Member Info for HarChris

The share price is massively discounted already as it is due to the overhang caused by the issuing of shares to Heights every quarter. A 'premium' at 40p could well be seen by an insti taking a big chunk as a fair price to come in at, if the placing route is the one chosen by Avacta next.

More likely a deal with a third party warhead first though that ticks the validation box and frees up the share price to motor before placing at a later date.

Certainly an interesting few weeks and months ahead.

It's still finely poised, that's why. This update alongside AIMSL adding steadied the ship after a massive sell off. It shows GRL have kept their heads above water with a drastically improved financial performance in 2025 however that's largely due to the sky high gold price. The next two to three months are still make or break, they absolutely have to see the incremental production increases promised if they are going to fully recover from here. And if production drops off at all they are in deep doo doo.

I'm honest about that and it's a risk that I still think is favourable at such a rocket bottom valuation.

Even before H2 improvement the interims in a few months time will show a radical difference to H1 2024.

So the debt from the gold loan stands at 1871 ounces + 395 ounces in interest.

At $3400/oz break even will be about 300 troy ounces. Anything gold produced beyond that going forward will be reserved for potential payment to AIMSL, so obviously if target is achieved (~810 Troy ounces) the loan could be fully paid off in just 4 months but even a very modest increase in production to 500 troy ounces would, at this gold price, allow for around 10% of the loan to be paid off per month.

Clearly shows that whilst the debt remains the biggest risk a mere modest improvement in production would see it swiftly brought under control.

We were led to believe it was due to extensive planning and preparation work, mapping etc - things that wouldn’t require so many months this time around.

Still, if they start drilling soon there’s still a near six months til the land becomes too wet again.

The gold loan is the main risk here but it’s always been the case and nothing new after today’s update. As I said earlier I can’t see GRL making full payment by the current deadline of Dec 31st, but it’s been extended four or five times already and AIMSL are the biggest shareholder by a country mile and consistently supportive throughout.

My hope is that profitability in h2 allows for half of the loan to be paid down with renegotiation on the rest of it. That will mean GRL go into 2026 as a highly profitable producer with very minimal debt.

I will dispute it Kenny and I really hope you engage.

Current liabilities ‘swamp’ current assets AS OF Dec 31st. After that period the large CLN was converted into equity at 3.25p a share, that makes up over 50% of the net liabilities so they are half as big as you believe they are. They have also since converted some of the interest owed to AIMSL.

Will there be a net current liability as of today? Yes, but a much more modest amount and decreasing with every extra ounce they are able to produce and pay down gold loan with.

What this RNS shows us is that GRL were in an awful state as of Dec 31st but this bull run has saved them. They now need to see just a modest increase in production to be highly profitable and see a major turnaround.

I see great risk/reward from here so I will probably add even further and let the next three months play out.

I work in finance, self employed though so can take an interest in a major update like this on a day like today. Hope you're well mate!

Latest error, conflating troy ounces with dore ounces.

In this update they have used troy with an average of 370 ounces. That's about 470 dore ounces.

Likely group break even is about $1m per month currently. First five months saw 370 x $3050/oz hence moderately profitable but will still be tight on cash. For every 100 troy ounces they can increase production cash generation now increases by $330k per month, ie if they get close to target will be $1m cash generation per month and bang on target more like $1.35m cash per month.

No, they don't pour on the first of the month, it doesn't work like that. Would expect a gold pour rns, (hopefully) showing improved production, within a couple of weeks. Impossible to know exactly when though.

They've been mining the last of the low grade ore from pit 2. They have now transitioned to a new pit where we await the higher grades and hence higher production flowing through.

Seriously, you appear on here with no knowledge after scanning a backwards looking full year results update and spam the board with your ignorance.

The funding is already fully in place for this initial rise to 1000 ounces, the stacked and agglomerated ore has increased and they've completed the expansions elsewhere. Further funding needed to build a second dry plant and go beyond that level but not for this short term uplift in production.

And then funding will be needed to really step it up in terms of reaching the higher grade ore, yes. That comes further down the road, hopefully in 2026 but maybe even later than that.

Every set of accounts where the company is only just keeping their head above water has to include all that sort of qualifying language. So far in 2025 they started with $96k and have continued ramping up operations without any form of financing ie they have evidently been cash positive. Can they guarantee, 100%, that it continues and/or the gold price remains so high? Of course not, so a raise is always possible if things go wrong but so far all is much rosier.

Is there a risk when it comes to meeting the gold loan obligation as of Dec 31st? Yes, but AIMSL has been a very supportive partner for many years now and have a lot to lose as the biggest shareholder so a turnaround like this should see them continue to be supportive. Could GRL issue some shares to pay AIMSL gold loan down later in 2025? Again, possible, we just don't know but equally we are a good gold pour away from seeing GRL a highly, highly profitable company - if they hit that long awaited target we are looking at something like $1.25m profit before tax PER MONTH, against a total mcap of just $8m.

That's why I added even more. Not because anything is guaranteed but because there is still every chance this fully recovers by the year end and we're talking 5X returns from here.

Not loss making at $3300/oz, that’s a blatant lie.

Loss making last year with low production at $2300/oz. What’s with all the weird deramping?

Already generated close to $6m first five months of 2025, revenue increasing almost 3 fold.

I got more at 0.65p, that's a way, way better price than 0.6p a week or so ago when we were left in the dark expecting the worst.

As I said yesterday a month ago things were looking bleak and the silence was extremely concerning with many, including myself, thinking a placing was coming.

Instead we find out they’ve already well exceeded 2024s revenue by end of May. And gold is now 10% higher than YTD gold price.

If they hit their 1000 ounce target in the coming months this is a multibagger 3.5p+ . If they see modest production improvement, gold price remaining high and continued support from AIMSL then we still see 2p+

Those are upsides worth taking the risk with now.

You aren't able to see how big this is going to be IFA. Focus on the States, this won't be a multi million dollar business in the medium term, it will be a billion dollar business. A modest increase in spend on key appointments is essential for that.

You aren't able to see as big this is going to be IFA.

Actually average gold price in 2023 was ~$1950/oz

Average gold price in 2024 was ~ $2350/oz

Average gold price in 2025 is $3050/oz and rising significantly.

We all know of the past problems, GRL were burning hundreds of thousands $ per month, now they’re generating cash. It’s a major turnaround but not complete til we get that RNS saying 700, 800 or even 1000 ounces of dore poured.

'The financial statements at year end show the Group's balance sheet, with net assets of US$10.5 million against net assets of US$9.2 million at the end of the previous year.'

Then in January a substantial amount of debt was converted into equity plus they have generated cash and further invested into the operations using internally generated proceeds. I imagine today, as of June 30th, net assets are more like $15m.