Dave / Presentation16 Sep 2012 09:47
Thanks for letting us know where we can find something, thought I post what was out on that forum for anyone who hasn't got access.
Courtesy of 'idontpost' on ADVFN
From memory,
Cash sufficient to last 2 years at current burn rates (around £100k per month). Cash represents large proportion of market capitalisation.
Karan
First drill campaign slightly off where they perhaps should have been looking, they focussed at first on areas artisinals were working. New information from work done suggests a different approach. Latest phase will test that theory. Have a working deal with newmont to share info, i believe they said there was a suggestion of jv possibly with newmont but elected to keep licence wholly owned, particularly as they had plenty of funding. Newmont sampling returned very positive findings, so they working on the same area to find out whats there.
Drilling rab fences to test mineralisation. They seem to be confident about this licence.
Diatissan
My memory hazy here, but think drill targets identified and will be addressed in this campaign.
Caracal
Hugely positive feel here. Working off a lot of historic work done and have identified plenty of areas of interest. Acquisition on very decent terms it seems with the final tranche based on an assumed company valuation should they find 500k ounces which is 30 something pence I believe.
Management
Team very strong including a senior exec formerly of randgold, which as you know us the big operstor in the area.
Political risk
A deterrent to many investors but the true situation not well understood. They operate in southern west mali, where all gold operators are. After initial disruption the events in mali have not caused probams on ground. In fact mali south is west african, and very distinctly different from the north east desert area where the troubles are.
Finance
As above cash enough for 2 years. Would only raise if they had asomething they wanted to accelerate materially, and that would mean a much higher price through recognition in the market of what they had achieved.
Drill rig
Full flexibility on drilling because of own rig in house, they can do much of the initial work using this rig and then take the risk of more costly rc drilling on the basis of accumulated knowledge.
My thoughts
It's rare to find an explorer with 2 years cash, their own drill rig and such a wide portfolio in prime gold territory. The newmont results from karan are interesting and could be very significant. The political news from mali has distracted investors and that is a mistake. Market capitalisation is £3.8mill with cash around 70% of that. No dilution threat at this level.
I would say it has some way to go, was 23p early 2011.
Sorry this is brief, from my hazy memory. Should have taken detailed notes.
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