Member Info for Bebeto

Everyone's entitled to their own opinion, some people think the suspension will be lifted soon but I think 2025 is more likely, with that in mind today's gold price is irrelevant to me.

Iwontell - the company needs to give a better explanation as to why they are not in production.

We were told there was an issue regarding artisan miners and that production was stopped because of it.

We don't know if this is ongoing or has been resolved.

When it comes to AISC, there are some fixed costs associated, so if you produce 1000 Oz or 100 Oz that cost will be the same so therefore production must have a minimum threshold.

The production figures are very limited but it's plain to see that the heap leach gold recovery was poor, for whatever reason, and may have been under the above threshold.

Cash flow maintains the day-to-day expenses, so for the heap leach for instance, the costs of the cyanide, diesel and wages etc all have to be met in order to keep production running.

Maybe they simply do not have the money to maintain production.

"I find it difficult to comprehend the reason for looking at the current price of gold and disregarding the current situation."

That's my personal opinion and it's not aimed at any individual other than the price of gold has no current relevance.

Have a good read before jumping to conclusions or better still start reading what information the company is offering via the official channels.

EQR process for the audit should be completed within the next two-weeks.

$500,000 from Cynergy is meant to arrive by the end of September.

No cash flow is being generated at Kilimapesa.

Company under significant cash flow pressure and distress.

(This dual mention in their update signals a severe financial situation that poses significant risks to the company’s operations and survival)

“Cash flow pressure” refers to the immediate challenges of meeting day-to-day expenses without sufficient income, while “distress” covers broader financial health concerns, including regulatory compliance, potential insolvency risks, and longer-term financial sustainability.

The Company is engaged with various stakeholders to raise the required funding.

I find it difficult to comprehend the reason for looking at the current price of gold and disregarding the current situation.

Unless they come up with the June 2024 audited results it will be suspended for non-compliance in under two calendar months.

It's currently suspended for non-compliance for not publishing all of 2023 financial statements.

Will the FCA even allow it to come back for such a short period is doubtful.

The chairman shares JC's sentiments regarding it coming back on the market but I'm not convinced it's a certainty.

Simon Grant-Rennick, Chairman of Caracal states:

"We are very pleased to see the audit coming to an end, the process has been extremely frustrating and drawn out for all involved. This is the first step in getting our shares back to trading, the other step being the submission of December 2023 interims."

"If you tell the truth, you don't have to remember anything."

This Mark Twain quote catches a lot of people out...

The company’s future hinges on its ability to secure funding, resolve compliance issues, and to restart production.

From the latest update;

Group Reserves and Resources Statement

As at 30th June 2024

The figures shown for this period are exactly the same as the figures shown from the 12th July 2022 RNS, over 2 years beforehand.

The unchanged resource figures suggest either new discoveries, a reassessment of resources, or reporting that does not yet reflect the full impact of mining activities on the resource base.

Interesting, because they was some exploration and they were mining over that period.

Also from the latest update;

Formal applications were submitted to the authorities in Tanzania for review in December 2023. The Tanzanian authorities have recommended the first of these applications for issue.

The mining license application process was handled by Mr Mark Stanley, one of the vendors as well as a director of Tyacks. A reimbursement of up to US$500,000 ('Payment') has been agreed between Mr Stanley and the Company due when the first of the licences is issued. The terms of payment of the Payment are under negotiation and upon finalisation and agreement Mr Stanley and his co-director have agreed to resign from the Board of Tyacks allowing the appointment of Directors from the Company and Cynergy as contemplated in the Heads of Terms concluded with Cynergy. Once complete, Cynergy will complete the phase 1 investment.

From the above scenario, there's still 1 to 4 months (September to December) before the licence will be issued, resulting in the payment due to Mr Stanley.

I don't see this negotiation as being a problem considering the current financial situation , it's in Mr Stanley's best interest to negotiate.

I think we're looking at a further $1 million to $3 million in funding to improve the situation.

RM has limited options but he's consistently managed to source funding from somewhere, to his credit.

There's always a lot of information to be gleaned from RNS updates.

From the latest update;

This, combined with the fact that no cash flow is being generated at Kilimapesa, has placed the Company under significant cash flow pressure and distress.

The Company is engaged with various stakeholders to raise the required funding to ameliorate this situation and will provide updates in due course.

Ameliorate means to improve or make better.

Caracal Gold is in a critical situation, which has significant cash flow pressures.

The Company is looking to raise new funds to address the cash flow issues.

There's increased uncertainty and risk regarding the Company's ability to continue operations without immediate funding.

If Caracal Gold doesn't achieve this funding there is a potential for losses that could result in insolvency and forced asset sales.

Fortunately, The Company is currently working on this issue and will update in due course.

Submitting a draft prospectus isn't the same as updating the FCA.

The FCA will delay the review until the publishing of the financial statements, it's a clear indication that RM considers the EQR to be over sooner rather than later, typically average timeline for an EQR is 2 to 5 weeks.

This statement from 9th May RNS is correct;

Following publication of the Group Audit and the unaudited interim results for the six months ended 31 December 2023, the Company will be in a position to resubmit its draft prospectus to the FCA for review and will aim to finalise this as soon as possible.

This statement from 23rd August is confusing ;

The Company submitted a further draft of the prospectus to the Financial Conduct Authority for review on 21 August 2024.

The FCA only has 10 days to review such a document but it's regarded as incomplete without up to date financial statements and therefore will not be reviewed.

My phone has been found, panic over.

I've been researching the EQR the timeframe it's in two parts generally;

Review & Resolution of Any Issues (1 to 3 weeks)

Finalisation of the Audit Report (1 to 2 weeks)

Typically 2 to 5 weeks for the whole process.

Assuming that there are no significant issues raised by the EQR that require extensive additional work.

Completion estimate is sometime between early September and mid-September 2024.

LW , they've already raised over $3m in 2023 and when the latest $500,000 comes in, they would have raised over $2m for 2025 without the phase 2 $5m .

So they will have raised over $10m inside two years , we can only guess if that will be enough but a lot of money has been raised and the money is very tight.

Has it been spent well from an investors point of view?

JC ,

Honestly I'm not trying to portray you as anything and you're just as entitled to your opinion as I am.

We're both shareholders here.

JC,

It maybe hard for you to accept but Caracal Gold is having financial difficulties, it's also got a history of non-compliance related to publishing financial statements. This can be considered as poor governance.

The FCA's primary role is to ensure market transparency and protect investors. The FCA must ensure that all market participants have access to complete and accurate financial information to make informed decisions.

Caracal Gold has to demonstrate to both the FCA and investors that the company is serious about compliance and governance.

The rules are there and it's up to the FCA to decide how to best implement them.

Well that's up to the FCA to decide but I would think that Caracal Gold would be in a far better position if it was to hold back on lifting the suspension until Caracal Gold has got it's house in order, resulting in no further suspensions.

It's doubtful the FCA will allow the lifting of the suspension without the company publishing June 2024 audited results.

Under Listing Rule 5.1.1, the FCA can suspend listing if it has concerns that an issuer is failing to comply with its continuing obligations, including the timely publication of financial results.

I estimate the current outcome goings to be $380,000 per month and currently there are no revenues apart from a delayed $500,000 from Cynergy.

The prospectus (if they do allow lifting the suspension) will only have a couple of months for it to be approved before the Company once again becomes suspended due to the non-compliance of publishing June 2024 audited results.

The inability to provide audited results is considered a material omission, which would prevent the approval of the prospectus under the Prospectus Regulation (Article 6) or FCA’s Prospectus Rules.