Galantas Gold Share Discussion Threads

[divmad] 02/4/2017 19:35

Nobbygnome,

I see you commented over on the Imm bb, where I am a largish investor.

Here at Gal, can you point to any firm forward looking numbers for the company on free cash flow to be expected at current Gold prices, if and when production is allowed to go ahead after the JR? Basically, what's the upside from a standard valuation point of view, to the current MC of circa £13mn? For comparison, I own a good amount of HUM, which is predicting first year FCF of £55mn starting in December, against a current MC of £88mn.

TIA.

[hazl] 02/4/2017 14:04

'The Russian central bank opened its first overseas office in Beijing on March 14, marking a step forward in forging a Beijing-Moscow alliance to bypass the US dollar in the global monetary system, and to phase-in a gold-backed standard of trade.

According to the South China Morning Post the new office was part of agreements made between the two neighbours "to seek stronger economic ties" since the West brought in sanctions against Russia over the Ukraine crisis and the oil-price slump hit the Russian economy.'
Relevant?
Perhaps, perhaps not but interesting, nonetheless.
from zerohedge thanks to roguetreader.

[el_duderino_7885] 02/4/2017 12:11

Yes 100% the track record. This company has been a disaster for many years now. Even back in th days when they were producing, they managed some decent production for a year or so and rising profits only for planning issues to effectively shut down the mine.

One of the best plays in a gold bull run is to invest in:

I)re-opening mines;
II) mines that have low cash costs;
III) mines with amazing exploration potential

Gal has al these strings to it's bow plus a CEO willing to dip in to his own pockets and also holding a huge stake in the company.

This is far more than a hobby for Roland.

Once he planning goes our way - fingers crossed and shipments begun this silly valuation will be a distant memory.

[hazl] 02/4/2017 10:13

It is good to thrash these things out, whether they be ongoing prejudices....even if based on past factual record...or reputation, ill-deserved perhaps, by factors outside their control.

There are several things that influence the eventual outcome.
The judicial review is paramount.
The macro environment economically and clearly following on from that, the direction of the gold-price both short and long-term will play a dominant part likewise.
For all those factors to come together positively, as a future possibility, is why I have chosen to get a few here because of the great risk/reward ratio.

IMO

[nobbygnome] 02/4/2017 09:30

>>DD

Yes I understand what you are saying. However, to be fair to Roland the mine has already produced a reasonable amount of gold from the open cast pit. He can't be blamed for all the procedural issues which have protracted the whole process.

I guess ultimately what you say means that when it becomes obvious that the mine will produce gold at a good profit, there will be a serious rerating.

Nobby

[doobydave] 02/4/2017 09:06

Nobby, I think the reason is simple enough. GAL has been pootling about on AIM going nowhere for a good decade, and is considered to have a track record of failure. Some view it as Roland's personal hobby.

That's a very harsh assessment and not my own view, but for the market, GAL has it all to prove.

[nobbygnome] 02/4/2017 08:39

The real point here is that this situation is not like most small cap mining companies where they are years away from getting the stuff out of the ground. GAL have already begun digging the hole for the underground mine and are only months away from getting the ore out of the ground at a good profit.

Someone explain to me why the company is only valued at £12 million (yes I know it may be different after a positive ruling!).

Nobby

[el_duderino_7885] 01/4/2017 19:39

Nice summary bageo.

Any timelines given on the various phases?

The economics of this mine really are phenomenal. Once planning and capital are sorted this board is going to be buzzing with new investors.

This is well worth watching for anyone interested in investing in the miners right now. I also have long term money in the GDXJ:

hxxps://youtu.be/6GLdYJeI6oE

[nobbygnome] 01/4/2017 14:49

Thanks bageo!

I took down some numbers but they didn't make much sense when I looked back at them. The economics of the mine really are very impressive now and with a positive judicial review outcome, there has to be a serious rerating here. In fact I am surprised more people haven't taken a punt on the review outcome; trading volumes have been low for the last few weeks.

Nobby

[bageo] 01/4/2017 13:23

Nobby has summarised well, other points I took were:
The mine infrastructure e.g. haulage decline is sized for 40t haul trucks ready for a future scale upto 50koz/yr.
Due to 43-101 rules the figures quoted are at £750 that the study was done at, while Roland was able to confirm that £990 gold improves economics no specific figure was able to be put on it. With Phase 1 (20koz/yr) cashflow positive at £750 clearly an extra c£5m cashflow is mostly profit that can pay for the scaling up of the mine to 30koz then 50koz/yr.
Phase 1 production of 20koz/ye will be from 2 stoping panels and is slightly higher cost due to the lower volume - £430 cash cost vs £394 in Phase 2 (30koz/yr)
The mill is ready to receive ore, having been test run after being on C&M.
The Joshua vein intercept of 13m true width is a nice problem to have - working out how to mine.
Gavin Harris leads the Operations team and has good experience turning round a loss making mine to be profitable - I think this may be the Henty gold mine but an not 100% on this.
News on the splinter (from Kearny) vein shouldn't be long it is only 50m from the portal. Only 1 drill hole and at surface so no certainty and nothing is build into any forecasts and assumptions about it.

[el_duderino_7885] 01/4/2017 02:33

All sounds positive. Thenks Nobby

[panagos] 31/3/2017 08:22

Thanks Nobby.

[nobbygnome] 31/3/2017 07:55

Overall a very upbeat presentation. Although Roland could not comment on the outcome of the judicial review the chairman made the point that the company wouldn't be developing the underground mine if they were expecting to get a negative review. Another emphasised point was the advantage of the plunge in the pound which means that currently since gold is about £1000 an ounce, the economics of the mine look much improved.

There was detailed discussion of the different veins and he also talked up the other areas of their licenses where there is evidence for good levels of gold. All 3 veins are covered by the planning consent for the underground mine. In addition, there was mention of an extra small vein which may be hit early on in the underground mine development. It is not proven because of limited drilling evidence but we will find out soon if there is anything there.

TC had a discussion with Roland about when we can expect some concentrate production and I am not sure, what the answer was. I hope he will comment later today.

So overall positive but really it is all down to the judicial review result. That could come at any time but there is no visibility of when. I keep an eye on the court lists but Roland was not sure if it will be posted ahead of time.

Nobby

[el_duderino_7885] 30/3/2017 23:47

Any news Nobby?

[hazl] 28/3/2017 08:39

Apart from GAL, for anybody that still believes in gold going forward, PGD had a good RNS this morning.

IMO

[hazl] 27/3/2017 15:44

Hmm interesting timing for options...

[el_duderino_7885] 27/3/2017 14:14

Excellent,I look forward to your update Nobby.

I'm particularly interested to find out if there is a possibility of cash flow from the near surface ore by end of April as the company previously indicated.

[hazl] 27/3/2017 11:10

there's a thought!

[nobbygnome] 27/3/2017 10:32

I am going on Thursday as is TC I believe. Of course the most important information is the judicial review ruling and I guess that could come any day now. It would be great if it came before Thursday because then Roland would be able to speak much more freely!

Nobby

[hazl] 27/3/2017 10:22

Proactiveinvestors.co.uk/archives/miningCapital

Again from Proactive

'First, Galantas needs to mine into the Kearney vein. Then it needs to work out how it will move production up a stage to reach the basic parameters outlined in the 43-101 report.

Cash will be coming in by then, so potential investors or other funding providers will have proof of concept of a sort at their fingertips – the ore can be mined, it can be processed, the gold can be sold and the money delivered into Galantas’s accounts.

Perhaps even more pertinent to those curious about future funding needs is the presence of Canadian mining investment giant Ross Beaty on the register. That is serious no-nonsense money backing the ongoing development work.

Why’s it there?

Simple. In sterling terms, the Galantas project showed an internal rate of return of 72.2% based on a price of £750 per ounce of gold. Now, the price of gold is just shy of £1,000.'

[aim_trader] 22/3/2017 10:53

Galantas Gold CEO Roland Phelps will be presenting to investors at the Mining Capital Conference on 30th March in London. For details and registration, please click here:

[hazl] 20/3/2017 09:53

Long term 'bowl 'perhaps forming?.

7 year chart.