Member Info for Sproutsdave

Whichever way I do the calculations it doesn't add up and you know it.
Noticed no detailed meaningful calculations are rolling in. Only insults which tells a story.
Give me a proper calculation!

According to Berenbergs average price per ounce of mid tier gold miners is $696 dollars per ounce which is £512 per ounce. Multiply this by 3.125 million ounces as 25% of the 12.5 million ounces. This comes to £1.6 billion for Havieron. We are at £1.3 billion now. This comes to 41.25 pence per share once up and running in several years time and if we get 12.5 million ounces as a reserve. So in several years and we are up and running its only 7.75p upside on 33.5p.
You all want 40p plus next week.
Plus Newcrest value per ounce is a lot lower than £512 per ounce. Using those figures would result in a lower than todays share price.

The LTH are upset because someone that is super honest doesn't agree with the figures and the LTH cannot justify what they are saying in many cases. I am just looking out for people that perhaps are struggling with the maths side. Most LTH will have well taken their original stake by now and are safe from losses that may or may not happen.

Still no realistic reasoning apart from a future with a massive hike to the gold price. Reminds me of 2010. The massive gold price never came.

Tell me why with figures then!

What happens if there is nothing there?
What I mean is. If there is nothing in the other drill targets that don't have much information about them.
Havieron is a fantastic discovery.

I am just staying patient. I have waited this long. I am used to it now. I would have thought it would be sorted by now though.

notrader. Yes I am only talking about Havieron. The other prospects could be great or maybe not. But to try to draw people in to what may never be worth anything isn't fair. At one time Havieron was 1p to 2p and from calculating volume from the mag anomaly and gravity anomaly plus a few drill results my calculations said that it was easy to know it was a cracking buy. But now the info isn't available. Its still maybe.
Its as though on here there is a potential value and we want to bid it up to that before its happened. What happens if there is nothing there? Decent hard working people could lose money.

Hi Speedy. That's fair enough. Thank you.
Cheers Dave.

Tell me why I am wrong. Its that simple.

MF11 - Go through the figures then, think about it and tell me why I am wrong.

Yes and at 500000 oz per mined per year it will take nearly 40 years to mine it.
From the figures and calculations on this thread the only way that you could get £1.51 on Havieron at todays prices back to you is if it costs nothing to mine the gold and run the business and they returned every penny to you in dividends.
You cant use the revenue figure over the whole life of mine to put a share price on it, its misleading people.
Its just putting figures in peoples heads to make people buy in.
At the end of the day mining is a business like any other.

The bank might lend on an asset with some numbers attached to it. But might not on an unknown site. I am just saying anything is possible with shares. The original poster only asked a question.

Why not a placing, if something special like another licence comes up. It could even add value. After all everythings worth a fortune if GGP own it!
What else are shareholders for but for raising money!
I like placing's.

I hope so. Its been a long time since the original JV announcement. It does seem a bit better more steady price now.

I wont be buying at these prices. If I miss it its too bad. I don't know if I am right or wrong. I am simply not clever enough to work it out at this stage. Surely that's fair enough. But I wont go with crowd and just go to other shares that I can understand. I am just a farm boy after all.

Sour grapes exactly. Not many would admit it. Its a long story. Just hoping for my second chance. But with GGP it may never come.

Hi Texlax. I will do my best. Try googling Life cycle of a mine on images and you should find a double humped camel shaped graph with the second peak higher than the other.
When the first drill results come in there is a phase over 1-2 years as all the drill results come in which could be GGP now or probably further down the line when the resource is more or less defined. Then interest would tail off because there isn't the excitement and buzz about it.
Next would be the dip off.
Then feasibility studies, financing studies and environmental studies etc. Actual financing would take place with the big institutions buying in along the way if the mine looks good to go. This could take another couple of years or more.
Eventually the mine would be built and there would be a higher price on the stock hopefully. Each stage will have boring periods in between.

Thanks Tildo. Thanks for providing some more detailed numbers. I can see where you are coming from. I will just keep researching and try and learn and see where the price goes. But from what I have read and listened to. A share price goes through 2 peaks if it makes it to production which this one is looking very likely. The first peak is the drilling discovery phase. Then there should be a dip as the reality of funding and various studies take place. I am hoping to get in again when it dips and try that approach. But with shares anything is possible plus sentiment is strong in this share which helps with high prices.

Well I don't know. The price of gold was around £800 at the time. I am just going to go back to looking at initial drill results of other companies and making my mind up from then on. I am better at that than trying to work this one out. I hope you all do well out of it.