Member Info for Tornadotony

Quadruple Options Closing monkey hammer job. The question to ask why do banks do this and my answer is probably they wanted a cheaper price to get in. We shall soon see what happens next week.

Most likely a buying opportunity for next week. The reason for a knock down is sometimes a need to get in for what happens next. We shall see the result in due course.

Hence the monkey hammer by the banks on gold and silver.

Https://www.gainesvillecoins.com/blog/thailand-joins-china-driving-gold-bull-market?

Since August 2023, the company produced 3 output related RNS documents outside of all those returning funds to investors which was mainly to institutions who wanted to get out of the company. The second October RNS on outputs was mainly a repeat of what was given to markets in August 2023. The JDA was in January 2024 and thus far no contractual follow up has occurred. The contract was probably worth a couple of million and if it does not materialise during the summer months then forward outputs projected in 2025 are not going to happen either. The company is paying a lot of monies to Board and senior staff members to deliver. Not achieving a target of income of one contract is fairly high risk. If the CEO has put all his eggs in the STM basket then it is his performance target that becomes zero if he can not deliver anything at all on business development. We have also heard nothing on other licence income. The one contract they do achieve just about covers the Board salary income and those staff delivering that item of work. Otherwise they are milking monies out of $20M set aside for company developments and the company is their private past time hobby hence little in the way of presentations and proper communications to investors and lack of a proper company website that looks like something we might see over 20 years ago. They have also not demonstrated a proper plan on what they do with their financial resources and where outputs might arrive.

Overall it is professionalism that appears to be disappearing here and causing a lot of discontent. The company is going back on its word in 2023 in not responding to private investors on quite basic issues that would aid a better quality assessment of the company. Tony

Bought more RSG

Https://www.gold-eagle.com/article/two-charts-show-gold-scary-cheap

The above is very useful to bear in mind where the gold price can be in a few years time when Doropo gets constructed. My analysis on the gold price is based on the construction costs Centamin have given to build Doropo and the mine plan is on a shell structure of 1500-1600 AISC over 10 years. The bill is at least $380M and could be $450M before the kick off. Mine construction costs have also gone higher in the past year and I doubt it will be less than $500M to get two assets being utilised for 150,000 ounces per annum. Assume the company uses its bank facility and $250M cash to build plus a $100M debt loan or cash generated from Sukari. How long would 150,000 ounces per year at 1600 AISC average would it take to recover all that construction cost.

At S2100 gold price $75M is returned and equates to 6.7 years to pay back the cost for a 10 year mine and the return is a mere $25M per year before any tax or royalties. At $2700 gold price $165M is paid back and construction cost is recovered in 3 years and annual pay back before tax is a decent $115M per year. What are the chances of gold being $2700 when Doropo is constructed may well be within range which after all is just 10% above the 2024 high. Tony

The company provides an updated economic analysis later this year. The financing effort starts afterwards and the final DFS completes around May next year. If financing arrives a year from now, the facility construction completes late 2026 and then everything gets commissioned during scale up production. It will be early Q1 2027 when routine production is likely to occur at the earliest. It might slip to Q2 in 2027 especially if financing is getting delayed. Not everything is in the company's control. They will need to get all the permitting done as well preferably in H2 2024.

The company has been penalised for adding around 3 months on to the DFS completion when in fact they have made remarkable savings post PEA for the final project. The economic report might save for example $25M in financing if the work had not been achieved or done. The message from the RNS is that a lot is being learned in getting production right first time. The changes to be done are very significant as explained by the CEO presentation this morning.

Hi Tibbs

The problem globally, is that bonanza mine grades and huge volume discoveries are becoming as rare as birds teeth. Doropo has two decent deposits at Souwa and Kilsegui which are quite some distance apart, so the main mining complex has to be built equidistant to both. Kilsegui has 760,000 reserves at 1.29g/t and Souwa has 740,000 at 1.73 g/t. Together they generate a 10 year mine life of 150,000 ounces per annum. The project has a huge risk and is dependent on a rainy season remaining in future years. The 4 month of rain is needed to build a water stored supply for operational use throughout the year. The project does work if the gold price increases to around $2700 per ounce after mine construction and costs per AISC can hold 1500-1600 per ounce. If the gold price rolls over in 2024 it becomes a non-starter below $2100 per ounce where a small profit would be generated. The company has to get a good idea where the gold price is going and have a future view on climate environmental impacts on the project.

My hope is they find a better grade asset in Egypt near Sukari.

Tony

This occasion it is reflected in share price rally

The market is fixated on NIVIDIA and AI and yet the material supply side that would feed all the development is getting zero traction. The market is so narrow that it is missing real developments elsewhere. I have seen stocks like this suddenly rise 10% or so a few days later. I am genuinely stunned that we are not at 13 to 14p this morning. I can see why so many people are sticking funds in 5% interest accounts and giving up on equities. Ground breaking technology that has a huge future impacts gets no real response.

So far the sell side has moved up but it may take some follow up in the media later today. It was a good RNS. The company has a reserves and resources RNS to come through soon and permitting approval.

We have waited patiently for months for a big RNS to drop and it has happened. I will be staggered if we can get any under 12 at the open like I achieved yesterday.

They have done it. Just a small bit of follow up work and off to DFS and funding. The technology is going to work.

Https://www.zerohedge.com/political/your-lyin-eyes-corporate-media-panics-fact-checks-over-bidens-obvious-decline

Only in America. There is some humour in this article hence posted.

Added second lot as have enough to double the punt. I suspect not many shares are available to buy off market maker. Sticky hands are holding this stock.

I did the same as meoryou to deliver an average around 893p, which is 9p or so below divi day. I expect us to be above 900p by first week of August. The game plan is to hold for a year. Eventually it returns to 1100p area if the investment is all going to plan delivering 6-8% growth. In the meantime NG shares go in the draw as most of them will pay out a good divi in a few weeks time.

9:01 trade listed as unknown was my buy.

Back in RSG this morning. Second buy allocation held in reserve in case it dips further. Did well first time in and building confidence on this one.