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My preference is that Caracal continue to pay down Mill End. Everyone must remember that the repayment clock starts ticking when the prospectus is issued. Splitting the finance costs out of the equation makes sense to me - I’d rather shares go to HNWs frankly that Mill End. Just my view.

It's a point in time paper valuation Watcher - I can only keep pointing to the current MC of £6M ($7.7M) and the potential.

Rough figures on 24K oz pa production - very conservative POG say $1800 - AISC inflated to $1300 per oz - 24K x $500 = GP $12M (£9.35). Mid range set POG $1950 / AISC $1250 = 24K x $700 = GP $16.8 (£13M).

Now that has discounted any value added activity from a potential JV and no added value from an increase in the MRE. And the largest unknown of all - the market sentiment relating to junior gold miners against a back drop of under valuations in the eyes of many at the moment and who knows where gold might go if the petro dollar is replaced by a gold backed bucket of currencies.

Anyway I am getting ahead of myself - first stops funding / JV and prospectus.

ATB

I'm not convinced that there will be a leak here. Time will tell of course. I think Twitter is giving us all the direction of travel here - the question of timing of course is the big one. I repeat however, in my view time is our friend here -more smelts - more paying down Mill End equals less dilution. Works for me.

ATB

So what is happening at the moment behind the scenes is the most complex rub your tummy and pat your head activity and throw in spinning hoops on both legs and singing an Italian opera all at the same time. Talk about spinning plates - Robbie is no clown but he should be in the circus with all he is managing at the moment from my perspective.

Thanks itsyou.

I think we have all been on a massive learning curve here and that includes the GCAT board and in particular Robbie. We have seen a complete change in comms - dealing in facts and regular progress updates. Mill End was a means to an end - required at the time in extreme circumstances in my personal view when I doubt there were a vast number of alternative options. A necessary evil in my view and Robbie will not want a repeat of the OCIM event. He will have chosen a reputable finance source but terms will be commercial and it’s a tough world out there. We are told things are progressing and remember there has been an independent team on site for due dilligence. Now I’m not an industry professional but my interpretation is that the basics are sound and we are in the final detail stages. I would label resources under the basics heading but what do I know?

ATB

Fair question Apro but I think that the company as we know have been strapped for cash and therefore whilst they have been attacking the high grade zone, they have had the confidence to be able to announce a forward view on production from that area but not enough in fill drills / independent lab analysis (It's all being done in house at the moment) to be able to tissue a JORC compliant announcement. I suspect that once funding is in place that this will be one of the priorities - drill the bejesus out of the area and send of a shed load of samples for analysis and hopefully a nice increase in JORC MRE. Coiled spring again comes to mind on that subject.

ATB

Watcher - not seriously wrong - just in limbo before news

The market might not like them (tweets) in terms of moving the SP north but as an investor I'm loving them personally

Itsyou - I didn't say it wouldn't be published - I said as you quote, maybe we will get to see the plan. If it is definitely going to get published all the better.

You lost me with your last sentence though - what conclusion are you drawing? Could it be that they will be happy based on the existing JORC resource and they see the potential that could be unlocked further by providing funds that will aid the full exploration programme to take place? The new high grades will presumably come into the equation in some shape or form?

Hopefully we will know all or at least more, in the not too distant future.

Your response was better SW - thanks

Watcher - the independent mining plan is something that the funding company will no doubt require as part of it's due diligence - i.e an independent team of experts (they were on site a couple of months ago I think) who will do a drains up on the project to give an independent assurance that Caracal can deliver on the strategy to repay the funding loan. Its like to cover absolutely every aspect from resource / infrastructure / management capability. Maybe we will get to see the plan when the dust has settled and funding secured but I imagine that this is privileged information at the present time. If and when this is produced / we get the funding, there can be little doubt that Caracal are absolutely primed to deliver and it will not just them who are saying this - big money on the line means huge due diligence by independent experts.

Very very positive tweet!

At some point in the not too distant future the believers amongst us will be rewarded and then some.

Purely my view but it is worth putting together all the tweets and the RNS's to map out the journey, direction and intended destination here.

In the meantime there is an opportunity to join in with the show with virtually the same entry price as the HNWI's with the only difference being you will not get invited to the private party afterwards - doesn't mean you will enjoy the show any less though!

ATB

ATB

You have taken us into a much wider and interesting area there Watcher - the entire Stockmarket.

I have to question your statement on the SP being where it deserves to be - I think the SP is reflected by sentiment and confidence and if those are your benchmarks for deserving then it's hard to argue against that. I approach investing with a different mindset - because I look for value that is yet to be reflected in the SP and MC. I am wary of herd mentality and prefer to make my own judgement calls based on knowns / opportunity / potential / commodity / global trends / management etc. So I am making a personal judgement call that this is a hugely undervalued company at the moment due to lack of capitalisation but I believe in the CEO and his drive to get a funding deal over the line and start to focus on the real job here of mining gold. I believe that sentiment will change in time and be reflected in the SP based on deliverables - but the building blocks are already largely in place and importantly with have 1.3M oz JORC resources - we are not purely an exploration company.

Any I suspect we will have to agree to differ on our view here and see how it pans out for us both. Don't get me wrong - I don't like the SP at it's current level but as an investor I know time is my friend here.

Right - time to get back on with life outside of this board.

ATB

Watcher - where do I start?

OK - market never lies - I have no idea what that means - the market is driven by sentiment to a large part and at the moment there are known unknowns and a fear of unknown unknowns. We know that there is a prospectus going through FCA approval - we know that there will be an element of dilution - to what degree we do not know. We have been told that the company have been producing gold - the CEO is not going to put out an official twitter saying that unless it's true. They have stopped tweeting the smelts as it was creating a security risk. They have told bus when the smelting was suspended for maintenance - we have been told smelting has recommenced and there is a good stock pile of high grade material to process. POG has remained above $1900 per oz - we are making money but we don't know how much. We can hope that part of the cash generated is being used to pay down the ME debt - will it be all gone, probably not but time has been a friend and the amount of dilution must have reduced - we just don't know by how much.

The MC is circa £6M - we are a producing gold mine with 1.3M JORC oz - we are in the final stages of getting funding sorted to be able to implement the strategy to increase production to 24K ozpa. We are in serious negotiations with a potential JV partner for TZ.

So where is the CEO lying here exactly and what proof do you have? The SP is not a barometer of truth - it is a barometer of certainty however and that is what is missing at the moment - but that is the risk / reward profile here and why we are currently at a MC of £6M. Everyone will need to ask themselves where the MC will be in 18 times with funding in place / a JV partner on board and increased JORC? That's there potential prize.

I suggest if you want 100% certainty at the moment then GCAT is not for you - but then very few stocks will offer that certainty either against huge potential upsides.

How are shareholders being robbed exactly? Serious question to a serious allegation.

Prove that he is....

It's an easy game to play isn't it - not clever, but easy.

Not sure it's a question of trust but a question of probable prospectus 'price' given the recent RNS on the fund raise. It's not an AIM company by the way and I am not sure that the CEO is even taking a salary at the moment - so much for lifestyle. If you would like to trot out more chat board clichés though we will try and break them down into their component parts and look at them from all angles.

Hi Legalwolf - I really don't have any knowledge about the finer details of how a prospectus works but it makes sense that all pertinent information is included. Of course if there are many wheels still in motion such as the financing that we have seen recently via HNWI's then to my mind it also makes sense for all the moving parts to come to a halt before the prospectus is issued. In the meantime I am hoping for more smelt days and more payments to Mill End - my strong preference is that they are removed from the picture completely although they have or had a large shareholding according to their TR1 and so that might take some time.

Hi Legalwolf - not sure that a delay is going to hurt the shareholders any more than it has already potentially done given the current SP and actually it might be that Robbie is playing a blinder here and using the time passed to be able to repay or reduce the amount owing to Mill End through production. The prospectus will tell all of course but remember the prospectus also starts the clock ticking on when Mill End will need to be repaid and so for my money the longer the better. We are already at or near to the price that the HNWI's are going to be collecting their shares - the only real difference to people buying on the open market now is going to be the warrants and the point I tried to make below was that these individuals are clearly expecting the market capitalisation to be substantially north of where it is now, in 18 months time.

Not sure why all my capitals were replaced with lower case - strange