China Nonferrous Gold Share Discussion Threads

[charles clore] 03/9/2015 19:23

Wow just seen this is down 10%! Unbelievable

[charles clore] 25/8/2015 13:27

Oh I agree the old board was definitely past it and needed replacing. But they have had a recent culling and brought in new blood. New director Emma Priestley worked for Lonmin and has plenty of contacts and Bob is a damn good geologist. The new combination might just work. The mine is almost in production. The company is looking suddenly a lot better. We could do with the gold price up a bit of course - but you can't have it all ways can you! Lol

[novicetrade68] 25/8/2015 13:20

I would agree that whether the rout is over remains to be seen. Apart from a couple of gold miners and a coal dog, I largely remain on the sidelines too since September is often traditionally also either a weak or a bad month for markets, so not too keen on being brave at the moment.

Ah yes, STI....bought a few those a few months back, but now out again...I wouldn't mind buying in again at some point but because of the general markets I'm unsure about timing.

I have been frequently reading the STI thread, I think it is great there's a lot of opinions, but must admit it has given room for some doubt in my mind too about the competence or integrity of the board there. Seems Juju would love to see them in the retirement home ;-), which always makes me laugh reading that.

[charles clore] 24/8/2015 22:36

Novice - it remains to be seen whether this morning would have been good timing. The Chinese are still trying to get to grips with their stock market and I don't think the rout is over. As this company is majority Chinese owned and probably vulnerable to margin calls it wouldn't surprise me to see further weakness. For the time being I have cashed in all but one stock now and the only reason I'm still holding that is because I know they are only weeks away from gold production with no debt. It was nice to see a bit of blue on my screen today. NAI, DYOR etc.

[novicetrade68] 24/8/2015 19:56

Thanks CC, can't believe actually these were offered at 12p for a very few short moments this morning and missed the chance to buy... but like you say, it's not that simple to judge when to jump in or stay out, clearly buying this morning would have been great timing ;-)

[charles clore] 24/8/2015 13:36

novice - well done for not jumping in last week. I think we are going to find a lot of bargain juniors out there when this rout is over. But the trick will be judging the bottom correctly. Good luck!

[novicetrade68] 22/8/2015 19:32

I was almost tempted last Friday, but they didn't let you buy that many at all at 16.25p. Now if I recall correctly CNG did budget for a cost overrun facility, but do wonder now whether they'll be having enough cash till production starts - given all the delays and some damage they experienced on-site. That is actuallly my only concern at this point.

[inscrutable ted] 22/8/2015 11:33

I noticed this on Friday charlie & bet i'm not the only one (had sold out when they aborted the HK listing)

waiting to see if theres any price action at Monday open, as you know its volatile on relatively small volumes

[charles clore] 22/8/2015 09:27

I think we may have a potential short term 2-bagger here. NAI, DYOR.

[griffin4] 22/8/2015 03:14

This is down on little volume, so no worries from me.

[charles clore] 19/8/2015 20:46

Simon - you may not have noticed but the Chinese have recently suffered a huge loss on their stock exchange with many investors going bust. Their currency has been devalued in an attempt to maintain competitiveness with their markets - the West. And this company is virtually Chinese with mostly Chinese investors but the shares are traded in GBP - which has just made the shares more expensive for them to buy (but great for selling). So it's little wonder the stock is floundering is it?

[simonwashere] 19/8/2015 11:16

Malaise indeed. I sold much higher, a long time back. Needed the cash, and I got super lucky with the timing I guess. Fast forward to August 2015 and just thought I'd look now - this seems unbelievably low. Theres got to be some bad news or more delays about to be announced. Hard to believe that they are claiming to be virtually in production (Oct is just 6 weeks away, or ten weeks if they push their claim to 31st Oct) If not - Just wish I had buckets of cash to start buying again!

[charles clore] 19/8/2015 10:05

Market malaise Simon

[simonwashere] 19/8/2015 09:45

OK, not checked in a while, but surprised to see it this morning at 18.4p!
Bargain to be had? Or is this thing going from bad to worse?

[jimlad] 31/7/2015 15:01

can't see my buy yet on advfn.
Jimlad

[abacus23] 31/7/2015 11:15

jimlad,

whats gone though, i have nothing yet?

[jimlad] 31/7/2015 10:53

buying now looks like there could be a quick 50o/o
Jimlad

[eke] 30/7/2015 15:18

We just need the price of gold to stop falling now.

[eke] 30/7/2015 15:18

We just need the price of gold to stop falling now.

[abacus23] 30/7/2015 14:59

Well, i thought the report above was good? Gold October.

[small_investor] 28/7/2015 12:47

Latest interview with David Tang is on Proactive Investor:

China Nonferrous Gold eyes October for first production

10:40 28 Jul 2015

“We are targeting the completion of the processing plant in September and the smelter in October.”

The bankable feasibility study conducted by SRK Consulting worked off the basis of a 4.7 mln ounce resource.

The Pakrut gold project in Tajikistan owned by China Nonferrous Gold (LON:CNG) looks to be on track for first production by October, according to managing director David Tang.

Speaking from his office in Beijing, Tang struck an upbeat note, following earlier delays relating to adverse winter weather conditions and problems with the company’s plans to import a Chinese labour force.

“We are targeting the completion of the processing plant in September and the smelter in October,” said Tang. “We should be producing first gold in October.”

Long-term investors will know that this has been quite a journey.

In the company’s previous incarnation as Kryso Resources, Pakrut always looked a promising, but far-away project.

Far away not just from its original UK investor base, but from any sort of infrastructure or major industrial hub.

It took the can-do attitude of major Chinese resources player China Nonferrous Metals International to unlock the value, a process that began back in 2010 when an £11 mln investment secured it a 30% stake in Kryso.

Five years on, and China Nonferrous Metals now owns more than 38% of the company, a position of influence that was reflected in the change of name to China Nonferrous Gold that went through in November of 2013.

Other Chinese investors now account for major blocks of shares too, so the transition of Kryso into a Chinese majority-owned company is now largely complete.

Having said that though, there are no plans for China Nonferrous Gold to abandon its Aim listing.

“We will keep the London listing – why not?” says Tang. “We cherish the platform in the UK.”

At one stage, it’s true, there were plans to seek a listing in Hong Kong, but the Hong Kong Exchange was apparently twitchy about the “country risk” posed by Tajikistan.

That’s a factor that’s at times troubled investors in the UK too, but the listing authorities in the UK have tended to take the view that investors can wear their own risk and London’s junior mining markets have thrived accordingly.

Tang knows this. “We’ve been in the London market so many years it makes sense to stay,” he says. “The investor base is very familiar with us.”

And although Tang is still of the view that China Nonferrous Gold’s shares are undervalued, it’s clear that the market does remain supportive.

Over the past 12 months the shares have declined from around 30p to the current price of 23.5p.

That’s not bad given the corresponding decline in the gold price, the way some peer companies have been all but wiped out, and the fact that China Nonferrous Gold’s own development programme has suffered serious delays.

What’s helped is the heavyweight backing of the parent, China Nonferrous Metals.

Investors have at no stage had to fret that this is a company that will suffer any kind of a funding shortfall, even if it does run into trouble.

And on that score, Tang is fairly candid.

Because the Tajik government delayed the issuance of visas to China Nonferrous Gold’s majority Chinese workforce, and because bad weather hindered the connection of electricity to Pakrut, the scheduled completion date has slipped back by a couple of months.

Is there therefore likely to be an interim fundraising to tide the company over?

“We are still doing our calculations on that,” says Tang. But with the backing of China Nonferrous Metals, the delays are unlikely to turn into a major financial headache.

The real focus is on meeting the new timetable.

“We are pushing everybody to meet the October deadline,” says Tang.

Initial production looks set to run at around 1,000 tonnes a day, rising to 2,000 tonnes as the ramp up of phase one completes at the end of year two, and then rising again to 4,000 tonnes per day for the rest of the 19 year mine life.

Precisely how many ounces of gold will initially be produced remains to be seen.

“It’s the beginning of production,” says Tang. “The grade may not be very stable. We need to see.”

But the resource is big, there’s no doubt about that.

The bankable feasibility study conducted by SRK Consulting worked off the basis of a 4.7 mln ounce resource.

Cash costs including depreciation and amortisation were set at US$576.

So most of the heavy lifting has now been done, and China Nonferrous now looks set for an imminent transformation into a cash cow.

Alastair Ford

[c9ajl] 28/7/2015 07:33

? Should be ! (Sorry)

[rockybalboa] 07/7/2015 09:21

Keep the faith?
"I've been walking in the footsteps of societies lies. I dont like what I see no more, sometimes I wish I was blind"

[c9ajl] 02/7/2015 23:36

Gold price is a key driver (as it is in a all gold producers). Steady progress is being made at CNG. Timelines will drift, which is inevitable as a companies like CNG comes online. However, I feel the key driver here is the gold price. When will this change direction?.....when it's a loud to change direction. I've not sold any of my shares (UK investor) and I've been holding during the slow development years. #keep the faith ?

[rockybalboa] 01/7/2015 17:07

Yep - heavy snow...delays getting equipment to site... Q1 2016 will turn into 1H 2016. And no news in between.