Member Info for Greg25

Going by the latest presentation, next week should also see Pad 3 Heap Leach commissioned and fully operational.

The good news will keep coming!

Unique opportunity to buy into a producing gold mine and exploration company with tremendous growth potential in friendly East Africa

The Company has virtually zero debt and I'm expecting them to tap into it for Capital Expenditure. They're forecast to make around $13m profit next year and they'll be no more dilution for 2022.

So they'll be looking to load up their bank account with cash to finish the expansion in order to guarantee they'll be extracting more Gold ounces. It makes perfect business sense to do this bringing added value to shareholders by non-dilutive means.

Multi-Million-Dollar non-dilutive Capital Investment coming here. It will guarantee the fully operational processing plant by the end of the year as well as the exploration side adding loads of ounces

Looks like Batch 3 results wasn't put into the updated MRE. There's enough good increase within this one to push on with the finance for funding the expansion programs. The next MRE will push the ounces considerably higher.

All looking good for the future

Looks like they are doing things properly and building up the resource in a comprehensive manner.

Full marks for increasing/ guaranteeing the the mines life expectancy!

Fundamentals are going to be too strong to keep the SP this low.
By the end of the year they'll have 2M+ oz combined resources , a fully operational processing plant with the ability to viably extract gold from very low grades. They'll also have a few $M in the bank to cover the CAPEX going into next year.

We can all argue about the future SP but it's not going to be lower 100%

Mickey 5p by the end of the year is still on the cards :)

The whole gold mining market is down at the moment but should recover by the end of the year IMO

The updated MRE will be between 300Koz - 600Koz more gold and they'll get the expansion work done. The CAPEX to FCF ratio is the key going forward as next year it could be as high as $20m

Legalwolf - it was a good spot and one for commenting on for sure!
It's 50m shares and the company would know and be ready for this to happen. This month or next month they'll be an update on it.

There's more dilution, the warrants are 300m shares raising £7.5m at 2.5p. They have an expiry date of the end of the year, which makes me think that the company would have wanted them to have exercised in early H2.

2.5p seems a long way off at the moment and the company will be needing them funds, so they must also be making alternative plans.
From the interim results;
An operating loss is expected in the 12 months subsequent to the date of these financial statements. As a result the Group will need to raise funding to provide additional working capital within the next 12 months. The ability of the Group to meet its projected expenditure is dependent on these further equity injections and / or the raising of cash through bank loans or other debt instruments.

Legalwolf - it's also worth pointing out that these 50m deferred consideration shares payable on the sale of 5,000 oz are to be released as and when. Currently the £500k worth of 1p shares is worth £325k

It will happen and we will get RNS but today is 9th July probably towards end of month before RNS or buried in Q2 results

Legalwolf - I see where you're going but there's absolutely nothing to suggest they have stockpiled anything. The missing sales are just for Q2 2022 it's 1,211 oz or above to hit the 5000 oz threshold.
a) they may not have hit the threshold
b) they may not have received the funds from the sales at this point.

Three things to remember,
1) the issue of these defered consideration shares is as and when required
2) the issue price of the defered consideration shares is 1p per share.
3) They need the money from the sales for capital expenditure.

So it looks likely they have sold 5,000 oz by end of Q2 and if we say $500 per oz is profits that's $2.5m earned so far , using the latest presentation figures as sales, showing an average of 533 oz per month production for the rest of 2022 it would add $1.6m making $4.1m profits from listing.

2023 using the same profits margin of $500 per oz for 24Koz it would return a profit of $12m.

So there's plenty of future equity for the company to tap into in order to advance expansion through capital expenditure.

Legalwolf - from RNS data they had sold 2,563 oz from July to December 2021
Q1 2022 - Gold Sales were 1,226 Oz

2,563 + 1,226 = 3,789 oz total sold by end of Q1

5,000 - 3,789 = 1,211 oz left to be sold in Q2 to meet quota

Legal wolf -5,000 oz is only 416 oz per month which they must have reached by Jul 2022. Hopefully it's already priced in.

Legalwolf- there's absolutely no problem with there being a delay releasing the MRE, the problem is with the shareholder communication. RM has given countless interviews stating these deadlines and not delivering on them after radio silence. It's a problem of his own making. It literally would take 5 minutes to update a delay to the market. He needs to sort this out otherwise future deadlines will just become meaningless.

RPdard - yes my mistake as I read 4year facility with Singida first gold pour in Q1 2023.

BTW we're main market so there's no NOMAD.

It's pretty much a given with the previous RNS releases saying continuation of high-grade mineralisation that there's going to be a significant upscale in the MRE. The original based upon 1.2km and the latest virtually 2.6km gold strikes.

There's capital investment coming , there's listing on NSE coming and there's the updated MRE coming. All very near term IMO

Nyakafuru acquisition was also changed to a clean buy which will be wrapped up by the of of this month.

It's all happening here IMO

Is Shanta Gold going to come on board or someone else eyeing us up for a joint venture / takeover?

Shanta have recently set up a $20m acquisition facility with their operations in the same pond as ours , we must be on their radar.

I think the delay is for something big otherwise they could have went with batch 2 results and update MRE later in the year as already planned.

Shareholders are an understanding appreciative bunch and it doesn't take longer than 5 minutes for a Company to release an update saying there's a delay in the results within the timeframe the Company set for themselves.

As I said earlier the coms from the company at times are P/Poor