BH just need to ...
>Complete JV plant install & commissioning
>Secure licence to operate JV mill & plant
>Dig out some "ore" ready for JV processing
>Feedback on 2023 exploration programme drilling at OMCO and M2 copper prospect
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@Folio That is my expectation ... just have to wait and see
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For those that appreciate some mumbo-jumbo ...
Quick update on last weeks weekly chart https://ibb.co/r7sfKh9 where I argued that we have a strong inverse Head & Shoulders pattern developing and likely to close over the next few weeks as long as we don't get a broader market crash:
1) Assuming bounce at around 10.5p then ascending support line remains intact & target neckline with inverse H&S pattern closing at around 18.6p
2) Assuming inverse H&S is not invalidated then implied measured target is around 32.4p
Regardless of inverse H&S we are currently in a strong squeezing bull pennant that is more likely to resolve to the upside than not also supported by a rising support line with 3 confirmed touches so far. I am also expecting some resistance around 14-16p as we break back above a long term support line.
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