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Bloomberg's morning round-up includes an opinion piece by Javier Blas arguing that the higher-for-longer prospects for gas in Europe just got a bit higher and longer.

Insidious has explained that he is a fan of the film.

Https://www.reuters.com/business/energy/russia-halts-gas-exports-europe-via-ukraine-2025-01-01/

"EU gas deadline"

Leading article on Bloomberg's Evening Briefing.

Current contract expires at 6am CET tomorrow.

120.20p for the forward month of January and prices above 110p all through to next Winter inclusive: the market seems to be anticipating competition for refilling storage this coming Summer.

https://www.ice.com/products/910/UK-Natural-Gas-Futures/data?marketId=5733940

UK natural gas prices hit 118 pence per therm, a three-week high, driven by concerns over disrupted Russian gas flows to Europe via Ukraine. Russian President Vladimir Putin said a new transit deal is unlikely before the current agreement expires this year. Alternative proposals, like redirecting flows through Hungary or Turkey, face logistical hurdles due to Gazprom’s long-term contracts. Ukrainian President Volodymyr Zelenskiy opposes arrangements benefiting Russia during the war. While the affected supply represents 5% of Europe’s demand, losing it would increase reliance on Norwegian pipelines and U.S. liquefied natural gas. With European gas storage below 75%, traders are wary of tighter markets. Additionally, Putin stated that Ukraine’s lawsuit over unpaid transit fees must be dropped for any agreement to proceed. The UK, with limited storage, relies heavily on European infrastructure, making it particularly vulnerable to potential supply disruptions.

https://tradingeconomics.com/commodity/uk-natural-gas

Re my figure of £6m for revenue from the ongoing extraction of 400 tonnes of ore.

I consider this figure to be based on conservative assumptions so hope it will be exceeded.

1/ the gold content of the targeted blasting at Level 5 could produce higher grades than the average of the samples taken from the background gold population at Level 4 (3.59 oz/t; RNS of 26/03):

in this respect, the recent RNS of 11/12 informed us:

“… The high level of sulphide mineralisation within the projected payshoot considered good indicator of associated gold mineralisation.

· Visible gold also identified within blasted ore”;

2/ a mark-up of 100% for the production and marketing of gold products does little more than acknowledge there will be a mark-up: it is too early to determine its magnitude with any precision at the present time:

certainly, in the past, auctions of Clogau gold have given rise to premiums well in excess of 100%. And the 3 1-ounce coins will be the first gold produced from the mine in a generation.

BBC site's leading article: "Denmark boosts Greenland defence after Trump repeats desire for US control"

https://www.bbc.co.uk/news/articles/ckgzl19n9eko

PS: I've checked: the RNS announcing the appointment of Kobus Byleveldt as Mine & Operations Manager at Clogau was dated 31/05. Obviously, the costs associated with his membership of the team are not in the interim figures.

PPS: it was almost exactly a year ago to the day, on 22/12/23, that Alba announced NRW's permits enabling the dewatering of the Lower Llechfraith workings.

JSP123,

Agreed, the figures I have calculated are for sales and cash flow.

But Alba's interim figures show that their costs are low so it won't take much sales and cash flow to have a significant impact on the financial statements.

Alba have always maintained strict control of their outgoings.

Consequently, almost any cash flow generated by their blasting programme will have an immediate impact on their financial statements.

No. Think they used the term exit strategy in relation to the projects for which they have acquired options, so any exit strategy is quite some way off in the future.

In the 1st 6 months of this financial year, Alba made a loss £639k including £150k for its share of GROC's loss.

At the current GBP spot gold price of £2,080.61, £639,000 is equivalent to 307 ounces. If we assume a mark-up of 100% on the production and marketing of gold products, then £639,000 is equivalent to 153.5 ounces.

Not only is Alba on the cusp of becoming a revenue-generator, but it is also on the cusp of becoming a profit-maker (all imho).

Long way to go yet, imho.

This is now the leading article on Bloomberg's home page.

Https://www.reuters.com/business/energy/russian-gas-sales-europe-are-complicated-kremlin-says-after-putin-fico-talks-2024-12-23/

Https://www.dailymail.co.uk/news/article-14220717/Trump-says-wants-buy-Greenland-protect-national-security-freedom.html

PS: maybe, at the time of the old-timers, attention was largely focused on locating bonanza grades. Whereas today, as GF has explained, the price of gold (in GBP, £2,085.20 at Friday's close) means bonanza grades, although most welcome, are not necessary to the economics of the mine.

Jeremiah99,

"Clogau Gold Mine Update - Exceptionally High Gold Grades Confirmed of up to 4.30 oz/t" (RNS of 26/03).

The RNS was prominent enough at the time. The first placing RNS of the year followed it 2 days later, the first acquired option of the year (lithium project in West Pilbara) followed it a month later (RNS of 24/04).

Note:

my calculated revenue figure of £6m builds in a mark-up of 100% for the production and marketing of gold products.

1/ It is NOT an annual estimation because it simply relates to the 400 tonnes of ore currently being extracted. An annual estimation would be significantly higher.

2/ It makes no allowance for grades being higher (or lower) than the average grade of the samples of the background gold population at Level 4.