Member Info for Daisan

Hmmmm. 7m oz gold and a market capitalisation of £17m. I can't think of another gold company like this. Certainly agree that this update won't affect the share price but it certainly doesn't hurt! This is a world class asset and at some point somebody will be interested enough to either buy it, buy the company or provide capital to get something going. At that point the price will rocket. It has to be said that it is a very binary situation (quite a number of those on AIM) but at least it actually has a resource rather than the 'hope' companies that litter AIM. I wouldn't bet the farm but this is a company where it is worth having a stake knowing that it will do nothing/drift for quite a while but then it will take off.

Well, I would agree with you that this would get ramped if the disconnect between mcap and asset value was the other way round but the mcap will be much greater than the NAV so it will be interesting to see what the argument is. I expect this to get ramped anyway as MTR are invested here and they will, presumably, want to get out. Although it wouldn't surprise me if they subscribed in the placing! If that is the case, I suggest PJ's reputation has taken another knock. Whatever way you look at it, anything over 2p per share here is bad value.

Mike Whitlow is Doc Holliday on Twitter in case people didn't know.

Leapfrog, We very definitely do disagree on some aspects as I believe you underestimate the purpose of a JORC defined resource. I think that you also need to understand the difference between a resource and a reserve. To quote Wiki (which is as useful a definition as any): Mineral deposits can be classified as Mineral resources that are potentially valuable, and for which reasonable prospects exist for eventual economic extraction and mineral reserves that are valuable and legally and economically and technically feasible to extract. Conformance to a JORC defined resource is a significant step and should boost the share price as considerable value is placed on Measured resources in particular (with little on indicated and none on inferred currently). Little is placed on the Soviet system and in my experience it is difficult to asses whether they overstate or understate resources as I have seen both in the past. Anyway, the company are undertaking the necessary steps to define a resource they are just going for the unusual step of early production which implies that they are very confident of what they know and because of the processing infrastructure that is very close by. What we don't disagree on is that there is value here.

Leapfrog, I like Noricum but I believe that there are several inaccuracies in your statement. 1. Noricum only own 50% of the project 2. None of the resource is JORC compliant 3. Even if compliant, these would not be reserves The definition of resources is conformant to the old soviet classifications which are indicative but often not accurate in the way that the JORC code would define them. The company is going about things in a unique way. I rather like it but there are risks inherent in setting up early production when the resource is not yet defined. According to Noricum's website "by the end of 2016, the Company anticipates delineating a JORC resource of 200,000 tonnes of copper and 1.5Moz of gold" which is not a bad target in itself!

It's being ramped on Twitter

Pro (aspirational?), I think people would pay more attention to your arguments if you came out with reasoned statements. Currently your posts are just sound bites on the boards you attend and show a lack of research and a worrying lack of understanding of mining. The investment case is quite easy here. The share price has been suppressed because of the debt overhang. But the rise in gold prices translates directly to the bottom line PROFITS (note that costs do not increase) and makes the debt less and less of a burden. As time goes on the market begins to appreciate that it will survive and re-rates it. It then further re-rates it based on normal metrics of profitability. Of course it will go up and down with the gold price and who really KNOWS what will happen to that. If, long term, you think it will rise then this will do very well. So, I suggest that you try writing a reasoned argument rather than the short, I'll informed posts that appear to be your norm currently.

Interesting. I didn't see any gap and have looked back and still can't see one. Anyway, it is well below 1297 now so whether that is the case it may have triggered a bigger pull back.

Current break out looks like it is only intra-day currently and has been invalidated. Bad news this time around and I would expect a bit of a pull back as a result. I am still following a technical analyst who is calling for $1000 gold! Not sure it will go anywhere near that to be honest but the sharpness of the fall today has taken me by surprise

Looks like bumper figures to come in Q3 but we won't get them until mid-July

Alfieapple, It is only fair to point out that SHG has a rolling hedge programme in operation which accounts for about two thirds of production currently. Naturally this will rise in value as the gold price rises but will lag. For a company with their debt profile it is a prudent move but it does mean that they do not immediately fully benefit from a rising gold price. On the flip side, they are currently generating a lot of cash even at their hedged levels so it is very undervalued. Assuming a strong gold price going forwards, I expect this to be one of the better performing gold miners (I like AAZ and a couple of others a lot as well).

Indeed and the next update should expose that some more for people. I am in AAZ as well and always looking out for undervalued goldies, although there aren't quite as many around as there used to be.

Yes, AAZ is very different. Much higher gold production and the share price has been depressed because of the debt so the EV is much higher. STI, however, has its own positives in having no debt and some decent projects plus a revenue stream coming on line.

Not convinced that Brexit has had much influence on the gold price. If you look at gold movements, it seems to get a boost every month around the FOMC meetings! You can rely on the FED to boost the gold price.

Great to see this responding to the rising gold price. Next update in July should be extremely good and point towards a decent revenue stream.

This will continue to re-rate twice as quickly as other similar sized, debt free gold miners as the market continues to reflect the fact that the debt is becoming less of an issue. The next quarterly report should confirm the start of this process which will continue as the price of gold remains firm.

I suggest you might want to do a bit more research ProTr.Amr.H

Broken the key 1305 level. If it can hold there for a daily close or, even better, a weekly close, then the path looks open to 1400. Interesting that the initial reaction to the 'no change ' decision looked relatively muted but it has powered ahead overnight.

As much as I think Tom Winnifrith is a bit of a ****, on this I agree with him: http://www. *************.com/views/21483/highlands-natural-resources-the-bogus-disposal-to-add-to-the-covert-placing-this-stinks This is probably the most value destroying deal I think I have seen for a long time. Even using the more appropriate current share price (rather than the ridiculous 15p in the deal), OPRA are still effectively paying £2m (plus costs!) for an asset that a week ago was valued at $91k. Given the fact that, after the new placing, they will have assets of about £1m (mainly cash), this will amount to about 2p per share. I wonder whether people will be fooled by the £0.15p level used for the transaction and seek to bid this higher when it comes out of suspension? I suggest that this should be trading at a significant discount to the assets, so less than 2p.

I doubt whether the actual announcement on interest rates will affect gold as pretty much everyone 'knows' that they will be held so it is priced in. Comments made at the time will be listened to intently, however, to get an understanding of where things are heading. It's a flip of the coin which way gold will go at this stage but if it breaks $1305 ish then I tend to agree with Korg that it will push on up to $1400/oz. Personally I think that it will pull back as I don't expect the comments to be any more dovish (although still not hawkish) than they have been previously despite the last jobs report.