Member Info for Indiscipline

Dear FCI,

Having had some dealings with the directors, albeit through emails, was their a dismissiveness to your comments which for the vast majority of investors seem reasonable and obvious?

The CEO has a seriously good pay package and it needs to be justified by results. Today could be a precursor to some interesting RNS's or just fluff to keep shareholders off their backs as they pocket their hefty pay for at the moment light results.

We are hedged around $1250 - $1350. The Gold price dropping $200 from here would still be $200 plus from where we have been selling at. The margins are massively in our favour. This is why the CEO was so derisory of where the market has our stock. Net income is going to go through the roof.

I am obviously with you Colonel; we are due a serious re rate.

Great piece of analysis. I believe short term like you it will roll over.

But wow, if you can hold long term this could be an absolute star. Read that Platinum Report about Hydrogens effect on Plat market. I believe that should long term be a massive driver for the metal.

Also as we start hitting an inflationary curve after the washout these mining stocks will really move.

For the moment 40p could be hit. You have to carefully build the position.

Thanks for that really informative. We are increasing our production this year and our costs are falling so we should be getting more bang for our buck.

Right now the hedge is hurting that comes off next month and we are positive net income + Kenya. Hopefully we should get humming along price wise. As for production, most likely we can do it ourselves, but we have enough resource to attract good partners and investors.

We will float in 10-12 range till CEO starts hitting the market with the new numbers. He was very positive and said it will be released soon. Most six to eight weeks that kicks us along. We may get a pullback in Gold price that can effect us.

Long term it is up so all good.

An Rns will get released with figures then we get a gap up. This is a multi year play one of the few stocks I have that I am not worrying about day to day price the fundamentals do the work for us.

When it breaks 13.5p then in new trading range and can seriously re rate.

Very nice news Wolfie thanks for that.

The MM's will shake the tree. It is all about passing the stock from the weak to strong hands.

I know. I have been too many times the weak hand...lol. and got shaken.

Why I am not weak here is the fundamentals are very, very strong... There may be a short term pullback in Gold price but as Colonel said this is a multi year play.

We all have to be positioned to ride the short term pullback and enjoy the long wave up. I like this board you can see sharp investors here who stop me thinking short term. Sure we will get the trolls who will try to scare shares out here.

Usually that is a good sign that more attention is coming to the stock and up we go. Right now we have to wait for CEO releasing his figures, he said that is shortly on ProactiveInvestors and had a grimace like he will be kicking some severe arse with them.

At the moment we are being played with. But here we are able to concentrate on the fundamentals.

As I stated before analysts raised their EPS 100% came top on the Algy Hall screen in Investors Chronicle.
Does not ensure success but sure gives us a feel for where this company can go.

The 12p barrier is frustrating. But as you say, Q3 when those hedges drop should really turbo charge our price.
This will most likely do a gap up one day soon.

Also gives the company the chance to acquire more assets as it now has two assets behind it. Easier to jump from 2 to 3 than 1 to 2.

Gives the company the chance to be a real multi asset play. From the looks of it our CEO knows how to value an asset so investors, commercial and retail, will support his manoeuvres. Much more exciting story.

He stated that the market has utterly mispriced this stock and has little idea of what we have. He also stated that he will be addressing that in short order. This is a guy that does not just mean business, he does it.

Think Colonel you are most likely right. They will not want to go too heavy on Shanta as they will kill their gold market. They don't have much in Tanzania. Most likely they will stagger the payments to Shanta or waive some taxes.

In this new environment they want to play nice they don't want to kill a golden goose and with Kenya Shanta is increasingly bullet proof.

The fortunate thing is the gold price goes up and the hedging comes off, a double whammy that should offset any VAT problems if they are having them. HRMC and Shanta will sort things out equitably this occurs all the time and(that will not kill stockholders).

There is too much profit coming on line to hold this company down over next two years.

Barrick deal sorts out much larger gold production and with $833 AISC the tide is with us.

The hedging is hurting us. I'm in Highland and that is doing well.

IN Investors Chronicle I saw EPS for us raised by 100% that will hit share price hard as will the gold price.
I hate averaging but this is one I would make an exception for within defined risk percentages no more than 10-12% of portfolio.

These Gold stocks are multi year plays and insurance against the financial turbulence to hit. They are highly levered to that price multiples can be made we have to be patient and cautious, however, frustrating it is while this price is hedged.

As the hedges start coming off from all accounts in June then we should start getting the rises from there.
It will be turbulent but if we can ride this cycle we should come out better than those who had no Gold.

All the money printing does is raise our stock's worth.

We may trade around the 10 -12 area for a while but this has to be viewed as a long term buy.

This is a mutibag play when you look at how gold price should start humming with more fed stimulus hitting markets.
Then the Barrick buy, an undemanding forward PE of under 10, opportunities to further add assets and it all comes together nicely. The CEO is not ramping to high heaven and acts responsibly with company well backed.

Looking at chart 16p is a natural intermediate target and twenties after.

This is definitely four to five year play as the whole cycle plays out. Druckenmiller today stated the credit system has been ruined with low and negative interest rates. With $3000 gold (predicted by RBC) this stock flies inside two years.
Much punchier prices are being predicted long term.

Nice that they put the equity raise at the bottom of the pile.

I remember being told on here a month earlier and JD suggested to Justin that they were not needing immediate equity raises. That counteracted Proactive where he had been intimating the need for the equity raise.

Lets keep the feet in both camps. Jeez Louise.

JD has done a lot of very fine things at the start. The problem was the last equity raise he got the spending fever and ramped up to far too fast. He thought this was going to be a cake walk - revenue wise. That has us behind the eight ball.
When posters said we need £10 million for safety they are right.

That would hurt the share price short term but other companies would see we are well capitalised and send their titles to us. I believe that is the way forward could be wrong. We have to show solidity.

Generally in companies such as this you have up to a billion shares. In that sense Draper has head room. That RNS was blatant puffery but it has done its job. They now have to get the funding done and fast and push the fact that the times aid us.

WPP was on CNBC pointing out the importance of esports. The only thing here has been Draper has not converted on the games front.

If we think GFIN is a big win then we are howling at the moon. All that matters are the big boys and we know who they are.
Draper give us a bloody RNS with their names attached and not shiite like this after 6 months ramping to the hills that we have a host of new games coming on board.

Codemasters dropping5 mill may be a bit of a tough ask. But, they do have Mercia heavily behind them.

1.5 mil yearly revs and a 500k burn rate that is the problem. They have come on a ton tech wise but the figures to keep the lights going till revs really kick in are going to be tough.

The fact people have to stay in does aid the model, in a big way. People dropping 60 quid on a game good luck there.
This is the driver that JD with good salesmanship should be hitting hard right now.

What would be nice would be some more games to advertise on... JD said he is aiming for June... so news shortly about 6 weeks time.

Low P/E and high dividend. It ain't no growth monster but there will be some and that should turn things round.

Long term money with Sorrell is about as safe as you are ever gonna get it. He is already building this company out beautifully - if only other Ceo's could put the pieces together like him.

When they catch you parking the Lambo - that could give the game away.

Anyone with half a brain knows this is a binary that is why the extremes on this board get venerated.
Moderates who can see both sides get attacked.

Griffiths knew pretty quick that the CLN was a bloody disaster. It is why he made sure not to repeat that abhorrence.
Draper should be aware of that. I think Mercia may sort this out but as others have said dilution will take place.

Share wise it is from a low base, so with revenues they can deliver quickly. I would agree it may not be seen as positive as last time for obvious reasons. If they have secure financial footing better than not having it - which is also weakening the stock. Draper has to start kicking in something soon...

I don't disagree with your strategy if they start kicking in revs then there will be plenty more and if they don't well you know.