Member Info for ID78

Watcher, on the one hand gold sales are not making ends meet. On the other hand they have invested in plant and equipment, and made mill end payments, and these fund raises are really small…

It is difficult to know the full story here and whilst they have had to raise money, the amounts are small so I’d tend to say they are just about self sufficient.

If I remember correctly gold sales or gold produced is around 600oz a month. Are the huge heap leach pads commissioned? I may have missed it but I don’t think they are. Once these are commissioned - I expect - GCAT won’t need any more money whilst mining the high grade ore.

Yeah, Troajan is a good one … def. no ramper.

Hi cash free carry - thanks, this was info I was looking for. Appreciated.

Hi Apro, it was one of Robbie’s interviews and I think it was early in 2022, maybe after the Q4 update they’d stress tested operations, and at 500 tpd - I think.

Maybe my memory is acting up. In this RNS’s the Q4 2021 updated (Feb 2022?) there was discussion about in Q1 2022 they would :

- Expand the mine to support a 100% increase in milling circuit capacity FROM 500tpd to 1000tpd

- work on the milling circuit expansion (2nd ball mill and new crushing and screening plant - and - upgrades to CIL plant)…. to achieve the 1000tpd presumably.

Since then there’s been investment in the plant (second ball mill / rock crusher, now this conveyor and maybe others improvements to the CIL circuit? .. and the heap leach). And they are only now talking of hitting 500tpd?

I still struggle with the gold being produced I feel it should be more but you are better clued up than me, I’m not following the story as closely as before. Happy to be corrected as always.

DanielC43R - I still feel the updates and reporting on production is a bit of a muddle and doesn’t fully make sense. As you say that suggests more than 500tpd is being achieved already… I’m confused lol.

Jay - maybe the conveyor is for plant 2 and an additional 500tpd to plant 1? So they may start to hit 1000tpd??? Just guessing, I’m not following this story as closely as before.

Thanks Lee, appreciated.

Decent pile of cash to be made then for this MCAP

Took Trek’s advice and bought some today, not much (less than £1000)… hopefully we see that 25p…. But I’ll settle for 6p to start with :)

GLA

I think we are waiting on MTL announcing (unless I am wrong), at the moment MTL don’t have too much left to mine but they are drilling to expand the resource (MTL). Bit difficult to compare till we know more, I think. Happy to be corrected.

Hi Lee, thanks for getting back to me. I maybe didn’t make total sense - I think both are undervalued. I think both are a buy.

My calcs, right or wrong (MCAP) maybe slightly out of date:

SHG; MCAP $141mill … debt $9mill, cash $25mill and making $108mill a year profit in gold production.

Put another way net cash $16mill meaning the gold production of $108mill is valued at a MCAP of (141-16) $125mill.

MTL MCAP = 53mill, debt $48mill and profit form gold sales of maybe $72mill ($18mill/qrtr).

So, assuming the MCAP would be higher by $48mill if no debt; the $72mill of gold sales is valued at a $101mill MCAP.

A bit rough and ready but shows BOTH are undervalued, but debt is being paid down and the SP here trading sideways - that surely can’t continue.

SHG, could argue the same, trading sideways and just adding to £mill in the bank every quarter…. Can’t last forever.

Wish I had enough funds to buy both :)

As you say, nothing new really but this sideways SP can’t continue forever.

Bought a boom or bust drill expecting SP movement on spud and that hasn’t really worked out so looking for a safe home for that money (ie a company generating money hand over fist!)

SHG or MTL? Both making plenty of cash. Both undervalued IMO. MTL has debt but is half the MCAP of SHG…. anyone here got an opinion which is best?

It does look that way legalwolf.

I got the impression there’s be no further information till the drill is complete (so no hints at helium shows). So no news for another 10 or 11 days?

Noble (I think) are drilling to a shallower depth. Anyone know if they will hit TD before us? That might be the first SP movement we see…

To anyone panic selling - this was always the likely outcome and as said on here the legal fees raised so far were raised knowing full well (or anticipating) this was the likely outcome.

It’s not reflection on the legitimacy of the claim (getting the legal funding following lengthy due diligence shows that there is a strong case). It’s a reflection on the court itself.

The only question is when will the next step happen?, will the SP drift as legal action takes time.

A new conveyor to get to 500 tons per day. This is good news, the gold production from the high grade zone was less than I expected, presumably down to this being needed. Is this the only upgrade needed to get to 500 tpd?

I have to admit it’s slightly surprising; maybe about 18 months ago they’d stress tested the processing to 500tpd but there we go. Nevertheless more processing capability is clearly good news.

Anyone got a handle on how many tons per day were being processed till now? I’ve not kept completely up to date with GCAT, just dipped in to see what’s going on.

It’s a bit of a see saw, on the one hand more gold, more money. On the other hand the high grade zone will be spent sooner. Hopefully they are busy identifying more high grade zones as the next target(s) (no point buying a conveyor and then hitting a stop cos the good stuff is spent and you start mining at a loss again)

John - ahhh, ok that makes sense. I was wondering why 2 wells took us to 90mmcf but a further 5 adds only 110mmcf. Thanks for that, appreciated.

Trek- true, looking forward to next week :)

Thanks for getting back to me… so here is my confusion

In the she was magazine interview Paul says

- approval for 8 more wells at Cascadura

- he thinks they’ll need 4/5 to get to full production (200mmcf)

- plans is to drill 2 of them back to back once the plant is up and running (ie - nowish)

- but that production from these additional wells would be in mid 2024.

Mid 2024?…. and as I say another 2/3 wells are needed in addition to these 2.

https://www.sharesmagazine.co.uk/video/touchstone-exploration-txp-paul-baay-ceo-3

Hi Geld… if these predictions are correct then wow, that’s fantastic. The only thing sticking with me is that I got the impression the expansion of Cascadura would take quite a bit more than 6months.

I expect the 90mmcf soon - but 200 I thought would take quite a bit longer. Can’t quite remember what Paul Bay said in his last interview. I’ll see if I can find it.

Well let’s hope this is the bottom for now - tho it could be a red day across the markets, Fed Interest rates are due to be announced today, so if the SP doesn’t play ball today maybe keep that in mind and watch for a positive move tomorrow.

Hi beechknot,

There is a guy that posts on LSE that I have a LOT of time and respect for (used to have a £5 target for HE1). He was talking about a placing being needed so I waited and bought in last week… so yeah it suited me too.

Frustrating for people that held, but the placing did attract buyers that missed the earlier rise to 10p…

‘But he was right there was a placing coming’

I’ve stuck up for legal on another board, GCAT, we were both invested over there. Legal always had an eye on the financial risks. People didn’t like the negative take, but ultimately, legalwolf was right.

I’ve learned it’s useful to listen to the legal opinion, even if it is really not what you want to hear.

Each to their own. Anyway, let’s hope today is the end of the pullback and this has another go at the 20 day moving average soon…

Hi Trek, I’ll reply to you here and not on TXP (since I’ve already mentioned another share there!).

Honestly, I’d hoped to take profit from TXP and put it here but that’s not happened. Wish I’d traded that 90p spike a few weeks back!

I hope to take a position here, like I wanted to in DEST - yep missed that one too!! 🤦🏼

Thanks again for another excellent post, this is firmly on my to do list of I get the chance before the ship sails!

I don’t hold any SHG, but find it curious.

A company generating a pile of cash and the SP and market is saying ‘meh’.

A bit like TXP, where the market has responded with a big fat ‘so what’. At some point value has to see out - so ‘ Buy, hold and this time next year rodders’ - Geld said