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Does anyone have any insight into reading charts, how does AMA look over the next 6/12 months. I appreciate this does tend to follow the gold price...
Ha ha..my response to Fernie, was very tongue and cheek, clearly this has a long was to go before we reach 90p.... Check out some of his other posts, he does tend to drop this bombshells on various boards... All the best Pageboy!
Best post I've seen all year....not sure 90p within 6 months...but I love this sentiment!! All the best Fernie!
Very positive when the Chairmen gets his wallet out...
• PFS is a positive milestone for the company but it doesn't reflect the final project the company will build, this will be reflected in the Bankable Feasibility Study (BFS) which is due out next year • Amara has already started a drilling programme to upgrade some of the remaining Inferred ounces to the higher confidence Indicated category and these will be included in the BFS, which should further improve the economics • Share price may have dropped as some of the headline numbers look worse than the PEA (such as capex going up and head grade going down) but this was partly expected due to the rules of which resources you can and can’t include in a PFS. Plus optimisation work is still ongoing – these are not the final numbers for the project • Yaoure has the largest net present value (NPV) of any West African development project and it is the only one that has the potential to produce over 200,000oz/annum over a 10 year life • There are no concerns about funding at this stage – Amara has US$17.2m in cash not including the US$10m proposed investment from the IFC (so likely to be US$27m once that is finalised). This will take us to the point of a construction decision in H2 2016
There have been delays with costing from tetratech...any day now...
This is a great business to be invested in. Great team behind them with a well respected Chairmen, who has a wealth of contacts within the sector, especially Randgold. In terms of John McGloin’s association with Randgold, John was an analyst before he joined Amara. When he first started work in the City, following a career as a resource geologist and then a consultant, he worked for Evolution Securities and began covering Randgold. It was a much smaller company then and just had one producing mine, which was a JV with AngloGold Ashanti. John tipped Randgold as a stock to watch and as a result formed a friendship and strong working relationship with Mark Bristow, Randgold’s CEO. As a result, Randgold named Evolution their broker and when John moved to Arbuthnot to start his own team, Randgold followed and gave them the brokership, even though Arbuthnot was a very small broker and by this time Randgold was a FTSE100 company. Then when John moved again to Collins Stewart, a bigger broker, Randgold followed again and named Collins Stewart their broker. John is well known in the City as the first analyst to recognise Randgold as being a ‘standout’ gold producer and he still has a strong relationship with Mark. Only one way this is going and that's north...and I'm sure the broker ratings will be all over this after the PFS is released... Good luck all, should be a great month..
John McGloin, entrepreneurial chairman and chief executive officer of West Africa-focused Amara Mining (AMA), says he is ‘looking to use the value we have created to build a larger company’ and reports ‘corporate guys are busy in our data room’ in the wake of proposals for a a $10million (£6.6million) ‘strategic’ investment at a premium price of 16p by International Finance Corporation (IFC), an affiliate of the World Bank. Stressing that the IFC would pay a premium to Amara’s present share price of 14.62p and receive no warrants, McGloin, a former City analyst with broker Collins Stewart and others, says the company expects to have a preliminary feasibility study on its flagship 6.8 million-oz. Yaoure gold project in Cote d’Ivoire by the end of May and regards the IFC investment as ’a good endorsement’. Most investors remain indifferent in a lacklustre gold market, with Amara’s shares at 14.62p down from a 12-month high of 25.12p and nearly 75% below their 2005 float at 55p as Cluff Gold by the redoubtable Algy Cluff. However, McGloin argues ‘there is a market for mergers and acquisitions out there,’ despite recent investment fund redemptions, though he emphasises ‘we won’t rush willy-nilly into any deal.’ He suggests Amara, which lost a significantly-reduced $7.9 million last year, has enhanced its attractions by pruning costs at Yaoure, where he insists the company, whose expenses are helped by a weak local currency, can proceed to a full feasibility study in the first quarter of next year with no need to seek further funding, after ending 2014 with $17 million cash before the IFC’s investment. According to McGloin, Amara, whose non-executive directors include former Labour minister and old Africa hand Peter Hain, ‘has no need to raise more money until we have to start building the project.’ Referring to the company’s own preliminary economic assessment, he points to a possible capital outlay on Yaoure of ‘$357 million to $400 million, with likely all-in costs averaging $800 an ounce, against a present gold price of $1,191.22c. ‘If all goes well and markets operate efficiently,’ McGloin conjectures, ‘we could have bank funding in place by the second quarter of 2016 and start building in the second half for first production in early 2018.’ The IFC’s planned investment would give it 9% of Amara, where the De Vos family, which controls US health and beauty products distributor Amway, owns 15.2% and US gold fund Franklin Templeton has 13.7%. At the company’s2.8 million-oz. Baomahun gold project in Sierra Leone, where developments have been slowed down by the ebola crisis, McGloin indicates the technical team from Yaoure could take the project in hand later on, with funding provided by Yaoure’s eventual cash flow. His strategy of growing Amara into an institut
Yes April.
FYI - I was in touch with Katharine Sutton, Head of Investor Relations, last week and she confirmed the PFS is still on track to be released end of the month. I guess watch this space and hopefully any day soon.
Not really a lot to say on this, I think most suspect it goes on with the MM's. Sells showing as buys is another typical action, with even Barclays not having an answer when I've questioned my buys showing as sells.
Amara Mining Plc (LON:AMA)‘s stock had its “buy” rating reissued by research analysts at Cantor Fitzgerald Europe in a report released on Tuesday. http://www.wkrb13.com/markets/547509/amara-mining-plc-rating-reiterated-by-cantor-fitzgerald-europe-ama/
John McGloin, Executive Chairman of Amara Mining plc, commented: "At the start of 2014 our Yaoure Gold Project was just one of many gold development projects in West Africa. However following the completion of a compelling Preliminary Economic Assessment and a highly successful drilling programme, Yaoure is now recognised as one of the most exciting projects in the region. With Mineral Resources of nearly seven million ounces, Yaoure is the largest gold development project in West Africa and Amara has the largest resource base of any London-listed junior gold mining company.3 "The strong support the recent placing received is further testimony to the quality of Yaoure and we are fully-funded to deliver a BFS for Yaoure in December 2015. We are in the final stages of optimisation work for the PFS and I look forward to delivering it early in Q2 2015. Despite the challenging market conditions, I am delighted that Amara has started 2015 in good shape by solidifying its financial position and further increasing our resource base. We are now well positioned to deliver the next major African gold mine."
this is the only deal Glencore maybe involved in... http://www.ft.com/cms/s/0/fe57d7c2-db7f-11e4-86a8-00144feab7de.html#axzz3WX5eY3bR
If you look at the Directors backgrounds and of course John McGloin, Chairman and Chief Executive Officer. Amara have a huge amount of experience and contacts across the mining world. Indeed happy whatever the outcome, I'm just very surprised this has not gone northwards and stayed northwards... John McGloin joined the Group on 3 April 2012. A geologist and graduate of Camborne School of Mines, he worked for many years in Africa within the mining industry before moving into consultancy. John joined Arbuthnot Banking Group following 4 years at Evolution Securities as their mining analyst. Over the years, he has acted for many mining companies including African Platinum, Randgold Resources, Avocet Mining, European Goldfields and Titanium Resources Group. John's most recent position was Head of Mining at Collins Stewart which he held from July 2010 to the time he joined Amara Mining.
Some advice and information from Amara • Construction is expected to begin in H2 2016. We’ll complete the Bankable Feasibility Study in December 2015, we’ll then look to arrange financing and secure the mining licence for Yaoure and begin construction at the start of the dry season in October 2016. We could start building during the wet season as Cote d’Ivoire’s wet season isn't that impactful, but it’s easier to do earthworks and pour concrete when there isn't any rain as it dries faster • Construction of a project of this size is expected to take approximately 18 months. We may be able to complete it in slightly less time but we prefer to be conservative • Based on construction starting in H2 2016 and it taking 18 months, first gold is expected in H1 2018 However, there will be lots of news flow between now and pouring first gold, which will hopefully act as catalysts for the share price. These include the announcement of the receipt of the environmental licence, drilling results during the summer, announcement of the BFS, receipt of the mining licence, securing the power tariff from the hydro-electric plant, securing financing and many other news items. Katharine is always available for information, Katharine Sutton Head of Investor Relations Katharine.Sutton@amaramining.com
If you look into the placing history - Franklin's holdings has increased substantially following the placing and they are a well respected, specialist mining investor so this is a positive endorsement for Amara. IMHO - I think it may have been Franklin who bought them from another institution - Arranged by the MM's. Really positive news for AMA!!
The good news, is that the institution that bought them is a large, long term US institution so the shares have gone into strong ‎hands.
Some great buys late on today, checked with Barclays and they are buys rather than sells.
As you can see, the gold price has fallen off a cliff, as a junior gold mining stock our share price largely tracks the gold price. Our performance is in line with the sector and the majority of the other companies who have performed similarly. Continuing to progress Yaoure in a timely manner and the PFS due out in mid-late April. Good opportunity to top up at this price, I suspect this will head north after the PFS is released, why do you think we had such a good response with the placing - Bargain at this price!!