Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Nitrox - In true GRL timeline fashion, nope nothing more from Emma a week on from her saying she would send a "comprehensive reply tomorrow". Comprehensive in her view is clearly...nothing. Shows the utter contempt this company have for shareholders, comms have and I fear always will be dire.
Xieger - Totally agree, the BOD have to come clean here now, they have used every excuse in the book. As you say, the last one being weather. I would like to see a realistic target but also some plausible rationale behind that number. God forbit they just try to sneak another cut into an interims RNS I think I will blow my top.
With the volume of gold GRL currently produce, I can’t imagine they will be subject to the full 20% that the likes of Anglo Ashanti do.
“ Community mining schemes and licensed small-scale miners will also have to sell gold to the government, Bawumia said, without specifying how much of their reserves would be affected.”
Would think GRL fall under small scale miner.
Buying at spot, so only risk really is the FX volatility on Cedi vs GBP but that’s on a small portion of gold.
Can’t see this ever being an issue tbh
I sent a couple of emails to Emma directly. The second being:
Good Morning,
I was hoping the company would please acknowledge and provide a response to my previous email, as we approach seven weeks from the company's statement on 30th September of:
GoldStone has also undertaken grade control drilling for the third pit within the Homase Mine to determine the pit planning and to potentially expand the mineable resource inventory. The results of the drilling have been received and the modelling of this third pit is currently underway a press release on this will follow in the next few weeks."
It would also be appreciated if the company could provide comment on their perception of the over 50% share price drop year to date, as a shareholder, the shortcomings of this company are concerning. Not least, the drop in production target from 20koz to 7koz.
Regards,
Her response:
Dear J
I will write you a more comprehensive reply tomorrow.
We have been at site and are restructuring the team on the ground.
Much going on and will be reporting soon
Emma
Sent from my iPhone
Have to say, the longer the radio silence goes on, the worse I think the next update will be. If they were making good progress on gold production you’d make it known given the cut to 7koz
7koz for 2022 with another excuse given to us and a Placing are my guesses for next update.
Where is all the stuff they said would be a few weeks away in the interims? It’ll be 2 months on Friday!!
Whoever has stumped up the cash will have know, just like we did, the company was literally in a placing or bust situation.
Regardless of what the asset values are, you’d of course drive a mega discount to improve your return / reduce downside risk (latter more likely with NCCL)
Scott Fletcher then says “yes please” I’ll average down.
He’s literally the only thing that provides a sliver of hope. He’s got 20% of the Co and keeps adding in. Either he’s just looking to buy a solar project like the last one that shareholders get nothing of, or he sees some value….
Oh well….no shock a stupidly discounted placing arrives. That’s a 33% discount which was always going to happen when they announced the company was running on fumes.
When you’re 90% down already a 30% drop is less painful haha.
Warrants attached too so it’s even further dilutive. Pound after pound of value in the solar project being diluted away.
Congrats Hanno - who didn’t even take part in the placing. He is one hell of a crook!
Can’t see it being positive whatever plan they come up with. I personally think they are using Akrokeri to distract from the farcical progress at the Homase operation.
Throwing in a few okay drill results when they can’t even economically extract gold at their current operation just shows everything is a bit of a pipe dream and they like to think they can run but can barely crawl never mind walk at the moment.
20k to 14k to sneakily hiding a drop to 7k production target in 2022 is a complete joke!
Yes key point Harchris. Also noting There’s 19.8m in “financial” trade and other receivables as of end June which are classed as current, so due in 15-90 days.
There’s also 44m in inventories, so if demand is there, nothing to say some of that could be used to front run any production shortfall if the load shedding continues.
They just need to get that net debt number down IMO to remove the “headline” shock it causes for people reading the financial statements.
Remove the uncertainties around Orion CLN and production consistency and BMN are on a better track.
Add in BE carve out, VRFB wider uptake globally and hopefully a stronger SP(caveat the last two of these are not a given) and it’s another strong leg up in the business turning things around.
A long way to go but there is light
The Orion CLN debt is chunky no doubt about it. However, when you look at the loss after tax for H12022 of 3.2m that includes depreciation of 9.5m.
So there is cash being generated, and with the major capex out of the way that will most likely be earmarked to pay off debt.
If they can keep production up and V prices stay stable, with the electrolyte plant coming online H1 2023 you can see some light at the end of the tunnel.
Net debt of 74m is no doubt a huge reason for the drag on the SP, so Bushveld and FM now need to prove those funds have been put to good use and the output of that is sufficient enough to start reducing that.
Hopefully some strong H2 numbers will bolster the cash balances!
Tend to agree that the delays in FS isn’t NCM games. It’s in everyone’s best interests to get Havieron into production.
The 5% and funding now out of the way and SD has well and truly stood up to SB who knows the quality of company he is dealing with in GGP.
IMO the fact they state maximising value for the delay actually confirms just how good this last set of drill results are. They have caused NCM to revisit the FS!
Disagree Rover. They explicitly said they have the drill results from the third Homase pit. Why would you tell shareholders, especially when you have form of not delivering on time (and been called out for it) that details would be given in a timeframe, to then miss your own bloody deadline!
The comms of this business are terrible and frankly insulting to PIs.
Yes they’ve done well to become producers but they hide failure after failure in their wider reports rather than coming clean.
CAse in point being at the AGM Bill Trew explicitly said 14koz was still on track for 2022 production. To then sneakily hide a drop to 7koz in the interims (all this from 20koz earlier in the year).
It’s shambolic
Stated in the interims 3 weeks ago....and of course nothing materialised form the company.
"GoldStone continues to focus on resource expansion, and subsequent conversion to mineable resources requiring additional geotechnical drilling which has been undertaken within the first two pits, which subject to the results and subsequent permitting, The results from the geotechnical drilling have been received from ALS Certified Laboratory and analysis and modelling are currently being undertaken and will be announced shortly by the Company."
"GoldStone has also undertaken grade control drilling for the third pit within the Homase Mine to determine the pit planning and to potentially expand the mineable resource inventory. The results of the drilling have been received and the modelling of this third pit is currently underway a press release on this will follow in the next few weeks."
Comms really are pi*s poor!
Coal at $390 per tonne currently would make this a very attractive resource for a miner….have to agree at £4m mcap any deal here would see significant upside.
As with everything NCCL though, this is reliant on them actually getting something over the line!
Fully agree PL75. I reckon some desk jockey has got wind of a placing without any context of the wider deal. Equity raise facilitates the CB which was to buy a profitable business. The cretins didn’t expect that but IMO.
Funded P1b whilst also taking on a profitable business that will provide funds to pay back the principal and interest on the bond. Most importantly, the payback method (cash or shares) is on Avactas terms.
I sincerely hope these bottom feeders have overdone it on leveraged CFD shorts on placing rumour and they get stopped out at maximum pain in the not too distant future.
AS really starting to show he has a plan, ambition and the ability to execute!
Yeah I had a bit of a moment when I first saw the CB monitored but reading the ‘at the company’s option’ in that sentence below gave me full confidence this was astute business from Avacta.
“offering of convertible bonds of £55 million in aggregate principal amount with an issue price of 95 per cent. of the principal amount (resulting in gross cash proceeds of £52.25m) to be issued by its wholly-owned subsidiary Addition Finance (Jersey) Limited, with 6.5 per cent. per annum coupon (payable quarterly in cash or shares at the Company's option) and an initial 25 per cent. conversion premium to the Offer Price, with a 5 year term (the "Convertible Bonds" and the "Convertible Bond Offering").”
amg97 I’m pretty confident that the bond won’t be fully converted to shares so you would expect much less dilution. They’ve bought a revenue generating and profitable business, which from day 1 will provide cash flow.
Over the next 5 years there is no way it would not provide sufficient cash to pay down the bond and interest.
Choice of how to pay is Avactas and simply provides flexibility to hedge against any unforeseen issues/slow growth without impacting the balance sheet which will be needed to fund the main prize AVA6000 and 3996
Agreed Ctw - the expectation of an RNS the day after close date for EOIs is ridiculous. If there had of been an RNS it would be to say “no EOIs received by 30 sept” so in that regard I see it as good news and the BOD are assessing what option(s) on the table are best for the company.