Member Info for ID78

The company is certainly taking shape. Each appointment has been for a solid and defined reason.

Dan Kazungu- to resolve the Red Ray issue (now resolved) and to stop that happening again

Frank Bizouerne - to find the gold to get a 10year + mine life (done and looking to expand)

Now Stefan Muller- and joint the dots another fantastic appointment.

Robbie and Simon Games Thomas are no mugs, brining on board the right people to make things happen.

I joined the dots.

Caracal gold are going to buy out DGWA. I think I’ve nailed it there..

.
.
.
.

(In case anyone thinks I’m serious, I’m not)

It could treble somewhat.

Current resource is 700,000oz…. they expect/hope to find 2mill oz.

One of yours JC?? : )

Joking aside that makes a nice change to the big sells that used to just appear from out of the blue.

GLA

Last paragraph should read if the mine expansion does not need funding then what a company!

Having this board and the quality of posts from numerous contributors has made holding this share that little bit easier as the share price drifted. And made it easier to average down without a waking up in a cold sweat at night!

Regarding the funding question. Greg25 believes there will be a need for funding, APG you are in the other corner and think funding is not needed for the mine expansion.

I’m ultimately unsure but have approached it from worst case, which is that funding will be needed. How bad is that worst case? Not that bad at all - no CLNs. No dilution. Funded by debt. It’s really quite a palatable scenario.

If the mine expansion does not need funding then (quite frankly) what a company!! Exploration and mine expansion funded by gold sales alone.

Cracking post (again) there APG…

For anyone new reading this board

- the cash is there to make the payment on Tanzania

- there can be no more dilutive cash raises this year as GCAT is main market and has no more headroom for issuing shares this year
- Take a look at Simon Gates Thomas (our non exec chairman) now we have an EMR and a 10 year mine life you can be sure he can raise any money needed for the mine expansion.

There won’t be any share issues to fund the mine expansion needed to get to 2000oz a month.

So what news is next?

- batch 3 drill results from the lab
- Tanazania payment is due end of the month
- Q2 operations update next month
- announce drilling plans for Tanazania after the Q2 update

I agree that Robbie has been remarkably quiet after releasing the EMR. Most CEOs would be shouting from the rooftops. What has him so busy?? I agree that there is more news to come. Either it is the batch 3 lab results or there is something else. Debt financing for the expansion perhaps?

He’s a busy little bee that’s for sure.

Lol Suggins- yesterday was the first day in 2 months that I could breath without an oxygen tank. Which was nice

Yea of course, GCAT have not managed to continually sustain 1000oz a month in gold sales whereas SHG have achieved significant sales and this is why there is the disparity in the share price comparison.

But I have every confidence in the mine expansion, the 2000oz a month - and it is only a matter of time and patience. All good in my book too.

£15mill MCAP

@APG - good comparison and shows GCAT more comparable to SHG.

Going with that 1000oz a month £15min MCAP.

If POG = $1850 then the profit for GCAT is $600 per ounce and $410 per ounce for SHG. Which means GCAT should be worth £22.5mill MCAP. And if we double production to 2000oz, we should be worth £45mill.

£45mill is a SP of 2.47p

And of course, with the elephant in the room GCAT are better placed to ride out any drift in the POG than SHG.

M.Night - when do we expect the 2nd MRE upgrade?supposedly before finalising and commencing the commissioning of the production expansion.

commencing the commissioning of the production expansion is before December 2022. Indeed I think they plant to finish the expansion in Jan 2023.

My best guess- maybe October?

However, as has been shown with this MRE patience is the key.

Exactly Mickey.

In fact, we had the numbers presented as

Kilimepesa measured = 13000oz
Kilimpesa indicated = 92,000oz

Red ray = 80,000oz (measured and indicated) - but disputed and at risk.

That 13000oz I think scared people off.

Now we have a mine life > 10 years… and in addition drilling of the various high grade areas (which have never been and are still not part of the JORC). They can only increase the mine life, and hopefully by a considerable amount. The hill, with its lower grade ore, has made this company. I am now excited to see the high grade results.

Align research suggest 2.73p a fair price for GCAT. One thing you have to remember with Align is they are not independent. They are clients of Caracal (however I did see an interesting article from them on Ironveld absolutely tearing into the management).

http://www.alignresearch.co.uk/cpt-company/caracal-gold/

- 2.72p is about £50million MCAP

- Suggins suggested 2p or £37mill MCAP (based on 20000oz a year production)

- DanielC4R peer comparison suggested £45min MCAP - based on 1200oz a month production (14400oz a year)

I think it’s fair to say 2p is a conservative a very low ball ‘ fair value’ and there’s grounds for arguing it’s worth a good bit more…

Of course Mickey, I completely agree.

Suggins, appreciate the information on commission, overheads and biggest of all, tax

Mickey, sounds like you think he has a crew of investors. …

@Daniel, yes that was it - thank you!

@Trek- unlucky with the timing and I have to admit Ilyou crossed my mind too this morning, but I have the same feeling about the catalyst for a significant rerate. I do think however feel we are due a bump back to 1p now (which is not a significant rerate!)

As things stand this share is undervalued. Mine expansion and continued drilling will only serve to increase the difference between what GCAT should be valued at and this crazy SP.

I really am very relaxed and happy to be invested here!

Mickey I think I misunderstood your post.

What do I think the MCAP should be? In this market who knows, but clearly £13mill is a joke. I think we’d all agree a SP of 2.1 and £39mill MCAP is not unrealistic with plenty more upside. It’s just when will the selling stop and more buyers start to believe in the story. I can’t remember who (I though I took a note but can’t find it) but someone posted a decent peer comparison. It would be good to see that again.

Currently we are valued just above ECR and less than WSBN both have no mine and no actual resource (no EMR) - go figure!

To my mind one hurdle remains - start mining enough ore to produce the 24,000oz. The plant upgrade I feel is less of a risk. They have demonstrated the HL capability, we know they can work a ball mill, CIL and tailings plant - and if they need funds for expansion I’m certain they can get finance.

SW1000

Some people will want to see more about the funds needed to expand the mine production. We’ve already by some fantastic posts on here found it can’t be through dilution.

Some people will want to see more gold being produced before investing.

Some people will wait for the market to recover and miss the boat competely