Member Info for Jerryspaniel

Qalibashi and others, do FN take equity stakes in miners? Thought it was just NSRs?

I too think that would be an excellent initial MRE. Would certainly raise the floor of the sp and give some instos some more evidence to base their investment decisions. We know that the first MRE is often quite conservative and will rise through time. It also confirms the Numis reports and everything would come together rather nicely. My only regret is that whatever is in the SW wont be included, which is where the icing on the cake could be.
It wont satisfy those that want 60p by July, but then I hope these guys will have gone with a few more shakeouts.

For this share to move higher it needs fresh, new buyers, and a lot of them. This might be when the pfs comes or could be today, who knows. Otherwise we will continue to be in the grip of the st traders who constantly sell the rallies and buy back on dips. When we break out, I suspect it will be a sharp rally, but I have no idea when that will be - and nor does anyone else!

CD. Thought he said by end of third quarter Today?

Eliza said that they were going to do more of these so she is true to her word.
One question I will try and send in is how they intend to fund any further exploration given that they appear to be out of cash, other than that for the pfs.

Solgold doing another one this Thursday with Bruce tatters

Taking all the measured, inferred and indicated and copper and silver, and assuming no debt, I calculate that to be about $200 per au eq oz. Thats for Turkey! Seems a lot, but thats fine by me.

L2 he didnt say pounds, he specifically said dollars just a couple of mins in. He then chose not to mention the currency when comparing mkt cap to NPV, just saying 3 billion and 600 million. At 24p they could both be dollars. At 30p one is sterling and the other is dollars. I dont think its intentional but he doesnt make things clear.

AK Gold, everytime you say something, you just show how much you dont know! FN arent a smelter they are effectively a banker, via NSR deals.
The price of the share has nothing to do with any kind of comparison. Maybe try the mkt cap in common currency to start with.
If you are completely clueless, try reading rather than posting.

Mrshoubs, yes that is a commonly held belief. The trouble is that most smelters don’t have the flexibility that the traders have. The smelters might have one or two plants in the world that they manage, they might only want to deal in their home currency, can’t offer long term finance and don’t have the capability to offer complex instruments and hedging tools. They are definitely more savvy than they used to be, but that just makes the traders become more creative in coming up with solutions. A combination of many types of sales outlets would probably suit Solgold best, but I suspect the traders will do more business than the end user smelters.

Mrshoubs. Not exactly. The traders would probably buy the copper concentrate, rich in Au and sell it to various smelters around the world. Solgold wont produce the refined metal, just the concentrate. Hope that clarifies things.

Quady, no problem. I should be able to answer most questions re the working of the n-f metals markets and futures as did trade metals (aluminium) for quite a few years, albeit some time ago. Some things have changed but the basics haven’t.
The oil market is a slightly special case in that it can only be stored in very specialised storage facilities even if that is a tanker from time to time. I guess frozen concentrated orange juice is similar, and maybe grains, in that they need silos. But non precious metals just need a fairly secure large shed (warehouse). If you want to buy from, or deliver to, LME or Comex, it has to be an approved warehouse, but in theory if you are doing it off market, it doesn’t have to be approved.

I don’t think it’s changed much since I traded but I am happy to be corrected if it has. So if a person want to deliver metal against their short position that becomes spot, they have to already have it in an approved warehouse. They hold a warrant for that metal and through the clearing house they pass the warrant to the person who is long the contract in exchange for payment.

Morning quady. That’s not really how the metals markets work. The seller who delivers the metal to the person long the futures contract will need to have it in an approved warehouse. There is no shortage of space or warehouses willing to accept the metal and thus pay rent to the warehouse owner.
That’s not to say that the collapse in demand for oil won’t be mirrored in copper, the industrial bell weather. That sort of happened a couple of months ago when futures went from 2.63 to below 2. But its had a strong bounce back to 2.42 since then.
What I do find slightly odd is that NM, when talking about commodity prices often refers to the strong spot au price, but is content to ignore the fact that copper is nowhere near his base assumption of 3.30! Either you use your base assumptions or you use spot less a discount, not the higher of the two!

I have no idea Quady whether there will be a glut of copper - or any other metal, but its nothing like oil. For oil you need specialist storage tanks. For n-f metals you just need an approved warehouse. The warehouses of Rotterdam and Shanghai can store millions of tons of copper, and there are many many more places like these two, so I can assure you that no n-f metal will trade anything remotely like oil.

Do we know the value attributed to the gold in the ground? Net Debt plus equity divided by ounces.

Hello Zoros, welcome.
1. GGP is Australian based, quoted in London, so a lot of their advisers are UK based. Dont think they technically have a staffed office in UK.
2. Good question. Seems thats how the junior/major market works. I am sure that NC have an exploration/new business department and they must have done in the 90s when they drilled Havieron. Given that most junior explorers dont find anything, dont make money and only exist as long as shareholders are prepared to fund them, its a good way for the larger companies to mitigate their risk. So the big guys would prefer to let the juniors find something and then they (NC) will back them through farmins or share stakes. Very similar to Solgold, which you know about, and most other successful juniors. This farmin of $65m for 70% has been a great deal for NC (in hindsight) and better than them scattering $65 million all over the world.

Mush, its just the usual noise when there is no imminent news for the traders to buy into. We will need some concerted buying from a lot of instos to get and maintain the higher values. This will come when the lily livered fund managers have something concrete to base their decisions on, probably the MRE. I really dont care where this goes in the next month. Weaker and I may well buy more, a lot more. Stronger and I will just hold and say thanks to the GGP management. Short term movements worry many, but mainly the weak, uniformed, over committed and those st traders. Most of us dont fall into any of those camps so relax.

Caterham, I think its west of Havieron, east of Telfer.

Well I think its definitely been confirmed that Magic is a student. All us oldies sending him warm wishes and thanks and he is still fast asleep in bed!! Wake up Magic......