Member Info for ID78

Aprogerson … I 100% agree. Let’s get producing a decent amount of gold. Let’s make some real money. Tell us what gold is in the hill, this is expected this month and (frankly) should have been sooner. Be open and honest about CLNs and come up with a realistic plan about expansion up to 2000oz. 2 plans (best case - finance from forward selling of gold, worst case part funded by the 1000oz a month gold sales and part by dilution). Open honest communication.

A year ago there was a 3 phase plan. Phase 2 I think was to get to 1000 oz a month and we NEVER hit 1000oz a month. Since then there has been good progress. They have shown there is enough gold and a 10 year life of mine, minimum. They showed HL as a way to maximise gold production and lower costs. And they got oh so close to OCIM funding. That’s the good.

However, the funding fell through, the 1000oz a month has never happened. Then there are the CLNs and poor communication. The bad.

Back to basics. Mine ore, produce gold and sell it. 1000oz a month. Report honestly and keep us informed.

Part of me now thinks they delay in the Q3 figures is because they are really poor. Q4 however is better and he want to post them both at the same time, or close to one another to say ‘yeah Q3 was bad as we were working on things but look Q4 is much better after the changes we made’ …. Anyway enough of my waffling. Time for a commentary from someone intelligent incase you missed it:

Aprogersons post:

IMHO the bottom line is GCAT needs to go "Back to Basics"
1) Solid dependable Admin and Quarterly reporting ... on time, every time
2) Stick to 500oz/month and get EXISTING plant 1+2+3 & mine up to 1koz/month ASAP ... weeks not months
3) Get updated Kilimapesa MRE out NOW ... lets not wait any longer as 6 months drilling without news is more than enough & it will always be a work in progress
4) Confirm Philoro $3m funding position ... provide some clarity good or bad lets hear it please
5) CLN position ... what is the plan EXACTLY

Lol Suggins

The wall calendar comment made me cringe tbh.

The man with 28 years experience in trading, lending and structuring finance deals has gone ….

That surely is not a good thing.

Hi Clifford lol

Alias no 54?

It is very encouraging.

But there remains a worst case scenario of philaro walking whilst we wait 6 months- can they sell enough gold a generate enough money?

Well 1000 oz when POG was $1700 = $600,000 a month profit
If they do just 800 oz when POG is $1900 then that is $640,000 a month profit. Hopefully that is significant enough, I 100% think they can do 800oz and hopefully 1000oz a month now HL plant 3 is running

The fact the there is no news (not even Q3 update) from they are working hard with philaro … I’m guessing they presented to philaro who came back with questions / suggestions or conditions and Robbie is working on this/these just now. Let’s hope it doesn’t all fall apart last minute….

@bebeto - I think MRE on VR is expected in the summer, after a lot more drilling. I’m not sure that card is in play yet……

@masqood - the Stockbox interview - I just re listened

All 3 parties that had term sheets out their hands up

And we are talking to *another* 3 or 4 interested parties

It really sounds like 6 or 7 possible sources of finance

I don’t think it is difficult to find interested parties, Moss - as soon as the news hit 3 companies approached GCATz companies that previously submitted terms sheets. In addition I think robbie said another 3-4 companies are interested - I may have picked that up wrong.

However, DD takes time. Typically 12-18 months for something like this. Robbie anticipates funding in 3-6months. Following revised term sheets, and the lawyers doing their bit. It’s a bit more complex than a bank loan.

I do agree with you somewhat, Sre85. I can accept the fact they are spread thin in the ground, but it does now come down to trust to some degree.

This is why I’d like to see a significant share purchase from Robbie to show he has faith in what they are doing and where they are going.

Lucky this isn’t Caracal Council Houses then.

Gold is a precious metal and the price doesn’t vary depending on where it’s sold from a council house or in Beverly Hills. Or if you have a new bathroom.

The money invested in the mine is also pertinent as it reflects how close to full production they are and how much more capex is required (considerably less than if starting from scratch).

@onlyoneshare

You’ve hit something I was wondering about. One of the long lead time high value items is the 2nd ball mill (I think)

So…. can 1 ball mill feed plants 1, 2 and 3?

The October presentation, slide 12 suggests processing 924,000tonnes (full production) - so 2 ball mills.

1 ball mill can process half that, 462,000 tonnes.

Same slide suggests processing 582,500 tonnes they can produce 15,000 oz gold. So I think the answer is yes 1 ball mill can process enough ore to feed the plants and produce 12,000 oz (if the rest of the plant can take it)…

Ok, answered my own question and a bit more relaxed again…

@zan_tm - a great post

No matter how much you might not want to hear the contrarian view and listen to negative comments they are well worth paying attention to.

I’m very bullish on GCAT, and I need people like legal_wolf to point out the negatives, quite frankly, so that I’m more aware of the all the risks.

The fact you have someone like Trek in agreement with legal_wolf says it all really. This is, to some degree, on a knife edge.

However, as (another fine member) pointed out (Aprogerson) - they can surely just start producing and selling a reasonable amount of gold to steady the ship. This surely is the worst case scenario.

Best case is philaro continue with the £3mill investment and new investors are signed up in 3 months. …

We await more information from Robbie, and (given his sizeable salary) a significant number of shares bought to show confidence.

Really liked that post, Zan-TM - good luck all!

@chatty - regarding legalwolf - agreed

Furthermore Legalwolf has been on this board a long time and posted useful discussion. Whether you agree or not is up to you, but the discussion is valued.

Good to see you still posting, JC - always appreciated.

My simple mind tells me that the following has changed since before OCIM were announced

- a robust scoping study, showing good fundamentals
- £3mill funding (which may/ may not be at risk)
- 3 or more potential sources of non dilutive funding
- 2000oz target is however delayed
- SP is lower
- POG is higher

Simple, but that is what we do know at the moment. The project is attracting interest.

You’d normally pop up with some reassuring words following news like this but you are very quiet - hope all is ok with you

@panda - it’s a sign of how RM needs help, needs to hire another body.

Nobody expects good production figures from Q3, this has been communicated to us. The Q3 production figures or the delay in them or not a red flag imo

@themoss

- Sirius needed huge amounts of money compared to gcat.
- Sirius weren’t able to mine and sell a bean, gcat can sell gold.
- Sirius were mining potash, gcat are selling gold at a time of high inflation and gold price on the up.

The 2 aren’t comparable.

@apro - just went through some of the op updates and clear as mud!

Q3 2021 - produced 569oz gold in sept 21 (headline figure)
Q4 2021 - gold on Carbon was 570oz (Oct), 646oz (Nov) and 872oz (Dec)
Q1 2022 - gold sales 1226oz (and says Q4 was 1047oz despite gold on carbon of 2088oz!!)

I don’t fully understand why the gold sales are so far removed from the gold on carbon.

Anyway, without HL I think they can do 700oz - what can they produce from plant 3? If the 300oz a month then 1000oz is achievable as you say.

(35kt x 1.2 g/t x 50% recovery / 31.1 = 223 oz…)

Sorry, before GCAT and HL goldplat achieved more than 500oz a month…. So 1000oz with HL is surely achievable (I meant)

Thanks Apro, I was thinking they are surely getting there on full HL capability.
Meanwhile plant 1 and 2 - well one is new equipment, one is old. Before HL 500oz a month was achieved. They can surely produce closer to 1000oz a month.

One thing though- the elution plant. I think that’s a problem area. I think a year ago there was talk of new elution plant that went quiet. It resurfaced last month and is maybe the one of the big cost, long lead time items…