Member Info for Eck71

Let's hope so Bellers, let's hope so. It really is time for some hard data. Here is the sum total of hard data (as opposed to qualitative statements) from the last three months:

In May: 25 tonnes of concentrate at an average of 182.4 grams per tonne of gold, exceeding the target of 150 grams per tonne achieving maximum price within the agreed terms within the offtake agreement.

In June: Mining in the latter part of June was accessing ore which peaked at 40 grammes per tonne. Mining in this general zone will continue for 2 months and expected to achieve a blended grade average above 10 grammes per tonne.

In July: Another 25t of concentrate shipment out of the door. Processing at 90% of design throughput for the last 10 days of July.

We've had three RNSs now which have stabilised the SP and introduced some sense that the new CEO is putting the house in order, but I fear the market will not respond well to a fourth that is light on data. Conversely, a decent sprinkling of encouraging numbers should have a very positive effect. Not long now...

Back over £1,300/oz again today. Following a year of drift after last summer's high, it feels like a decisive move in one direction or another is overdue. Question is, is this an April 2009 moment or an April 2013 moment? I've absolutely no idea.

Still here, just a bit busy/holidaying etc. Hope it’s third time lucky with the eye RH.

Yes modest signs of life for the SGZ sp, despite a lack of hard data and the gold price getting a whacking again.

Is there a bustle in our hedgerow…?

Thanks for that BP. Good to get a mention - 'I think the success of the company depends on the Cononish gold mine in Scotland'. You don't say!

Yes, for those of us who've been around for a decade or more, the idea that anyone taking a position now is an early investor is a good laugh. But as I said in a comment a few weeks back, Scotgold is now producing gold and generating revenue, and that makes it an investment not a punt.

How much revenue? What are realistic revenue forecasts for next 12-18 months? How is the H1 2021 revenue gap being bridged? How is the new mine plan coming along? Have the encouraging indications re grade from the last RNS been borne out in production over recent weeks? Is there any dore for Scottish Gold yet?

Answers to a few of those questions would be welcome in the next update, which we'll hopefully get by the end of this week.

Keep your eyes on the ‘live RNS’ section of this website and you might find the occasional thing to interest you. You can even look back at past updates.

1) Gold Town doc, probably.
2) not sure 13 July is a month beyond 2 July, date of last RNS
3) bearing expected to be fixed ‘in the coming days’ on 2 July, so probably but we don’t know for certain.

RH, hope all goes well and you aren’t out of action for too long.

Perhaps by the next time you are on here we will have had encouraging news about grades, processing, Scottish Gold deliveries, revised mine plans and cashflow projections. Not too much to ask for, surely!

ATB
Eck

Say what you like about Cononish primary, you get a fantastic grounding in frustration and disappointment. Stands you in good stead for Big School.

Just us in the remedial class now, being kept back a year. The clever kids have gone off to the new academy on Loch Tay.

A quick Twitter search for Scotgold brings up more positive commentary than in recent months, along with news that Gold Town is getting repeated on BBC2, which may pique a bit of retail investor interest especially at these (potentially) bargain basement prices.

https://twitter.com/search?q=scotgold&src=recent_search_click&f=live

Well, that 'one pound party' that a certain prominent investor was so disdainful of last year turned out not to be such a terrible party after all. You could hope for that again, as can we all! IMO the market is pricing in bad news on additional financing (and probably low production expectations too). Any surprise to the upside should see the SP respond accordingly.

gg, as it happens I think Linview's finger in the air of 70s to 90s is a reasonable short term target. But some certainty is required with regard to robust cashflow projections based on sustained output, which will in turn establish what if any additional financing is required to backfill the income gap that opened up in the first half of 2021.

With those two pieces of the jigsaw in place SGZ will finally move from being a punt to being an investment.

Thanks for that Morar. An interesting and as far as I can tell accurate piece with a few bits of detail that were new to me. Bless Shylock, it's a bizarre pathology that compels him to seek out the comments section of Construction Manager magazine. Sadly though he's correct that there's a certain amount of re-writing history going on.

If the gold drip *had* been presented at the time as largely symbolic with expectations managed regarding ramp-up and full production, the SP wouldn't be at 56p now. Terrible communications, incentivised by the bonus structure which kicked in 'at production', allowed what has been a bumpy ramp-up (and don't forget Covid hasn't exactly helped) to be framed as a disaster. Which it hasn't been, but as the market was allowed to believe full ramp-up was due in the first month or so of 2021, it has felt like it.

Anyway, onwards. I like the way the operational leadership of PD and JS are going about their business. Now we are into the high grade ore a nice 'first delivery of Scottish gold to jewellers' media story must surely be imminent?

Modest signs of life in the market this morning. Baby steps...

Samson, you’re not ‘overly excited’ by 10g/t but I’m extremely reassured. It’s always been my view that given how much drilling was done 2010-13 (and before) that we could have a high degree of confidence in the grades.

But given the farrago of Nov-April the market could be forgiven for losing faith in the fundamentals. That the mine is already producing at virtually resource estimate already is deeply encouraging, especially given we had to swallow an RNS only 2 months ago that effectively said ‘the existing plan for getting to the high grade ore is garbage’.

The big missing piece for the market is the cash position and robust cashflow projections. Ore coming out at 10g/t average now is encouraging for the latter.

‘We are now mining high grade ore’. That is what I wanted to hear. The mill bearing is annoying but the comments about risk analysis and mitigation welcome. A second SGZ RNS in a row that doesn’t make me want to throw up. Progress.

11.8 g/tonne au equivalent verage

£461/oz

Thanks RH, as ever your technical understanding is considerably more detailed than mine. If they can get into 10-20g/t briskly, that would be very good news. I may even start to look forward to the next update...

Signs of life RH! I like the cut of PD's jib and he looks like the kind of guy who will lead from the front and by example. The two key questions now are: 1) how much cash is he going to have to burn through before the good stuff starts coming out of the mine 2) how is recruitment going. The recruitment extension period worries me and, as with others on here, the basic salary for underground miners looks low - though it should be said there is shift allowance, overtime and short/medium term accommodation support on top of that. Local accommodation will continue to be a challenge as the workforce (hopefully) grows.

Still, I feel happier than I did a month ago.