Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
Very pleased with Q1 results this morning and better than I expected. With the increase in carats produced and average selling price I make it that revenue has doubled to $1.6m which is even more impressive when you consider the whole of January they were unable to produce because of the unusually poor weather. Looking very positive for the rest of the year and still can't believe how low the mcap is considering it is one of the top 10 highest carat mines in the world
Agree, results look very impressive particularly when you strip out the one-off listing costs. A relief there's no nasty surprises (particularly given our BOD) and a real shame about this £2m that has gone missing otherwise the shares would almost certainly be up significantly today. Will be interesting to see what happens once the suspension gets lifted. In UK it would certainly take a while for the shares to increase given this missing £2m but I have a feeling in HK/China that this happens more often and investors may be less concerned about it in which case the re-rate may happen sooner.
No mention of dividend in the report but the fact they didn't say they were not recommending a dividend this year means we may get positive news in the future.
This is a long term hold for me as do think it has massive potential. Agree the BOD need a kick up the backside and some new blood
Nice, steady rise in SP the last 10 days and looks like people are starting to realise how undervalued this is. Maybe some TSG holders are moving their money across after that ridiculous takeover offer was accepted. Agree that the Directors need to start delivering but the last few months news flow has all been positive so hopefully they have finally got their act together. If they do then this could be a 10-bagger as the resource is huge
I have bought some more this morning. I was a little worried that the great Q4 results might be a one-off but todays RNS confirms that the grade continues to improve in Jan-Feb 21 so that makes me much more confident that they have started to get their act together and Q1 numbers will continue to show significant improvement. I think going back to £2-3 is very likely once they release Q1 numbers next month as current £30m mcap is ridiculously low
Was expecting more comments after the presentation this morning. A lot of positives. New crushing circuit commissioned last month and now up and running. Will be connected to the SA main grid by June so H2 will see our AISC costs reduce to $200 per carat. Said $330-350 per carat guidance is very conservative and hopeful it will stay above $400 like first 2 tenders of the year. 2022 guidance should be around 46,000 carats which at $200 profit equates to $9m - more than our Mcap right now.
Despite being very frustrated by today's placing, I've topped up to bring down my average. There were a few positives in the announcement.
They achieved average price of $423 per carat for the first two tenders of 2021. This is much higher than 2020 average of $290 and their 2021 forecast of $330-350
2021 Guidance being maintained at 34,000 to 44,000 carats
Costs being reduced to under $200 per carat by end of 2021. This would mean a profit of $150 per carat which would equate to an overall profit of $5.1-6.6m which is equivalent to their current market cap.
Agree that the placing and weather is disappointing but I'm in it for the long-haul and mcap is just ridiculously low.
I've bought some more to average down although very frustrating that they needed to do another placing. However, there were a few positives in the announcement:
Achieved average price of $423 per carat for the first two tenders of 2021 (well above 2020 levels of $295 and their 2021 guidance of $330-350).
2021 Guidance being maintained (albeit at lower end)
Directors and Teichmann subscribing in the placing
Costs being reduced to sub $200 per carat by end of 2021.
That's a profit of $150 per carat x 34,000 - 44,000 is $5.1m - $6.6m which is equivalent of the current market cap
In my view it's just a short term fall in gold and with all the money printing that has happened last year (and still happening) that can only be good for the gold price. Also worth remembering with AAZ that Copper is a significant part of our business and Copper price is near record highs and almost double the price vs. this time last year.
Agree. Conroy maybe would have made sense when they agreed the JV last July but since then we have been presented with all these other opportunities in the previous occupied territories which are much bigger and can be brought to production much quicker. Conroy would have been a massive distraction and now we can focus on getting Zod back up and running which will more than double our production.
Does anyone know how many shares we have in Conroy when we exercised the 16p warrants? Hopefully we have sold them already and made a little profit on them
Further evidence this morning that diamond prices are back up to pre-covid levels in Petra Diamonds announcement. Once this is also confirmed by BRD with their latest tender results should see the share price re-rate as that is the main reason the share price is so low in my opinion.
I've added to my holding yesterday which has pushed my average up slightly but happy that the market hasn't woken up to this news of a material increase in the resource that will be announced on Friday. Add in the encouraging news regarding prices per carat recovering above pre-covid levels should see this above £1. Hopefully they will announce the results of the January tender soon.
Must be crazy but I have averaged down this morning rather than sell out at a sizeable loss. Could lose even more but also think there will be more developments with this that could see it rise from these levels
AAZ has been under the radar for a long time and is one of the lowest cost gold miners out there. It's very profitable with a good dividend and debt free (not many miners out there are debt free). This is a huge announcement this morning which will fundementally change AAZ and turn them in to a mid-tier gold miner. Any other gold miner would be up 30%+ on this news. Over the next few days I expect more coverage of this and gradually it won't be so under the radar and the herd will move in but shaping up to be a very exciting year for AAZ and happy to keep accumulating before the herd arrive. I do wonder whether they may pull out of the Conroy JV though? Surely it will be less of a priority given these other mines we now have and maybe that's why the deal has stalled (or we are trying to get a better deal)?
I particularly like the part about the Soutely mines being the largest gold mine in the Caucasus region. I don't think the market is factoring in any of the restored licences and there will be a big jump once it's confirmed.
"With the discoveries at Gedabek and impending access to our restored licenses which include the Vejnali and Soutely mines (the latter being the largest gold mine in the Caucasus region), we believe the Company will be able to deliver substantial shareholder value over the coming years."
Now mcap not far off the $1m contract win they recently announced - crazy! I have just bought another 2m shares at 0.115. Half-year results should be out by the end of the month and that contract could just be the start. Currently under the radar but will re-rate eventually.
Interesting news that Armenia’s largest gold mine sits in between the new borders and Armenia have already confirmed that half the mine has been returned to Azerbaijan. Think there’s a good chance that this could be awarded to AAZ and the SP will fly
https://asbarez.com/198799/armenias-sotk-village-is-latest-casualty-of-nov-9-deal-as-azeris-move-into-gold-mine/
Worth looking at Bluerock Twitter page. Expecting some news before the end of the year which should be positive for the share price. H2 2020 expected to be profitable and They said the will issue a new resource statement by the end of the year which could see the Inferred resource be ‘materially higher’. Also plant expansion (including re-crushing circuit which gives us an additional 1-1.5 cpht recovered) is also expected to complete by the end of the year.
Yeah it’s under the radar And massively oversold but there’s been a few buys the last couple of days and think it will eventually get back to 1p+. The Mcap is just silly right now
I've just bought 500k at 0.39p. Seems a good recovery play. Results were poor but to still make a profit (albeit tiny) in this environment is not bad for a company which now has a mcap of just £1.0m