Member Info for Tornadotony

RNS 21 October clearly states.

30% tax on all profits to Guinea for the new mine.

5% Royalty.

1% Development fund.

No mention of what goes on regarding local taxation. 2% goes to Cassidy as Royalty after 200k ounces produced.

There was a mention of 15% non diluted free carry also going to the Guinea government and extended to 20% if they contributed a cash payment to have that additional carry. This particular issue is important as arguments about free carry arise on a functional mine operating at nameplate.

Hence the typical 50% profit share figure that we saw across all African gold miners.

1. Usually 50% of all the profit after AISC costs is paid to national and local governments. Royalties may or may not be included in that figure.

2. Company administration costs are not included in the AISC and need to be deducted approximately $15M per annum.

3. Depreciation of assets and future cost of decommissioning mines at the end of life are outside of AISC costs and need to be factored in somewhere.

4. Not all the Capex per annum is attributable to AISC costs for example any that apply to Dugbe or involved unexpected waste stripping above what was planned at functional mines (Typically $10M a year) carried out by subcontractors.

5. Interest on debt is probably $16M for 2025.

$1100 over AISC looks fantastic, but then the bottom line after all the deductions drops a lot lower. The company ends up paying between $40-50M a year off debt. The AISC needs to account sustained drilling to forecast future annual mine plan as well as converting a proportion of mined out ounces from resources to reserves. These costs can make the AISC higher then expected on what the AISC for any miner will be 12 months from now.

Charts and candlesticks of any kind are useless on a stock that has say 18 trades in a single day. There is precious little liquidity driving anything here. The spread between sell and buy is huge and swamps many chart stats.

Gold investor 7,

It is a dog share and debt slave to banks. It will take nearly 4 years to clear all the debts providing both functional mines are on nameplate production for those 4 years solid. This involves mining out 750,000 ounces of gold left. At best the conversion rate from resources to reserves is 50%. The company needs a plus $2300 gold price for six years running as well with no bear market. It is a bit unfair to say it will go completely bust. I also agree that the sale of Dugbe only deals with the recent additional top up debt and some of the accumulated debt interest and the 4 year repayment model includes drilling to replace some of the ounces mined out. Overall, waiting 5 years to finally see the light at the end of the tunnel is not a good investment prospect. The reason to sell here is to do better on another gold miner investment or perhaps something like Rainbow Rare earths or a power utility company. All the best Tony

I believe we are waiting for the Biden visit in Angola scheduled between 13 October to 16 October. Unless anybody knows something different.

1797 Toronto close.

Gold at some point on a retreat.

Employ a consultancy to become a consultancy like private company themselves. I have recovered losses on 42,000 nanoco shares since getting out just another 3,450 to go. Dead money messing about here.

Https://www.gold-eagle.com/article/gold-price-analysis-dollar%E2%80%99s-possible-breakout-and-its-major-implications

This time Radomski may be correct in his assessment. As Harris currently leads Trump at this time in the polls it favours a higher USD and a lower gold price. Trump leading is high for gold and low USD. The difference is Trump wants to deport 20 Million immigrants which puts up USA labour costs and Harris is keeping the door wide open for yet more immigration (source Pelosky interview on Bloomberg lunch time today).

I should add pension payments from a UK provider including state pension to an overseas bank account where you live support that you have left the UK.

Holding a UK ISA, but living abroad. It can open you up to UK inheritance tax on all of your assets depending on the country you are in. By holding the UK ISA you allow UK HMRC tax authorities to claim that you have a link to the UK and that they have first claim on your estate as it goes into probate if the inevitable happens earlier than you expect. Of course if you have a living spouse they do not have an immediate claim if you had a will and passed the estate over to them. The cut off in some countries is up to 15 years after leaving the UK from inheritance tax claims. When you go abroad it is necessary to close all UK accounts if you want to keep HMRC out of your affairs and minimise all associations with the UK including membership of UK clubs and so forth. Tony

Volume is incredibly low. Canadian close was 1776 yesterday.

Barrick 4 executives getting arrested in Mali end of last week does not help with sentiment.

Unlikely. Dugbe sale would cover immediate problems if they get $47M net after selling costs. However, the new mine has to be at nameplate by Jan 1. The problem is that the share is a slave to those who hold debt for several years. It is a dog rather than a star investment. The review needs to consider getting out of Mali and paying off some of the debt.

Endeavour closed at 1810p.

Steve, I suspect the following; Some Chinese gold holders are selling to enjoy profits in their equity markets. Some hedge funds are selling gold and the miners to hold cash as they may be playing for a market correction. Oil price at lows is indicative a depressed consumer activity. For example, QVC are now offering six payments over time for an item and have people on air trying to help buyers plan far earlier for Christmas (this shows how weak consumers are). There is huge uncertainty this side of USA election and traders and investors are wary. All these factors together may be giving the distortions that we see in the market. Tony

In fill drilling is usually undertaken 9-12 months in advance of a mine plan for delivery on a annual target. It costs money to do, but it provides accuracy of ounces to be delivered in future quarters. What is alarming is that in fill drilling was being done to find ore in a shorter time frame say just one quarter in advance and so gave less accuracy on output. The company started out with six months of ore with precious little gold in it, say 10,000 ounces in total. It was not considered as waste ore as that would have given very large stripping ratios and would have front loaded costs as an overrun on the construction budget by around $30M. So they used waste ore to get 10,000 ounces and test out a new plant and train up staff to use everything and played out the overrun differently. However, this methodology puts a strain on a plant design that was probably set up for much higher ore grades. Betts has a habit to take short cuts, not plan against all the risks, and limits the importance of geochemical input on the mine planning simply to save costs and presto investors here can see the result.

The person they are recruiting will expose a lot more that has gone wrong and where Betts made incorrect decisions along with many others. His appointment is helpful and he has the skills to identify the issues. The need for more financing is probably to cover more waste stripping and build up reserves and resources and know more precisely where they are and how they will be utilised in a multi-year mine plan.

What do investors do in these circumstances depends on how bad their position is and how big and whether your loss is in ISA that has no capital gains allowance or a trading account where it can become a capital gains tax asset in future years. The RNS has given you 4 months to work out a plan. This is where you learn a great deal about investing and how to manage a challenging investment like whether to keep so much on or gradually take some off against some gains elsewhere in your portfolio. Most investors have wins and losses and if the outcome is that you establish investment rules and manage risk better in future than you will make profits over a reasonable time frame and be a disciplined investor/trader. The key is not to panic and examine the options and resources available to you. Just having a plan is helpful. The purpose of these message boards is to help one another.

Was today triple witching being the last Friday in the quarter?

A few articles have been written that the sector is way overbought. We could have two weeks of a retreat. USA data on consumer spend was poor. USA stock market is due a correction.

Delayed pit staging in a new mine can occur due to several factors:

Geological Challenges: Unexpected geological conditions, such as harder rock formations or unforeseen fault lines, can slow down excavation and delay pit staging.

Equipment Issues: Delays in the delivery, setup, or maintenance of mining equipment can hinder the progress of pit staging.

Operational Inefficiencies: Inefficiencies in the mining process, such as lower-than-expected mining volumes or issues with the processing plant, can contribute to delays.

Regulatory and Environmental Approvals: Delays in obtaining necessary permits or meeting environmental regulations can also impact the timeline for pit staging.

Weather Conditions: Adverse weather conditions, such as heavy rains or extreme temperatures, can disrupt mining operations and delay pit staging.

Labor Shortages: A shortage of skilled labour or labour disputes can slow down the progress of mining activities.

These factors can combine to create significant delays in the staging of pits in new mining projects.

Punter

Daddy finally had enough of Daniel's efforts to look like a mining CEO. The company is to be salvaged and Daniel is to be placed in the Chairman's play pen with a few NEDs to go shopping for nice wine as they stay out of the business and enjoy long lunches.

Will the company find a CEO to take this mess on. I suspect not with all the debt and the joys of West Africa. This is likely to to be sold off and delisted.

The movie that falsified geological test results to get finance to construct a mine only to find the quality of ore was nothing like what was really in the ground.

Faith in knowing they can take the company over privately.