Member Info for Tornadotony

The real issue here is the risk of Russian mines being nationalised and handed to another Russian company and Kazakhstan not being adverse to corruption will join the deal and leave this company with just about nothing. It may not happen but I am not sure how they can fight against it under the circumstances.

deepjoy,

440,000 odd ounces x $30 Inferred African in ground price = $13.2M or £9.75M to be added to the enterprise value of the company. At 9.25p the enterprise value was around £98M so taking £107M/98M x 9.25p = 10.09p.

The share price at 9.25p is around $1900 gold price. We are at $1990.
Instead of being near 68,000 ounces produced this year we may be closer to 76,000 ounces.

The additional value of inferred ounces from West Kenya this morning equates to 0.75p. This is broadly £8.5M or so. Nothing was given to the company. The share price elevation already factored out a drop in gold price back to near $1900. The acceleration to higher grade also allows the chance to hit upper end of guidance on production by end of year. Nothing was given on the share price.

Now sub 1900 price on the way up.

Unbelievable drop. At 1960 gold price last year this would have been 118p. The company is producing far more ounces.

Got out at 145p. Gold retreating. Left order on around 118p.

Managed to get a 1000.

That was $500M more

You guys are right the company valuation is $500M. Sberbank debt would have to off set Russian mines.

The debt to be paid off is $1.87B. The assets are 12M reserve ounces of gold ($1.7B say at $140 an ounce on reserve metrics). The company has around $400M free cash flow. They would be crazy to award any dividend. The company can survive on debt restructuring. It is worth buying in the 50-70p range as future income would have to service old debts. The mines would gradually diminish their reserves as they pay the debt.

Maybe.

First average down buy awhile back this morning.

Any additional funding from Angola should be matched by UK funding at Saltend. Something that may be discussed over dinner after they enjoy their field trip on the train line to the mine.

It does not make a jot of difference on how Angola voted. How many people in Angola would care what happens in Ukraine or know where it is. How many countries abstain in Europe when atrocities happen in Africa in the past.

I wrote a letter to Victoria to welcome her as well as expressing the past issues that people have complained about here. She has the full picture as it was a long missive. I am not sure how many people who write on here would bother, however they all know I have at least done it.

james and jimmy,

It was a case of averaging down elsewhere. I will get some ISA funds next month and portfolio permitting, I may be able to park funds here again. If HZM takes off then my decision today was poor and goes on the list of several others of late. If it has got overbought and retreats then I will be one of those who help turn the tide back if that chance arrives. Nothing to do with nickel or HZM itself.

Sold my HZM for a modest profit and moved most of it on here at Rainbow. 13.95p was a reasonable buy point.

Decided to call it day on HZM. I wish you folks all the best with your investment. This has been a good board to exchange views on.

https://www.investing.com/indices/mining

Hogsnipe I have also followed Pensana against the mining index and it has been locked together on the same trend since 1 January.

Next report is Singuida update with the arrival and testing of the crusher. Sustainability report followed by 2021 annual report in late March, but in April say around mid-month 1st quarter results. All light reports this month where steady as she goes is what we hope to hear. The tailwind is with us and I am not sure why we got a retreat on Friday, Same happened on lots of other precious miners.

Steve
The fundamentals dominate here. Only a matter of time for Russia to nationalise their gold mines and share them on oligarchs who lost on the recent Putin venture.