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The Caracal is a wild cat native to Africa where it is known as the golden cat, and the management of newly listed Caracal Gold (LON:GCAT) is hoping the company name will be auspicious and indeed golden as per the striking corporate logo.

Simultaneous, well-supported listings in both London and Frankfurt helped the Africa-focused gold miner raise £5.5 million which will be deployed to advance the development strategy at the Kilimapesa Gold Mine in South West Kenya.

Chief executive Robbie McCrae has set an ambitious target of rapidly increasing production to +50,000ozs per annum and build a JORC compliant resource base of +3Moz within 12-18 months from listing.

The foundations to achieve this are already in place. The handover from the previous management of the Kilimapesa gold mining and processing operations has been unproblematic and expedited with the former Goldplat chief executive joining the team as an executive director.

Relations with the government are also strong with regular communication about a common purpose – that of building a strong, resilient emerging East African focused gold producer that will benefit the community and shareholders alike.

https://www.proactiveinvestors.co.uk/companies/news/959395/newly-listed-caracal-gold-to-rapidly-increase-production-at-kilimapesa-959395.html

First Day of Dealings

Caracal Gold plc, the gold producer with operations in East Africa, is pleased to announce that at 08:00 today its ordinary shares will commence trading on the Main Market for listed securities of the London Stock Exchange plc ('LSE') under the ticker GCAT ('Readmission').

As part of the Readmission process, the Company has raised gross proceeds of approximately £5,493,885 through the issue of 638,951,276 Placing Shares completed in two rounds at a placing price of £0.01 per share, implying a market capitalisation of circa £14.5 million on Readmission.

The Kilimapesa Gold Mine is 100% owned, cash generative and substantially de-risked with forecast low AISC-costs and strong operating margins.

CEO Robbie McCrae said, "We aim to rapidly increase production to +50,000oz p.a. and build a JORC compliant resource base of +3Moz within 12-18 months. We have already started an optimisation strategy at the Kilimapesa Gold Mine, where there is significant expansion potential and ability to increase gold production to 25,000oz p.a. and the resource to +2Moz. We also aim to utilise our experienced team to acquire other complementary and strategically located gold mine and development projects in East Africa."

Operational and Financial Overview
Revenue: $261m
EBITDA: $78m
Operating cash flow: $69m
Gold production: 163,118oz
Average price received: $1,723/oz
All-in sustaining costs: $1,277/oz

2021 guidance updated to reflect first half performance and expectations for the remainder of the year.
- Gold Production Forecast: 315,000 - 340,000 ounces at AISC of $1,290 - $1,365/oz
- Capital expenditure (non-sustaining) for operating assets $29m (inclusive of Mako cut back of $13m)
- Sustaining capital expenditure (included in AISC) $49m

Balance sheet upside
? $30m initial cash proceeds from sale of Bibiani to be applied to voluntary debt repayment. Remaining proceeds from sale of $60m to be received in the next 12 months.
? Ravenswood sale proceeds up to A$250m available from March 2024

Syama Gold Mine
Long life asset with significant gold resource endowment and exploration potential
Mineral Resources: 7.6Moz
Ore Reserves: 3.3Moz
LOM AISC: US$1,000/oz
Current Mine Life: 11 years
Target Site Production: 250-300koz pa

Mako Gold Mine
High margin open pit with near mine exploration optionality
Mineral Resources: 965koz
Ore Reserves: 780koz
LOM AISC: US$900/oz
Mine Life: 6 years
Target Site Production: 120-140koz pa

Resolute provided an updated Life of Mine for Syama in April 2021 with an improved production and cost profile over the 11-year mine life (7 years underground).

Exploration and mine design work last year culminated in increases to resources at both Tabakoroni and Syama. Near mine exploration (open pit) "remains a key focus at Syama and is expected to extend LOM production" and today's update adds further weight behind the decision to return to open pit mining of Syama North in late 2021

Excellent set of results today! Extending the oxide production at Syama and Tabakoroni to beyond 2023 and 2024 respectively will be massively beneficial, especially if near surface grades are higher than current resource modelling would suggest.

No reason why people should shun Glencore because of current prices, unless you are bearish on commodities in general. But there are better price copper plays out there like CAML and TKO that offer greater returns at the expense of a bit of risk (lack of diversification, more price dependent etc).

GLEN over RIO, BHP, WEIR absolutely

Apologies, fourth paragraph should read:

With the sale of the Bibiani project for $90m and two thirds of that expected this quarter or next, net debt should reduce to around $150m by year end or possibly a little more depending on fees. The final instalment will likely fall due in the first half of the next financial year.

At the year end 2020 (31 December) net debt stood at $230.3m with cash and bullion of $106.6m and this had reduced to $219.8 million with cash and bullion of $88.8 million by 30 June.

Net debt has fallen slowly in the first half due to lower than expected production volumes, mainly down to power disruptions, extended periods of mill maintenance and lower grades and that has had a negative impact on AISC, in Q2 they averaged $1,319/oz.

We should be looking at 80-85koz production in each of the second half quarters at similar AISC (incl corporate overheads) and our hedges for approx 30% are at $1715/oz a good 9% higher than this time last year ($1576/oz).

With the sale of the Bibiani project for $90m and two thirds of that expected this quarter, net debt should reduce to around $180m or possibly a little more depending on fees. The other two instalments will likely fall due in the fourth quarter this year and then half way into the next financial year.

By the middle of 2022, when all payments have been made to Resolute, further early loan repayments made when appropriate, lower interest to pay and having benefitted from a further 12 months of production at these revised 340koz levels and at current gold prices, assuming AISC fall back to the $1275/oz range, net debt will have reduced to around $80-90m. Of course we are capable of producing 400koz and this year should have been producing closer to 350k-375koz but for the issues mentioned above.

The board need to demonstrate they can achieve revised guidance over the next six months. If operations are running smoothly as we enter the new financial year I don't see why margins won't improve and net debt come down faster.

Resolute's issues have been one long, ongoing headache for some time but there is a clear route to success here with earning boosts from their deleveraging of secondary assets.

Last point should be to watch the huge short position which was 10%+ at one point mid June 2021 now down to 6% and expected to unwind further once the price of gold catches a new wind.

https://www.shortman.com.au/stock?q=RSG

Only in my head ;)

Added to my position today and feeling more confident this will be a standout performer in the coming months.

Quarterly Update on the twelve months ended 30 June 2021

The recovery operations combined operating profit
Q4 2021: £1,080,000
FY 2021: £5,300,000

Of particular note Ghanaian based profits are 100% up on last year as the groups profile expands and the risk profile is more evenly spread across operations and the respective countries. Note the mention of progress with suppliers and government agencies in neighbouring Burkina Faso and Mali beyond.

Not included in profits was the £1.1 million of unrealised profit in gold material produced and stockpiled, yet to be sold. The equivalent figure at year end 2020 was £0.4 million. This partly explains why profits from South African operations were much lower than expected despite production coming in above the average of the last 8 quarters during Q4. Grade controls agreed with major suppliers for the foreseeable future and new gravity circuits due to be installed will increase gold recoveries, commissioning expected this quarter.

The £1 million Scipion loan has been repaid during the course of the past 12 months and the outstanding sum settled post period end (20th July 2021). Cash position largely unchanged year on year, however net cash position has increased during the year thanks to debt reduction and the substantial amount of gold held at year end.

".. returns in the first quarter of the current financial year in South Africa to benefit from the sale of the stockpile of gravity concentrates at the year end." i.e releasing gold stockpiles will unleash a surplus of cash on the balance sheet this quarter.

Kilimapesa sale complete and no longer a drain on company resources will have a net positive benefit in future quarters. We have a $1m stake in Papillon, who are listing on the LSE shortly and following their recent cash raise have £5.5 million with which to develop the Kilimapesa project. The market has been excited by companies like CORA recently for their aggressive exploration programme and results which will work favourably for Goldplat, if the something similar transpires with Papillon stock.

Sale of Bibiani Gold Mine for $90 million in cash

· Resolute has entered into an agreement to sell the Bibiani Gold Mine in Ghana to Asante Gold Corporation.

· Cash consideration paid in $30 million deposit (already received by Resolute to be applied upon completion) and further
$30 million on or before 6 months from completion; and $30 million on or before 12 months from completion.

Importantly "The agreement has received Ministerial Consent, having been approved by the Ghanaian Honourable Minister of Lands and Natural Resources"

Completion expected 10 days from now, mark the 19th August in your books (assuming it's working days)

Asante are already well established in Ghana and have a strong track record of community involvement schemes as well as being a popular company among Ghanaian nationals, soon to be listed on the Ghana Stock Exchange. So this is a good outcome for the Ghanaian authorities and people.

The impression I got back in April was that Ghanaian assets were going to stay with tried and trusted partners but in fact it looks like it the licence restoration was perhaps engineered to bring Asanta on board as the only viable option.

Resolute and Asante are committed to ensuring an orderly transition of ownership at Bibiani. Asante is dedicated to injecting the necessary capital to achieve the rapid restart of Bibiani, which is not expected to result in any immediate changes to employment or contract relationships.

The Ghanaian Honourable Minister for Lands and Natural Resources, Hon. Samuel A. Jinapor, MP (the Minister), commented: "I commend the recent approach of Resolute and Asante in their dealings with the Ministry for Lands and Natural Resources and am pleased to support the transition of ownership of Bibiani to Asante."

Note Stuart Gale's comment: "Resolute is .. particularly proud to have the opportunity to transfer ownership in Bibiani to a highly regarded team with strong ties to Ghana."

But this is an optimum outcome for Resolute, soon to benefit from a $90 million gross injection over the coming year which reduces the risk of loan covenant breach to nil and firms up the balance sheet.

SLP key data
Shares in Issue: 272m
Market Capitalisation: £274m ($380m)
Cash on hand end of Q4: £73m ($101m)
FY Dividend 1.6p (December) + Windfall Dividend of 3.75p (April)

Recent Events
The rioting across South Africa last month may have had an indirect knock-on effect for Sylvania. Much of the groups cash position is held in ZAR which is favourable when the ZAR strengthens against the USD.

The currency had performed well against the USD since last Autumn, however it topped out in June and has quickly reversed from 13.39 to recent lows of 14.87. Going forward this means Sylvania are unlikely to benefit from Q-on-Q FX gains on the balance sheet like they have for the past two quarters.

It should also mean a flattening of the costs in dollar terms which is arguably more important as margins provide a clearer breakdown of profitability than movements of cash on the balance sheet.

SDO H121 production: 36,335 4E PGM ounces
SDO H221 production: 33,709 4E PGM ounces *est - (Q3: 17,420 + Q4: 16,289)

H121 revenue: $85.2 million
H221 revenue: $122.6 million *est - (Q3: $74.2m + Q4: $48.4m)

H121 average PGM basket price of $3,184/oz
H221 average PGM basket price of $4,326/oz *est - (Q3: $4,576/oz + Q4: $4,059/oz over respective production)

H121 EBITDA: $58 million
H221 EBITDA: $87.4 million *est - (Q3: $58.7m + Q4: $28.7m)

H121 Net profit: $40.5 million
H221 Net profit: $56 million *est - (Q3: $41.3m + Q4: $14.7m)

Precious Metal prices
The quarterly reports detail the movements and in particular the rollercoaster ride Rhodium has been on. Without a doubt that provided a huge boon for the share price and it's subsequent retracement has warranted some offloading. The sell down has been largely risk driven and exacerbated by the rioting in South Africa however these are short term factors that are weighing on a share price that has risen almost 2000% since I first recall investing around 6p. The overall, long term trend has been a continual rise and that is underpinned by strong demand for the precious metals which Sylvania process.

If you're trading Sylvania which I am, make sure you always have some cloth in the game.

Likely the rising trend will continue as anticipation grows. Easy hold.

No but it has the potential to reach current TKO (£350m) and CAML (£435m) price range.

That "chunk" as you put it was 4 million ounces of silver, mainly Pallancata but also San Jose, which represents more than half of the silver these two mines produced in 2020 (excluding Inmaculada). Not forgetting a further 4 million ounces hedged at a similar price in 2022, ensuring healthy margins and a prudent strategy given the decision this year to invest more into brownfield explorations at both these mines.

Inmaculada has grown from 8.3moz silver equivalent production 5 years ago to more than 15moz silver equivalent last year, not bad considering during the pandemic we experienced an entire lost quarter of production and represents half of the groups revenue generation. Roughly 30% of that is silver production.

carvegyber - It could well be 40% up, I'm being deliberately conservative as there may be a build up of precious metals awaiting sale. I would not be surprised to see a sizeable increase of precious metals on the balance sheet therefore. It may be minimal in which case revenues will more accurately reflect production during the period. Just something to be aware of IMO.

Quite how FRES is trading at these levels frankly blows my mind!

Excellent set of half year results!

Silver production of 14.9 moz up 17.9% on Q121 and 9.6% higher than Q220.
H121 silver production of 27.5 moz up 2.7% vs. H120.

Gold production of 200.2 koz down 12.3% on Q121 but 8.6% higher than Q220.
H121 gold production of 428.4 koz, up 12.3% vs. H120.

By-product lead and zinc production up 6.8% and 7% respectively on Q121, and marginally up on Q220 figures.
H121 by-product lead and zinc production increased 5.5% and 8.5% vs. H120 respectively.

The outlook for the second half remains unchanged - "on track to meet our 2021 full year guidance of 53.5 to 59.5 moz of silver (including Silverstream) and 675 to 725 koz of gold."

Half year report expected shortly should deliver 20-25%+ revenues on last year given average silver and gold price in H120 were $16.8 and $1676.8 per ounce respectively. We should be looking at a roughly 50% increase in sale price of silver and 8% gold. Combine that with rising production across the board.

It will be interesting to see how the cost base has changed over this period. I would have thought cash-flow will easily pip half a billion dollars this time around, perhaps coming in around $600m.

I wonder if the company had entertained the option of an equity raise (at 2p+) to fast-track the repayment of senior debt, would they have had the support of shareholders? Some would rather hedge gold production to protect against downside but an alternative that has been successful elsewhere would have been dilution to reduce gearing and in our case the harsh interest terms.

Informative interview with Taseko CEO Stuart McDonald

13:16 - 17 years of reserves remaining, production stable at 130 million p/a, exploration news likely in the fall or late summer.

15:00 - hedging (put protection) part of company strategy, will remain a strategy, but plenty of leverage to upside.

16:55 - confident on moving ahead with Florence, no need for JV partner or minority stake sale thanks to Gibraltar cash flows and high copper price, permits to follow shortly (August-September).

18:30 - Successful partnership at Gibraltar, consortium of 3 Japanese companies has been a successful model for Taseko, companies looking for offtake agreements have shown similar interest at Florence and Yellowhead.

19:22 - Final EPA permit this autumn, 18 month construction and first production at Florence early 2023 (H123). First year ramp up, expect approx 50 million pounds followed by capacity rates, 85 million pounds for the next 20+ years.

21:23 - Taseko reserves are nearly 15 billion pounds copper in the ground across all assets, value for Florence not appreciated by market and currently nothing assigned for Yellowhead, New Prosperity and Alley. Market yet to recognise value of pipeline of projects despite company track record. Gibraltar was acquired for $1 approx 21 years ago, developed into a world class operation. Florence, next in line, acquired in 2014 for $60m, one of the lowest capital intensity copper projects in the world with a 20 year mine life.

26:42 - Yellowhead development, 2-3 year to permit the mine, ready to move forward in 2023-24. $1 billion capex to get off the ground. By 2024 with Gibraltar and Florence producing Taseko will be "generating several hundred million dollars in EBITDA", potential to JV Florence to an offtaker, then Yellowhead becomes a very manageable project to build. Yellowhead is enormous, production equivalent to Gibraltar and Florence combined: 180-200 million pounds of copper!

When Yellowhead comes online in 5 years output doubles to 350-380 million pounds of annual copper production, Taseko would be one of the largest producers in North America.

30:02 - New Prosperity, one of the largest, undeveloped copper gold deposits in the world. No timeline owing to challenges with permitting / local community.

33:26 - Harmony and Alley, development stage projects, none core for Taseko despite potential. Alley may present new opportunities with future growth of battery market and new technologies given rare metal by products.

35:49 - Taseko not looking to initiate M&A activity in any way, organic growth of pipeline projects, huge catalyst for share price, no need for further acquisitions. Non core assets certainly open to JV or disposals.

https://www.youtube.com/watch?v=wvgfItv6-Eg

Since the last update Fortuna have completed their acquisition of Roxgold for approximately CA$1.1 billion ($0.9 billion) which will have an impact on GPM's top ten holdings. It will be interesting to see if GPM have retained the sizeable combined holding in Fortuna Silver Mines Inc, although I suspect it will have reduced and profits redistributed.

https://www.mining.com/fortuna-silver-to-buy-roxgold-in-884-million-deal/
https://ca.movies.yahoo.com/fortuna-roxgold-shareholders-approve-business-223000020.html