Member Info for Jeremiah99

Debts/recessions cause the gold price when govts print money to bail out every man and his dog and then try to stimulate the economy by kick-starting job creating projects. Otherwise any downturn would create unemployment and cause people to spend less and save more, where possible. The gold price (in GBP at least) would slump if there was no monetary stimulation. As I heard mentioned yesterday, a no deal Brexit will cause far more long term harm to the UK economy than Covid ever will. Quite a sobering thought.

Clicking? SS playing Russian roulette?

Maybe, if we are we doing a 10:1 share consolidation?

"At Gwynfynydd, production last took place between 1991 and 1999, when 10,000 tonnes of ore was extracted annually from a total estimated resource base of 180,000 tonnes."

That works out at around 40 tonnes a day over 5 a day week, not much more than the expected crusher capacity of 3tph. 10kts p.a. ought to give 5000 ozs of gold at a premium price of perhaps over £2k/oz? So revenue of £10m p.a.? I don't know what the profit margin may be but at £1k/oz at a p/e ratio of say 15x that should add about 1.5p to the s/p for that mine alone. All just my own guesstimates though, not to be taken as firm investment advice.

Will they continue to drill through the cold season? The last BoD never did but perhaps they were only operating in the high country at M2 where conditions were more harsh and inhospitable?

If anyone more in the loop than we are would want our shares, that obviously means they're worth hanging on to...

I would guess that we'd be able to charge a reasonable premium for the mined gold but the bigger mark up would be enjoyed the jewellery makers and retailers themselves?

To play Devil's advocate, the low price of gold 30 years ago ought not to have been a hindrance to profitable mining if you factor in the 'royal' premium.

I ruddy hope so f29! :-)

I don't think the market is strange at all. OK mention of tier 1 assets has even appeared in the presentation and management may well be in possession of further good drill results which may point to that but the market hasn't seen them and will want firm numbers. What I find strange is that they can spout on about having tier 1 assets but with nothing to back it up as yet, apart from sporadic areas of high mineralisation. AIM is littered with the remains of over hyped companies that failed to deliver so IMO the market is naturally wary.

Thanks for the presentation link Small_Holding. Good to see mention of cobalt again (p.15 Muswema North) as it had disappeared from drill samples for a long while.

Thanks for that, Daibando. A lovely evocative post. Good memories are like gold dust themselves...

...still an overall average of 17gms/ tonne is not too shoddy.

You mean just seeking out and hacking away at the sparkly bits?

elir71, the big trades are reported late because it takes hours to fill them from all the smaller trades throughout the day. I don't think it's MM games, it's just that they probably don't always hold enough stock to fill every big order straight away, IMO.

I hope admin aren't being misled by nefarious forces into stifling legitimate held opinions...
...or has disputed elections fatigue set in?

@elir71, yes for most of civilised human history gold, silver and copper have been real money. Bank notes were just the promises to return the gold or silver lodged for safe keeping in their vaults. It was only Nixon removing the gold standard that decoupled paper or electronic money from any tangible gold backing it, thus allowing any amount of 'money' to be created, leading to the continuous inflation we have always lived with since. I once read that back in the middle ages you could buy ten hens eggs for a copper penny and 120 years later you could still buy ten hens eggs for a copper penny. True or not, I don't know but that's what the inability to create money out of nowhere ought to result in. Some say we are teetering on the end of the fiat monetary system and that a mew universal currency will be required, made up of various currencies including gold. That would send gold up overnight to multiples of its present value.

@nookie, I prefer to call it realism and balance. Nothing ever goes smoothly especially on AIM where 90%+ of companies crash and burn. So best to look at all angles of an investment and try not to fall into the trap of expecting everything to turn out hunky dory just because we want it to.

elir71, I don't see how you can extrapolate the future s/p simply from the average grade of gold found. There are other variables in play such as number of ozs they find or decide to release to the market, also the prevailing gold price will vary from heading back down to perhaps below $1500/oz (efficient vaccine rolled out, Covid all but forgotten but some residual deflation remaining in the monetary system) to $3000/oz+ (basically the opposite - vaccines prove ineffective, Covid mutates to a more virulent form, mega money printing continues unabated)

Only the traders will be squealing, lths who still have belief (and spare cash) will be topping up.