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I presume this must have been discussed here before? Surely there is nothing they could develop that would as good and investment as devouring their own shares at these prices. Perhaps a little bit of drilling to give them 1-2 years extra pit life at a lower grade / higher strip if they must.
At such a low multiple to earnings surely now is the time if there ever was .................
Anyway I would love to hear conflicting views.
Anyone who is uncomfortable at this point should not be investing in a pure exploration company.
The line between what we are doing and gambling is thin.
Anyone who thinks otherwise is kidding themselves.
The market cost of (successfully) drilled meters alone must be 10's of millions of dollars.
The cost of these assets was wonderfully cheap. Easy £10-15m of value added here.
This team keeps delivering on big hairy goals.
Now onwards to the 1,000 ounces a month target for December please.
Assets in TZ are still SERIOUSLY cheap due to the damage Magafuli did. I think we are going to see Caracal pull off an absolute blinder of a price. The chaos of Magafuli's bulldozer approach left some really high quality development assets floating around in the wind.
TZ is now business as usual (or better than usual) as the new administration works to recover the countries international reputation.
I believe next week is going to be very value accretive to holders.
I agree in Kenya/TZ buying and running your own specialist plant is a must.
The rental market is not developed enough and you would end up paying an arm and a leg. The efficiency will not be as high as a professional drilling company but it will be very cheap and get the job done for a very long time.
Seeing Caracal take this approach showed the company is cost conscious and savy.
Perhaps I read a different RNS.
It seemed to me that they were delivering exactly like they promised and some traders messed with the heads of some weaker shareholders!
Get the production up, electrify and get the grade up. and this mine will be quickly producing at less than $1000/oz sustained.
Not sure if they will hit December but the point of hard targets is to stretch the team. 1000oz a month in the next 3-4 months is nailed on from what I have seen.
Very happy with progress and I would say if I wasn't.
They have mentioned they are looking for assets in TZ. I live in Kenya. Right now the price of assets generally is rock bottom. The capital flows into TZ have not yet recovered. Healthy Tier 1 banks there are trading at a PE of 4. Magafuli dying changed everything on the ground. The new president immediately reversed course and has been granting mining liscences flat out (orecorp and armadale capital are examples). Ore corp then raised $50m a few days later for their gold mine.
There could not be a better time to buy mining assets there. Investment sentiment has not yet returned but the politics obviously has. My money is great assets at dirt cheap prices.
How about Tek or Glencore as the cornerstone and the rest mopped up by Orion? Maybe this combo has already been thought through but if not...........
Not too bothered who brings the equity as long as it comes as cheap as possible to be honest the real value creation here is about aggressively building the mine and getting production going now imo.
Some healthy conversation here on the stock nice to see both sides being represented here.
ForeverNever's view is pretty solid in my view no need to be too positive about the stock let the management do the work and give us proof.
I agree 50 koz/month is currently a topic for another day. Short of a producing acquisition this is not possible within a year although by then there could be a viable road map if exploration turns up trumps.
This is my Christmas list:
1. 1000oz+ a month (sustained).
2. Increase grade of Ore.
3. Get the drilling rigs turning so we can expect a resource upgrade (grade and Oz) in 2022.
4. A value accretive acquisition?
A lot of potential here. I don't mind overly optimistic goals by management (Look at Elon Musk!) if they aim for the stars and just achieve 2,000 feet we will all make a good return.
It is important to remember what a low market cap we are starting from, a sustainable increase of 50-200% of the mcap in 12 months is very achievable at the current gold price imho.
The management obviously want to build a business here if you are deciding (after doing your homework) to invest you should give them 12 months minimum with your money to do this anything else is just dice rolling.
On the subject of electricity grid in kenya is ~20 cents per Kwh and diesel is ~70 cents per Kwh so this is a big deal as Oz/month increase.
Tanzania mines end up using alot of diesel as grid is poor quality and under supplied. Kenya has stable power (couples of hours loss a week) and too much electricity because we got a bit ahead of ourselves building power stations over the last 10 years!! KPLC the monopoly grid supplier would have been begging Caracal to connect to the grid.
GLA.
I went to see the mine on Tuesday I had a great day.
https://twitter.com/TwoUnity/status/1440586445266116608
These are my thoughts on the company. Enjoy.
I would be lying if I said I know what all these RNS mean in money terms but if all the talk surrounding the cores is backed up by lab results we have something like 200km of the same to continue drilling......................
So I live in Nairobi a couple of hundred km from Kilampesa Mine. I have contacted the management and arranged a site visit as part of my research and because it will be a learning experience in itself.
If anyone is researching or invested in this stock and has any unanswered questions let me know I will try to dig around.
The main questions I have are:
The heap leach tests and its' role/costs in the scale up of production.
Ability of the current plant to scale to 25k oz in 12 months.
See the extent of artisanal mining in the area. I know from local knowledge that artisanal mining is pervasive in this location I want to understand how much of this has occurred on their licence.
Making an estimate of costs/oz and additional capex as they increase production.
What kind of quality management do they have.
DOES ANYONE WANT ME TO INVESTIGATE ANYTHING SPECIFIC?
I have been reading about this company for a few weeks now and it strikes me that there would be a lot of money to be made by visiting the site with binoculars and estimating the production rate.
Yes Phenotype this is correct a lot of the share websites do not have the MCAP or Shares outstanding listed correctly.
https://www.blockchain.com/en/charts/hash-rate
The hashrate went up a fair bit over the last few days which has the same effect as Bitcoin going down on our profits. Hence the price drop.
Hello doing some simple modelling and want to understand of the 7,000 machines currently mining 6,000 are S17 are the other 1000 machines z11 and if so are they mining Zcash? Also does anyone know which model of S17 were purchased?