Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
Punter yes that comment was historic I think, basically declaring the end of the US/Western financial empire. Gold will certainly be a cornerstone of their new economic system. I'm unsure how western stock markets will fare in the transition (e.g. will investors in gold companies be able to redeem that value of will stock markets close, capital gains tax cancel out gains, etc), but I think anyone in the west is insane not to have some exposure to gold.
Seingred conserving cash will do nothing for them, they are a mining company with tiny margins on their current silver mines and after the Jerritt Canyon debaucle, little prospects to improve their margins. So, they can either pray for silver prices to go through the roof or they need to acquire some assets that will ensure the future of their business now. Shareholders will not tolerate them sitting on their hands, conserving cash, whilst they are bleeding their current reserves. They will absolutely be looking at assets that they can acquire cheaply that will provide them with a reasonable path to grow production and reserves. Condor is a no-brainer for them, they are a shareholder so they are already familiar with our assets, know the management and have done due diligence on the company. Whether or not they end up buying our asset it makes perfect sense for them to take part in the process. I suspect they are one of the companies that have signed an NDA.
https://seekingalpha.com/article/4582989-first-majestic-silvers-financial-health-deteriorating-rapidly
"First Majestic acquired the Jerritt Canyon Gold Mine from Sprott Mining Inc. on April 30, 2021, at a price tag of $470 million (in shares of First Majestic), and it has proven to be a costly, highly dilutive acquisition with few benefits.
For full-year 2022, Jerritt Canyon produced gold at an AISC of $2,865oz, which is simply not profitable or sustainable with gold at $1,800/oz. While costs came down slightly in Q4 2022, this is well above the company’s 2023 guidance, which called for costs to fall between $1,733 - $1,842/oz."
They should have bought condor for $100m and built the mine for another hundy mil, they'd be producing 100k+ oz per year at under $1000 per oz AISC.
Seingred you're talking about a mining company! First majestic make barely any margin on their silver production (~$2 per ounce!). They desperately need some decent high grade, low cost resources that can generate positive cash flow asap, or they could be in real trouble. Personally I think they'll be taking a very close look at our assets right about now...
Calibre have done well, but they're in no position to buy our asset nor would they want to concentrate assets in one jurisdiction like that I would expect. However buys our asset is committed to building the mine to create jobs for the locals and providing the government with the tax revenue from an operating mine. I have to admit I was surprised no toll milling was agreed, it seems that calibre were not interested after progressing discussions to the point where Condor submitted a toll milling proposal to calibre. Playing games most likely. In any case, it looks like we don't need calibre so good luck to them, their success is good for Nicaragua and good for Condor.
Woah that's bad news. FR down 25% already to under CAD$8. Glad I didn't continue to hold FR and sold at $12 back in December!
If only they had a low cost, high grade gold resource that they could develop to produce 150oz+ per year...
Volume has fallen off a cliff, I'd expect some churn and for it to drift lower as traders take profits. The word is still not out yet. We need confirmation of a binding offer and price, when that comes (which could be any time in the next few months) then the herd will pile in IMO as it will mean literal free money from these levels. Until then, normal service has resumed!
https://www.youtube.com/watch?v=b0_oG3LlnjI
From 14:05:
"I was recently talking to a very large Chinese company, originally gold but expanded into other metals. They will deal with Canadian and US companies, provided their asset is not in the western world. Anyone in Latin America, Africa, etc they are happy to do strategic investments and acquisitions. But if you've got an asset in the western world, the Chinese will no longer touch you."
Very interesting comments from Mario Stifano, CEO of Galantas Gold and Chairman of Dore Copper. One wonders what geopolitical games might be being played regarding our asset sale. Are western governments happy to let the Chinese acquire our asset? If not, what shenanigans might they have in store? Best case scenario for us would be a bidding war between a large western miner and a large chinese miner, but hopefully we're small enough not to make any big waves and bring any unwanted western government attention...
Simms, quite frankly, interest rates should never been anywhere near zero so **** them, this is their mess. Gold flying is the natural response to bureaucratic corruption and incompetence - something that it appears no western nation has any perceivable shortage of at the moment.
I think ELs comment earlier regarding the raise being an emergency due to finance falling through due to the sanctions in October is right. Consider Jim's position, having sunk a lot of time and money into Condor, finally about to start the build only to have it all wrecked due to the US getting aggressive. I think at that point he said sod it, I want an exit, so the decision was made to sell given the project was derisked and gold price was decent.
If that's true, then any outcome here must result in cash being returned to shareholders given Jim's majority shareholding. I doubt he wants any additional complications that may result in anything other than a special dividend, hence why mark was explicitly saying it in the interviews a few months back.
I think this is the final straight people, the condor journey ends very soon! Let's make it a great finish!
Interesting trading action today. There having been 6 ~100k trades and 7 ~50k trades that look like a larger order being filled. Given that the price has been rising I would guess it's a large buy. Perhaps that's what's holding us back from breaking through 22p?
Simms we should be 40p+ right now given the last RNS. Condor is very likely about to be sold (or at least it's main asset is), with a current NPV of $400m+. The market has always undervalued Condor for whatever reason. I would absolutely love it if they did sell for $150m+ given they've been valued around £30m for the majority of it's existence. The market has been useless.
Went ahead and purchased level 2 for the month! Not used it before so not overly familiar with it, but it doesn't make much sense to me! Every order on the order book is size 5000 which doesn't seem right?! Plus, trades are occurring that the order book does not seem to be reflecting. Am I being dumb or is the LSE level 2 data not correct?!