George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
Super Roty an interesting comment but I cant see any justification.
Gold Bullion on hand at 31 Dec was about 7koz -
2023 Production was 441koz, gold sold 438koz so 3koz carried forward to 2024
Q1/24 Production 105koz - sold 93koz = 12koz + 7koz = 19koz carried forward.
All seems pretty open and normal to me!
If they sold that 7koz carried over from 2023 on 1st April the gain would be around $200/oz = $1.4m total gain. Good business!
Message from HL (I only applied for 5000 shares):
"We’re pleased to confirm that your application for the Oxford BioDynamics plc Retail Offer has been accepted.
What happens next?
We will write to you on Friday 04 August to confirm how many shares you’ve been allocated. This will also be shown in the ‘Pending Orders’ section of your online account from midday on Friday 04 August.
When can I expect to receive my shares?
Your new shares will be credited to your SIPP Income Drawdown Account shortly before 8am on Tuesday 22 August. This may be delayed in the event the company does not deliver your shares to us by this time.
The dividend policy for H2 seems sensible especially for those seeking long term growth. The declared Dividend exceeds the Group Free Cash Flow from normal operations by $10m and represents 56% of Cashflow pre Growth Capex.
Looking deeper into the figures shows that $108m of CAPEX was incurred in H1 with another $165m forecast for H2.
Gold Production needs to increase by 5% in H2 to meet the lowest forecast and 19% to hit the upper level.
The additional $57m of CAPEX will require an additional production of 81koz of gold to fund the CAPEX from production (ie $1936 - $1228 = $702 cash produced per oz - $57m/702 = approx 81Koz)
The top end of Forecast of 480koz will give a production uplift of just 42koz so half of the additional CAPEX will come from reserves/debt at the top level and most of it at the lower end. Martin Horgan states that CEY is on track for the mid point of the production range. This suggests that significant CAPEX will be funded from reserves so any additional dividend would further deplete reserves/shareholder value.
The good news is that CAPEX is forecast to reduce significantly in 2024 with a number of projects nearing completion that will also result in cost savings.
A couple of minor things to add (if I've not missed these from previous comments below):
Eric stated that NLGM has had three consecutive Quarters of stable production and that has continued this month.
He suggested that W Kenya alone is worth $100m with 1.8Moz & 11.45g/t & expects it to grow to 2Moz soon.
Singida has been achieving stable production at just below the target of 1000t/day average throughput but has seen peaks of 1200 so it is capable of handling that.
He expects a processing plant to be added to Singida in the future ("when/not if").
Currently working on financing plans for W Kenya which will be partly funded from production.
He made it clear that he does not expect any equity raise & did not want to see questions on that subject.
This is what it says about Idex at the bottom of the RNS (Under the contact boxes):
"Founded in France in 1963, Idex develops, designs, finances, builds and operates local energy and carbon-free infrastructure, which provides renewable heat and local electricity supply to buildings, cities & industry.
With 5,700 employees and a turnover of €2 billion in 2022, Idex is currently the only vertically integrated market operator delivering the complete value chain for local energy provision. The Group is involved in the production of thermal or electrical energy from local and low-carbon energy resources (geothermal, solar, biomass, waste), the distribution of this energy through district heating and cooling networks, to its final use in industrial, residential and tertiary buildings and other applications."
All out in the open nearly three hours after the market opened. Those with insider knowledge have been given the opportunity to make a few quid in the meantime.
Acechaser Yes I have a small holding in GGP - I started buying at 17p in Aug 21 and have topped up a fair few times since then including last week. Averaging about 12p at the moment. I won't make or lose a fortune whatever happens. The future seems golden but seen too much go wrong in respect of very good prospects to expect anything until there is more meat on the bone.
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I am no expert on Gold Exploration and Mining but I like to keep things simple and it seems to me that we are in the Feasibility stage of the Lasonde Curve where the price tends to fall and continue falling. I may be wrong but, despite the investment in the incline and associated works, there has been no definite decision to mine. There is talk about this being a very low cost mine using existing processing facilities but little meat on the bone as to whether Newcrest have the capacity to use that facility for Havieron and what the cost of transporting the ore including the infrastructure costs. Also underground mines often experience issues when the mining commences. The potential AUS listing also suggests that further dilution will happen if cash is needed. Until the Feasability Study is published then there will be significant uncertainty over what revenue the mine will produce for GGP's 30% share. Most investors want a degree of certainty and we are still at a highly speculative stage in the process so the money is not pouring in like it should in the future. If we follow the Lasonde curve then there should be decent profit but I wonder if the early excitement was pushed higher than normal by the number of people and amount of cash pushed into the market/share during the Covid recovery period. We will see in due course.
"Milestone of 300 EpiSwitch CiRT test orders reached (May 2023)" - It does not say monthly orders. the way this is worded suggests 300 cumulative orders to date (ie Milestone). Anyone know how much they are sold for/what revenue this would generate? The revenue generated in first half is minimal compared to costs. How may do they have to sell to break even? Surely these are the questions an investor wants answered rather than an obscure statement with minimal detail! We have been told for a long time that sales are ramping up but this seems to be extremely slow progress without some meaningful figures. In the last year the company has burnt £9.5m of cash whilst generating revenue of just £220k in half a year! How much more cash will they burn? How long until profitability? How much are the Directors earning off the investors cash? Isn't it time we got some meat on the bone?
Its great that the value of the assets is increasing but surely the fear is that if we can freeze the UK assets of Russian companies and citizens then Putin can do the same to the assets of UK companies in Russia. He is clearly on a war path with no control over his actions. What stops him from not going further and cease the assets and kick our company out? Surely the reason for the massive price drop is fear of that very high risk. The value of the assets have minimal bearing in the current situation.
On every RNS the number of issued shares reduces so they must cancel them as soon as they are bought.
Depends how you look at it. £1.7Bn down from Jun 21 peak and £3Bn up from Apr 20 low. Much of the market is down significantly in the last week or so. Add to that RM slashing £70m from the expected profit/cash flow this year in their update and expecting volumes to fall now covid under control. Liberium cut forecast from 560 to 470 today (not that I take much notice). Bound to be downward pressure until FY results & next update published.
If my maths are correct I make it that, so far, approx 7.2m shares have ben bought back (999984053 - 992772768) so at an average of £5 thats around £36m spent out of £200m so a long way to go. So far about 0.7% of shares bought back.
Taffy, I agree, in the answer to the question about new drugs JVT suggested that a great deal more research will be needed in order to establish who will benefit from those treatments. If the research is not clear, and they expensive, then governments will not pay for their use in the hope that they will work. Lets hope that the SNG research to date will give a clear indication of who will benefit the most.
You could have sold some after the 25% rise from early Oct to early Jan. Broker forecasts are their view in next six months so never hold out for a peak based on their views. Fallen because of concerns on the economy and profit taking. The 20p Div had a big impact on the price but that is in the past now. I suggested to you a week ago that the price was likely to head South as I could not see any reason to maintain the upward movement. Never any certainty so I was not certain. If there is good news in the 10th Feb trading statement another change of direction could take place. When the buyback ends then that could worsen the fall. Not a de-ramp. I still hold some shares and will be buying back soon.
Part of my decision on whether to topslice will be related to whether I decide to use this year's CGT allowance on my small holding outside of SIPP/ISA.
I guess it also depends on how you assess risk too. Selling too early is potentially as high risk as selling too late depending on the point in the curve you trade. With a potential £75 price there is plenty of scope to get it badly wrong so I will be collecting as much information as possible to make that decision. Hopefully the BOD will be able to provide much more information regarding profitability once the product has been licensed.