The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
Taken from calibre's MD&A Q3 2022:
On June 28, 2022, Rio Tinto Exploration (“RTX”) terminated the Strategic Alliance Agreement dated as of February
23, 2020 between RTX and Calibre. RTX also terminated the Option Agreement dated as of February 23, 2020
between RTX and Calibre, CXB Nicaragua S.A., and Calibre Mining Nicaragua S.A.
RTX has an internal prioritisation process which weighs both technical results and operational risk to ensure their
exploration funds are directed to the best portfolio opportunities. Following the Nicaraguan exploration program
conducted from 2020-2022, the Nicaragua portfolio of projects associated with Calibre did not achieve sufficient
priority within RTX’s global copper portfolio to support their continuation. Consequently, the decision was made by
RTX to exit the projects and commercial agreements with the Company. RTX will work closely to transition all data
and information to Calibre to allow the Company to continue the work in the area as the sole operator.
In all fairness, we were too small for the likes of Rio anyway. Guess they could have bought us and calibre out if they did have a presence in Nic.
Then take the likes of jaguar mining. Been producing for a while, £140m mcap, produced 83000oz last year with AISC $1350. At $1800 gold, gives $37m profit per year. We would double that profit in year 1. They do have $30m in the bank and low debt and a 5-6% dividend.
https://www.caledoniamining.com/operations/bilboes/
Some more info in the links at the bottom. $323m post tax NPV at 10%. $250m upfront capex but mention of $100m smaller capex and start at 60,000oz and ramp up. Sold for $65m in shares. They haven't an FS yet but PFS shows 168,000oz over 10 years with AISC $850 ish. Doesn't really bode well this being bought for $65m given the numbers.
Simms, challenge with calibre is that they have enough organic growth and they have about 1m tpa spare capacity at present. Pretty sure their Eastern borosi project will be good to go the 1st half of this year.
Their directors keep buying at the moment so I wonder whether that means they are not in discussions as that would be classed as insider trading.
I mean, come on, who is selling at these low prices!!!!
Thinking back at all the share price predictions this time last year, none of us predicted being at 15p after the release of the BFS.
Yes, the sanctions weren't a great timing, but we should have had the financing done and dusted before these were announced. All this talk about organising financing in parallel with the final stages of the BFS. Then all the extra time trying to get the capex as low as possible to then not even build it ourselves.
We should have signed contracts for the financing with confirmation/release of funds once the BFS was released. Other companies in worse situations had done this, why didn't we?
I am really disappointed in where the share price is and the poor decisions made that has got us here.
Ah, yes. Cheers cambells.
http://www.condorgold.com/investors/share-info
Anyone able to explain why we have 16,666,666 warrants at 15p. I thought JM had 6,666,666 for 1:1 warrants but what about these extra 10m?
Merry Christmas connect and to all. Have a good festive period.
Slim, any mention of this yesterday?
Fair play slim for turning up. Good to hear you got something out of it. Any other information you can share?
Calibre have 1.1Mtpa spare capacity at la libertad. I personally think all hell would break out if calibre bought us and used us as a 100%spoke/not build a processing plant on site (I think it would massively upset the local community and added foreign investment into the country).
Our sag mill can process 1Mtpa at 2,650tpd. Going straight to 100,000oz/year will probably max out this capacity (not crunched the numbers but pretty sure we'd be close).
So if calibre bought us and used us as a 100% spoke, they would max out their spare capacity. Given all of calibres growth opportunities and bringing their Eastern borosi project, this encourages me that calibre would be interested and it would be in their interest to build a processing plant to benefit their growth.
I'm guessing there are a few knob heads as well.
Punter, have you ever emailed MC in the past. I don't email him that much, probably half a dozen of occasions over the last year. I've found him to be quite honest and responsive to my emails and appreciate him finding the time to reply to shareholders questions.
Firstly, MC is normally reluctant to allow email responses to be posted online but he has given me permission to post this response from yesterday. I asked around whether the last bit of land will impact negotiations now we are selling the asset. This was his response:
I was at La India yesterday hosting a site visit
The co-operative own a very, very small plot of land in the La India open pit. We have deliberately not purchased this land as the co-operative want to continue to work and earn money until the last moment. There is a detailed co-operative re-location plan which includes 3 different relocation options. Keep in mind this is not just about buying land. it is about “livelihood relocation”, which is an IFC phrase.
Over 50% of the members of the co-operative are no longer involved in artisanal mining, they have either retired or moved on to an easier or less dangerous occupation. We have also weekly contact with the co-operative. Many have worked for Condor over the years as field assistants, for example when we have been drilling with 5 drilling rigs on a 24/7 basis, each rig directly employs 12 local people. The non working members of the co-operative want a cheque ASAP as they get no income when not working.
Condor has run training courses for 120 people this year. jobs for the future mine. Many are artisanal miners or in the families work in artisanal miners.
70% of the local community work in artisanal mining in one way or the other. They support the mine and see it as a way of earning 3 to 5 times more than being an artisanal miner, with heathcare, insurance and meals. The drinking water project cost US$250k and distributes over 900 x 5 gallon water containers to over 450 households weekly. This is mainly to artisanal miners families. The community has voted for the new mine, hence the permits.
The relocation cost are included in the upfront capex number of US$105m.
End of email. It's good to know relocation cost is already incorporated into the capex numbers. The land has never bothered me unlike some posters (particularly over on advfn).
I keep thinking about calibre. Balance between their already spare capacity at la libertad and then the locals wanting jobs for the processing plant/mine. If they bought us, they would probably just truck the ore over to la libertad. I'm not sure at what level they would max out capacity at la libertad and then it would be worthwhile building a processing plant at la India. Also, they bought b2gold for $100m with no debt so may be hard to approve a purchase of over $100m with the added costs of another $100m for the build. You could argue b2gold mines were effectively 'coming to a close' (because basically b2gold hadn't spent any decent money drilling/didn't focus on these assets for a number of years).
Calibre announced in Feb 2022 some new concessions. One of them being the buena vista concession which is actually adjacent to our project, see page 367 on the FS.
Taken from that news release in Feb 22:
The Buena Vista project is located approximately 20 km east of the Limon Mine complex and 10 km northwest of the La India mine along the same structural trend which controls the gold mineralization at La India. Surface mapping and sampling at Buena Vista have identified at least seven vein target areas. Individual targets within the concession host gold bearing breccia and quartz veins with semi-continuous strike lengths up to 3 km long. Outcrop sampling of the veins have returned values from <0.1 g/t to 8.3 g/t in rock chip samples. The 2022 program will focus on further definition and extension of currently identified vein structures with mapping, rock chip sampling and soil sampling to define and prioritize drill targets. Permit applications have been submitted and drilling and trenching activities are expected to begin in Q4 of 2022 or early 2023. An electromagnetic (VTEM) airborne geophysical survey is planned for Q1 2022 and will assist in drill target definition in combination with mapping and geochemical sampling.
Yes, MC is in Nicaragua.
Let's say the company/assets are sold and we get a special dividend and you get your investment back (+/- some profit). What would you do with that money?
1. Invest it into the company that buys the asset (depending if that are a public company trading in the UK/Canada).
2. Invest elsewhere.
3. Keep the money and vow never to invest in an AIM company again.
I think I would invest in producing PM miners looking at their discounts and potential commodity prices bull run.
https://www.kereport.com/2022/12/08/calibre-mining-exploration-focus-fueling-development-and-grade-driven-production-growth/
Just a reminder, el limon which isn't too far away from us has produced 3.5m over it's lifetime and started off with a small mill. Calibre keep finding high grades on that property with new corridoors which makes me wonder about the likes of cacao for us.