Galantas Gold Share Discussion Threads

[nobbygnome] 13/4/2017 08:03

Yes strange announcement. Why bother to announce it as one month is neither here nor there in the greater scheme of things. I guess this could be why the price went down earlier in the week so I guess from that point of view it is a good idea to keep everyone informed.

Nobby

[hazl] 13/4/2017 07:48

I month isn't so bad....understandable.
Good to be informed.

[hazl] 12/4/2017 21:43

kitco

'The U.S. dollar tumbled on Wednesday afternoon after President Donald Trump said the U.S. dollar is “getting too strong” and he would prefer for the Federal Reserve to keep interest rates low.

U.S. Dollar Slumps After Trump Talks Down CurrencyTrump made his statements during an interview with The Wall Street Journal.'

gold up on the back of it

[hazl] 12/4/2017 12:47

you never know panagos

[panagos] 12/4/2017 11:01

what about when Trump makes something crazy in the next 4 years and POG will jump to $1800 in a matter of couple of weeks? Then it would be fun if we win the court case.

[hazl] 12/4/2017 10:32

Gold seems to defy all the naysayers these days.

If we have a bit of positivity in news here at Galantas then things would follow through to the share-price I'm sure.

IMO

[hazl] 07/4/2017 16:16

brilliant day for gold today expected more movement here to be honest

[willib2] 06/4/2017 19:07

Oh look ??????? GAL and LID are 7.38p

[nobbygnome] 04/4/2017 15:58

Well apparentl a 7.5k sale moved the price! I suspect there will be a largish delayed trade which was the actual culprit. Don't you just love this opaque market and the dodgy dealings of the MMs.

Ho hum....

Nobby

[nobbygnome] 04/4/2017 10:55

Current on line quotes are 50k bid at 7.7625 and 100k at 7.76 but only 15k offered at 7.95. So a move up is likely on even a low level of buying.

Nobby

[el_duderino_7885] 03/4/2017 19:04

Yeah some nice buying today.

[nobbygnome] 03/4/2017 16:15

I did warn you! Won't take much to get a move in the offer price as well. No online quote for 25k now...

Nobby

[nobbygnome] 03/4/2017 15:54

Interesting. The online quotes have firmed considerably this afternoon. I can only buy 25k now and am being quoted 7.951p. Looks like we could get a movement up shortly.

Nobby

[el_duderino_7885] 03/4/2017 15:41

Sorry *valuation

This phone is too small to be writing quick posts on!

[el_duderino_7885] 03/4/2017 12:28

Divmad I think the company will reach an appropriate baluatiob when:

I) It turns a profit and demonstrates it is achieving the numbers on its DCF

II) Sentiment improved in the industry overall

Historically juniors they do well can return multiples to investors - I don't think the relatively small production is a big issue. GAL already has institutional support which is s good sign.

[divmad] 03/4/2017 08:57

Another question for you.

Do you think the market will pay up and give full value (using junior gold peer comparisons) for a modest gold mine producing just 15k oz pa? Even 60k pa won't reach the fulcrum point for serious gold mine output. Nice, but not premium status.

[el_duderino_7885] 02/4/2017 22:27

No I wouldn't say it would be valued at zero.

If the planning appeal is upheld the company would have to reapply for planning I would imagine. In that scenario I imagine the planning authorities would want it pushed through as quickly as possible due to their negligence if that was proven.

It's the planning authorities being challenged not the company itself.

It would mean more delays and a much lower share price undoubtedly.

[divmad] 02/4/2017 22:16

Thanks for the replies.

On the face of it, GAL is very lowly valued - for good reason due to the pending JR outcome.

A binary bet here. Zero value versus 3-6x upside.

Must do more research on the chances this JR will go in GAL's favour.

[hazl] 02/4/2017 21:30

Markets don't like uncertainty so for anybody that can think outside that parameter and live with it, then the risk/reward, as I said, is very interesting.
Clearly one has to accept the risk is there and invest accordingly.

[el_duderino_7885] 02/4/2017 20:48

200% even at three times the price.

[el_duderino_7885] 02/4/2017 20:48

Yeah if the news is good I can see the market cap doubling very quickly. What do people here think a fair valuation is based on good news?

Assuming only 15k is achieved in the first year and £500 cash costs we'll have £7.5million FCf a year and a £30 milllion market cap isn't out of the question so 300% upside.

[el_duderino_7885] 02/4/2017 20:44

You have to include the debt though. HUM will be $55 million in debt by the time that mine is built. So you need to add that on to the market cap for a like for like comparison. GAL's debt is tiny in comparison.

Plus it's in Africa so you would apply a huge discount based on that.

New mines can often be delayed and rarely achieve planned production. That free cashflow of £55mn is a best case scenario and very unlikely to be achieved.

[doobydave] 02/4/2017 20:40

All,

Yes, the 'short-term voting machine versus long-term weighing machine' truism occasionally creates some juicy ratings disparities. Currently GAL's risk-reward ratio is ridiculous, assuming the judicial review goes in our favour.

It'll be interesting to see how much the MMs tack on in hour 1 following positive news but it'll still be an easy win IMO.

[el_duderino_7885] 02/4/2017 20:20

Divmad - FCF of around £12 million initially based on £20k production.

Potentially £36 million if they ever reach their target of 60,000 oz.