The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Looks like the market already priced in 7koz was expecting a more significant drop.
Well I got the further info I wanted...
Clearly the option was on the table to roll the gold loan, why not take it ? Don't see why it has to be painted negative, yet. Gives operational flexibility for another year, could be to help manage cashflow while plant is getting up to speed, could be to expand operations, could be plant improvements, could be to accelerate AK drilling. Could be lots of things. Until the company tell us more we are in the dark. For me, it improves the risk profile as we don't go into default, happy with the decision, would like to know where the added headroom is being used.
Excellent turn around time, 1 month to drill 3 holes and see assays returned. Was expecting assays end October as the labs have been backed up in other jurisdictions. Promising start.
It's a no from me, but would be interested to hear from those that can go. Very rarely do any new RNS come before AGM so the CEOs always constrained in what they can say. The crux of this investment is now really trust in Frane when he says offtakers are chomping at the bit to fund additional source of mineral sands supply. The volume suggests either the market doesn't believe Frane or are put off by jurisdiction risk. Questions around this area would be interesting but I expect he will be curtailed in what can be said and may not lead anywhere.
From final results RNS
Concurrent with the preparation of Cell 3 of the heap leach to receive agglomerated ore, the Group is building an additional 1,000 tonne per day (tpd) crushing, agglomeration and stacking circuit, which will have double stacking capacity to 2,000 tpd and is now due to be commissioned during Q3 2022.
Thanks Wasa, That sounds like the promised new crushing and stacking circuit which doubles stacking throughput according to the RNS. Anything that can halve time taken or double capacity of building the heap leach pads should really help to achieve that 14000oz target this year, assuming the recovery issues are sorted - next operations update will be very telling.
anyone attending AGM able to confirm if the in quarter plant modifications have happened ? I think extra stacking and crushing circuit was being added this quarter.
Some big buys coming through.
Nice to see it go up on low volume as apposed to down on low volume for a change !
Although the recovered gold to date has been low the production profile could change suddenly i.e. a step change. As the heap leach process is a bulk process we could see a spiky production profile rather then a smooth gradual improvement like with hard rock or alluvial mining l. At least that's what I am hoping has happened :) a couple of good cycles with good recovery rate could equate to thousands of Oz in just a few gold pours
Expecting the gold loan to be pushed into next year after this statement from the final results.
I mean they have been producing 500oz a month so far this year so cannot see how they could pay it off by September.
The Board believes the flexibility and support afforded to the Group by AIMS to date demonstrates that, if required, this would be forthcoming. AIMS have confirmed their intention to continue to support the Group by agreeing to further extensions of the payment plan, however the interest rate would revert back to the default rate of 17% from September 2022.
Their strip ratio looked very competitive as I think Colin mentioned 3 to 1 in the past for BR ? I wonder if dropping the cutoff to 0.1 means they process more marginal material in the pit walls and this results in a more attractive strip ratio ?