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White the resident derampers Goldinvestor7 / Bismarck are desperately looking for an angle they can’t ignore the fact net debt is down on last quarter.

Cash flow positive Q3 during “the wettest season for years” - Punter64 won’t mind me borrowing that one.

Debt repayments due deferred and gold loan note with Nioko expected shortly.

Further restructuring of loan repayments to Coris bank due next year being finanilsed.

Dugbe sale due diligence ongoing, buyer interest as the price of gold has skyrocketed, yes skyrocketed this year up more than 40%

Two phrases we hear often ‘cash neutrality’ and ‘cash runway’.

Neither seem to be backed up by recent results nor the company’s remarks on receivables which will in part be used to cover ongoing group cash burn.

We know revenues collapsed last year by 61% on the previous. Margins negative etc. So far this year the statements put out have been rosy and glass half full, everything on track. But the latest financial update which shows heavy cash depletion doesn’t mirror the rhetoric.

Thank goodness therefore the company can rely on equity dilution to raise necessary funds. They raised £2.8m worth from placings recently to cover losses.

The order book of £0.75m is less than what they burned through in the past six months alone so it seems inevitable they come cap in hand to market again.

I can’t see how they get through the next few months without coming back to the market for another injection of liquidity.

Shareholders deserve a bit more transparency where the money is going..

Yet you’re still here reading the updates and posting about them. Make it make sense 🤣

@Mimbrit - resorting to misinformation? I’ve seen someone on here post that porkie before. Not a very good one is it?

“The Company currently has two core gold projects, the operational Yanfolila Gold Mine in Mali, and the Kouroussa Gold Mine in Guinea, which will more than double current gold production once at commercial production.

Group production 2023: 90,000 ounces

Target group production: 200,000 ounces

Company expect once Kouroussa is running at commercial production

£2.2m loss last year.

Two equity raises totalling £2.8m.

Cash position six months ago of £1.2 million.

Cash position end of September of £464k

Internal forecasts - “cash runway” are a going concern

“Due to the risk that revenues and the related conversion of revenue to cash inflows may not be achieved as forecast over the going concern period, the Directors believe that there exists a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern and it may be unable to realise its assets and discharge its liabilities in the normal course of business.”

The company finances have improved since end of Q2 with Coris net debt down to just $135 million now.

Of the $20 million loan Nioko have agreed to the company have only received $10m last quarter so we have another $10m due shortly. The initial half would likely have been sitting on the balance sheet at end of quarter given its timings.

Given the rate of net debt decline that confirms the company were cash flow positive through Q3, contrary to the claims of some..

Confirmation today that what I said about the new $20m loan being used to facilitate the balance of the $25-30 million repayments due to Coris in second half of 2024 is accurate.

It sounds like further debt restructuring is on the cards. My expectations are they push out a portion of the 2025 loan repayments due to 2026 and beyond, easing the cash flow constraints in the year ahead.

“Pending agreement on the wider restructuring being concluded on or before 6 November 2024.”

Not long to wait to find out!

Certain characters here will bemoan the fact the company have the support of their lenders and are able to refinance and restructure loans to the company’s long term benefit

Net debt down.

No wonder the multi-ID / boiler room gang are out in force today.

GoldInvestor7 chief among the roaches spreading false information..

They made a loss of £2.2m in the last financial year which cleaned out the coffers requiring two equity raises totalling £2.8m net of costs.

Despite an increase in half year sales the year end cash position of £1.2 million has reduced to £464k i over 6 months raising the concern of whether they will need another injection of capital shortly.

One major concern is the group’s financial statements and cash flow forecasts include assumptions such as “the rate at which revenue growth can be achieved”

“The directors note that there is inherent uncertainty in any cash flow forecast, however this is further exacerbated given the nature of the company's trade and the industry in which it operates. Due to the risk that revenues and the related conversion of revenue to cash inflows may not be achieved as forecast over the going concern period, the Directors believe that there exists a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern and it may be unable to realise its assets and discharge its liabilities in the normal course of business.”

Yes that statement shows how much they are spending to keep the lights on, no visibility on FY 25 revenue.

In the past they have provided guidance but why not this time around.

Cash depletion of around £750k while first half revenues are running at £1.2m suggests they are a long way off breakeven.

If monthly / quarterly cash depletion is reducing now as they infer when talking about cash neutrality surely they will have much larger revenue visibility to share with investors. Why don’t they then?

@Goldinvestor7 - “notice I won’t rise to the bait”

Yes, the impulse got the better of you in the end, and only after two hours 😆

Now back on topic when the company raised £1.375 million back in February they announced at the time:

“The Board has visibility over approximately £1.15 million of revenue for the full year.”

This has only increase to revenues “expected to be c. £1.2 million” at the time of the recent AGM statement.

That’s not very encouraging considering they said it was going to be second half weighted way back in March.

Fundamentally £1.2 million had been whittled down to £464k in 6 months and there is no forward looking figures provided other than an order book of £750k - well they just blew through that much in six months.

They aught to provide more visibility on 2025 revenue expectations like they did in the previous year so investors know what to expect and when further finances are likely needed.

Seasonal rainfall already covered twice there but you get a special emoji for being first to reply 🌧️

The good thing about Guinea is the daily temperatures of 34 degrees helps soak up surface water rather quickly.

I’ve found a couple examples of mill relining completed within a week you may be interested to read. Check out North American Relines case studies narelines.net for starters, 34 foot SAG mill back up and running within a week. Hummingbird suggested they had the mill relining complete well within the timeframe. Are you going to stick with your earlier claim two weeks worth of production was lost in September?

Of course somebody left out the best part about Kouroussa: “production rates projected to significantly increase”

The strategic review confirmed the ramp-up at Kouroussa continued during Q3-2024 building on July’s record monthly production of 4,800 ounces.

This compares to:

- 5,868 ounces in the whole of Q1

- 7,789 ounces in Q2 (when Corica were absent for two straight months)

Kouroussa likely produced around 15,000 ounces in Q3 despite the issues they faced given the rate of development from May to July which I’ll highlight below.

Feel free to check the pages 7-8, Q2-24 Operational and Trading update for confirmation.

Kouroussa gold pours rose from 300 ounces per week end of May to around 800 ounces by end of June, achieving an average weekly run rate of 1,200 ounces by the end of July. I would reiterate my statement they ramped up quickly since Corica returned to site.

The same slide suggests mined grades increased from 1.88g/t to 2.64g/t over Q1 with mill grades anticipated to follow the same trend into the third quarter.

The avg grade of the mill feed in Q2 was just 1.17g/t due to blending of low grade material to mitigate the impact of Corica being on strike for two months.

With Corica on site the whole quarter it’s highly likely they didn’t resort to the same strategy of low grade blends.

In addition mined BCMs will obviously have been higher.

The presentation shows by end of July they had already achieved 683k BCMs at an improved grade which compared to 1.28 million BCMs across the whole of Q2. This shouldn’t be a surprise and given the ramp up continued throughout the quarter there should have been further improvements.

Of course the company have acknowledged they faced difficulties sustaining commercial rates of production last quarter owing to mill relining and seasonal rainfall.

There is only one camp spreading misinformation about the ramp up and that is the derampers, who are claiming Kouroussa ramp up has stalled post July.

Goldinvestor7 thinks Kouroussa poured 10,000 across Q3 which would is to say 5,200 in August and September.. no explanation given each time i ask how he arrives at this number. My guess is he’s not thought it through silly boy..

Punter64 suggests Kouroussa poured 4,900 in August and 2,400 in September, knocking off about half a months worth of production for the mill relining.. this despite the company announcing the repairs were completed well within the two weeks timeframe.

Remember the company state in the most recent presentation Kouroussa is near to commercial production having continued ramping up through the quarter.

Mill relining did not wipe off an entire fortnights worth of production - that would be unprecedented in the mining sector!

Equally rainfall at Kouroussa while daily was actually below average for the region this time of year.

Commercial production is anticipated this quarter “with a strong performance expected

Much needed balance 😂

Your full time job is posting “4p Friday placing” and “Betts bombshell” day after day.

What are the “mad rampers” saying?

Ahh you mean highlighting the ramp up at Kouroussa had reached 4,800 ounces per month by end of July and the “ramp up continued throughout the quarter” - company’s words.

Or highlighting the refinancing would come and it did, contrary to fear mongering. Did you not question the company’s ability to secure access to finances and loan refinancing? They secured additional $20 million loan from Nioko to cover their $25-30 million Coris loan repayments due this quarter. You have repeatedly misrepresented this as taking out a $30 million loan, which is not the case. I am correcting you on that for the sake of “balance”.

You seem awfully concerned about the past Punter64. Maybe you missed the reasons why Kouroussa didn’t begin ramping up properly until end of May when Corica returned to site..

And encouragingly since then they have ramped up quickly! We have the figures through June up to the end of July when they were producing 1,200 ounces per week.

Of course you or I don’t know whether they have achieved sustained production of more than 6koz per month and it would be completely disingenuous to suggest full confidence either way.

I wonder what you will have to talk about once Kouroussa is producing at 6koz…

The company indeed put out an all is fine statement but they have not explained why the cash position fell by £750k since end of March to just £464k.

Is there a reason to think September 30th was absolute bottom? Seriously, I doubt the cash position reported on that date is the low point. That would be a convenience and suggest they are already achieving “cash neutrality” - their stated aim..

Once they achieve cash neutrality the cash position may recover but they are a long way off according to their statement. They will need additional cash to cover losses before H2 2026, which is the point at which their “internal numbers” suggest they reach cash neutrality.

@Punter - it’s very boring isn’t it. Why are you here again? You like to dodge that question just like the rest of the derampers.

A multi-ID- millionaire with all the time in the world but chooses to spend his days telling us “Koroso did 10,000” and “administration nailed on”..

And he calls my posts fantasies lol

I think his posts are being removed out of sympathy at this point. Good on admin helping him save face 😆

@Punter64 as you well know you can post just about anything on here and admin are very lenient with you boiler room boys.

Obviously when you overstep the mark, that’s on you..

GoldInvestor7 just had another libellous post removed..

These are the up to date facts. Do you have anything to add regarding the figures or do you just want this to be an echo chamber of positive sentiment?

There is nothing false or misleading about highlighting the cash position of £430k in the most recent update. It has fallen from the £1.2 million level six months earlier.

If you want to silence people sharing this fact I wonder what does that say about the prospects of this ‘investment’..

Whatever do you mean? FAB is a gamble, and a rather large one at that. Cost cutting measures in 2023 stemmed the losses but didn’t ultimately cure the problem. All the money raised in March and last year, more than £3 million has been whittled down to £430k.

More worryingly the company put out a statement in March indicating they were turning the ship around but they managed to blow two thirds of the cash remaining in the past six months!

But HUM has been a failure FACT

No opportunity to invest in a credible plan on HUM is evident and it’s deeply in debt

I think you’re making yourself look silly.

Also have to say anyone that believes Lewis contacts should really be careful , I suspect it’s massively off mark