Member Info for Sher-Lock

Brel - you hit the point! Any proposals to solve these issues are unaddressed by the management. Therefore any share price spike invites long term holders to lighten up. Why to block capital in a story which goes sideways for years. The NAV is one thing, but more importantly the share price has to move accordingly. We can hope, the shares get some more attraction by "Robinhooders" and the company could issue more shares to make it more liquid in trading.

There is always a small amount of free tradable shares in weak hands. They jump on the train, and as soon the price action comes to an end, they sell out again their holdings. What is missing a continuation of building up major shareholders with stakes of more than three per cent - would cost shy of 90K £. The communication to shareholders could be better managed to attract more interest in the stock. The last few failed Proactive interviews was a mess, and we can question if this is the right path to reach out to new investors. Hang on a bit more, probably not the worst thing to do. We are all in the same boat, would prefer to see 10 Pence or more to take out the weak holders.

If everything goes well with the involved investment banks, Cerrado will be listed via the reverse take-over of BB1 Acquisition in December. Currently, the deal is marketed by a few brokers to raise 25 million Canadian dollars. Another part of the level 3 investments will move to level 1 and with that size, a liquid investment. It just takes time!

The adjustment in CAP Energy from 200 to 80 pence was alone a negative 2.05 pence. With the bounce in oil shares and better prospects in 2021 for the oil industry - the valuation should move higher again. Oil shares bounced between 40 to 60 per cent recently; therefore, CAP should catch up in value if they would raise fresh capital. The problem is the impatience of investors buying into MAFL. Where is the difference if the NAV is 15.5 pence and the share trades at 8 or 9 pence? The discount to NAV is just wider - nothing more! Would be great to get some more core shareholders with a long term view, taking out the gamblers at a low price.

ASND sold the zinc royalty on its former Honduran zinc mine for 700,000 USD - additional available cash for the LS exploration work. News flows out of Portugal will be impacted on COVID measurements, as things are generally going a bit slower in Europe these days. What is missing is just a buyer for a few 100K shares taking out the market-makers. It isn't pleasant when you see the bid at 7 and the offer at 8 - an excellent and profitable business for them, without doing a favour to the company!

The communication to investors could be better - that is a fact and as everyone knows, the increase in the NAV doesn't help when the share price is not moving in the right direction. Here we have several layers of pending issues, too many short term traders, a miserable market in the stock (market makers), lack of news flow. Concerning the costs, comparing to other small-cap names, the level of overall costs is low. You should not forget, what you pay what you get. Even if you have a low paid director on board, the cost is low, but does he deliver? Therefore the wish for low costs can be a double sword. Every RNS costs the company money and if MAFL doesn't want to spend it - then we do not see any RNS. We as shareholders have to address this and ask for improvement. But be fair, JV just recently made a tremendous job at Redstar Gold and is finally pushing this story ahead. Yes, there we managers for years, low paid and did not deliver, taking down Redstar close to nothing. The target should be improving the share price in MAFL, issue more shares to broaden the free float, getting with a bigger since some backing from investment bankers and consolidate the shares to get a better market bid/offer. The discussion about the LS project and zinc prices have to mature. After the exploration work, the next step has to be addressed. With the current COVID-19 hysteria, there is little chance to move the project ahead this year, and why should they? Till this mine will produce the first ore to be processed, we have to calculate six to ten years. Then probably, everything has changed and global zinc production fell because of the depletion of current resources. The LS project has a far higher value than today, but it will take time. Before the case with Ascendant will be decided. But we can hope that there will be a financial solution pretty soon, as otherwise the work is getting complicated. If Avizandum1 hits the bids and the share price goes down to seven pence, we can add and say thank you!

Mmh, India courts are on lockdown as well Panthera itself. The sale of the African assets is a bit a better outcome like the spin-out of Aforo Resources a few years ago - which should be wound-up in the mean-time. PAT produces only costs and there is simply no income strain. They have to continue to issue shares to cover expenses. The recent sales of larger blocks point to a renewed shift in the shareholder base. They missed an early listing many years ago and now they miss the gold rally as the Indian story is not more than an odyssey.

As long the share price is trading at a discount it will be a political decision to raise additional capital. Only with the issue of additional equity a broadening shareholder base will make the story longer term. With more shares in circulation, a share consolidation could take place, narrowing the bid/ask spread. Look today, 9p bid / 10p offer size 40,000 on the bid and 10,000 on the offer. Any seller could hit the bid with 50,000 shares and the bid would move lower, the same is on the buy side, probably possible to buy 50,000 slightly below 10p, but then the offer would move to 10.5p. Not easy to trade and with the huge price fluctuations of five to ten per cent you get always expensive in and too cheap out.

What a joke - Warren Buffet takes Stake in Barrick Gold! On his overall portfolio, Barrick represents 0.5 per cent of all invested assets. This should be regarded as a commitment of him towards investing in gold? The story fits perfectly to the craziness of the late behaviour in equity markets. For sure, in the long term chart, Barrick has still some upside to its all-time highs of the year 2011. Investors do not count on the increased share count and the billions of writedowns of pricy acquisitions former management did. Looking at the overall production profile from 2019 till 2024 we have 5,512 - 4,902 - 5,484 - 4,973 - 4,882 - 4,947 in million ounces. A great story of expanding production going ahead. Everyone can add one and one - and Barrick will make an acquisition over the next twelve months. Just to change the behaviour to a normal tech outfit to use the increasing free cash flow to buy back shares and pay higher dividends - there is no case to buy Barrick. Buffet bought it because it is the mainstream gold story with gold veterans on the board. There are better stories out like Alamos 495 - 426 - 506 - 554 -625 -640 in one-hundred thousand ounces or IAMGOLD 762 - 664 - 739 -848 - 852 - 1,020 two gold miners with advanced exploration projects with current plans to turn them into production. Most of the gold miners are facing a decline in the production profile till 2024 and anyone investing here wants to get some production growth which can compensate the fluctuation in the gold price itself.

Today, a classic day in MAFL-trading behaviour, bid at 8 p for 50K and offer at 9 p for 10K - a profitable margin!

BB1 Acquisition Corp. Announces Proposed Qualifying Transaction with Cerrado Gold Inc.

The headline on MarketWatch August 4, 2020 , a listing is close

Busy Jacques, with the acquisition of Heliodor Metals, finally skilled people come on board and now they raised c$7 million! Press release of yesterday filed with SEDAR - Redstar Gold Corp. Announces $7 Million Non-Brokered Private Placement. Good job without using any investment banker - just imagine MAFL shares would trade at the TSXV and not at this crappy LSE/SETSq.

There were two capital raisings, one at $45c and $50c with a 1.4 % stake which was diluted with the last capital increase at $80c. Taking the old share count, the number of shares should be around 623,000. If they go to float, it will be at a higher price than the last capital raise as investors want to see an immediate gain on their investment.

If Penoles takes the hedge on its books, I assume they do not pay more for the gold and silver they receive from FRES what they have to deliver into the hedge. Otherwise, they would make shareholders of FRES happy with such a windfall profit. If this is not the case, they still have the possibility to charge more for the management costs they invoice to FRES.

Look, FRES has good operations and is certainly a bigger player in the gold/silver mining space. What I don't like is the lagging information flow from IR. I bought low and sold with a nice profit as I did assume that FRES has to shut the mines like all the other miners in Mexico. With the semi-annual report, it was clear - it was not the case. The transparency of the company to its shareholders is lousy and therefore investors carry a higher risk as you never know exactly what is going on. Just a final anecdote - when there was one insider transaction, I think back in July 2019, I approached IR and questioned, why we do not see more insider purchases after the stock tanked in the year before and traded sideways since. Again - no response. What are all these well-paid managers doing with their compensation? It would be nice to know, why they are not buying - even at low prices. For what they need an IR when shareholders do not receive at least a little response at all?

carvegyber, when you visit the website of Penoles, the mother company and major shareholder of Fresnillo, you can read the below-copied press release. As Fresnillo is a fully consolidated subsidiary, from whom Penoles should hedge the gold and silver? Just another anecdote, Penoles reports quarterly financials and those include Fresnillo's performance. I asked the IR of Fresnillo, why it is not possible to report on top of the quarterly production report the corresponding financials as Penoles has everything included in its figures - no response. I do my proper research and can't stand up for such issues who are ignored by investors. The analysts are not better as they keep quiet and copy what others write. Transparency and shareholder rights are questionable - which is nothing more than fair.
June 23, 2020.
CONVENIENCE TRANSLATION
Announcement to Mexican Stock Exchange
Industrias Peñoles, S.A.B. de C.V. (“Peñoles” or the “Company”) informs that as part
of its usual hedging strategy and in order to reduce the volatility of EBITDA, it has
contracted the following hedging positions through derivative financial instruments
on part of its expected mining production as well as on other variables that affect
profitability. The positions are summarized below:
Exchange Rate
Silver Gold Lead USDMXN IRS ECA Loan IRS Syndicated
Loan
23,480,400 706,116 13,896 112,590,000 63,157,071 300,000,000
ounces (oz) ounces (oz) tonnes (tn) USD USD USD
Tenor Jul.'20 -
Dec.'21
Jul.'20 -
Dec.'21
Jul.'20 -
Dec.'20 Jul.'20 - Mar. '21 Until Sep. '26 Until Feb. '24
Units usd/oz usd/oz usd/tn usd % %
Avg. Rate 2.0347 2.6021
Min. Put 16.00 1,270 2,094 22.00
Max. Put 16.52 1,600 2,094 23.00
Wgt. Avg. Put 16.26 1,455 2,094 22.33
Min. Call 18.41 1,530 2,264 28.00
Max. Call 20.10 2,032 2,335 38.00
Wgt. Avg. Call 19.04 1,809 2,286 32.82
1 Includes 100% of consolidated hedging (Peñoles and subsidiaries).

Brokers are not worth it, they run always behind the share price development, it was on the downside with FRES and now they move slowly the price targets up. But anyhow, I went again through the last quarterly production report - and as well as I mentioned before here in the chat - no-one is digging the numbers. By management took down the full-year production target for gold from 815-900 koz to 785-815 koz, that is a close ten per cent reduction of 7 million ounces of silver equivalent. FRES has to mine another 404-434 koz gold in the second half and 24.2-29.2 million ounces of silver in the second half. With production down in the first six months (including the non-existent lock-down of its mines), not a big thing to fulfil. To compare, in the second half of 2019 FRES mined 27 million ounces of silver and 443,500 ounces of gold. Generally another year of shrinking production! The strategy fits with shrinking investment budgets as production goes down. The current market cap of 9.1 billion £ or 11.9 billion US$ is a heavy price tag for a company that targets for 2020 a production of 1.42 to 1.51 million gold equivalent ounces, with more than half its production hedged till December 2021 - 23.48 million ounces of silver and 706,000 ounces of gold at weighted average call-strike of 19.04 US$ per ounce of silver and 1,809 US$ per ounce of gold. You find the press release at the website of Penoles, dated 23rd June 2020 - no RNS for London. No transparency over shareholders over here and a fair question, how looks then the accounting? It is a tragedy to see such a company in size being busier with itself than to look after its business!

** Gold is set for the biggest monthly gain in more than 4 years
** Spot silver heads for biggest monthly gain since 1979
** Zinc headed for its biggest monthly gain in almost 3 years
** LME copper stockpiles post biggest monthly drop since 2009; decline driven by withdrawals from Asian and European depots
** Gold retesting the highs at $1,980 as USD makes another fresh 2yr low @ 92.50, down >5% in July alone
** DXY US dollar index now at an RSI of 16.5 the lowest since 2006 and has declined 14 of the prev 16 sessions
** Inventories of imported iron ore at China’s 45 major ports up for sixth consecutive week
** Germany overtakes China as world’s biggest retail buyer of gold bars and coins so far this year

THX

The company has a limited cash-flow to finance buybacks. Therefore, any buyback would draw down the available liquidity and at the end, there are only illiquid investments left. It is important, to keep a well-balanced allocation with sufficient cash/liquid investments. What MAFL needs is a higher share price to be able to issue new shares to raise more cash and expand the portfolio, but that closer to NAV than today. I'm sure JV would accept financing in the region of 14 to 16 Pence. This would broaden the shareholder base and MAFL could look forward to a real listing at the LSE.

The current offer to acquire Cornerstone Capital (100 per cent owner of the property) for 11 shares of SolGold is open, but refused by the management of CC. SolGold has to spend certain amounts to get into control of 85 per cent of the property, retaining 15 per cent. CC owns 157.1 million SolGold shares or 7.58 per cent. Adding up its stake, plus the remaining 15 per cent less the tax liability in the books we have a fair value of at least 5.50 c$ per CC share, currently quoted at 3.78 c$, Any idea on the big price differential?