Great summary from Steve on advfn19 Nov 2019 19:52
Altyn Summary.
Altyn is a gold and silver miner located in eastern Kazakhstan. It has 2 license areas adjacent to each other - Sekisovskoye (Seki) and Teren-Sai. Seki has been historically mined via an open pit with an operating mill at Seki of approx 100,000 oz pa gold capacity. All mining now is from underground. Teren-Sai is under explored but capable of supplementing feed to the Seki mill both from surface and underground mining if development is undertaken.
Share price: 0.55 - 0.65p. LSE Main Market.
No of shares in issue: 2.567 billion
Mkt Cap: £15.4 million
African Resources 70% (Assaubayev family - incl Chairman, CEO, Director)
Awaiting news as follows:
Q3 production
Q3 cash generation
How the $17 million loan has been/is being deployed
FY19 production forecast
2020 production forecast
etc
8th October 2019. Competent Person's Report (CPR) Results - Sekisovskoye. JORC
Reserves, Proved + Probable: 3.8 million oz @ 3.6 g/t.
Resources: 6.68 million oz @ 3.0+ g/t.
NPV: $415.4 million using a 2019 gold price of US$1,321/oz
"The report on the Sekisovskoye deposit updates and confirms the world class resources of Altyn."
15th October 2019. CPR Results - Teren-Sai (Area #2). JORC
Reserves, Proved + Probable: 1.45 million oz @ 2.7 g/t.
Resources: 1.48 million oz @ 2.9 g/t.
NPV (Mineral Asset Valuation): $104.2 million using a 2019 gold price of US$1,321/oz
Teren-Sai. Original company estimates for gold deposits in this license area were approx 9 million oz, presumably based on the historic drilling data. "We intend to continue the exploration of the project, by analysing the 15 remaining targets of this significant project."
Total resources: 8.16 million oz gold at approx 3 gm/t plus silver.
Total potential resources: 6.68 + 9 = approx 15 million oz
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H1/19 production: 5,561 oz
H1/19 revenue: $7.2 million
Following the delivery of the new equipment as noted in the RNS of July 2019 production has increased achieving 29,000t in July 2019.
Extrapolating this for the rest of H2/19 we have 174,000t for H2.
2019 grade forecast: 2.41 g/t (grade in H1: 2.06 g/t)
Mill recovery: 83%+
Av sales price of gold: $1500 oz
Silver credit: ignore
H2/19 gold production: 174,000 x 2.41 x 83% = 348,052 gm/31.1 gm to troy oz = 11,191 oz
H2/19 revenue: 11,191 oz x $1500 = $16.8 million
With the September 2019 announcement of an approved Bank loan of $17 million to be spent, in part, on further new equipment to raise production, we should expect production to do a lot better than that. In particular, monthly production should be increasing towards 66,000 tpm target run rate and grade could be somewhat higher.
Target production: 800,000 t/yr = 66,000 tpm
This would be more than double the rate achieved in July.
How quickly can output be ramped up in H2 and FY2020?
If an 800k t/yr run rate can be achieved by early next year, we have:
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