Member Info for leapfrog

Decided to risk £6600 to see what happens assuming I can buy within the spread

Occasionally I get things wrong but one thing I have not been Wrong about is the sp and the resource base. The continued rise in the sp has put a stop to my 'trade raiding' to increase holdings. There are better more volatile shares elsewhere for trading,this one in my view is now a hold until a target of circa 60p is reached -expected once production starts. For the short term I think 20p has gone as we now approach 30p I expect some profit taking may well bring the sp back to the mid 22p range although I don't think there will be a shortage of buyers. As the MKTCAP approaches £30 mill., remember the gold resource is worth around $350million if compared with some recent Aussie deals. Copper resource is being expanded as we speak as are both gold and silver-silver last resourced at 22million ounces. Make yer own minds up.

I agree your numbers for the FF although others give it as high as 95 million.so it's make your own mind up.

TBH I think almost ,almost everyone is in agreement with your reasoning for entry and an ISA is the best place for them in view of the shares potential. ATB

I expect production to be started by the end of the year.

Must be another swear word

Must be another swear word

Perhaps put a comma in between?

GEO knows the availability of its resources plus the where of what it expects to find, it is not drilling in the dark,it is drilling to confirm and validate the extent of previously recorded high resource information produced by the Russians years ago.

In my view gold has to be included. There are available a minimum 7.1 million ounces accounting for a value of circa $30 per ounce as a resource but as an alluvial mined product a net margin is attributable around $600 p o, either way the resource should be included in any valuation The second production agreement under discussion concerns gold. I don't see the sp doing very much this week as it has moved at a steady pace.

As I said I don't know how the split works because of the comments concerning building a stand alone mine. I do know that cost values resource curves can vary tremendously. Russian info shows resources are far greater than we have been informed look at the April RNS for further info-16 metres at 15.4% etc., gold is decent as well. A 50mt throughput is 50 years of production throughput on the existing deal. If the oft repeated company target is to become a major European producer I e blue chip that has to indicate a prospective value of $5 billion-in order to even sniff that the other dozen ares within the Russian reports must produce another 700mt resource minimum . I also think an nam of 25% is too low by a long way as there is no major capex payback. You also have not included gold and that has to be lifted before the copper. It is a wait and see for the production date and information on the expected 0/P I like the stock and am OK with thinking the sp will stack up towards 60p once mining starts. I don't think the IIs would even consider getting involved for a few mill MKTCAP co.,the blue chip potential is what they would be looking at. ATB

I don't think you can make any more of a comparison against peers by supposition of resource values as each company has numerous differentials in extraction costs,production, problems, recovery depth etc., We have two products copper and gold going into production roughly at the same time. The throughput being negotiated at JORC OPTIMAL in pit is a million tons a year Cu at 1.03 @ cutoff .04 A second contract is being negotiated for gold throughout. So for arguments sake if the target of a mt is met @1% That's 10000 tons at a price of �4800 pt.thats circa �48 million Stirling add in gold at ? Guess because of varying info. �12/�20 million.Call total income ballpark 60pps The throughput is going to be circa 80,000 tons per month,so income from month one,once that is known the sp should move. GEO will be getting a10% project mngment., fee plus they own various other process companies within GEO. JV get a tolling fee. We can make assumptions about the split If we are paying Toll and they are paying us management fee- how/when is it paid or how I don't know. Behind the copper resource value is GEO resource 7.1 million ounces of gold increasing. It has a value of circa $50 per resource oz., call it value at $30 on the resource value curve add that into resource value Behind that is an increasing resource of 22million ounces of silver, one of the April updates mentions Ag.plus barite and other resources. So putting everything together I think 60p is under value. Assumptions made.

Thanx quick check shows it is a very difficult situation,what to do is correct.!

Came across this one by accident,appears to be on a rapid path to production so what is the expected outcome in terms of total capex for the mining processing crushed product to point of delivery,is it FOB or collect? Is it known what the income roll is expected to be. I always like small numbers for the SII as demand tends to sqeeze the sp higher last Feb the free float was given as 80 million shares just over half the SII. Any info., would be useful.

Should be fantasy .

I have decent holding here for what I would call the 'Term' Plus have 'trade raided' the stock on many occasions leaving in the increased profit to build holdings. Right now the sp appears to have changed its concensus to a tight holding pattern as more and more investors come aboard so I have ceased trading it. I have high odds on expectations of a decent sp movement once mining announced,a quandary is if the sp hits 60p target in quick time do I sell or wait for a multi � sp, the wait would be based more on resource news towards 50mt alongside the news of the second stand alone mine and its Stated O/P where then does the sp go. To begin with It is difficult to get head around the possibility that 50mt if confirmed is worth 50 years output at a minimum of $60 million p a.at prices dated 6 months ago with so few shares in issue. For the moment fantasy until. . . . production

Not sure about that as the resources of 3.2mt are enough for three years profitable non capex production through partners mine? Meaning a minimum $200million plus before expenses to our bottom line what does that do for the sp with our MKTCAP at �24mill with just 114 SII ?

should read -last 4 RNS.

The price is steady in its forward progress so it looks as if recognition is being given to its phenomenal figures as the toast 4RNS indicate. Not for me to say but it looks like a decent time to start getting involved ?

There is insufficient information to make decent assessment of the time scale involved, information of the deeper drilling will give us a better ides although we are waiting news on the integration of a further 28 holes due to be released in the coming weeks rather than months The 50Mt resource definition will take at least 6 months probably a year or more -it is not a short term target. If consideration is given to the strategy of becoming a major producer rather than a take out target for majors it may mean a gradual build up of resource info release to enable the sp to build on its own expectations(concensus ) combined with an income once mining/ processing started of a minimum $60 million p a probably nearer a $ 100million including gold at rising prices.60p/70pps Such an income is at least 3times today's MKTCAP.without any PE considerations. The above figures can be checked and worked out from RNS info., Although we ain't started mining yet !