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JP Morgan sees a mid-year break-out rally for Gold to US$2300.

JP Morgan sees a mid-year break- out rally for Gold to US$2300. Perfect timing for exploratory drilling at Bulawayo Gold.

This should start to pick-up from here. Debt free and cash flow positive by the end of next month (prediction), a price to earnings ratio (p/e ratio) of one or even less?

Currently at US$2063 having touched $2079 today and some analysts predicting $2200 by the end of this month, the wet season draws to an end in March, the Afrimat second tranch is due in April, who knows where the Gold Price could be by then, places Galileo in a very sweet spot when drilling at Bulawayo Gold is resumed?

Quite, the Dark Horse, RNS dated 20th Sept and a review of the whole licence area highlighted drill targets, Shinganda Fault Splay system, Clusters A,B,C and a 2000m drill programme (Phase 2).

Drilling completed at Kamativi around the end of September with further drilling planned for Phase 1 reconnaissance drilling at Bulawayo Gold, the rig was instead diverted to Shinganda.

Preliminary results from this Phase 2 programme has produced a chalcopyrite/pyrite mineralisation intercept of 264.5m from 65.5m from the Shinganda Fault Splay. Further results awaited..

Luansobe.

Operational/producer by June'23 was guidance based upon the assumption the Mopani sales process would complete by the end of March, plus say 2-3 months to finalise terms, conditions, method, prices etc and Luansobe would be up and running. The preferred partner at Mopani has however, only recently been settled with IRH brought in as a strategic equity investor for 51% and not as originally envisaged an outright sale to a mining company and owner/operator status.

Structure of the deal is on-going with capital investment (US$1.1B) secured on the 22nd Dec. Further details, day to day management of each facility, integration between IRH and Mopani at site level are still to be implemented imo, and therefore any arrangements or commitment with Galileo/Luansobe are also yet to be determined.

Kash itu.

When this asset was acquired from BMR (HoT in 2018), the directors considered Kash itu to have enhanced value being in proximity to the Sable processing plant at Kabwe. Transfer of the licence from the subsidiary Enviro in April'20. JLP acquired the Sable Zinc Plant in Aug'19 with the intention of having the Zinc circuit operational by Q2 the following year. However, as most here will know, Copper, understandably has taken precedence with Zinc processing at the Sable Plant unlikely in the near/medium term. Consequently, Kash itu is now the domain of the small-scale/artisanal miner with third-party processing elsewhere.

Also, Boliden placed it's Tara Zinc Mine, Europe's largest, on care and maintenance earlier this year due to negative cash flow and a poor Zinc price (although they intend to re-open the mine next year with an improving Zinc price) changes the situation for Galileo and Kash itu making this a non-core asset imo.

Kamativi.

Good question, how much is Kamativi worth?

520 sq km of highly prospective ground, Zimbabwe is ranked 5th for Lithium reserves in the world, near zero exploration in the last 25+ years and the adjacent/along strike Tin mine just happens to have 26mt @ 0.58% Li02 in the tailings. A redundant Copper mine purported to be of VMS style mineralisation currently under investigation (sampling, mapping etc) at the Gwaii River mine site is part of the licence.

A whole load more than the speculative offers made to junior's in these depressed times I'll bet.

US$2200 by the end of next month?

US$2200 by the end of next month?

Gold Price

US$2082

$2200 by the end of next month?

US$2081

US$2081

Interims for 6 months to 30th September due this week.

Gold Price.

US$2065.

Markets open today.

US$2065

US$2054

and rising.

US$2054

and rising.

Demonstrates the increased prospectivity of the underground sulphides. From memory, Mufulira and the new shaft under construction is 2km+ deep, the second deepest in the world and is still producing copper at over 1%. Add in activity from ZCCM, IRH, JLP, Mopani, Sibanye-Stillwater and others no doubt, Luansobe is 'looking good'.

Using Gold as an example, in the ground close to processing facilties an all-round price is say, $100/oz. At $2000 that's 5%. Copper at $9000/t × 5% = $450/t in the ground, in proximity to Mufulira.

6mt @ say 1% recovery = 60,000t × $450 = US$27M.

Assuming $9/t rock was a speculative offer for the whole licence area, leaves a further $27M for the under ground element.

Copper is expected to be in deficit (500kt) this year. Previous forecasts were for a 350kt surplus. Copper now predicted at US$9000/t by the New Year.

Deficit is expected to outstrip surplus this year.

Copper forecast of US$9000 by Jan'24.