Member Info for ID78

Yeah I understand and I agree this MCAP is tiny given the progress made.

Are you familiar with the Lassonde curve and the value of a mining company from exploration to production and depletion? There’s a link below. In theory a company is valued at its greatest at 2 points - at the discovery stage and on production starting. GWMO are at the start of production and the share price lower than ever so the mark up in value has not happened. Yet. And that makes this a good time to buy in my opinion.

https://miningexplained.com/the-lassonde-curve/

Smkr… I am aware of Aprogerson from another board, gcat.

I greatly value Apro’s posts and calcs. Ultimately nobody knows the economics - not even the company yet. We only have models and best guesses. But Aprogerson has a good feel for this sort of thing imo.

Payments 2 days (working 7 days a week) vs shift payments 5 days (working 2 shifts)… I’m sure the plant will run 7 days a week

I’d think 7x10 hour shifts is more likely than 5days with 2 shifts working 7 hours a shift.

14 hours means shift work and extra cost on paying for it…..

Buying in 2020 was not the move.

Buying at a point of inflection as production starts.That is the move.

Chart actually looks good to me: bullish divergence suggesting we are at the bottom backed by the fact production starts soon. If you’re familiar with the life cycle of a mining company this is one of the points you’d want to buy, it’s that simple.

Buying in 2020- I realise why you’re angry now, but ultimately the company has moved forward hugely since then

Well…. yes (moonufo), if the plant was commissioned (the machine tweaked as you call it), and running at full capacity the SP wouldn’t be what it is. The MCAP wouldn’t be minuscule.

The question is will you be able to buy at a price this low in a month or 2 months? Or a year?

I’d suggest the answer is no and that buying at this price and stage is a good risk-reward.

There will be hurdles to overcome but GWMO is closer to production than at any time. And so closer to a fully commissioned plant ‘tweaked’ and running at full capacity.

Have they the funds to get there? Time will tell? Will they shut down over winter … well do they have to if they stockpile?? I am familiar with another gold miner and I’d suggest that £700000 can go a long way to subsidising until they ramp up to full production and get the plant fully commissioned…..

As I say - for me the risk-reward is good

Good to finish above 0.040

Yes bullish

(SP may be falling but the trend should reverse as there is some buying pressure behind it and so bullish divergence… in theory)

I was looking last week and based on RSI (flat) vs SP (falling)…. it looked like divergence. Which means buying pressure and a trend reversal could happen

It is a weak signal - you’d rather see SP falling and RSI rising, but all the same GWMO does show divergence.

Thanks Edgar …I’ll keep an eye on the trades (not that it anything really)

Hi pompey.

I did it yesterday - I can my understand the amount raised to run a flow test.

If it’s for more than a flow test - if you had confidence in what you’ve found - you’d raise after the test at a higher SP and not a massive discount.

He1 just feels a bad bet (if you are hoping on good flow test results)

But curious about the price of the trades.

Tried a dummy sell and offered 0.0358.

So the ‘sells’ at 0.038p I suggest are buys. In other words I don’t think many are selling today.

That’s the thing…. Coming off a historic low. How many 10% flippers can there be?

:-D

Shouldn’t take long to move them on

Moon is right, there will be teething issues in commissioning.

Moon is not right to compare to PREM and RMM for the reasons given.

But ultimately the SP is below placing. The SP is as low as it’s ever been despite being on the cusp of production and therefore revenue earning. Which is huge. It doesn’t happen overnight, there will be teething problems but this MCAP for a gold producer. Well it’s low, isn’t it? Very, very low…. I’d suggest the market will like this news.

Thanks Apro, hugely appreciated.

Ultimately to be a gold producer at this mcap…. Well unless they make a total mess of it the value can only increase.

I’ll take a closer look at those numbers tomorrow, but as ever a fine and detailed response. Ultimately you just never know what you’ll get but your numbers give some sort of benchmark.

Thankyou

I suspect that at 35tons/day you operate at a loss.

However at 100 or 200 tons/day - I’d hope we’re looking at a profit.

SP is lower than it has ever been and production is around the corner….

So … on my crude quick calcs

- 35 tons/day = 56grams @ 1.6g/ton

- which is 1344g a month

- Assuming a recovery rate of 80% and £56/g = £78k a month and £935,000 a year

Ramp that up to 2000 tons £4.45mill a month…….

Aprogerson - have you a handle on if I’m talking utter nonsense?

If people sold to trade He1… I wonder where any profits may go after the trade :-)

Anyway £2+ a share from the scoping study…. Sounds good to me !!

Hi blue sky.

He1 and Noble - neither have been in a rush to flow test their wells in the Rukwa Basin.

Now this massive raise (does the workover and flow test cost 8mill???).

Would you not perhaps look to raise after a successful flow test at a higher SP?

I’m not convinced about He1’s prospects tbh. However, people will buy at the current MCAP and hope for a return.

As Trek says- sell on news brigade. Normal service will resume here.

Have you ever looked at STAR energy?

Low MCAP for the bopd…. It feels undervalued but the geothermal business could just swallow all the cash, flip side is it could give a serious upside.

If it weren’t for the geothermal side, and just focused on oil then it’s very undervalued to me. Dia, portfolio you’d be better at picking it apart than me