Member Info for StoneFold

The cash costs for production was higher than expected, due mainly to:

"The increase in cash cost is a result of the lower level of production in the period. Costs have been rationalised and economies made as far as possible. "

"During the period the production has been below budgeted levels due principally to the constraint of having sufficient operational machinery. As a result of time lags in obtaining parts and frequent breakdowns, there was an inevitable impact on to the level of ore mined and subsequent production. "

They have bought spares, carried out repairs and bought additional equipment. By July production volume was back on track.

Nickel_investor,
ALTN produce gold and silver doré , for which there is a strong market demand.

The product accumulates each production day and is accounted for as a part of "Inventories".
It is periodically sold to the National Bank/refinery where it is accounted for as part of "Trade and other receivables".
When payment is received into the bank it is accounted for as part of "Cash and cash equivalents".

These figures vary from day to day.

On the record date for the interim accounts 30-06-2019 the figures were:

Current assets

Inventories $2,017,000

Trade and other receivables $3,829,000

Cash and cash equivalents $50,000


Possibly a week later it might have been:

Inventories $2,270,000

Trade and other receivables $1,829,000

Cash and cash equivalents $2,050,000

If you are nervously focused on only part of the picture and are not comfortable in considering the value of its other parts, then you should look elsewhere for something that better suits you.

Teren-Sai ore fields (formerly known as Karasuyskoye).

Teren-Sai through various language translators gives:
Genius
Deep
Hand kneading.
Natural gift.
Land of the two pronged dagger.

Perhaps they will share the meaning if any when they publish the CPR.

Plenty of room for access roads to and expansion of the existing processing plant.

https://www.google.co.uk/maps/place/Ust'-Kamenogorsk+070000,+Kazakhstan/@50.3318759,82.6053506,14.87z/data=!4m5!3m4!1s0x42eb45d0f634c9a9:0x7bfa8dab8b6404e5!8m2!3d49.9749295!4d82.6017244

Nickel_Investor,
On the 22-05-2019 you expressed the same negative opinion on ALTN.
The share price then was 0.325p.
Since then the share price has doubled.
Please maintain your pessimistic outlook ;-)
---
There are also risks in disproportionately focusing on a negative thing.
O/T example
https://www.bbc.co.uk/programmes/m000846n
BBC radio 4 programme More or Less

--- Some back of fag packet calculations for value of SOLO's investment in Helium One:

"..But Helium One might be able to change things. Royalties from the helium it discovered there could be worth more than 11% of Tanzania’s annual gross domestic product. .."

GDP in Tanzania is expected to be 59.00 USD Billion by the end of this q3 2019

Implies Royalty to Tanz Gov. of 6.49 USD Billion

If Royalty is defined as the total government revenue of

3% Other minerals (Helium) Royalty
1% “inspection fee” of the value of minerals exported from Tanzania
16% "Carry" Government Stake in Projects
30% Corporate tax
(ignoring other taxes such as income tax and v.a.t.)

Then that would imply Helium One's gross revenue of approx. 12.98 USD Billion.

SOLO's 13.8% stake gets gross revenue 1.79 USD Billion
If net profit was only 10% (my estimate) of revenue then SOLO would get 0.179 USD Billion
At $1.2219 per £
Gives GBP 0.146 Billion or £ 146 million net profit for SOLO

Compare with current mcap £ 8.69 million at 1.45 pence per share.
Implies the share price due to HE1 investment, should be 24.46 pence per share.

Is the current share price a fair discount for
The costs of fund raising to reach production
The probability of success of project?

http://www.helium-one.com/wp-content/uploads/2018/09/HeliumOne_CorpPres_Aug_18.pdf

---

An example of the discount cost of a method fund raising (to develop into production).
HZM Horizonte Minerals Plc - which has just raised $25 million funding to develop a mine, in exchange for a 2.25% royalty on future production.

Two shares in today's top % risers.

HZM Horizonte Minerals Plc - which has just raised funding to develop a mine, in exchange for a 2.25% royalty on future production.

ALTN Altyn Plc - Which is working to raise funding (aims to finalise in q3 2019) to step-up the production at its existing mine.

---
Central & Eastern Europe Fund, Inc - Is still a shareholder in ALTN with 50,000,000 @ 3p

* date should be 28-08-2019

https://www.investorschronicle.co.uk/shares/2019/08/28/hunting-for-the-right-type-of-value/
28-0-2019
RPT is top of the list.

cperkin, Thanks.

https://canadanewsmedia.ca/2019/06/10/tanzania-helium-find-offers-hope-for-worldwide-shortages-whitecourt-star/
10-06-2019
This above old article says
"....Master’s degree students Clarah Kimani and Karim Mtili from the University of Dar es Salaam performing geochemical sampling at Helium One’s site in Tanzania’s Rukwa basin in Feb. 2019. ........"

Therefore today's Bloomberg story which says that on July 5th they were collecting the last of the samples is referring to 2019.

So perhaps Bloomberg should replace
"before the work to map subsurface reservoirs begins"
with
" The existing subsurface reservoir map will be enhanced later in 2019 with the addition of data from the final set of geochemical samples.."

https://www.bloomberg.com/news/features/2019-08-28/we-re-running-out-of-helium-and-helium-one-might-have-a-fix
28-08-2019

This article jumps back and forwards in time covering the history of Helium One. I am not sure whether "this year" in the following quote refers to 2016 or 2019 ?

"....Mtili is here to collect the last set of hundreds of samples of gas seeping from the salt pond before the work to map subsurface reservoirs begins later this year......."

Surely they would need to have largely developed the subsurface map before selecting drilling targets?

One of the oligarchs was building a stake in JKX when the shares were about 540p. So I don't think another 20p is going to matter much.
The shareprice can be quite frisky when it wants to move.

I have no idea what the two oligarchs will do with JKX, and perhaps nor do they. They control tens of companies so probably rely on their advisors.
Both live in Ukraine so might wish to prosper by fitting in with the new political ethos.

https://concorde.ua/rs/daily/item_74977/
09-08-2019
An example of moving in the anti-corruption direction in Ukraine.

As well as JKX they also (both for a longer time) have an interest in PJSC Ukrnaftoburinnya (UNB).
That company is doing well, perhaps they will try and steer JKX along a similar growth path.

Growing turnover (similar rate of increase in production as JKX - but a larger sized company):
https://interfax.com.ua/news/economic/605990.html
08-08-2019

Actively seeking asset growth opportunities.

Applied for but lost tender for a large Black Sea exploration licence.
http://enkorr.com.ua/a/news/Frontera_osporila_rezultati_konkursa_na_SRP_Delfin/237784
05-05-2019

Applied for and won the tender for a new gas exploration licence - The Rusanivska field which is located in Sumy/Poltava. The minimum investment is approximately USD 28,550,000.
https://www.enkorr.com.ua/a/news/Kabmin_odobril_rezultati_konkursov_zaklyucheniya_SRP_po_9_uchastkam/237414
05-07-2019

Some new local licences that might be of interest to growing companies.

https://interfax.com.ua/news/economic/605242.html
02-08-2019
5 sites to be auctioned on 30-10-2019
Kharkiv and Poltava

https://interfax.com.ua/news/economic/605555.html
05-08-2019
3 sites to be auctioned
2 in Poltava

I don't think there will ever be a shortage of directors applying for well paid part time jobs. The most important layer of management is the operational level, and they are doing a great job.

Golden time for investment in miners.
Record breaking high gold KZT price (KZT is the local currency in which costs are paid).
Increased production from July using new ore handling equipment.
Targeting higher grade ore.

Change the currency to KZT Kazakhstan Tenge for the gold price chart.
https://goldprice.org/gold-price-chart.html

To come this year:
30-08-2019 Interim report for six months up to 30-06-2019
q3 2019 This years increased profit trend should help gain a shareholder friendly loan to be used to buy more equipment to further increase production.
2019 Updated CPR for the currently producing gold mine and first resource figures for the neighbouring exploration target (test ore has been processed).
Details of plans to put exploration target into full time production.

WhiteNight,
Tellurian are asset rich and ideas rich but not cash rich.

In the first three months of 2019 they spent/invested $100 million.
At 30-03-2019 Cash minus debt was approx. $31 million
Assets were $384.0 million

They are now raising finance for the first stage of the Driftwood LNG plant, with construction to commence in late 2019.
The first stage will cost $18 billion, spread over five years. The second stage would require an additional $12 billion.

The more of their own cash they can put into the project the more reward will go to them rather than to external finance providers.

https://www.reuters.com/article/usa-tellurian-lng/tellurian-to-decide-on-louisiana-driftwood-lng-project-in-2019-idUSL2N22K0F3

They are focusing on gas projects that they can control.

MAGELLAN PETROLEUM (UK) LIMITED are the Licence Administrator for PEDL137 and PEDL246. (Horse Hill)

Tellurian own 100% of MAGELLAN PETROLEUM (UK) LIMITED.
It was paying 100% of the on site security costs for Horse Hill.

Tellurian has a market cap of $1.4 billion.
At q1 2019 it had:
approximately $88.3 million of cash and cash equivalents
approximately $57.3 million in debt.
approximately $384.0 million in assets (including Horse Hill)

Its core business is USA shale gas production, transportation and sales.
Tellurian is in the process of raising $30 billion in capital to fund development of the Driftwood LNG plant for exporting shale gas from the USA.

It is betting its future on large gas projects, so it is not surprising for it now to be selling non-core assets (however good a prospect those assets may be).

---

This purchase is great news for UKOG the company, who can now accelerate the project towards profit generation mode. As now UKOG will now be the main beneficiary of that profit.
I don't think UKOG will continue to drive with the hand-brake on, they have succeeded in dislodging enough of the venture partners. Whether in the future ALBA or DOR choose to sell their remaining holdings would just be a small piece of icing on a hefty sized cake.
As soon as the Tellurian deal is signed it will be full speed ahead.
The new convertible loan, ensures full funding for UKOG's increased share of future production facilities costs and other near-term surface, subsurface and regulatory costs necessary to bring the field into long-term production.

It will apply a flattening force on the share-price for a while as Tellurian and convertible loan holders (Riverfort Global Opportunities PCC Limited and YA II PN Ltd ("Investors")) sell/forward sell their new shares.

This RNS should draw a line, from here on news-flow should have an uplifting force on the share-price.

AT some point in the next year institutional investors will start buying in to gain from the switch in direction as the share-price rises with production increases and profits are seen to be generated.

https://www.globenewswire.com/news-release/2019/07/25/1888447/0/en/Orca-Exploration-Announces-Review-of-Strategic-Alternatives.html

25-07-2019
Orca reviews its options for Songo Songo. Which also serves to highlight to the Government and potential investors, how the speed of decision making by government can affect sentiment towards investments.

https://web.tmxmoney.com/quote.php?qm_symbol=ORC.B
Chart.

Whilst high volume LNG from offshore supply likely to be far in the future.
https://www.petroleum-economist.com/articles/politics-economics/africa/2019/tanzanias-lng-dreams-may-be-scuppered-by-mistrust

18-07-2019
"...With start-up from any plant at Lindi set to be at least five years later than Mozambique LNG, that could mean Tanzania's domestic and regional supply aspirations may have to wait well over a decade before being fully realised...."

---

Low volume CNG from onshore supply expected a lot sooner.
http://tpdc.co.tz/wp-content/uploads/2019/07/Invite-for-EOI-for-Interested-Companies-into-CNGV-Retailing-Business.pdf

17-07-2019
"..... Specifically, during the Financial Year 2019/2020 which starts July 1st
2019, TPDC will construct two large CNG mother stations in Dar es Salaam which
can support trucking supply of CNG to retail daughter stations located far from
pipeline infrastructure..."

"..Bulk CNG will be bought from
TPDC for stations that will be built far from currently operating pipes or piped
natural gas may be extended to locations where the stations will be built if the
location will be in proximity to the current pipeline infrastructure......."

RNS today - Very Good initial test flow rates for the new well IG142. Using the test figures for the 3M perforated so far for comparing with JKX's most recent Ukrainian production figures.

q2 2019 Average JKX's Ukrainian oil and condensate production.
999 boepd

+ new well IG142
709 boepd

=1,708 boepd (70 % increase)

---

q2 2019 Average JKX's Ukrainian gas production.
742 Mcmd

+ new well IG142 (3M perforated)
152 Mcmd

=894 Mcmd (20 % increase)

---

q2 2019 Average JKX's Ukrainian Total production.
5,364 boepd

+ new well IG142
2,315 boepd

=7,679 boepd (43 % increase)

------------------

If the additional 30M section of well was to be perforated in the future, and produced only dry gas at a similar rate to the current 3M section, then the figures would be replaced with.

q2 2019 Average JKX's Ukrainian oil and condensate production.
999 boepd

+ new well IG142 (assume 30m section is dry gas only)
709 boepd

=1,708 boepd (70 % increase)

---

q2 2019 Average JKX's Ukrainian gas production.
742 Mcmd

+ new well IG142 (33M perforated)
1,672 Mcmd

=2,414 Mcmd (225 % increase)

---

q2 2019 Average JKX's Ukrainian Total production.
5,364 boepd

+ new well IG142 (33M perforated)
18,375 boepd

= 23,739 boepd (342 % increase)

---

The actual stabilised production figures will of course be different.

The rig will soon relocate to the West Mashivska field to drill a new well WM4.

http://tpdc.co.tz/wp-content/uploads/2019/05/HOTUBA_NISHATI.pdf

28-05-2019 Tanzanian Minister for Energy and Expenditure Estimates budget 2019/20
142 page pdf in Swahili

From page 39:

".... Electricity Production Project for
Using Mtwara Natural Gas - MW 300
42. Mr. Speaker, this project
refers to the construction of production plants
300 MW using natural gas in the Region
Mtwara. Project cost is estimated
be US $ 360 million equivalent
and approximately Tshs 833.90 billion. Project
this will be implemented by the Government funding
of Japan through its Development Agency
(JICA) in collaboration with the Government. Work
held in 2018/19 is
including: completion of the study
Feasibility Study of the center
generate electricity and infrastructure infrastructure
water, roads and natural gas ......."

---

If this plant (if/when built) was run at an average actual operating load of 50% of its maximum capacity then it would require approx.
648,000 cubic metres or 22,883,000 cubic feet of natural gas per day.

The shorter the distance that gas has to be pumped from source to power station the better the economics.

Existing mining operation - Sekisovskoye licence, covers a total area of 0.855 square km.
Exploration area - Karasuyskoye has an area of approximately 198 square km, (230 times larger than Sekisovskoye).

"... received a bank loan from a Kazakh based bank amounting to US $1m.
A similar amount was advanced by the Assaubayev family.
The bank funding is repayable over 12 months at a fixed interest rate of 14% with 3 months repayment holiday.
The loan from the Assaubayev family is interest free and repayable at the earliest on 31 December 2019 subject to sufficient cash resources. ..."

"... Kazakh Bank. Negotiations are ongoing with the lender to secure a further US$13m needed for additional mining equipment. ..."

Mining production was approximately 23,000t of ore per month during the year 2018.

"....During the year the Company placed an order for an additional LHD Caterpillar
(Ioad-haul-dumper) at a cost of US$0.7m, which will increase the total number of underground LHDs to 3.
This is expected to increase the supply of feedstock to the processing plant to
approximately 40,000t per month.

Advance payments have also been made for an additional truck to be also delivered in May 2019 at a similar cost.
The Company is also expecting to purchase a further haulage trucks towards the
end of the year. ..."

Aiming by end of 2019 for approximately 65,000 t of mined ore per month.

"... Future development plans are dependent on raising further funding. Limited short term funding has been obtained that will enable the Company to increase production and turnover in 2019. It is in negotiations to obtain debt finance that will substantially meet a large part of the capex requirement. Once the equipment is in place and production is rising, additional funding is expected to come from the Group’s internal cash flow generation, and as a backstop from the principal shareholder to fund the expansion. The expectation as it currently stands is that the increased funding will be in place in Q3 2019. ..."

"... At this stage the core focus is to attain a positive resolution on financing which should trigger a significant turnaround in profitability. A strong operational gearing given a lean cost base,
expected increase in volumes (60,000 - 70,000 t per month) and associated improvement in grades should result in improved results over the coming periods. ..."

As the volume of production increases the proportion of fixed cost elements included in the cost of sales decreases.
"The Company’s aim is still to reduce the long term cash cost of sales down to the range of US$540. ..."

It is old news - they stated their intension that they will be converting the remaining bonds and interest on 23-02-2018 and other subsequent occasions.
--

Existing mining licence is as good as renewed for another 20 years.

The bank that lent $1m will watch for a month or two to see whether the two new Load-Haul-Dumpers will increase production as expected, before issuing a further $13m loan.

CPR pending this year, which will confirm commercial resources in the exploration area. Which will lead to self financed initial production there.

Http://altyn.uk/wp-content/uploads/2019/05/Annual_Report_2018.pdf

".....The mining licence for Sekisovskoye is valid until 18 July 2020. The Company has now obtained from the authorities the right to extend the licence on the same terms as the Original licence, to 18 July 2040. ..."

"........The Company obtained in March 2019 a written undertaking from RoK Ministry of Industry and infrastructural Development that it had the option to renew the licence on the same terms as the grant of the initial licence. ..."

"..The Company was awarded the subsoil exploration contract for the Karasuyskoye ore field for a 6-year term in 2017 with the right to extend for another 4 years if there is a commercial discovery of resources. ..."

The Competent Persons Report (CPR) for the Sekisovskoye mine site is expected to be updated during the current year, and will include the site at Karasuyskoye.

"....On completion of the CPR, the Company envisages progressing towards mining from the Karasuyskoye Ore Fields, initially using cash generated from existing operations, external funding will be considered as the project progresses and the cost of development is quantified. ..."

"...Karasuyskoye exploration will continue as planned with an expected additional spending of US$1.7m in 2019. Exploration effort will be principally concentrated on the TeranSai site which has produced very promising results. ..."