Armadale Capital Share Discussion Threads

[balbains324] 20/2/2017 08:35

Stig, the project costs us nothing.......get up to speed man.

[the stigologist] 20/2/2017 01:53

It's a low grade resource

1.6g/tonne

so for each tonne you dig up you get 1.6g of gold

That's about $60 of gold

Doesn't seem to leave much margin if digging up a tonne of rock costs let's say $30/tonne ? How much would you charge someone to dig that much rock ? Minimum wage at £10/hour ? How about blasting it out with dynamite ? How about digging it out with an excavator ? IT's pretty simple to do a sense check on these things yourself

Take a look at ASA recent results. Hardly make any money from an existing mine digging up 1.8g/tonne gold

Let alone finding $25m for capex to start a brand new mining operation

Also question the NPV discount rate used 8% is very low for a mining operation ?

Would you lend them £1m and accept them only paying you back £80k interest a year ? (with the risk they could go bankrupt and you might lose ALL your capital in the process?). I'm pretty sure you could find a better less risky investment ? How about investing your money in a project where the NPV is arrived at using 10% or 12% discount rate ? that gives you more margin for error ? And why not assume the spot gold price assumption is $1200/oz or $1150/oz ?

[neo26] 19/2/2017 21:19

Mpokoto Gold Project


The Mpokoto Gold Project is being developed by Armadale Capital’s joint venture partner, Kisenge Mining Pty Ltd (‘KMP). The project has a current total mineral resource of 678,000oz gold (‘Au’) from 14.58m tonnes @ 1.45g/t Au at a cut-off grade of 0.5g/t to produce approximately 25,000oz per annum over a nine-year mine life. The results of an expanded scoping study demonstrated a post-tax net present value of US$55.3 million based upon a discount rate of 8% and a gold price of US$1,250/oz.

Results from a Definitive Feasibility Study (‘DFS’), announced February 2016, set out various parameters for Mpokoto, identifying phased processing routes for the project to support low capex development (Phase 1 concentrates on the shallower oxide portion of the resource which will be prioritised for exploitation in advance of the deeper unweathered sulphide ore designated for Phase 2). The technical financial model shows solid economic fundamentals coming from annual mine throughput of 720,000 tonnes of ore over a four and half year mine life from which an average 24,900oz gold per annum could be produced. At a gold price of US$1,250 per oz, the revenue is US$138.6 million from Phase 1 alone. Capital costs are estimated to be of the order of US$25 million, with cash operating costs of US$792 per oz.

The Mpokoto project comprises four mining licences, which are valid for an initial term of 30 years from 30 September 2014. Significant further upside is anticipated with an exploration target of 2.4-3.0m tonnes grading 1.25-1.5 g/t Au, which the Board estimate should yield an additional 120,000-150,000oz Au to the project. Furthermore, the project is part of a total licence area of 800,000 hectares yet to be explored.

Under the terms of the joint venture agreement KMP will earn a 25% interest in Armadale’s subsidiary, Kisenge, the entity which holds the Mpokoto Gold Project, through providing funding and projected related services up to US$1.25m, including incremental metallurgical test-work, refining the current DFS to incorporate financing the project and initial capital works. Collectively, this work is described as Phase 1.

Upon completion of Phase 1, KMP has 30 days to decide whether to exercise an option to proceed with Phase 2 of the joint venture agreement. If KMP proceeds with Phase 2, it will seek to arrange funding to proceed into production. If KMP arranges 100% of the funding, it will receive a further 60% in the Mpokoto Gold Project, lifting its aggregate interest to 85% with Armadale retaining 15% free carried interest. Armadale may decide to arrange part of the funding itself, in which case the 60% stake will be split pro rata with KMP.

======================

mkt is totally ignoring this asset and putting no value to it..

[stuj1970] 17/2/2017 19:02

Bring it to all, rocket ship on de pad, awaiting countdown.....numbers in soon launch ? pad ready....roll em...

[neo26] 17/2/2017 18:05

Of course its massively undervalued, the gold project is worth the current MKT cap on its own.Sentiments in this stock is not very good at the mo, their is a seller in background, will eventually recover.Not sold 1 share and will continue to hold this stock, I like it...

[stuj1970] 17/2/2017 15:56

Agreed, still remember a few weeks ago on the placing with a ni-on or was it li-on excuse the pun..full day of buying at circa 3p and the share price didn't move either way all day, wonder what that was all about, we are soon to find out what is hiding out there.....This has got " multiball we all have a sack full" written all over it and sure can reach double digits in the near term alone....Just needs to be confirmed commercial battery grade..then game on.Not ramptastic just have a small holding and would like us all to do O.K here.GLASJ...

[ertugrul] 17/2/2017 15:49

Massively undervalued atm

[stuj1970] 17/2/2017 14:45

Let's be avin the graphite then pleaseo, largeeeo, and super largeeeoo...and let's have it in dem batteries for proper value...?News update surely soon on this bad boy and then we can all start making a little coinarge...Nice posh language bit of fun on this sunny Friday....GLASJ

[balbains324] 13/2/2017 17:30

Overhang cleared...someone was selling just over a million shares hence the price been subdued for last few days.

[neo26] 13/2/2017 13:38

Buyers coming in, missed that 2.75p don't have anymore funds. People will be calling this a bargain very soon.

[balbains324] 09/2/2017 16:58

hmmm.....wtf is going on here

[balbains324] 08/2/2017 11:50

just missed it!!

[neo26] 08/2/2017 11:15

Some buyers coming in at this price, massively undervalued. Imho

[ertugrul] 03/2/2017 17:48

Once a deal announced everyone will love it

[balbains324] 03/2/2017 16:20

I have over a million convictions!!

[neo26] 03/2/2017 15:41

All i can say this stock is not loved...

I still believe this has great potential, stick to your convictions.

[ertugrul] 02/2/2017 17:58

Very happy with resultsGoing to hold and add in every opportunity

[balbains324] 02/2/2017 16:30

just grabbed a few more at 3p.....big time undervalued....silly timing with RNS but I'm happy to hold

[neo26] 02/2/2017 15:50

you can sell above the mid price, make what you think of that, this company is a bargain.

dyor.

[mrphiljones] 02/2/2017 15:26

The market don't work like that anymore this is AIM....

[neo26] 02/2/2017 15:20

PhilResearch this company, I believe its significantly undervalued.They are fully funded for further drilling, feasibility studies and further testing this half..Fantastic opportunity...

[mrphiljones] 02/2/2017 15:16

Placed at 2.5p selling at 3.p nice work if you can get it......:-(

[neo26] 02/2/2017 13:30

SupercityThis is massively undervalued and can turn into multi bagger any day!!!

[supercity] 02/2/2017 13:24

Four posts since the rns - this one is definitely on no ones radar just yet and a paltry £6m market cap - could easily be another multibagger in waiting

[neo26] 02/2/2017 13:23

IMHO our graphite will be used for battery production, we have considerable amount of large flakes and jumbo flakes which sell for around $1600-$2600 respectively.MKT has totally missed this fantastic piece of news...