China Nonferrous Gold Share Discussion Threads

[cp42kx07] 22/7/2014 09:56

Or Very Close Gold Mine as I prefer to think of it.

[ned] 22/7/2014 09:19

Not much action here at Close Technology!

[cp42kx07] 17/7/2014 12:03

Having had chance to think about it, I now realise that there probably won't be an AGM this year as CNG is registered offshore and KYS is no longer a public company. Does anyone else think otherwise?Clearly it would have been very useful to have been able to really question management on a range of topics.CP

[novicetrade68] 14/7/2014 10:32

Thank you CP for looking into that. Agreed the interest rate is pretty high, although I recall at the time they had difficulty securing this money ie a loan from ExIm Bank never materialised and in the end CNMIM acted as guarantor of this first loan through a different bank.

[cp42kx07] 13/7/2014 15:12

small_investor

I'm not sure that my Tajik is quite good enough...


CP

[cp42kx07] 13/7/2014 15:09

nt68

I've now had time to check back on the figures and as I suspected the SRK report has $176.525m in phase 1, $46.494m in phase 2 and a further $32.734m as 'production capex' (aka sustaining capex). These amounts include $20.274m as a reserve fund.

With regard to the debt, $94m @9% and up to $114m ($120m x 95%) @c.3.5% (2.9% over LIBOR 3m) dependent on additional letters of credit. Why we are paying so much more interest on the first loan I'm not sure (even though it is a fixed rate).


CP

[small_investor] 13/7/2014 13:48

Report of Pakrut Gold Mine from Tajik Television

[cp42kx07] 02/7/2014 16:46

nt68

You'd need to check back to the SRK report for a full cost breakdown. Don't forget phase 2. I don't have my CNG projections to hand but the additional funding has been expected as far as I can recall. Total capital costs alone were expected to be over $ 255m in the BFS.

More annoying (at least to me) is the amount agreed for the sub soil tax. Way, way above guidance.

Probably the thing about CNG that concerns me most now is the amount of suspicious 'commissions', 'fees' etc that we seem to be paying. Every time I look there's another Tajik govt dept or middleman on the take.


CP

[novicetrade68] 02/7/2014 16:13

Thanks CP. So I make the total $94m plus up to $120m stand by. Still, I'm a little bit shocked by this amount as over run facility, you'd normally think it'd be a low-ish double digit % from the original loan.

[cp42kx07] 02/7/2014 15:22

nt68I agree it is a little unclear. As I understand it there are the old loans ($10m & c. $84m in RMB) and now the new facility ($79.2 m) which, for the moment, is instead of a HK placing. It will certainly be cheaper to raise money once production has commenced. So, clearly plenty to discuss at the AGM (whenever it is this year).CP

[wilmot] 02/7/2014 15:20

Yeah, that was my thought. Its pretty bad that they didn't make the use of the funds clear. It made me wonder if it is for some other purpose (M&A perhaps although I think management have their handsful with what they already have).

[cp42kx07] 02/7/2014 15:10

legg96Thanks, I missed the EGM but it all makes sense.CP

[novicetrade68] 02/7/2014 11:28

I'm getting a bit confused now, so are CNGs' loans now over $250m ? I know it's only a standby facility, but it seems a huge amount though.

[legg96] 02/7/2014 08:22

CP42KX07,

Went to an EGM February/March time at which it was said that if listing on HK did not take place by August a funding raising would be required. Spoke to Craig last month and he said that fund raising would not know be needed. This is the reason.

[cp42kx07] 02/7/2014 08:05

wilmotUnfortunately I'm unable to work my way properly through the accounts and thus update my own projections before mid-July but I do know that I had included a capital raising (equity placing) of USD 100m in the cash flow.It's been a while since I revisited the figures but I recall a sizeable amount of this sum being needed for cost increases. I suspect that the USD 120m facility is an interim measure. Certainly the terms appear (very) attractive so hats off to CNMIM.For my part I would be happy for them to use the more flexible loan at this stage rather than dilute current shareholders.CP

[wilmot] 02/7/2014 02:31

Hi guys. Was the below expected? I thought all the funding was already in place. I can't figure out whether the funding is for the ongoing mine build out or something new.Wilmot "On 19 June 2014, the Group obtained a bank term loan facility of US$120,000,000 from Industrial and Commercial Bank of China (Macau) Limited, secured by standby letters of credit."

[legg96] 27/6/2014 08:11

Accounts for year ended 31.12.13 need to be released by 30th June. I`m betting on 5.30 on Monday.

[cp42kx07] 24/6/2014 14:54

Hmmm. Really begs the question as to how cost over-runs were to be handled in the original contract. If it was a fixed price then we would have to assume negative consultancy fees... (which are about as likely as boojums).


CP

[cp42kx07] 24/6/2014 10:04

rogash

I too have (in my more paranoid moments) suspected something similar (e.g. post 37).

One hypothetical scenario, based on the atrocious information flow, is that the major players and their associates could pick-up disgruntled residual UK holders' shares cheaply prior to a HK listing. Furthermore, this is not to say that the company may not be delisted from all exchanges as an interim step as part of an attempt to clear-out the most stubborn holders.

The register of members would make for interesting reading.


CP

FINANCE, n. The art or science of managing revenues and resources for the best advantage of the manager. The pronunciation of this word with the i long and the accent on the first syllable is one of America's most precious discoveries and possessions.

[rogash] 24/6/2014 08:46

Just a suspicion some-one is buying up our shares,perhaps they don't intend to list in Hong Kong, why bother for so few shares left. There has been some selling and the price has held up fairly well. I don't think it's the gold price.Anybody any thoughts.Considering all the news to come, nothing comes.

[dataline] 19/6/2014 18:54

Spot Gold hits $ 1315 onwards and upwards.

[cp42kx07] 18/6/2014 09:48

A few points for the AGM (whenever it may be this year).

1. Exploration licence status?
2. Resource update?
3. Subscription bonus (sub-soil) tax status?
4. HK listing schedule?.
5. Finance (placing) information (including more on Tide Favour's appearance / disappearance)?
6. Construction update?

Quite a few crucial questions then...


CP

[zboy169] 16/6/2014 11:56

nice to see a bit of volume here again the past few days

[dataline] 16/6/2014 01:16

Big rise in Brent crude oil back to September 2013 price will support an increasing Gold price.

[legg96] 13/6/2014 11:09

450,000 just sold at 32.50. Buyer must be pretty confident this rally is soundly based.