Member Info for Impecunious2

Hi, Bamps.

I notice that you say Warrentina is "ready to be divested." Where is the evidence for that? I looked on the company website under "Warrentina," but didn't see any reference to selling it.

Broadly speaking, I think it would be a good idea to sell some assets, if that allows a lot more drilling on the ones we hold on to; but I don't know enough about the sums of money involved to have a proper opinion. Presumably, this is one of the things Shaun Day will be thinking about.

Hi, Sliotar.

As several people pointed out yesterday, it's the gold price. Other AIM goldminers (e.g. Shanta Gold, Trans-Siberian Gold) have fallen for the same reason.

Hi, Charlking.

Things were better before the internet, because you could only see the share price once a day in the newspaper (which gave the previous day's close), whereas now one looks at it hour by hour, minute by minute. I advise all shareholders to seek employment in a workplace which has no internet access, and long working hours.

Hi, Texlax.

I think "like" is used a lot in the UK, by the younger generation (under 30), and more by women than men. This is based on my listening to undergrads, A level and GCSE students. But, oddly, I don't remember hearing it once in my (recent) year at primary school. Maybe children of that age don't have access to US media?

Hi, Timber@7.30.

Yes, I hope we get a run-up to the drilling results. But the problem is the falling gold price (now only slightly above $1700), which is dragging all the gold miners down.

I don't know what superlatives Shaun will use, but I expect him to say "look" at least once a minute; he's even more addicted to this peculiar vice than Gervaise. But let us not speak evil of our mighty lords and masters.

Hi, Scall.

The short answer to your question is, the falling gold price (which has declined from $1940 on 5th January to $1702 earlier today). Of course, GGP is not yet producing any gold; but production at Havieron is within the foreseeable future; therefore, for better or for worse, in health or in sickness, we are under the influence of the gold price.

If you look at the share price charts of Shanta Gold or Trans-Siberian Gold (both of which are on AIM, and producing), you will see how similar since 1st January their pattern is to GGP.

As to the future of the gold price, I defer to those with more knowledge than myself. But two things can be said: in the market crash of 2008, gold fell by about 25% (over a 9 month period), but then rose rapidly; and in the 1970's (which is the last period of high inflation), gold rose from $40 in 1970 to $684 in 1980.

Link to gold price chart below.

https://www.gold.co.uk/gold-price/15year/ounces/USD/

Hi, BDU.

Although I like the connection between the Ides of March and the end of the tax year, what caused the market slide last March was Covid (or the belated realisation that Covid was going to do serious damage to the global economy).

On OMI, I think it will do well, if there are further good drilling results, because of the joint venture and the low market cap (a takeover by Newmont seems quite likely, though probably not this year). But it's a one-trick pony; whereas GGP has more than one project (though only one is going into production in the foreseeable future).

Hi, Bigdownunder.

I don't know enough about OMI to comment. But on GGP, I think you're mistaken. The reason the share price fell last March, is that a general wave of risk-aversion (otherwise known as fear) swept across the market; the FTSE 100 and FTSE 250 fell steeply, as well as AIM. Gervaise H's purchase on 16th March then caused (as you say) the price of GGP to stage a V-shaped recovery, and the main indices did the same soon afterwards, on 23rd March.

Hi, Floater.

My mistake. You know more than I do (which is not very difficult).

It's good to see everyone in a more cheerful mood. Sandeep is a very impressive CEO, in that interview, and others.

Hi, Jacal.

It's more than ten years since I invested in an oil exploration company. But I think with oil, one drills, and then this black fountain bursts upwards, and everyone shouts, "Eureka" or (if they've read "Moby Dick") "There she blows," and the share price immediately quintuples. Unfortunately, mining isn't like that.

Hi, Floater.

It's a matter of reading the info on the Panorama project, on the GGP website. To be honest, I don't know what cobalt is, except that I associate it with the colour blue.

https://greatlandgold.com/panorama/

Hi, Leftos.

According to the CEO of Orosur, > 5g/t is high, 3-5g/t is medium, <3g/t is low.

But I'm a humanities man myself, and haven't got a clue.

Hi, WF.

You got there two minutes before me, on cobalt.

ANZ bank sees a weaker US$ supporting the gold price in second half of 2021.

https://www.fxstreet.com/news/gold-price-analysis-xau-usds-outlook-supported-by-higher-inflation-and-a-weaker-usd-anz-202103011501

Hi, Sianhan.

Gold reached its all time high ($2067) last August, not this January.

Here's the link to Turquoise. Makes interesting reading.

https://www.lseg.com/markets-products-and-services/our-markets/turquoise/turquoise-trading-services

Do we think that inflation is good or bad for the gold price?

The opinion of the board seems divided on the matter. On the one hand, inflation will cause the Fed to raise interest rates, which will strengthen the dollar, and therefore push down the gold price. On the other hand, gold is a hedge against inflation, and did well in the 1970's, rising from $40 in 1971 to $680 in 1980. During that time nominal interest rates were high; but real interest rates were negative (as Alan Greenspan pointed out in 1993).

https://www.washingtonpost.com/archive/business/1993/08/04/real-interest-rates-and-the-experience-of-the-1970s/c76ca777-4936-4b96-9881-34550696a56c/

Hi, Sotolo.

There is evidence to back you up on this. In the last period of high inflation, gold rose from $40 in 1971 to $680 in 1980.

English spelling was only standardised in the 18th century, by Bailey's dictionary (1721) and then Johnson's (1755). Before that, it was all over the place.

In France, the process happened slightly earlier, with the publication of "Le dictionnaire de l'Académie française," in 1694.

The London Stock Exchange website says 24 pence, so 24 pence it is.

https://www.londonstockexchange.com/stock/GGP/greatland-gold-plc/company-page