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Welcome on board. Usually quiet on here but here is a good post to get your teeth into.
Hi all, i am posting this again as a refresher by another investor, good read:
marketanalyst130 Jun '20 - 08:35 - 4488 of 4488
0 1 0
I’ve penned numerous articles about GoldStone Resources as a spectacular gold play; I’ve done extensive research and analysis of the company, the sector, the gold market, and countless other junior mining opportunities to verify that the Akrokerri-Homase gold asset, truly is of exceptional value. However, not even that extensive due diligence prepared me for this...
Over the past forty-eight hours, I’ve repeatedly found myself in a state of flux. Specifically, I’ve found myself unable to fully grasp the reasons that would draw City heavyweights Bill Richards, Paul and Angela List, Rich Wilkins, Orie Fenn, and Bill Trew, a reasonably wealthy band of hardened and well-respected investors, to GoldStone Resources.
Why, when they have achieved what most could only ever dream of, did they choose to invest their hard-earned cash into an under-the-radar Ghanaian junior gold explorer?
Why, for instance, did the former De Beers and Anglo American director, and now Ghanaian mining magnate, Orie Fenn, elect to not only represent the company (as a non-executive director), but to also own a notable stake (held under Fiske Nominees) in the business?
Why, for instance, did the owners of Africa’s largest private mining contractor, Ghanaian duo Paul and Angela List, with a net worth estimated at $107.5m, elect to not only represent the company (at the upper echelons of the Ghanaian political establishment), but to also own a sizeable stake (held under BCM Investments Ltd) in the business?
Why, for instance, does a Mayfair-based hedge fund supremo (‘Bill’ Richards of RAB Capital), renowned for his shrewd bets during periods of market volatility, and worth a cool £90m (courtesy of Markets Insider...), sink circa £400k (stake is under Pershing Securities Limited) into puny GRL?
Why, for instance, did the Chief Financial Officer of Phoenix Copper (the AIM-quoted North American-focused, base and precious metals company), Richard ‘Rich’ Wilkins, elect to not only represent the company (as a non-executive director), but to also own a decent stake in the business?
And why, for instance, does the head honcho of a £75m, globally-renowned gold investor (Paracale Gold), Bill Trew, who became a multi-millionaire through savvy investing (picking winning gold mining companies early in their life cycle), elect to not only represent the company (as a non-executive Chairman), but to also own a substantial stake (held under Paracale Gold Ltd) in the business?
Well, I believe I have uncovered some of the reasons. Here goes…
1. In its purest form, an ounce of gold in your hand is currently worth around $1,750 per ounce, and gold in rock, at concentrations not economic to mine, is worth nothing. It therefore follows that ‘gold in the grou
Don't know if this has been posted but of interest....
https://www.miningweekly.com/article/mining-industry-yet-to-fathom-scale-of-battery-raw-material-challenges-friedland-2020-08-28
Drilling underway at Homase..........
https://twitter.com/GoldstoneRes/status/1298176985244610560
collapse of the dollar by year end.
8. The rapid expansion of fiat currency-printing by global central banks is expected to reach $10 trillion by the end of 2020.
9. Many industry professionals now believe ‘peak gold’ has been achieved and are preparing for a $5,000 gold price by 2025.
So, is it all starting to make sense now?
The market is certainly starting to get it; GOLDSTONE IS PROFOUNDLY UNDERVALUED AT TODAY’S PRICES.
ATB, stay LONG and remember, there’s not much free float here.
Https://smallcaps.com.au/gold-big-story-in-town-investors-rush-into-penny-stocks/
Https://www.marketwatch.com/story/the-dollar-is-going-to-fall-very-very-sharply-warns-prominent-yale-economist-2020-06-16?reflink=mw_share_twitter
Https://kingworldnews.com/massive-gold-short-squeeze-there-is-no-escape-for-the-gold-shorts/
Https://www.dailymail.co.uk/news/article-8435805/Bank-England-pumps-100BILLION-UK-economy.html
Https://aheadoftheherd.com/Newsletter/2020/Gold-industry-must-find-8Moz-to-avoid-supply-deficit-Woodmac.htm
or at least significantly narrowing that or at least significantly narrowing that range.
Industry professionals use the Comparable Transactions Method to benchmark the value of an ounce of gold in the ground. It relies on the principle of substitution; the mineral property being valued is compared with the transaction value of similar mineral properties, transacted on an open market.
The conclusions that can be drawn from the statistical analysis (courtesy of Cipher Research) determined the average price paid for gold in the ground in 2019 was $63 per ounce.
Thus, based on the above, and with a current JORC resource base of 602,000 ounces of gold, Goldstone's in situ valuation is $37.9m (£30.7m or 12.28 pence per share).
2. GoldStone’s assets lie in one of the most prospective gold belts in the world; Ghana’s Ashanti Gold Belt which hosts the 350,000 ounce per annum (production) Obuasi Mine (7 miles from GRL’s flagship asset). On this point, Prof. Amankwah of the University of Mines and Technology (UMaT) in Tarkwa, Ghana, believes the company’s current unproven resource sits at around 5million ounces of gold!
3. The company’s BOD recently reminded the market that their 2020 gold production target (in Q4 2020) was on track. And based on today’s gold price of $1,780, the project’s IRR would sit at a staggering 190%.
4. The Chinese, now clearly experiencing what has been predicted for several years — a diminishing gold resource at home — are now eyeing foreign juniors as a means of replenishing their in-ground resource. And with its significant post code, large gold resource, near-production prospects, and profound undervaluation (£18.7m market cap or 7.5p per share), GoldStone is a prime takeover target.
5. Also, the graphite space has been a huge disappointment for Australian investors. To this end, graphite hopefuls such as Volt Resources (ASX: VRC) and Graphex Mining (ASX: GPX) are increasingly switching their focus to gold by acquiring near-production African gold juniors.
6. The recent revelation by gold commentator Alisdair Mcleod that there’s a massive gold short squeeze ahead, and that it is likely to send the gold price rocketing in 2020; “Certain hedge funds and swaps dealers have tried to keep the gold price down. The swaps are now more short than they have ever been. And this is a situation where the gold price is on the verge of breaking out. Arguably it has already broken out. They (swaps dealers) are just caught (short). There is no escape for them.”
7. Stephen Roach, Yale University’s senior fellow and former Morgan Stanley Asia chairman, warning of the coming collapse of the US dollar. The internationally-renowned economist stated that, the rise of China and the decoupling of the U.S. from its trade partners is setting the stage for a dramatic weakening of the U.S. currency that is likely to end the supremacy of the monetary unit as the world’s reserve currency. But more importantly, a banking crisis, comme
Hi all, i am posting this again as a refresher by another investor, good read:
marketanalyst130 Jun '20 - 08:35 - 4488 of 4488
0 1 0
I’ve penned numerous articles about GoldStone Resources as a spectacular gold play; I’ve done extensive research and analysis of the company, the sector, the gold market, and countless other junior mining opportunities to verify that the Akrokerri-Homase gold asset, truly is of exceptional value. However, not even that extensive due diligence prepared me for this...
Over the past forty-eight hours, I’ve repeatedly found myself in a state of flux. Specifically, I’ve found myself unable to fully grasp the reasons that would draw City heavyweights Bill Richards, Paul and Angela List, Rich Wilkins, Orie Fenn, and Bill Trew, a reasonably wealthy band of hardened and well-respected investors, to GoldStone Resources.
Why, when they have achieved what most could only ever dream of, did they choose to invest their hard-earned cash into an under-the-radar Ghanaian junior gold explorer?
Why, for instance, did the former De Beers and Anglo American director, and now Ghanaian mining magnate, Orie Fenn, elect to not only represent the company (as a non-executive director), but to also own a notable stake (held under Fiske Nominees) in the business?
Why, for instance, did the owners of Africa’s largest private mining contractor, Ghanaian duo Paul and Angela List, with a net worth estimated at $107.5m, elect to not only represent the company (at the upper echelons of the Ghanaian political establishment), but to also own a sizeable stake (held under BCM Investments Ltd) in the business?
Why, for instance, does a Mayfair-based hedge fund supremo (‘Bill’ Richards of RAB Capital), renowned for his shrewd bets during periods of market volatility, and worth a cool £90m (courtesy of Markets Insider...), sink circa £400k (stake is under Pershing Securities Limited) into puny GRL?
Why, for instance, did the Chief Financial Officer of Phoenix Copper (the AIM-quoted North American-focused, base and precious metals company), Richard ‘Rich’ Wilkins, elect to not only represent the company (as a non-executive director), but to also own a decent stake in the business?
And why, for instance, does the head honcho of a £75m, globally-renowned gold investor (Paracale Gold), Bill Trew, who became a multi-millionaire through savvy investing (picking winning gold mining companies early in their life cycle), elect to not only represent the company (as a non-executive Chairman), but to also own a substantial stake (held under Paracale Gold Ltd) in the business?
Well, I believe I have uncovered some of the reasons. Here goes…
1. In its purest form, an ounce of gold in your hand is currently worth around $1,750 per ounce, and gold in rock, at concentrations not economic to mine, is worth nothing. It therefore follows that ‘gold in the ground’ is worth somewhere between $0 dollars and the current spot price; the key is to find
Good reminder of what happens in a bull market:
spacedust27 Jul '20 - 11:21 - 4747 of 4747
0 1 0
This is not a ramp but pure facts
2011 gold aim 12 month approx movements
Marl 2p to 60p
Ngl 2p to 80p
Grl 0.5p to 13p
Fml 0.3p to 15p
Crnd - similar but can't remember exact prices but crnd was 200p
collapse of the dollar by year end.
8. The rapid expansion of fiat currency-printing by global central banks is expected to reach $10 trillion by the end of 2020.
9. Many industry professionals now believe ‘peak gold’ has been achieved and are preparing for a $5,000 gold price by 2025.
So, is it all starting to make sense now?
The market is certainly starting to get it; GOLDSTONE IS PROFOUNDLY UNDERVALUED AT TODAY’S PRICES.
ATB, stay LONG and remember, there’s not much free float here.
Https://smallcaps.com.au/gold-big-story-in-town-investors-rush-into-penny-stocks/
Https://www.marketwatch.com/story/the-dollar-is-going-to-fall-very-very-sharply-warns-prominent-yale-economist-2020-06-16?reflink=mw_share_twitter
Https://kingworldnews.com/massive-gold-short-squeeze-there-is-no-escape-for-the-gold-shorts/
Https://www.dailymail.co.uk/news/article-8435805/Bank-England-pumps-100BILLION-UK-economy.html
Https://aheadoftheherd.com/Newsletter/2020/Gold-industry-must-find-8Moz-to-avoid-supply-deficit-Woodmac.htm
.
range.
Industry professionals use the Comparable Transactions Method to benchmark the value of an ounce of gold in the ground. It relies on the principle of substitution; the mineral property being valued is compared with the transaction value of similar mineral properties, transacted on an open market.
The conclusions that can be drawn from the statistical analysis (courtesy of Cipher Research) determined the average price paid for gold in the ground in 2019 was $63 per ounce.
Thus, based on the above, and with a current JORC resource base of 602,000 ounces of gold, Goldstone's in situ valuation is $37.9m (£30.7m or 12.28 pence per share).
2. GoldStone’s assets lie in one of the most prospective gold belts in the world; Ghana’s Ashanti Gold Belt which hosts the 350,000 ounce per annum (production) Obuasi Mine (7 miles from GRL’s flagship asset). On this point, Prof. Amankwah of the University of Mines and Technology (UMaT) in Tarkwa, Ghana, believes the company’s current unproven resource sits at around 5million ounces of gold!
3. The company’s BOD recently reminded the market that their 2020 gold production target (in Q4 2020) was on track. And based on today’s gold price of $1,780, the project’s IRR would sit at a staggering 190%.
4. The Chinese, now clearly experiencing what has been predicted for several years — a diminishing gold resource at home — are now eyeing foreign juniors as a means of replenishing their in-ground resource. And with its significant post code, large gold resource, near-production prospects, and profound undervaluation (£18.7m market cap or 7.5p per share), GoldStone is a prime takeover target.
5. Also, the graphite space has been a huge disappointment for Australian investors. To this end, graphite hopefuls such as Volt Resources (ASX: VRC) and Graphex Mining (ASX: GPX) are increasingly switching their focus to gold by acquiring near-production African gold juniors.
6. The recent revelation by gold commentator Alisdair Mcleod that there’s a massive gold short squeeze ahead, and that it is likely to send the gold price rocketing in 2020; “Certain hedge funds and swaps dealers have tried to keep the gold price down. The swaps are now more short than they have ever been. And this is a situation where the gold price is on the verge of breaking out. Arguably it has already broken out. They (swaps dealers) are just caught (short). There is no escape for them.”
7. Stephen Roach, Yale University’s senior fellow and former Morgan Stanley Asia chairman, warning of the coming collapse of the US dollar. The internationally-renowned economist stated that, the rise of China and the decoupling of the U.S. from its trade partners is setting the stage for a dramatic weakening of the U.S. currency that is likely to end the supremacy of the monetary unit as the world’s reserve currency. But more importantly, a banking crisis, commencing in July/August 2020, will lead to foreign selling of the USD and likely co
Good read:
marketanalyst130 Jun '20 - 08:35 - 4488 of 4488
0 1 0
I’ve penned numerous articles about GoldStone Resources as a spectacular gold play; I’ve done extensive research and analysis of the company, the sector, the gold market, and countless other junior mining opportunities to verify that the Akrokerri-Homase gold asset, truly is of exceptional value. However, not even that extensive due diligence prepared me for this...
Over the past forty-eight hours, I’ve repeatedly found myself in a state of flux. Specifically, I’ve found myself unable to fully grasp the reasons that would draw City heavyweights Bill Richards, Paul and Angela List, Rich Wilkins, Orie Fenn, and Bill Trew, a reasonably wealthy band of hardened and well-respected investors, to GoldStone Resources.
Why, when they have achieved what most could only ever dream of, did they choose to invest their hard-earned cash into an under-the-radar Ghanaian junior gold explorer?
Why, for instance, did the former De Beers and Anglo American director, and now Ghanaian mining magnate, Orie Fenn, elect to not only represent the company (as a non-executive director), but to also own a notable stake (held under Fiske Nominees) in the business?
Why, for instance, did the owners of Africa’s largest private mining contractor, Ghanaian duo Paul and Angela List, with a net worth estimated at $107.5m, elect to not only represent the company (at the upper echelons of the Ghanaian political establishment), but to also own a sizeable stake (held under BCM Investments Ltd) in the business?
Why, for instance, does a Mayfair-based hedge fund supremo (‘Bill’ Richards of RAB Capital), renowned for his shrewd bets during periods of market volatility, and worth a cool £90m (courtesy of Markets Insider...), sink circa £400k (stake is under Pershing Securities Limited) into puny GRL?
Why, for instance, did the Chief Financial Officer of Phoenix Copper (the AIM-quoted North American-focused, base and precious metals company), Richard ‘Rich’ Wilkins, elect to not only represent the company (as a non-executive director), but to also own a decent stake in the business?
And why, for instance, does the head honcho of a £75m, globally-renowned gold investor (Paracale Gold), Bill Trew, who became a multi-millionaire through savvy investing (picking winning gold mining companies early in their life cycle), elect to not only represent the company (as a non-executive Chairman), but to also own a substantial stake (held under Paracale Gold Ltd) in the business?
Well, I believe I have uncovered some of the reasons. Here goes…
1. In its purest form, an ounce of gold in your hand is currently worth around $1,750 per ounce, and gold in rock, at concentrations not economic to mine, is worth nothing. It therefore follows that ‘gold in the ground’ is worth somewhere between $0 dollars and the current spot price; the key is to find out exactly how much or at least significantly narrowing that
marketanalyst125 Jun '20 - 08:44 - 4417 of 4419
0 1 0
Private investors would be wise to note the following:
As the re-rating of the company’s shares gathers pace, remember to stay LONG and deny the MMs critical stock; according to Tradeview™ analytics, the actual free float (an average calculation that includes LONG investors – stock held for over three months) is close to 7.3%. Meaning, the stock’s fair value is likely to be achieved at a faster pace so long as investors maintain their LONG positions.
Thus, extreme self-discipline is required to achieve the above.
In the meantime, the scene is set for a $2000-plus gold price;
Https://aheadoftheherd.com/Newsletter/2020/Gold-industry-must-find-8Moz-to-avoid-supply-deficit-Woodmac.htm
Https://uk.investing.com/commodities/gold
ATB.
marketanalyst124 Jun '20 - 09:08 - 4401 of 4401
0 0 0
Updated investment case...
• Post-tax NPV of the company’s near-production Akrokeri-Homase gold asset, located in the world class Ashanti Gold Belt, is now approaching £24m (at US$1,790/oz gold price).
• Cash and cash equivalents stands at circa £5.5m.
• Current market cap stands at £12.5m.
• Stock fair value, ahead of gold production news, currently stands at 12pence per share.
Two words: materially mispriced.
Https://www.kitco.com/news/2020-06-10/Gold-prices-to-comfortably-break-through-1-800-Metals-Focus-Newman.html
Https://uk.investing.com/commodities/gold
ATB.
Updated investment case…
The company’s current market cap is £10.50m (4.2pence per share). Allowing for cash and cash equivalents of £5.6m (now including the £2.1m gold loan confirmed in today’s announcement…), means that, the market is valuing the company’s flagship asset, the Akrokeri-Homase Gold Project (AKHGP), at £4.9m.
£4.9m, against a current post-tax NPV of £23.3m (at US$1,750/oz gold price following today’s strong rally…), is, quite frankly, a complete nonsense.
Remember, the £4.9m valuation assigns ZERO value to the asset’s significant post code; AKHGP lies 7 miles along strike from AngloGold Ashanti’s Obuasi Mine which is targeting 350,000 ounces of gold production in 2020.
The £4.9m valuation assigns ZERO value to Paracale Gold and BCM’s presence on the BOD. PG and BCM are globally renowned, hardened, and highly respected gold investors who collectively own 48.2% of the company.
Finally, the £4.9m valuation assigns ZERO value to the fast approaching inflection point – gold production.
Ghana's EPA is due to issue the Environmental Permit imminently. The issuance of the EP will then trigger the immediate commencement of mining operations:
• Stage one involves mining the ore. This is projected to commence in July 2020.
• Stage two involves crushing the ore and heaping it on a leach pad. This is projected to commence in July 2020.
• Stage three involves the irrigation of the leach pad with a leach solution to begin the extraction of the target mineral. This process, called the 'leach cycle', typically takes 4 weeks.
• Stage four involves the ultimate recovery of the target mineral – gold. This is projected to commence in the backend of August/beginning of September 2020.
Thus, the shares, which currently represent exceptional value, should be trading at 12pence per share (fair value) ahead of any gold production news.
In the meantime...
Https://uk.investing.com/commodities/gold
Https://www.kitco.com/commentaries/2020-06-19/Chinese-gold-miners-continue-junior-shopping-spree.html
Https://www.etftrends.com/alternatives-channel/record-spending-and-money-printing-puts-markets-in-uncharted-waters/
ATB and stay safe.
Don't know if this has been posted but here you go.....
https://www.marketwatch.com/story/goldman-raises-12-month-gold-forecast-by-11-to-2000-an-ounce-2020-06-19