Member Info for shamI89

If I understand him correctly then RRN is diiference between current share price and Nil paid rights, so you can sell these for 39p and pocket the money or alternatively can exercise right to buy shares for 32 and sell it for 71 to pocket 39p difference.Either way it is same , a simple thing he is trying to overcomplicate.

Total yearly interest on debt is roughly about 15 millions, so that leaves company with roughly 30 million yearly profit, however things could change if production increases or price of gold increases.

But look at track-record of this management production was lingering along 11 k ounces per quarter when he took over and he has expanded it to 19 k. Total capacity is 25 k per quarter and company has money to expand production as well as pay off debt.

Before Corona production hit 18/19k mark so corona impacted production so once things get back to normal and lets say company produces 19 k ounces of gold per quarter then at today's price it is looking at 45.6 millions yearly profit.

Watch is marching towards 100p, I had similar views about it when they announced rights issue at 32? at that time share price was 132 so I though that it would drop to 60/70 level .To my surprise it went on to hit 250.Rights issue shares are creating an overhang as market is absorbing sells .

It attracted too much of speculative money , most of them did not have a clue about company and only followed herd. Smart ones sold at peak, others tried to exit when they see it going down and a few got in yesterday to catch up with any upcoming bounce .

Company was breaking even at 14000 ounces per quarter production when gold price was 1300, at that time production was not cinsistent and technical issues were holding production down.A lot has changed since then and right now we are looking at 18/20 k ounces per quarter and that could be increased to 25k. This extra 5/6k ounces can bring extra 4/5 millions per quarter but not only this gold price has also risen to 1900 .Right now interest is taking up big chunk of revenue but despite this company is generating significant cash . New management has turned things around as in the beginning production was lingering along 10/11 k ounces per quarter and it has nearly doubled it.Capacity is 25 k ounces per quarter and company would want to expand this in future as now it has money. In my opinion it can pay off debt in 2/3 years.

But if I chose to exercise them rights then effectively I have only paid 32p for these shares and if I decide to RRN for 50 and buy these in the open market then same thing applies. Total overall cost depends on original price people have paid.

I think you are overcomplicating things, people had option to buy these shares at 32p of they decided to participate in rights issue, so lets say somebody gets 32p shares today and sell them for 83.7 and keep their original holding .Here people have all sort of higher averages but one thing is sure that they had a chance to participate in rights issue and get these for 32p.

What about if somebofy bought these share at 100 and then used them to get 32p rights issue shares.For Arguments sake lets say they bought 300 shares at 100 and used them to get 1000 shares at 32p.Total money they have spent is £620 to get 1300 shares and their average price is less than 50p per share, surely they he/she would be sitting on 60% profit.

It is undervalued,but I am not sure if speculative money has fully exited.Right now I will try to add whatever I can and build up a small holding as an insurance policy as in my opinion gold price would go up and this should follow the rise.

Can you explain the reasoning behind 328 in old money, as share price was 132 when they announced rights at 32, so for every 3 shares you had, you would get 10 rights shares.

I fully expected "herd" and that would give it much needed push, but they have left far too early. Right now company is in best ever shape and could offer some good rewards long-term.

Hard to predict this share is , it is a momentum play in my opinion which can move really quickly.I anticipated that it would be trading at these prices soon after rights were announced but it can be really hard to predict the market sometimes.

Hard to tell, when they announced rights issue at 32p, I thought that share price would be trading somewhere near 50 or closer to 32 but to my surprise share price went on to hit 2.5. Market has known about these 32p shares for quite sometime now.It looks like that 32p shares would be flipped for quick 150% profits so that would create an overhang for sometime but at the same time people would be taking positions as well.I have put in 7k on the basis that if share price can get to 250 when rights issue were announced it can do it again .There is no point in playing guessing games.

Think shares that needed to enter the market have already entered and rights issue shares have been taken up .So right now current overhang has been created by them as first thing they would want to do is flip their 32p shares for 150% profit .

Rights issue and price they were carriedout at were known a month ago but despite that share price rose to 230 and now when they have hit the market it has dropped.I have got 7k worth of these.

Having said that idiotic claims like that lure people in who would want to get out first thing in the morning if promised RNS does not land tomorrow.You had better research it and then invest and see potential.

It can land tomorrow, day after, next week or week after.So there is no point in taking a punt on that basis.

Well, everybody knows about that debt, if somebody does then he should not be investing at all.If that debt was not there then do you really think that a company which can produce up to 25k ounces of gold per quarter be sitting on 65m market capital?