Member Info for Eck71

All very encouraging. Sounds like there might be some mine development about to happen. I wonder if the company plans to update the market on things like whether all the planning legals have been concluded? Clearly they are confident or they wouldn't be hiring, it's just that with the share price at a near historic low and SGZ allegedly worth the princely sum of £11m, some positive market-focused communications would be grand. I know that's not really Scotgold's style, but I live in hope.

Now now yayay! I’ve, er, every confidence...

LSE is showing the SP at 80.92 this morning- that’s more like it! Of course it’s possible it’s a glitch, but I’d rather take the positive view :-)

Quite.

Well I would, except I emptied my coffers to fill my boots in November (and the RI before that, and before that etc etc). I'm done.

Scotgold Resources is apparently worth slightly under GBP11m at this point. That's with GBP5-6m cash at bank, planning approval for a GBP32m NPV project in place, a loan facility agreed for GBP5m, a licence area with a cluster of highly prospective targets near Cononish, upside only (ok modest) for Portugal, and enough funding not just to bring Cononish into production but also to initiate further exploration on other targets in parallel. Not to mention possible employment grants in the pipeline, Scottish gold premium etc. Yes of course there is risk of development time/cost overrun but surely not that high given relatively small scale, high grade, good mineability of rock (according to DALR geos I spoke to down the adit, not from SGZ sources). Yes real value will not be reflected until production, yes there is POG risk (but well mitigated by low cost of production) but this seems, let's say, over-discounted for those risks at this point. So where is the buying pressure to take this even modestly higher?

20k ‘sells’ obviously bed n isa

If you want confirmation of the demand for Scottish Gold, speak to any jeweller. They are screaming for it. Leaving aside the domestic demand for wedding rings etc, international tourism to Scotland is booming - up 15-20% year on year over the last couple of years, boosted by the weak pound (as is Scotgold). The more affluent of those tourists - notably but not exclusively Americans and Asians - will be wanting their cufflinks/pendants/rings etc in Scottish Gold to take home. For the first couple of years we are looking at production of c. 2.5k oz of Scottish Gold per annum (assuming an average c. 10k oz/year production and 25% Scottish Gold). That's really not a lot and the supply/demand equation will be weighted heavily to the demand side. It's not a question of if there is demand for this product, it's a question of what will people pay for it. What do you think a pair of Scottish Gold cufflinks will go for in a retail outlet at Gleneagles, or St Andrews, or in a top-end shop in Edinburgh? I'd expect a healthy premium, and I'd expect a healthy premium to persist for the foreseeable future at least until other mines come on stream. The interesting question is whether any fiscally attractive option emerges for offsite leaching in Scotland, which would allow for a much higher proportion of product to be marketed as Scottish (though not ethical) Gold.

After the new shares are admitted, the post-tax NPV per share for Cononish will be 84p. No value ascribed to other licences, assets, IP etc. Here�s the updated *very* fag packet comparison with GAL and DALR. Implied SP uses post tax NPV as the valuation with no value ascribed to any other assets. DALR announced a 43% resource increase on 10 May, which will have a significant impact on NPV but I�ve not seen an updated value based on the new resource estimate. As others have noted, SP Angel�s pre-funding note had a 58p target assuming 100% equity funding. Will be interesting to see how they revise that. Yes they are the in-house broker and paid to present a positive case, but the note seemed authoritative, sober and pretty conservative to my eyes. SGZ: �36m NPV 42.9m Shares in issue (after admission) Implied SP 84p Current SP 32.5p GAL: �14.5m NPV (based on �750/oz gold price) 188m Shares in issue Implied SP 7.7p (but in reality probably more like 12-15p at current gold prices) Current SP 5.75p DALR: �230m NPV (but will be higher now following new Mineral Resource Statement on 10 May) 355.5m Shares in issue Implied SP 65p (now out of date, will be higher given new Mineral Resource Statement) Current SP 60p It�s really interesting to compare the different sitations: GAL with underground development already under way, but a planning appeal hanging over them; DALR financial and mineral resources of a much higher order, but a challenging planning process to negotiate first and more development funding to be found (though Blackrock et al are clearly committing big); SGZ with funding and planning in place and a clear route to production. All different, all interesting and I think SGZ stacks up well at this point. I imagine our CEO is looking forward to doing some mining. GLA, DYOR etc

I may have a small sherry.

Almost certainly.

"This man is gonna put up most of the remaining cash" Is he? Says who? "therefore his 100k interest is irrelevant." Really? Why is a net cash benefit of �100k irrelevant? "We are definitely getting to the point of no return now." That's right. That's been the whole point of the last two years. Duh. "Lift off better work cos there is no turning back this time." Yay, he's getting the idea. "If the money turns up then the mine will be profitable" Brilliant, the penny's beginning to drop. "but who will actually own this mine?" Shareholders, with NLR very likely to be diluted out to below 50% Honestly, who let the remedial kids in?

This seems positive - does anyone know of any comparators with other junior earn-ins? Anyway, we are now firmly focused on Scotland which is where we need to be. No Portugal or France-related drain on financial resources or management time (until/unless PanEx have things up and running in Portugal in a few years time). Some upside potential, no downside risk. And that, as far as I can see, concludes the general clearing the decks/tightening the strategic focus work. Delisted from ASX; share consolidation; planning permission granted; French and Portuguese assets off our hands. It's project finance time. The speed with which French and Portuguese matters have been concluded is encouraging - let's hope there's finance news coming down the pipe sharpish.

As the French would say. Good to see the fine Scotgold tradition of 'jam tomorrow' continues. EUR100k is better than a wet halibut in the fizzog I suppose though I rather doubt that represents any kind of return. I shan't hold my breath for the remaining EUR900k. Good to see the focus tightening towards Scottish matters though. Portugal should be a rather more valuable proposition - will be interesting to hear news on that in due course. Sale or JV guesses anyone?

Thanks, good interview with none of the usual glaring inaccuracies. "Looking at Scotgold, he says: “We don’t just benefit our shareholders – at the end of the day you’ve got to benefit all your stakeholders or you’re not going to continue to operate.”" Errr, we wouldn't mind benefiting *a bit*...

Thanks jupiternmars. So: March and April: planning permitting and bureaucracy, initial non-mine infrastructure work eg road improvement, moving on finance discussions with interested parties from the hypothetical to the actual. May: completion of permitting (hopefully) 12 months construction phase - from May? Assuming with cash in hand we can start underground development when permitting completed? Mixture of debt, equity and vendor finance all on the table. New news (to me anyway): looking to raise �10m of new funds to cover remaining c.�5m of Cononish development, plus further Grampian project exploration and overheads. Let's hope we see project finance announced promptly at conclusion of permitting. Interest from c.50 organisations in the jewellery trade for Scottish Gold. >30% premium paid to date. 75% of Au to be sold as concentrate, 25% as Scottish Gold to the jewellers so 3,000oz per year initially into the jewellery market.

Hi BlakeneyP, I remember Richard Gray saying that the capital markets had grown sceptical as 'it's a story that's been around for a long time'. That's going to stay true of the stock market too until we get some (positive) announcements on finance. As you and I well know we've been here before with a freshly minted planning decision, and much good it did us. But *very* different circumstances now and this long grind to get permission for the revised production plan has been all about bringing project finance for Cononish within reach. I am now very confident that it will happen, it's just a question of how it's structured. Once that it is place the market will recover some interest and confidence in the project/company and we should see a fairer reflection in the SP, but true value only on commencing production.

You're probably right Wassatt, but yes for those of us over 6 years into this odyssey, daily sp movements aren't the point, it's about the Great Leap Forward. It is nice to see *some* movement northwards though, however modest!

Thought we had a new Eastern European offshoot for a minute!

35.5p values Scotgold's entire non-cash assets at around £8m (£10m mc, £3m cash at bank, £1m loan from the chairman. There's £200m of gold resource at Cononish, which is open at depth, and the Cononish project alone has a NPV of £43m. That's before you ascribe any value to the other Scottish licences, or the French and Portuguese projects. So even if you take a gloomy view of future Cononish-related dilution (which I don't) 35.5p with planning permission looks like an opportunity to me! Any newbies, please DYOR, I'm pretty sure you'll like what you find.