Member Info for Suggins

Our East African neighbours seemed to put out a decent update today.

Noticed expenditure of 'US$1.8 m for West Kenya' in the quarter and we are told they have three rigs drilling away on exploration. That puts their cost per drill per month at $200,000, which is around a third higher than ours at $150,000. I suppose their figure covers all of their management overheads for the region as well which are not shown in our drill costs and so the actual drill costs may well be very much closer.

Gold price not doing us any favours.

Over $20 million for a JCB and some bin liners sounds a lot to me.

How will their heap leach produce so much gold with such a low grade input ? Must be alchemists.

45,000 oz is around 1.4 mil g,
1.5mt pa at 70% suggests a grade of around 1.35 g/t doesn’t it ? Not 0.4 g/t.

Just seen that Cora have used a grade cut off of 0.4 g/t in their recently updated estimate. I wonder what we used in ours ?

Still no interviews that I’ve seen so I’m still thinking more news is on the way even after the board update.

VSA morning miner notes that Gerard Kisby-Green has a new non executive chairmanship appointment at Kazera Global which might be why he is becoming a non-exec at Caracal.

‘ DGWA is your gateway to the European Financial Markets.

We provide advice and financing to both private and public companies. Focusing on transactions for small and mid-cap companies, DGWA specialises in the provision of capital for expansion and development…’

Suggests the plant works might be paid for in Deutschmarks.

Anyone else find it odd that we have had no interviews yet in respect of the monumental recent news ?

Makes me think that more news is on the way in quick order.

Great week; Monday first trade at 0.6251, Friday last trade at 0.8522. And that’s against a less than favourable gold price.

Onwards and upwards.

Excellent news in the last RNS about this licence being returned to GCAT.

It seems that there are now friendly people in decision making positions and on that basis it is very good to see the Chairman of the Mineral Rights Board get re-appointed for another 3 years on 6 July. This should also hopefully provide some stability in this Kenyan election year.

If this rise continues there is a genuine risk of the bends developing for long term holders who have been underwater for some time.

aprogerson - you’re good with all these numbers; have you tried updating the discounted cash flow valuation set out in the original Align note ?

Be interesting to see where that goes to now, Align don’t seem keen to revisit those numbers in their subsequent updates and just stick with their original Shanta comparison.

Times like this always remind me of poor old Mufasa.

I see 2p as very much a base figure.

Add on top the value of Tanzania, prospecting licence gold and production increases from existing operations.

I certainly hope so; risks are melting away. Almost everything in place now:-

- team
- licences
- gold
- plan

Just the final piece seems to be the plant. Slight lack of clarity in my mind as to what more is needed before the plant is ready to achieve the 24,000 oz/pa.

Gold $1,750 /oz with AISC $1,250 gives $500 per oz.
20,000 oz pa gives $10,000,000
less 5% government commission gives $9,500,000
less $300,000 corporate overheads gives $9,200,000
less 30% tax gives $6,440,00
in real money gives around £5,416,000
at 7 times gives around £37,900,000
with 1,879,000,000 shares gives 2p per share

Hi itsyou; I cannot see confirmation that this is JORC compliant, could you point me to this confirmation ?

I am sure, even if not strictly JORC compliant at this stage, that the same rigorous standards have been followed but it would be interesting to know.

If we compare the new resource statement with the previous version (p43 prospectus) it does seem that the grades have decreased dramatically. I wonder if the previous assessment was just a bit punchy.

Much higher confidence now which is obviously great news.

So drill batch 1 and 2 went over the existing ground again and so we see a big increase in confidence of the resource but not a great deal of additional oz.

Batch 3, which we think has not yet been factored in, was on new ground and so should give us additional oz.

That would be nice