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Most people have only heard the stockpile and stopped work on the gold drilling and S**t there pants.
If you listen clearly they are stockpiling at minimal cost but already funded a product that the chinese need to buy as they havent got any but want it cheap so they can produce coking coal for themselves cheaper
the gold is there to be confirmed in both areas but it will be done by the company at there expense and then an upfront payment and jv or royalties to come in when gold amount confirmed
yes no cash coming in yet but the longer the chinese wait the more it will cost them
I see Lubu being bought out or Contango as this is the cheaper option all round to get the coal DYOR Just my opinion also
With proved gold resources they can get $30 an oz in the ground so could ask minimum $54m and walk away or as you say a jv and take a larger profit than a sale through royalties based on some massive companies around with infrastructure more or less in place leaving CGO to go full tilt while the going is good producing met coal and the thermal coal sold to the nearby power station just built by government and Chinese as it will need a close source which is only 35km away
Agree totally on the upside and value here also with the gold as well.
Just for clarification AIM it is 1.6 billon tonnes with a mixture of coking coal and thermal coal just so you don't get pelters especially from those whose also use ADVFN :)
Been at this level for 4 1/2 hours and will stay in this range until next week.
Start your weekend early :)
They never rang to ask me if i wanted in at 10p or i would have lent them a few quid.
So it in @ 23p and take a punt or leave well alone.
I do like a gamble now and then :)
The 1st deal isn’t always the best deal
The gold from a heap leach point of view is cheaper to recover but has between 10-15% less recovery than traditional ways of mining
So if it were me I would look to sell a major stake in the gold field retaining a good percentage and let the big boys do the mining based on the test results they are waiting for
With a lump of cash upfront we can maximise the coking operations and pay a dividend to all directors and shareholders plus leaving money to find the next deal for our portfolio
Just my thoughts