Member Info for ID78

That all makes sense to me.

Thanks for taking the time to respond, appreciated.

I’m curious to know your thoughts on the financing of the drill? Do you suspect they are fully funded??…..

Thanks in advance

Dvharrison- I suspected as much, he/she gets one measured response to help them see what they’ve got wrong, then I move on :)

Starbright, would you invest $10mill on gold yet to be produced if there was a significant risk of the company going belly up before producing that gold? I don’t think so and so it is a vote of confidence. After 6 months due diligence, it’s a real vote of confidence.

With regards production, as stated the changes to mine and ore processing mean mining and gold production is affected. Until the is complete we can’t judge. And finance was needed to complete expansion- which they now have. We can only judge in 4 months. However much has clearly been achieved to date. If you are not convinced then best move on.

All the best with wherever you choose to invest next.

Fair enough, and I agree. I hope the increased good numbers will help move the SP - but the last remaining question is mining enough ore and producing the gold. The real rerate may not happen ‘till then. However I do expect a new trading range as we are priced to go bust and that will not now happen following this weeks news.

Robbie has delivered all he said he would to date (at pace) so I have no doubt he will hit a good sustained level of gold production. We know significant amounts of money have been sourced and are available to help make this happen.

Haha, JC - I’m great at saying not to engage, bad at listening to myself!

It’s always useful to listen to other opinions, legalwolf at the start I think I remember getting a hard time as he kept saying ‘yeah but what about the money’- but he was right to ask even if it wasn’t popular.

But sometimes it’s clear nonsense, as is the case here, and it’s best to filter!

Where do you think we will be next year JC?

Conservative side of me thinks 3mill oz JORC gold, 2000oz a month production.

Less conservative side of me thinks 5mill oz JORC gold, 3000oz a month gold (with Tanazania production yet to come online!)

*now operation of HL pads

Best not to engage with him, JC (even though I did - I bite every time!)

Everyone is aware of the progress that has been made, at pace

- significant increase of gold resource to give a 10 year life of mine (to be further increased imminently by a ‘new discovery’ at Vim Rutha less than 2km away from the hill)

- proof of concept and no operation by heap leach pads to best process the lower grade ore in the hill, helping reduce the AISC to $1150/oz

- Bringing in a second ball mill / CIL plant, in addition to the existing plant and the heap leach pads.

- Gaining non dilutive financing to complete the MINE expansion. Once this is complete there will be sufficient ore mines to be worked through the significant plant capacity that has been put in place.

Yep, no progress since last year lol.

Favourite post if they day (so far) goes to Aprogerson… though to be fair he just typed out what Robbie said :)…

Stockbox Interview from yesterday https://youtu.be/3ylJ3BcHwMQ
> OCIM met in May-22 so 6 months process & Due Diligence completed
> OCIM liked LSE listed + growing gold producer +strong BoD +LBMA registered
> £8.2m Non-dilutative funding raised vs. £14m MCap

The 'Deal' ...
> secured conditional non-dilutive financing of up to US$10.5m (£8.2m) in 2 tranches
> pre-paid gold purchase agreement with OCIM Metals & Mining SA ('OCIM')
> RM confirmed less than 15% of gold production to be sold at spot minus small financing discount
> Tranche #1 = US$7m to be drawn on or before 31 December 2022
> Tranche #2= US$3.5m to be drawn down on terms yet to be agreed

RM stated new capital to be deployed for fully funding ...
> expansion Kilimapesa expansion to target 24koz pa & final commissioning in Mar-23
> completion Phase 2 exploration drill programme at Nyakafuru Project in TZ

Expected Newsflow
> Q3 Operations report to end Sept-22 ... RM apologised for delay
> Updated MRE for Kilimapesa ... delayed from end Oct-22, but RM said results were really good
> Nyakafuru Phase 1 drill results due ... RM stated confirmed prior JORC and will include Phase 2 programme plan
> More financing news due (not sure for what?) & RM stated desire to do more deals with OCIM as really liked their approach and business model

Comparables
RM stated nearest comparable to GCAT was TRX in Tanzania in terms of size, a producer scaling up, geology, strong BoD and funded for growth
> TRX 1koz/month vs. GCAT 2koz/month
> TRX CAD $10.5m (£6.5m) vs GCAT £8.2m cash/facility
> TRX CAD$120m (£75m) MCap vs GCAT £14m MCap
> Comparable resources
> TRX based in Tanzania and GCAT in Kenya/Tanzania

Lots to like, especially as RM wants to avoid dilution of his and shareholder value plus he believes GCAT now massively undervalued given funding confirmation and derisking.
ATB APR

As you say, legalwolf it could be a number of things.

If it is to find mine development the pace Robbie is moving at is quite incredible.

RP - sounds like something I would do lol!

What a day…

finance announced, non dilutive and finance from forward selling of gold…- "Only a very small discount to the spot price" and "only providing them with less than 15% of our production."

Goldplat sold out and gone..

What a day.

@Predator7 - I agree, time will tell. The difference is that 20% was on Robbie saying we had funding. It dropped back as there was no RNS to confirm this to be true.

Today the volume is 140mill, 2 weeks ago (the 20% rise) was on a volume of 40mill.

Never say never but this rise may just be a bit more sustainable as the finance question has been answered.

GLA

-Well if gold gets to $2000/ounce.
- AISC is $1100/ounce
- And Vim Rutha lifts us from 1.3mill to 2mill ounces.
- There is $1.8bill dollars in profit to be had.
- At $2500 that becomes $2.8bill dollars.

Yearly production, the plan is to hit 24,000oz by March. At $2000/oz that is $21mill profit a year.

Aprogerson thinks we can do 3000oz a month, so make that $31mill profit a year.

MCAP is so small in comparison. So small, it’s crazy.

(Ok a simplistic view, some of the gold is Tanzania and will have its own AISC- but that resource too will only grow)

That would be the icing on the cake if your theory is correct and RM and the team would really have played a blinder with managing expectations regarding the reported gold production.

However, would it not have been better to produce and sell the gold at non discounted price meaning they needed less funding? Don’t get me wrong, I really hope you are correct.

I more meant I think they have amassed ore for the heap leach which is in transition to steady state production (and the large pad currently under production).

One thing that caught my attention. I think Robbie (in the Frankfurt presentation) said they have 2 open pit mines and 1 underground. What is the second open pit?? 1 underground on the hill, 1 on the surface of the hill…. does anyone know where??…

@PF-builder - well said. Robbie kept saying how good the team he pulled together is, and as you’ve shown he is not wrong

@legalwolf- one of the regular posters (Dan) posted on here about the production numbers last week and I commented about lag in heap leach vs gold pour.

The other option to explain the numbers is just what you are suggesting, they are still mining ore but not processing it and we have a stockpile of ore to process…. Crossed my mind last week.

GLA

For anyone new to the board Aprogerson has a fantastic grasp of the production numbers, if you are interested. Well worth taking the time to dive into and get a feel for what’s going on and about to happen.

All the best

Fair enough, I don’t really want to side track from the HCAT discussion.

I do quite like comparisons, they always remind me how exceptional GCAT is to every other option.

There is one other gold share that has caught my eye but this is still the stand out option.