Member Info for Happytom

Noooooooooooo - all those lovely gains suffering from drop in gold price. Why, when it goes up by $15 in a few minutes do we not see a corresponding rise, only when it drops :( All will recover, share dilution is now official, so that must be Elliot off our back for a while. Roll on the CIL!

you should look at more recent RNS's then. Trucks were offline but are now running again. We need to replace them, but they have been repaired for now. Gold grade is fine, we're stockpiling for more efficient extraction with the carbon circuit next month. As for BoD living the high life, half of them are spending more time with their families with no salary, and the rest have taken a major pay cut. They're not exactly on their uppers I'm sure, but have done the necessary given the finances.

Ha ha, the multi million dollar question. With a fair wind, we will need neither - if we can get costs down at Inata / Souma main to below 1000, then we'll be looking at clearing 4.5M USD / month, which sees us good again - pay off remaining Elliot loan by end of Q1, then use the ongoing to develop Tri-K. Looks like gold is creeping up to the top of the current range, which will do us no harm at all.

I may be wrong, but I doubt that. The money is for corporate, which means essentially staff and directors get paid and the London office is secure, but more importantly it means that we have some liquid capital for four months, during which time the carbon binding circuit will be online and we will be processing and selling more gold. Half the investment is also from the defaulted loan holder, so that tells me that they are not about to foreclose and we'll soon see an announcement either of a new funding package, or of the sale of a significant asset. This is good.

That provides a lot of confidence to me. Elliot have subscribed for more, despite loan finance issues, and as they are on the ground, that tells me that they are not worried about the current situation, so neither should we be.

Sorry if I've picked you up wrong and sound patronising, its not intended...The cash cost is affected by the grade of ore as for the low grade ore you have to mine and process a lot more to get the same amount of gold. Its compounded at this time because we are stockpiling ore that is suitable for CIL processing, so actually only processing a very small amount of what is mined, thus the gold production is exceptionally low as a ratio of the mined ore. The cash cost will reduce when CIL comes online as we can process lower grade ore more cost effectively, and we can process the stockpile of already mined ore.

On the plus side, when we hit that low, we bounced straight back to 28p, could happen again!

yep $130M USD in 2011 if I remember rightly, and that was excluding the disposal of the SE Asian operations. We'll get back there one day, but it won't be for a few quarters yet!

The way things are going, they could dole out a 100 carat diamond to each shareholder as an initial divi :)

A lot of positives in there, lets hope the BoD still have the trust of ecobank and can leverage that to fund the rest of the year. Reading between the lines, we're disposing of Tri-K, with some of the proceeds from that paying off the remaining Elliot loan. Renewed focus on Inata / Souma will extend the LoM there, and we've a lot of unprocessed ore that can be stripped once CIL is online in September, so cash costs will be dramatically reduced in Q4. Well done David et al, but we're not quite out of the woods yet.

correct. But not for two years - missed targets by a very long way last year, and projections for this year are low. Should be back up to speed when the carbon binding circuit comes on line and we can start processing the richer Souma ore as well. I expect to see a pick up going into Q4 this year, not before.

New LoM, starting at 135K per year (historic level), ramping up, but I suspect that there has not yet been any ramp-up, and we're dragged back on the half by early issues.

obviously, I meant for the half, not the quarter. Although upping to 60K per quarter would be excellent new indeed!

More likely 60K ounces in the quarter at $70 / ounce I think.

you had a heads up, or just speculating? Without further info, I'm includined to think that we will essentially get no news tomorrow, other than that we are progressing as expected towards improvement for 2015. CIL / Binding Circuit may have an online date, which would be positive, and there may be some hint as to how we will interact with Elliot, which would again be positive in terms of removing uncertainty. As far as dropping like a stone, only if we are actually insolvent, otherwise there isn't far to fall as we are already at a value below that of easily realisable reserves, so I'd hope not?

There is a slight proviso there - the BoD may find a buyer for Tri-K before year end, which will increase sp in short term but reduce the long term valuation.

I doubt that we'll see 20p this year, whatever the gold price. The BoD have clearly outlined the issues and a strategy to build profit after the end of the year, and there is no reason for me to think that they will turn it around quicker. For me, proper valuation is back in the £1.50 - £1.70 range, probably late 2016 when gold will be 1500-1700.

Market confidence is generally high, few jitters over sanctions and the recent false chase up to record highs for dj are seeing a small correction. Not enough uncertainty for gold to be a major safe refuge just yet, so its just bobbing around in a fairly wide trading range to allow some profits to be made. News, and preferably good, is what is needed here, then we'll start a long slow recovery to proper valuation.

You basing that 1% on 69M? You may need to declare it formally? Good luck, should do well.

no talk of anything, good or bad. I suspect that if it was bad, then it would be hard to keep that out of the rumour mill given the state of finances, so probably just mining and processing as usual whilst the BoD try to find an agreement about short to mid term funding. The gradual movement of gold towards the higher end of the trading range is definitely good for us though.