Member Info for BPat890

Ontarget it’s difficult to pinpoint either way. Perhaps it is sell-on-news mentality that has dragged us lower, hopefully people can see the opportunity in front of them and take advantage of these prices before the price quickly reverses north again.

As you mention gold is trading up, we have preliminary Singida production figures and the company are no long spending millions each month on Singida infrastructure. I wonder what daily cash generation is now and what the likely cash build is each day now that we have gone from around 175 ounces daily production to near 280 ounces. Will investors only act once they see written evidence of the debt melting away?

It’s really bizarre the market continues to ignore a company that has a strong track record beating previous year figures.

· Revenue US$77.8 million, a 16.3% increase on Q1 2022 (US$66.9 million).

· Average monthly revenue per operating rig ("ARPOR") was US$192,000 in Q1 2023, a 10.3% increase on Q1 2022 ($174,000). We saw ARPOR pick up particularly in Q4 2022 and expect higher levels to continue going forward. This has been the direct result of our fleet repositioning strategy in the latter half of 2022, with a focus away from shorter term contracts in favour of large scale mine sites and world class developments.

· MSALABS: Continuing to deliver on its multi-year growth trajectory. MSALABS now has 6 units commissioned across Africa and Canada. It will deploy 21 units with Chrysos by 2025.

· Guidance for MSALABS remains $40-50 million for 2023, as guided at our FY22 results, and another significant increase YoY (FY 2022: $27.3 million).

Only watching right now, cash is being depleted very quickly and that normally means a placing around the corner

Always keep spare ‘ammunition’ to hand. The market can act irrationally and those occasions often present the best buying opportunities! And the golden rule, don’t invest what you can’t afford to lose. This company is a pretty stable one with its regular dividends so wouldn’t worry too much

Correction * AISC on a per ounce basis should be no higher given group costs split over approximately 26,500 ounces production each quarter rather than 15,000 in Q1.

Oh I sincerely hope not. Talk of takeovers at this stage is not in our interest (although traders here would enjoy the extra volatility).

The company is on track to produce at least 95,000 ounces this year assuming NLGM only produces 53,000 ounces over the next 9 months to meet low end guidance and Singida continues to average current daily output producing 27,000 ounces over the next 9 months.

AISC on a per ounce basis should be no higher given group costs split over approximately 25,000 ounces production each quarter rather than 15,000 in Q1. Operating costs at NGLM should be lower in the second half of the year as production is weighted.

Day to day movements are insignificant while the price to (near future) earnings remains so low. Look how quickly some other PM producers have moved recently, HUM, HOC, RSG, many naysayers on their chat forums and likely all missed out or ended up paying a premium.

Losing Eric now is bad timing for sentiment but I am willing to bet it will be short lived.

2,200 ounces produced in the first 22 days of April! Wow so we are already averaging around 3,000 ounces per month at Singida!? That was a surprise :)

Q1 2023 Operational and Trading Update

Consecutive strong quarterly production of +27koz & improved AISC profile of US$1,109 per oz

Yanfolila, Mali

· Quarterly gold production for Q1 2023 of 27,262 ounces ("oz") (Q4 2022 of 28,264 oz, and Q1 2022 of 15,548 oz).

· AISC of US$1,109 per oz for Q1 2023 (a +11% improvement from Q4 2022 of $1,248 per oz and +50% from Q1 2022 of US$2,235 per oz).

· 26,380 oz of gold sold in Q1 2023 at an average realised price of US$1,878 per oz (Q4 2022: 27,860 oz of gold sold at an average realised price of US$1,726 per oz). The Company held 2,810 oz of gold inventory on 31 March 2023, valued at c.US$5.6 million.

Kouroussa, Guinea

· Kouroussa construction is fully funded, on budget and remains on track for first gold pour by the end of this quarter, Q2 2023.

Corporate

· Strategic investment by CIG SA ("CIG") and successful placement ("the Placement") of c.US$17.1 million during Q1 2023, completing the funding required to ensure Kouroussa goes into production as scheduled, and to fast-track exploration at that asset.

· Consecutive strong and improved quarterly Group EBITDA, up +59% to c.US$17.5 million for Q1 2023, versus Q4 2022 of c.US$11 million.

Outlook

· Similar trends from Q1 2023 levels expected this quarter, Q2 2023.

· As previously stated, an updated Group wide full year guidance update to be provided once Kouroussa is in production and ramping up.

Dan Betts, CEO of Hummingbird, commented:

"Hummingbird's second mine, Kouroussa, remains on track to pour first gold this quarter. The Project remains on time and on budget, and will mark a major milestone in the development of the Company to realising our ambitions of being a multi-mine, multi-jurisdiction gold producer. The mine will more than double our production profile, reduce the Group's cost of production, and diversify risk.

At Yanfolila, we continue to see operational improvements which is very positive, with a mine adding good cash flow returns to the business and performing more in line with expectations. Yanfolila had a positive quarter in terms of production and improved AISC profile, with many of the operational changes made in H2 2022 coming through to the bottom line in terms of a more stabilised and predictable performance at the mine."

Boobear agree with your estimates and sentiment. Exciting position we are now with NL production at 5,500-6,500 ounces per month and Singida producing 1,000 ounces per month equivalent on day 1 of the pour.

Guesses for where our daily pour will be up to now we are 3 weeks into ramp up?

I’m guessing 55 ounces per day (1,600 per month equivalent)

I’m broadly in agreement with you booboobear, ‘strongest January in 3 years’ could mean the quarter overall was similar to Q4 2022.

Shanta poured 20,000oz gold in Q1 2020 when grades were higher and less than 15,000oz in Q1 2021 so we have a large ballpark.

As long as AISC costs are under control at around $1,300 it shouldn’t be received as bad news, because of recent gains in the gold prices. Did I mishear Eric say debt is melting away, this back in February??

Not wanting to wish our lives away but we have so much to look forward to this quarter with updates about Singida production increasing week on week and guidance for the year ahead.

And let’s not forget to mention the soon to be 3-5 million ounce West Kenya project grading more than 10g/t!!

Thanks for sharing the video call with Eric PhatStyle4321! I check here every other day but can’t remember seeing that one on here back in February. He was so happy with the gold price at the time (what was it?), now he must be jumping for joy lol

$2060! Omg

Is anybody considering going heavy short term at least? The last week or two has been amazing for gold and the sector but despite that this share has hardly moved at all!! I’m not talking about risking life savings, just selling recent winners to load up at this price here and maybe sell for 20-25% in six months. Can anybody else figure out why it’s not 15-16p already?

Island girl - that was precisely my thought too

Good start for many of the beaten up gold producers this morning including Shanta Gold. My Serabi has also woken up from cryosleep

Well Shanta have delivered on time and on budget so well done to those who didn’t let their doubts cloud their mind. A couple of posters on here yet to admit that.

“Importantly, the project was delivered on time and on budget, a testament to our dedicated project management team. Despite global inflationary cost pressures, no material capital cost inflation was incurred in the construction costs. This was a direct result of the excellent supervision, advanced planning, and overall flexibility from the Singida team in Tanzania.”

Shanta are ramping up from 35 ounces on day 1 (approx 1,000 pcm) to around 130 ounces per day by September I believe, these are my estimates based on previous Singida expectations and will no doubt differ from company guidance due next quarter.

Singida (est 21,000 ounces in 2023)
Q1: -
Q2: 5,000
Q3: 7,000
Q4: 9,000

Can we keep chat on topic please. It’s embarrassing

Not everyone is convinced there will be a recession. A technical one is forecast but most of the largest economies are expected to return to growth in the second half of this year. Hopefully the recent gains in commodity prices will be maintained, although a lot depends on US economic strength and how well the USD performs. The fear that presided over much of 2022 appears to finally be lifting. Fingers crossed it’s a better year ahead :)

Pity the poor souls selling at 9p just a few weeks prior. Everything is coming together nicely in the lead up to the quarter results, gold is a whisker away from $1900/oz and the MRE must be ready any day now!

Thanks to all who have kept their sanity and made so many informative posts over recent months. This is one of the better boards on here!

Hope my guy closed his short. Silver is about to pop!

The gap between SLP (96p +1.6%) and THS £1.01 (-1.94%) has narrowed even closer today. Almost certainly due to declining demand for chrome ore and concerns over what is happening in China. Might there be a relaxing of Covid restrictions as a compromise to dispel the protest movement? It would require a complete U turn but it’s arguably more favourable than the alternatives of the status quo + crackdowns which might inflame tensions.