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Nissan have today announced they are to move vehicle battery production to Sunderland which underlines the importance of the component and technology. Currently their EV batteries are imported from Japan.
https://www.bbc.co.uk/news/business-55757930
I thought it might be prudent to speak to the ultimate oracle about these things. Donald Trump. Being as he is about to get a new phone number I thought I better be quick and call today.
Transcript.
Me- Hi Donald how are you.
DT- I am superb couldn’t be better.
Me- Can you shed some light on what GF means in the Alba RNS.
DT- Yes I can. it is definitely a boom mine. Boom. Boom. Definitely. No doubt. I can honestly tell you that there is over 1.2 tonnes of gold per tonne of material.
Me- 1.2 tonnes?
DT- Yes
Me- Per tonne of material?
DT- Yes definitely.
Me- What do you mean by material? Soil, quartz, concentrate?
DT- Yes all of them.. and floppy.
Me- Floppy?
DT- Yes
Me- Umm. Whats Floppy?
DT- Ask Melania
Me- You do know I am talking about Wales don’t you?
DT- Yes
Me- Not USA
DT- Yes. Are they Democrats?
Me- Ummm no I don’t think so.
DT- Definitely then maybe 1.4 tonne per tonne.
Me- Thanks Don
DT- You welcome and you were very pleased to meet me. Bye.
jphil Thanks for sharing this.
The video is very interesting. It helps make more sense of the RNS and reference to fractions. I can see from this that it is about understanding how the material specific to the location reacts when ground down through the processing plant to ever finer sizes (fractions). It explains that by grinding the material to a very small powder results in a higher yield but is relative to costs of going through that process. Hence the need for the flow process. Its a viability study really to see what the optimum setting is and that is relative to the material at the specific location. Fascinating stuff and further emphasizes that the recovery potential is good at the Alba mines in Wales.
This link is an image from the metallurgist blog. It shows a shaking table (The final gravity process that I referred to earlier as a bed) It isn't necessarily the one Alba are going to use but that is irrelevant for this purpose. The reason I add this is that the image points out what are tailings and what is concentrate. It helps you to understand the RNS a bit easier in terms of the terminology and brings the words to life a little more.
https://www.911metallurgist.com/blog/wp-content/uploads/2016/02/Gemini-Shaking-Table.png
CJM Yes I do agree it would certainly help.
The more times I read this, the more I think that my initial thought on the 20.7g/t was incorrect. I thought that was the concentrate including some gold and some other heavies. Now I am more inclined to believe that the 20.7 g/t could well be the actual gold grade for the sample supplied. If this is the case then I apologise for my misunderstanding from last week and can't help but feel far happier about this.
Elir71. I too wondered what Concentrate1 was. As it says "Concentrate 1 of the Gravity tailings fractions". I would assume that they run the tailings from the gravity bed back through the bed a 2nd time and classify this as Concentrate1. This might extract a small amount of gold. If you think about the testing process. How do you know what 100% unless you can quantify it with a figure.? So I think this bench testing re-feeds the concentrate through the final gravity bed a number of times until no more gold is extracted. At that point they can quantify what 100% was and therefore equate the original feed through to establish their 78%. So if this is correct then I would think that the concentrate they refer to is the initial pass through and then concentrate 1 is the first re-feed of the tailings. This is all assumption based on my logic only.
The RNS says this
“A small amount of bulk sample material was sent by the Company to an independent laboratory for bench-scale testing, in order to validate the process flowsheet which has been designed by the Company for ore having the particular characteristics of Clogau ore. The Company is pleased to report that the bench-scale testing was successful. In particular:
· good gold recoveries were achieved, with 78.06% of the total gold content being captured in the Gravity concentrate plus Concentrate 1 of the Gravity tailings fractions; and
· a gold concentrate was produced, grading 20.7 grams per tonne.
“. .
The link I provided earlier explains this a little it says
“There are some considerations related to the concentration process. Recovery is the percentage of gold in the raw ore collected in the concentrate. For example a recovery of 85% means that 85% of the gold is reported in the concentrate and the remaining part is in the tails. A concentrate grade is the gold content in the concentrate and usually is expressed in grams per tonne (g/t) or ounces per tonne (oz/t). the ratio of concentration is the proportion of the weight of the feed to the weight of the concentrate.”
I am not expert enough to fully understand the RNS report so read these yourself a few times and see what you feel the RNS is saying.
Efficient Gold extraction from quartz vein is an incredibly complex process that is totally bespoke to each and every project. It would be nigh on impossible for the BOD to explain the intricacies in an RNS. This is not alluvial gold. We are not just talking about gravity extraction like you see on the likes of "Gold Rush". So to the untrained ear, myself included, most of the process is very complicated to understand. Take a look at the link below. This gives you an insight into the importance and reasoning of the flow process that needs to be established before any commercial extraction is even considered. These are important things. This technology, science, attention to detail. Whatever you wish to call it is what sets the modern day process that Alba are employing ahead of that that has gone before. This is what will make this mine a success. There is no quick route here and this equipment isn't just plug and play. It is part of a lengthy and intricate process. I understand the frustration of many because of the confusing RNS. Perhaps in this case we would have been better to not have had a little bit of information, however what is done is done. To try to explain further at this stage would only create even more questions. Make coffee, sit back and try and read this to see the scale of the challenge. I hope the link works . https://www.911metallurgist.com/blog/gold-extraction-recovery-processes
Flippin Heck I have the same password, what was the chances of that! :) lol...
It is going to take new investors to move the share price substantially. That will need the involvement of high end media such as the BBC or ITV. Once the world gets to know about the Royal Gold then we may see the price move. It is only a matter of time before TV runs the story. In the meantime its a waiting game.
Todays RNS (21/12) is a good positive one. Manage your expectations though. I am not sure what impact this will have on the share price. My guess based on my own simple logic is that it will be minimal. Why? because as I mentioned before I believe it will take public awareness for the share to move in the way many investors hope it will. That will come in time. This is all very positive, I just wanted to try to manage my own and maybe your expectations before the market opens today. Who knows I may be wrong. If nothing else we are all good at speculating. Have a great Christmas and stay safe. RG
Yes , I have a few million shares.
Clogau Gold is unique, It attracts a premium because of its heritage. This company can be swept along with that providing they are ready and able to handle it as can the share price. It is a unique opportunity. If they do find the Gold and they do start to extract it then their success is very much in their own hands. Their financial base is now strengthened in the short term, their team is strengthened with vast expertise and no doubt a joint venture will be part of the package. They need to be ready and they need to be solid. Everything that is being put in place now. You can’t build a house without a foundation. This is all without Greenland etc which truly is the icing on the cake. For me I look at this share as one that has a lot more potential to go up than down. You know what the worst is you can lose. Half a penny a share. Yes that would be a big “Ouch” to us all however the opposite direction, as with all shares, is unlimited.
After 40+ years in business I have learned a thing or two along the way and can see past a lot of the smoke screens that are often present. Many times in business things are not what they appear to be. It is hard to understand and see the warning signs unless you have been there yourself and recognise them. The flip side it equally hard to recognise, the positive laying of a responsible foundation. So far these guys look good to me.
The end! Merry Christmas and stay safe..
They will want a piece of the action, they will want to tell their friends and families they are shareholders of the Gold mine where the Royal gold comes from. In order to reach those people there needs to be publicity and the Royal connection, plus the desperate need for the UK to have something to feel good about after Covid and Brexit means that should a positive press release come it could attract a lot of interest. Then as the share gains momentum and is possibly revalued the big boys may follow, hence the appointment of Elizabeth Henson.
So, in short, logic tells us that for this share to move in price it will need new investors. Let us go back to the company now and the structure that is being put in place in preparation for the future. It all starts to make sense. Think about the reality of what is happening. Alba have sent 36 tonnes of bulk sampling away. Remember that at least 8 tonnes of this are scrapings from the floor. Imagine you are working there and that sample material appears at the mine entrance, you are not going to just let it go by and hope that that it is rich pay. You are going to do what everyone would do and have a mooch. Pull a few chunks out, get a feel for what is there. Then if you see Gold, you know it is time to get ready for what comes next. GF hinted in his VOX interview that two positive things were happening. Good drill results (intersections) indicating an extension to the main loade and he then mentions “We have got some good assays as well coming back” (Vox interview 16.28). Food for thought, does he know something? cont..
We can discuss till the Cows come home about “should they have waited until the share price was higher so they got more for each share or released less”. The fact is that it is done now so we need to move on. The money is in the bank at least. Having a developing company is all well and good, having the best team is all well and good. But if you cannot afford them in the short term you then weaken not only the business model but also the attractiveness of the share ownership. It is called sustainability and is a stumbling block for many progressive businesses. Alba are looking for serious investment. I see people worrying about how that will dilute the existing private investors investment. Stop worrying. Serious investors need to see a serious reason to invest. If big entrepreneurial money comes to Alba it is good news. It says that there is something there worth investing in. The more money that is thrown at Alba’s shares the more they will grow. Money makes money. Lack of money, in business leads to failure. We as private investors should be happy to hold onto the shirt tails and benefit from the ride. It will be a long time before Alba reach a place where income outweighs overhead. If you look at Gold mining as an example (I know it is only part of their portfolio). Even when you have identified a source of rich pay it takes a long time to reach it, extract it, process it, take it to market and see the money hit the bank account. That “long time” still needs funding. So why is the share price stagnant? It isn’t rocket science; you don’t need to be steeped in share dealing experience to work out what is happening here. Share prices are all about peoples desires to hold them or not. That desire is born out of awareness. The daily movements for the most part, when nothing appears to be happening either good or bad with the company, are minimal. It takes news to create significant movement. Add to this that the world does not really know about Alba. So, the limited amount of trading that is taking place now is basically within a limited audience, even taking into consideration the fiddling about by the MM’s. Therefore, it is obvious that the thing which will ignite this share will be new money. That can be from serious investment as mentioned earlier or more public awareness. Once the world gets to hear about Alba people will want a part of it. I hear people saying that we should focus on Greenland and not so much on the Gold mining in Wales. That is their opinion and is very valid, but Greenland doesn’t have the news value today as much as the activity in Wales does. Once the news breaks to the general public about Wales I think we will see a rush of what they call in the states the “Mom and Pop” investors. These are the small investors who dabble in the markets, small numbers in terms of £££ per investor but large in terms of quantity.
This is my first post as you will see from the number alongside. It’s a long one so grab a coffee! I will post it over 3 or 4 parts to fit it in so please wait for all of them. No doubt many will disagree with what I say here. That is fine we are all equally entitled to our own opinions and as such they are all valid. Excuse my punctuation and poor grammar. I should have paid more attention at school!
I have followed Alba for some time. I am not an expert at share dealing. I am just a businessman following a local interest.
I would like to share my opinions as I probably look at this whole opportunity differently to many. I live near to the Welsh mines so came across Alba as part of a local interest more than anything. I had never heard of them despite having dealt in other shares and lurked around these boards for some time. So here are my Pearls of wisdom, for what they are worth.
The first thing to remember with any company is that their number one priority is the day to day running of their main business activity, no matter if they mine for Gold, sell garments, build houses and so on. Having shareholders is a pain in the back side because you feel you are constantly being watched. Quite rightly so, we as investors should be able to observe where our hard-earned money goes and the board of directors have a duty to keep us informed. It is a necessary obligation and goes with the territory. Sadly that doesn’t always happen. This is my first point, whilst exploration and development of mineral assets is priority to Alba, in comparison to many other AIM companies I have followed they do communicate well with their investors.
I recently pulled out of another investment. A billion-pound turnover company who’s board of directors were the complete opposite to Alba. They were experts at what they did, they could sell their products well and grow their business, but they were a mess when it came to compliance, investor relations and infrastructure. Alba are much smaller but you can see from the recent actions that they are forming a very solid and responsible foundation. There appears to be a reason for this. Maybe because they know it will be needed in the not so distant future. You can take a small business only so far before you must change. You must learn to delegate and must create a solid and responsible foundation. This is why Alba raised funds and is why Alba are strengthening their team.
You might say why did they have a share placement when they did, only to raise £1.2m? There may be some mileage in the Mates rates theory, we will never know. More likely they wanted the money because they needed the money and wanted a broader financial base. That, I see as a responsible move. Maybe they could have done it in a better way, but no matter what, existing shareholders would not like it whether they knew about it before hand or not. cont......