Member Info for Goldbug99

The reason for getting other people to want to sell is so that you can buy (cheaply!).

The reason for pumping up the stock is because you want to sell and get the best price.

Counter-intuitive I know.

The reasons for offering constructive criticism is in the hope that management listens, or that shareholders do, and force managenent to make better decisions.

Reading Charles' rather balanced appraisal (apart from the 1Moz "estimated" resource faux pas)

"My general perspective is that Conroy would prefer to just build a small plant and get mining. But Demir wants to explore all licence areas... a three way deal with a major"

Three way can be 50:49:1

I couldn't agree more. Demir wants to bleed Conroy dry of project equity by overspending, and letting time take it's toll (Conroy passing and the kids wanting to cash out?) and package the whole shebang up for a major, something Conroy was never able to achieve.

Canny Turks!

Well they must be doing something right, as they are still here. That said, it seems the Conroy family members have paid themselves more as directors since listing in 2000 than the current market cap. of the company (£6¼M).

Sub-1 metre intersections at ⅓-½ a gram? FFS!

"the longest continuous gold intersection in the British Isles" is pretty meaningless without spatial context. You can drill a 2m wide lode zone down-dip and get a 100m intersection. Peer companies generally provide maps, sections and technical reports etc. on their websites. Not CGNR it appears.

@Banzai "Not sure Demir would be in it if it was a lifestyle company"

Demir couldn't care less about CGNR or its shareholders. I'm sure they would be very happy for CGNR to go into administration so they can pick up their other 75% cheap. The PLC is just an albatross around their neck, and the more badly run it is, the better for them!

Fair enough, but there are plenty of pot3ntual scenarios and details left unanswered, and this seems to be as good as we are getting on detail.

If they had just done €4.5 worth of drilling and a resource upgrade I would rest easier.

https://www.conroygoldandnaturalresources.com/sites/default/files/Final%20Results%20for%20the%20year%20to%2031%20May%202021.pdf

Fairview, my point is that Demir have gotten to 25% by doing far less than expected, and in all likelihood, spending half of what they should have (unless drilling costs 2x more in Ireland than Canada).

Why? I imagine so that they "have" to spend more in the future when CGNR has to participate or dilute. It's the oldest JV trick in the book to get control. Of course we will never know the true terms and fine print of the JV because they were never released. If this was an IPO/Merger/Takeover (which it should be, seeing as CGNR ultimately loses control) even on AIM there would have to have been a broker-sponsored public admission document laying out all the facts and circumstances of both parties.

If you think a mom&pop outfit have the upper hand versus a Turkish Fortune500 conglomerate with an army of lawyers, accountants and execs. (a much touted fact) then think again.

I can only imagine that Demir is doing a lot of back-charging to get their equity on the cheap. They are already paying Conroy staff, which should really be a head office G&A cost. Under those circumstances, I cannot imagine they are not also loading a lot of their own G&A costs onto the JV too. It's the only explanation for the relatively small amount of work done for €4M (by industry standards).

Whilst covering CGNR costs is great for the balance sheet, it is detrimental to progress and asset development .

If Demir are also loading on their costs for "consultancy", travel, supervision, office services etc. it's bad for CGNR shareholders. It's Demir money flowing back to Demir, not into the ground, and it's buying them their stake at a discount!

£4M, in the real world, would pay for 20,000m of drilling and assay, which in turn should lead to around 1Moz of additional resource.

Hi Fairview, because a slow startup to a project absolutely kills the discounted cash flow and rate of return. You need the best profitability early on when capital burden is highest. Economics cares little for the revenue you are generating 5-10 years down the line. It's what happens in the first 2-3 years that counts.

In the same way the 30+ years it has taken Conroy to get to this point is a catastrophe for the original investors.

The same applies to exploration and development btw. Demirs' investments now works out VERY expensive if it takes them 10+ years to develop to a cash positive project.

Actually I hadn't noticed that Fairview, but I fail to see the relevance. In an open pit you need to start at the top, so need the better grades early on to positively impact life-of-mine cashflow. Also many gold deposits have a gossan, an enriched upper zone, obviously not in this case though.

Underwhelming? We've gone from 40.5m at 1.2g in March to 41.5m at 0.5g in November. Wow!

Apparently County Monaghan, the location of Clontibret, is famous for mushroom farming. They are kept in the dark and fed on horse $h!t too!

@Carbert

So the board is lining it's own pockets at shareholder expense? Great, and perfectly legal I'm sure!

"Letting the share price rise now, if we have found something wouldn't be in the financial interests of the Board"

@Swanny27

Swanny, "you only need the share price to rise"... because as a director of a public company, you are under a fiduciary obligation to make your shareholders richer, not poorer!

Catbert, if this were TSE instead of AIM then 43-101 would legally oblige him to publish ALL the data you just listed. It's an obligation to shareholders.

Yep, this 8Moz (in some interviews up to 20Moz) "potential" seems to be simply a case of "if we find X in one spot, we will find 20 times X in 20 spots". Try that in Canada or Australia and the regulators will have you.

There is no substitute for actually doing the work in generating resources, which I thought was the purpose of the JV. Sadly, after two years, we seem still stuck with the 0.5M oz of the previous two decades. No doubt Demir are calling the shots on strategy, progress and newsflow. Now they even seem to be employing the staff who sign off on RNS'!

It's their money, and they are subject to zero oversight and have zero duty to shareholders as a private company. CGNR are just along for the ride at this point.

Be nice if they lived up to their name and actually roasted Conroy for once.

How many metres drilled, how many ounces added, time-line to development?

But it is "paid for" financial journalism, so I guess not!

Exactly Fairview!

Any chance of a comprehensive drilling update now we're nearly two years into the JV, or, heavens forbid, an updated resource statement, before the SP drops back to single digits?