Member Info for Happytom

So what's your finger in the air valuation then? My gut tells me that this is massively undervalued, but I've only been in for six months or so and wasn't watching it that closely prior to the placing. Seems that there must be an underlying reason why the share price doesn't reflect the assumed asset value?

Stuart. Take a look back at the Tri-K reserve estimates and plans. My guess is that the management are kind of running around like headless chickens trying to get enough cash to stop this from folding entirely, so are not really focused on explaining tech documents to us. They're worth reading, the 1MOz reserve estimate doesn't appear unrealistic based on samples so far taken. The costs are, so far as I can tell, not yet known - there have been various options put forward varying from building new onsite processing through to increasing truck inventory and processing alongside the new Souma pile. Given that M now have 70%, they will be very much in the driving seat, so keep an eye on what they are saying in their own news flows.

Thanks - I'll have a word with them - it was the 1p / 5p thing that bothered me, the value of the two together is broadly correct, but some are still priced at around 7p and the others at 80p (or thereabouts). Maybe on their books they are performing the consolidation in stages rather than a one-off, which just seems odd!

Just looking at my shareholding post consolidation. I now have two classes of shares, 1p and 5p, neither of which individually matches a tenth of my pre-consolidation holding (and it's not a rounding error of less than ten shares). Does anyone else have this, or is able to explain it? Thanks

Good question - we picked up a lot of debt, mainly used to pay off a bad hedge that the previous owners had taken on before gold became a useful commodity again. TCOP is now around $925 / oz, but with gold now hitting $1300 again, revenues should be a lot stronger than last year. You takes your chances on this one, but I'm broadly positive (some would probably say waaayyyy to optimistic!)

Maybe not all is lost then - buy GEMD! I have a rather larger interest in GEMD than PRG, and have long held the belief that they are under valued, if they add another potential 1m carats to the portfolio for the same sort of price as PRG were trying to raise (an amount that they could pull out of their current account by the way), then they will keep on moving up. I wish no ill on PM, but it seems to me that for the price, if the reserves are anything like accurate, then he should not have struggled to raise the couple of million that he was after - I'm very surprised that he didn't come back to the existing shareholders, even to the point of being suspicious as to why he would not?

I've been in for a looking time, sold some when it peaked, but bought back month on month pretty well since. We had a major rerate inbetween dropping Oz and bringing Africa into full production, but now have more cash in the bank and better production costs. One day the rest of the world will wake up to us, but for me in the meantime, buy up to £2.20

Just spoke to Loki, he's trying hard for us!

Well, mining update is a lot better than I expected. Margins still very low, but hopefully they will improve with the next batch of higher grade ore, and if fuel costs can be reduced this would make a further improvement. No news about Tri-K again, would be nice to know the plans for that, but I guess the BoD are swamped trying to keep the company alive at the moment (or out celebrating the latest support from Elliot). Healthier than we looked three months ago (or at least slightly further from the precipice)

Similar situation (not HSBC). My broker will let me swap them out for some other shares which I hold outside the ISA - basically an internal trade (I have a non-isa account with them too). So in effect, I am selling them from my ISA to myself for the last advertised price, then sale money is left in the ISA and can be used to trade as normal. The HMRC ruling is that the ISA is not related to the shares, it is the input money that counts to your allowance.

No need to apologise for being negative, we are where we are. Fingers crossed for a global financial crisis to put gold back up to $2k!

I may be wrong, and won't be offended if you tell me so, but there was an RNS last year that stated that the quoted TCC includes all existing financing costs (that was after we took on the $80m or whatever it was to buy out the hedge), so at todays prices we still make a small profit. As you say though, the economics are not good - 60-65k ounces per year clearing $40 is not going to go very far towards paying off the new $8.2m, maybe the BoD's thoughts are that we will use the revenue to cover the interest, and just use the capital injection as a short-term float so that they can concentrate on operations and raising proper long-term finance without having to be completely focused on the day-to-day cashflow?

..never cease! If the loan is only at 10% annual, then they've pulled something off here - very short term, but may get us over the hump! At the very least it drags us along with no resolution for another six months!

I've been here for a long time, trading range is about 90p to 240p, so well worth a top-up here, should rise nicely to end of Jan, maybe beyond if divi holds up, wouldn't be selling as low as 130p personally.

Even I can't be positive now - £8m market cap against £80m debt, maybe I'll put a cheeky offer in to the various creditors! Not looking very good at all :(

In the scheme of things, does a not very costly delay actually matter? You take your own opinion as to whether PM et al are lying, or whether we are almost sitting pretty. For me, its the beginning of the month, just got paid and the Surface Book and Lumia 950 aren't available until next mont, so PRG looks like a very good home for some more pennies at this nice discount price! Looking long term, if this drops another penny, then its a short term Dow on the wah to two re-rates, so happy to pile in now.

Careful holding for ten years, LoM is only eight at last count (unless I'm confused) and there's not a great amount of Kimberlite going free to allow future expansion!

I have to agree with CL. At the moment, Mothae is just a risk - if we don't get funding on time, then we face a (relatively small) penalty. If we get the two-piece funding, then will own additional asset and have enough to go into production with the increased asset. Some investors will have priced in the increase, but most will not until it is signed and sealed - not wanting to be patronising, but that's why the return is potentially higher for those entering now, rather than once it is de-risked. For the record, I've been here a while, I'm disappointed that we are now only slightly higher than when I first bought in, as I was anticipating getting into early stage mining January, but I understand the benefit of Mothae and it has my backing for the longer term increase.

You've lost nothing yet - you still own the shares that you bought, but will find it harder to trade them until (for example) it is relisted on isdx. Arguably a stronger company now - there are no AIM fees leeching away at the reserves, and as per their statement, additional investment has been committed in order to pursue the stated business goals. It I still a UK listed company, and no board members have left, so governnce should be adhered to - they'll update you as soon as they know more I am sure.

OK, so we're a bit on the low side at the moment, and dropping like a stone. Hopefully the EGM will come with a positive result and we can carry on trading, and when we do, things are looking pretty good - assume that that Greece crisis has one of two endings - either it defaults, maybe drops out of the Euro, or it doesn't default (not sure how that can happen now) and borrows more, pushing the default back to end of July instead (by my reckoning, the amount that it will get advanced from the IMF / ECB is enough to cover a little over one month of debt repayments, so I don't see why they'd bother!). Either way, markets will 'correct' themselves, so the shiny stuff becomes a safe haven again (only so many dodgy bonds that you can buy after all). Add to this today's news that China is in the fix for gold, and we may see some rather swift movements. GLA Happy