Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Good posts EL, agree wholeheartedly.
Re gold, very interesting volume in COMEX Jan spot contract recently. Someone is buying the spot contract and taking immediate delivery of 100,000s of ozs, something that basically never happens (futures are for hedging/speculating, not for purchasing physical!). Not surprised to see the paper price bounce, could this finally be the time the gold price takes off?
Exactly EL. It is amazing isn't it, that DDD takes the time to post a calculated valuation and then it gets pushed to the bottom of the page within hours by various typical posters posting their lazy, dumb "everything is s***" messages.
One wonders why they spend so much time posting on this board when all they have to say about Condor is negative?!
cegamer are you suggesting that La India is worthless because "the market" doesn't price the value into our share price? I would suggest that if the BOD sells the asset for $100-$200m dollars and issues a special dividend as Mark has stated then that certainly would make a difference.
£5 away from all time highs in sterling.
Regarding the share price, I think it's more helpful to view it in terms of market cap to remove dilution from the picture. Condor's market cap has ranged between about £60m in 2012 (post stock split) to a low of £8m in Jan 2016, then to a high of £70m in May 2021. We are currently sitting at £30m, with an FS completed showing a highly economic resource, permits received, land bought, mill purchased, etc.
No one is purchasing this company/asset for £30m. I would guess £100m/$120USD would be a minimum but the market has never given Condor's share price a reasonable premium for it's achievements. We actually started a re-rate in 2020 leading to a market cap high of £70m in May 2021, but then as the price of gold dropped it took us down with it and then the sanctions in Oct 22 kicked us whilst we were down. Anyway, 60p+ a share I think is a reasonable base line valuation, then just need to account for warrants/options.
The market hasn't yet woken up to the possibility of a buy out at multiples of current share price (easy 3 bag?), we do need some news regarding progress to wake things up a bit.
EL I would expect that the trades shown on GF should match those appearing on the London Stock Exchange:
https://www.londonstockexchange.com/stock/CNR/condor-gold-plc/trade-recap
So my guess is Google Finance is wrong.
Interesting re Calednonia, an all-share acquisition.
"Now that the transaction has completed, Caledonia will commission its own feasibility study to identify the most appropriate way to commercialise this asset having regard to the availability of funding with the objective of maximising Caledonia's net present value per share. I anticipate the feasibility study will take 12 to 14 months to complete."
So they need to do their own feasibility study, and what about permits? Also:
"The project has NI43-101-compliant proven and probable mineral reserves of 1.96 million ounces of gold in 26.64 million tonnes at a grade of 2.29 grams per ton (g/t) and measured and indicated mineral resources of 2.56 million ounces of gold in 35.18 million tonnes at a grade of 2.26 g/t and inferred mineral resources of 577,000 ounces of gold in 9.48 million tonnes at a grade of 1.89 g/t. The project has produced approximately 288,000 ounces of gold since 1989."
Slightly lower grade than La India but more proven ounces, I'd expect the AISC when they finally complete their FS to be higher than ours.
Still, positive news that acquisitions are occurring in the gold space right now and $65m is a decent price for this deposit. I would still expect La India to fetch more as it has an complete FS and is permitted, among other things. I wouldn't complain if we got an all-share purchase and received Calibre/First Majestic/Rio shares - at least we can sell those into very liquid markets (or hold if preferred) and don't need to worry about the sale proceeds being locked up out of our reach.