RE: What's up?16 Feb 2023 13:58
Mr Wasarunner,
What I was referring to was that for the risk (amount of money invested v potential of reward) can be reduced.
Just to let you know CMCL and GRL have similarities:
Both into gold, both operate in Africa (CMCL mainly Zimbabwe) , both are operators with planned production and both have good future prospects (developing shortly additional assets they have acquired).
The issue for me - back in April 2021 - GRL planned prod 50koz, CMCL planned 60-70koz, GRL MCAP = about $50m, CMCL MCAP about $120m - so MCAP were aligned based on planned production (CMCL little higher as already history of producing).
In late 2021 SP was 14p (MCAP approx $70m) and planned production dropped to 25koz!!
Quarterly production reports from CMCL indicted planned production on schedule, from GRL they never really gave any confidence and the more reports came in the news never improved.
Reading back through RNSs , CMCL had a history of achieving the planned production - therefore the risk in this investment was less.
At 10p last year it was overpriced for the risk (in April 2022 it was 14p and even in November 2022 it was 8p). Now GRL has dropped to 3p - it now becomes very interesting.
Anyone looking at investing back then and reviewed both companies - would probably opt for the one that achieved its targets.
The main thing GRL need to do - provide production progress figures showing GRL can be self sufficient (if cannot yet - then at least give a plan to when self sufficient) - these gold loans and others are not pleasant on the eye.
One point GRL have over CMCL and others (if they finally can get their act together) is the forecast AISC is in the order of $600-700 which I would consider very pleasing on the eye.
Overall - the drop in share price from last year was not unexpected as it is written in the RNSs- and now I would consider is a good buying opportunity.
Just look at the difference between buying today and last year !!
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