||EPS - Basic
||Market Cap (m)
Real-Time news about Glencar (London Stock Exchange): 0 recent articles
|serpicouk: Unfortunately GEX was a talented exploration company...but that was all.
The management simply didn't know what to do with what it found. They thought getting into bed with a predator was the answer. Big mistake (for the GEX share holders anyway).
I note Hugh was giving lectures earlier in the year on 'The Exploration History of a Gold deposit in Mali'. http://www.iaeg.org/
I'm sure he was patting himself on the back for all the sterling exploration work he conducted...with GEX shareholder money...for the ultimate benefit of GF shareholders.
Anyway...for those that care it looks like Hugh is currently 'MD' of Ghalu Limited. I assume this is just him freelancing his 'talents'. If anyone wants to know more about gold deposits in Mali you can contact him at email@example.com. Or may be catch one of his future lectures for the Irish Association for Economic Geology.|
|share_shark: Just for old times sake too. Have you seen this?.
The Glencore float is huge
As Alex Brummer notes in the Daily Express, "everything about the Glencore float is whopping". The prospectus, he says, "weighing in at 1,637 pages, is so big that it even dwarfs the stack of budget documents issued when Gordon Brown was Chancellor".
Of course, the investment bankers who are selling the shares probably want to be seen to be providing some good value for money. They are, after all, trousering a colossal £264m in fees.
The Glencore IPO (initial public offering) is aiming to raise almost £7bn. Right now we don't know exactly what the firm's starting market cap will be. But taking the mid-point of the indicated 480-580p per share price range, the overall value will come out at around £36.5bn.
That means a certain entry ticket into the FTSE 100 index. The company has already lined up enough 'professional' buyers to take up all the IPO stock. As many UK pension, tracker and exchange-traded funds will have to buy automatically afterwards, those investment bankers have more than enough firepower to ensure this is a successful float.
Should you buy in?
What really fascinates investors about Glencore is that it doesn't just trade commodities. It also owns a near-35% stake in Xstrata, the world's fourth-largest copper miner and fifth-biggest nickel producer.
With China's economic growth in particular going gangbusters, commodity producers have been one of the hottest parts of the market in the last two years. Since its December 2008 lows, the FT Mining index is up by more than 200%.
But here's where we come to the major jitter about the Glencore IPO. The firm makes more than half its profits from its mining activities. That means its earnings are highly geared to the level of demand for raw materials particularly from the likes of China.
And the Chinese authorities are becoming ever more worried. The country's inflation rate, at over 5% and rising, is getting out of control. So they're slamming on the monetary brakes by both cutting back the amounts that banks can lend and also by raising interest rates.
The eventual effect on the economy could be nasty a sharp slowdown could be on the way. Jeremy Grantham of GMO who predicted both the 'Great Recession' and the rebound reckons there's a high chance that "at least one wheel" will fall off China's economy over the next year, "and then commodity prices will decline a lot".
Nor is China the only worry. Other emerging economies such as Brazil and India are also in rising interest rate mode. If this works in slowing their economies too, demand for raw materials would be hit even harder.
Clearly this would all add up to bad news for Glencore, both for the firm's revenues and also its stock market rating. Further, lower metal prices would be likely to hit trading profits a bit too, although the company is a bit cagey about giving too many details on this score.
What does this all mean? Right now, Glencore is privately owned. It has 485 partners who'll all do very well indeed from the IPO. It could increase boss Ivan Glasenberg's worth to as much as £6bn.
And there's no doubt that the firm "is certainly plugged into far better information than virtually any other commodity investor", notes Devon Shire on Seeking Alpha. "They wouldn't be selling a portion of the company if they thought it'd be worth twice as much a year from now. So if it's trying to cash in before [the boom] breaks, investors would be silly not to pay attention".
It looks like Glencore may have marked a top in commodities
In other words, as John Stepek pointed out in Money Morning last month, it would be no surprise if the Glencore IPO marked the near-term top of the commodities boom. And in fact, it looks as though the IPO announcement may have marked it to the day yesterday commodities suffered their biggest plunge in two years.
Sure, in the long run, as Grantham argues, resource prices look likely to climb even higher than their recent peaks as supplies run lower while the world's population climbs. And Glencore could prove to be a great way of playing this.
But for me, Damien Hackett at Canaccord Genuity summed it up best. The IPO may be "spectacularly successful", he says, but "not too many people have made money out of dealing with Glasenberg". Yet now "the market is going to do a deal with him".
In summary: if you have a stomach for it, you could make short-term money by buying in when the shares start trading and there's a rush to get into London's hottest new company. But don't fall in love with your profits take them off the table while they're still there.|
|serpicouk: I'll be staying well clear of ORM then! lol.
A lot of the gold juniors that were managed better than GEX and weathered the credit crunch have regained 50+% of their shareprice...can't help but think that had the GEX board not courted Goldfields when in such an obviously vulnerable position (- some how eeking out the monies in the coffers or taken a few mil from MacQ) we would most likely be at the same share price as the Goldfields bid. Goldfields clearly want this ground so what might they have bid in that situation....12-14p ? Whilst still cheap considering potential I think on fundamentals it would have been just about acceptable.
I hope ORM shareholders aren't mugged by their own boards incompetence.
Anyway - as suspected. No counter bid. The majors won't want to push up juniors prices by competing with each other, not until they become scarce anyway. So I expect we'll see the low hanging fruit picked for cheap over the next few years.
Still, money to be made in the interim. If your lucky!|
|dr fillip strange: Joining a few dots I think Loeb Arbitrage Management LLC are tied to Macquarie, see the article below "Aussie bank Macquarie and its agents Loeb Aron" They seem to have left it a bit late to accumulate shares..
If they are going to play their hand, it sould be before Sept 4th deadline....
I was going to phone Loeb Aron to sound them out, I think there is a contact name & number at the bottom of the RNS.. however there are people on this board that have more knowledge of Glencar than me and would be better placed to make that call...
By Nick Webb
Sunday June 28 2009
GOLD-exploration firm Glencar, led by Hugh McCullough, faces a shareholder revolt over its decision to hand over control of its Komana gold mine to giant South African resource firm Gold Fields.
Aussie bank Macquarie and its agents Loeb Aron have been lobbying shareholders to vote down the deal at tomorrow's AGM.
In March, Glencar agreed a complex joint venture deal with Gold Fields which may see it earn up to $40m for exploration, whilst ceding effective control of Komana to the South African firm.
- Nick Webb
Disconnect between Glencar share price and gold cannot last forever
Cash-rich Glencar posts $730,000 loss
Glencar eyeing Komana partner
News In Brief
Sitting on a gold mine
Mali drilling to help Glencar stock get back on track
Funding coup gives rosy glow to future for Glencar explorations
TopicsGold Fields Ltd. Gold Mining and Processing Materials Sector Metals and Mining Sector Precious Metals Mining and Processing Mali Macquarie Group
By Pat Boyle
Thursday July 09 2009
GLENCAR shareholders now face a longer wait as the company embarks on the search for a new development plan for its gold prospect on Mali.
This week the company terminated talks with Gold Fields on a proposed joint venture for the Komana gold prospect in Mali after they were unable to agree the final terms on the deal.
The terms on the table would have allowed Gold Fields to earn a 65pc interest in the Komana project through funding a $32m exploration and development programme.
As part of the initial, non-binding agreement, Glencar raised £1.2m (1.39m) through a share placing with Gold Fields.
However, not all Glencar shareholders backed the plan, notably Macquarie Bank, an investor with a wide range of resource-related interests.
Macquarie actively campaigned against acceptance of the offer, leading eventually to the withdrawal of motions which would have allowed it to proceed.
The Gold Fields deal was being negotiated in the face of the refusal by Macquarie Bank to provide further funding for Glencar other than by way of a very large discounted share deal. Glencar directors maintained this would have involved substantial dilution for other shareholders.
The board is now looking at alternative development plans, including independent financing and possible mergers with other companies, it said this week.
According to stockbroker Davy, the Komana project is shaping up to be an economically sound mine. As of June 2008, Glencar had discovered 1.25 million ounces of gold at Komana and expects that further drilling will increase this reserve figures.
If this does turn out to be the case, then the delay caused by the breakdown of the Gold Fields talks may not be that disastrous.
The problem for frustrated shareholders is that, in the meantime, the share price has been the big looser.
On the day it announced the termination of the Gold Fields talks this week the share price fell 14pc and it shed another 10pc yesterday, trading under 5c.
This time last year the shares were trading at twice this level, two years ago they were pegged at 16c.
For shareholders this has been a painful process. Despite the good work being done in Mali and the huge gains on the gold markets, Glencar's stock has been heading in the opposite direction.
Assuming the board can come up with the goods, the disconnect between Glencar's stock price and the underlying gold price can hardly last for ever. Assuming that we have reached or are close to the bottom, then there is only one way to go.
- Pat Boyle
|wispaman: In my opinion.
gex is too small (at the moment) to operate on too many fronts.
It is a good deal in my eyes, whereas somebody else does the work (The Asheba Prospecting Licence) and foots the $$outlay, and gex reaps some of the profits (if achieved). If no profits then gex would have lost out big time, going it on their own and soaking up the costs.
If all goes well then gex ends up with a few million shares in adu and 2% of profits, and that could be anything. The more the profit the higher adu share price (if gex needs to sell).
I see this as a win win situation also to get value of gex up with Known Assets.
added: if there is any profits to come including shares, would that be about 2 - 3 years down the line, just when gex might need them!|
|wispaman: so with these new awarded options (for what I ask, as awards are usually for achieving something good), it will pay more (if taken-up and then sold later), to have a low share price at the start (now), and rise to who knows the true valuation of GEX on future grades found over the next 5 years.
I would much prefer the offer of buying them now at today's price rather than wait and see if money can be made.
I am not saying the share price has been kept low on purpose.
We have been starved of news over the previous months, which did not do the share price any good.
|share_shark: Now then.
Could Goldfields be raising cash(selling profitable stakes) to buy out Glencar Mining ?. ;-) and I am jesting too.
Gold Fields Sells Stake in Top Chinese Miner
Mon. June 08, 2009; Posted: 04:32 PM
Are you looking to increase your ETF knowledge?
Johannesburg, Jun 08, 2009 (Business Day/All Africa Global Media via COMTEX) -- ELGDF | Quote | Chart | News | PowerRating -- GOLD miner Gold Fields has made a potential profit of 77m on its investment in Chinese gold miner Sino Gold by selling its 19,9% stake to Eldorado Gold Corporation for 282m, investor spokesperson Nikki Catrakilis-Wagner said yesterday.
Gold Fields has spent 205m on Sino Gold to date, she said. The figure of 282m is based on Eldorado Gold's closing share price on Tuesday.
The move to exit Sino Gold is surprising as China has overtaken SA as the world's biggest gold producer in the past two years and Sino Gold is one of the most advanced foreign miners in the country.
The company, which is listed in Australia and Hong Kong, owns 82% of the Jinfeng mine, which will be one of China's biggest gold mines when it reaches full production of 180000oz a year.
Gold Fields took an initial 8% in the company several years ago which it raised to 14% in 2006 and 19,9% a year ago.
Sino Gold's shares were trading at A6,50 this week but were above A8 early last year.
Gold Fields said in a regulatory statement it had exchanged its stake in Sino Gold for 27,8-million Eldorado Gold shares, equivalent to 7% of Eldorado. Catrakilis-Wagner said the lock-up period on the shares, which refers to the minimum time Gold Fields has to hold them, was four months.
Asked whether Gold Fields would be a long-term investor in Eldorado Gold, she said "you can draw your own conclusions from the fact that we hold only 7%".
Eldorado Gold is listed on the Toronto Stock Exchange and, apart from its operations in China, is involved in mining and exploration in Turkey, Brazil and Greece.
In China, it holds 90% of the Tanjianshan Mine in central China, which is expected to produce about 100000oz of gold this year at a cost of 385/oz.
Gold Fields CEO Nick Holland said the transaction did not alter the group's objective of growing its global production in west Africa, South America and Australasia to about a million ounces a year in each region within three to five years.
Although Gold Fields was selling its equity stake in Sino Gold, it would retain its exploration joint ventures with the company, some of which had delivered positive results so far, Catrakilis-Wagner said.
The group was also not diluting its exposure to China by investing in a more diversified resources group, she said, because it intended to deploy its own team in the country.
They would be looking for both grassroots opportunities and operational mines but had not yet found anything that offered value for shareholders.
The transaction requires regulatory approval, including from the SA Reserve Bank. It is expected to be completed by the end of August.
Gold Fields shares closed 4% or 424c weaker at R104,36 yesterday, slightly more than the 1%-2% falls seen in AngloGold and Harmony's share prices, as the gold price shed 0,5% to 9 76/oz and the rand remained strong at R8,08/dollar.
For full details for ELGDF click here.|
|tonudiki: It could be an interesting day for the share price :-)
Glencar Mining plc
Glencar Secures up to US$40 million Funding in a Conditional Deal
with Gold Fields
25 March 2009
Glencar Mining plc ("Glencar" or the "Company") is pleased to
announce that it has signed a Letter of Intent with a subsidiary of
Gold Fields Limited ("Gold Fields"), conditional on certain matters
detailed below, which involves inter alia the following:
* A Joint Venture agreement in relation to Glencar's Komana
licence involving exploration/feasibility study expenditures of up
to $32 million in return for an interest of up to 65% in the Komana
* An equity investment in Glencar of US$3.2 million (Stg�2.2
million). Post investment, Gold Fields to hold 15% interest in
* An annual exploration option fee of $1.25m payable to
Glencar over four years, totalling US$5 million
The successful conclusion of this deal will represent a major advance
for Glencar, securing as it will, substantial exploration investment
for the Komana project, the possibility of securing all future
funding for a mine development at Komana without need for further
funding by Glencar, while also providing Glencar with sufficient
finance to advance the exciting Solona project and other exploration
interests in the region.
Gold Fields has conditionally agreed to fund (i) an initial placement
of 27,431,197 new ordinary shares which represents 10% of the issued
and outstanding shares in Glencar at a share price of Stg�0.0455 per
share for total proceeds of approximately Stg�1.25 million (the
"Initial Placement") and (ii) a second placement of 20,976,786 new
ordinary shares at a share price of Stg�0.0455 per share for total
proceeds of Stg�0.95 million (the "Second Placement"). The Initial
Placement and the Second Placement will together raise Stg�2.2
million and result in the issue of new ordinary shares representing
15% of the enlarged issued share capital of Glencar.
The Initial Placement shall be made on conclusion of due diligence on
Glencar and is expected to be completed within 14 days of this
announcement utilising Glencar's existing authorities to issue new
The Second Placement shall be conditional upon Glencar obtaining the
requisite corporate approval from shareholders at a General Meeting
and other conditions set out below. Glencar expects that the General
Meeting will be scheduled in late May 2009.
Gold Fields will have no preferential rights over other shareholders
Komana Joint Venture
Gold Fields and Glencar have conditionally agreed to enter into a
Joint Venture Agreement ("JVA") with respect to the Komana project on
the following terms and conditions:
1. Gold Fields will be entitled to earn, through a staged
earn-in arrangement, an undivided 60% effective interest in the
Komana project by incurring exploration expenditures totalling US$20
million over a four year period ("Earn-In Period") following
execution of an appropriate JVA. The earn-in will be staged so that
Gold Fields secures an initial 30% interest by funding US$10 million
and a further 30% interest after funding a further US$10 million.
2. Upon completion of the Earn-In Period, Gold Fields will have
the right, but not the obligation, to earn an additional undivided 5%
(together with the initial 60% referred to above) effective interest
in the Komana project by funding exploration and/or feasibility study
programs, subject to an additional expenditure commitment of US$12
million for such additional interest.
3. Gold Fields and Glencar will each have pre-emptive rights on
the sale of their respective interests in the Komana project.
4. Should it become necessary to spend additional funds to
complete a feasibility study subsequent to the Earn-In Period and the
period required to spend the additional capped US$12 million
expenditure by Gold Fields, Gold Fields and Glencar will fund any
further expenditures on a pro-rata basis, i.e. 65% Gold Fields and
5. Dilution will apply upon default of meeting expenditures.
Either party's participating interest will convert to a 1% net
smelter royalty if dilution results in their participating interest
falling below 10%.
6. If Glencar retains its participating interest throughout,
upon completion of a feasibility study Glencar would have the right
to elect either to participate in proportion to its interest or to
request Gold Fields, at Gold Field's election, to either arrange
project finance or provide a loan for Glencar's portion of equity
finance to develop the Komana project. However, Gold Fields may, at
its sole discretion, elect not to provide this financial assistance
and shall continue to hold 65% equity interest in the Komana project.
This loan provided by Gold Fields would bear interest at a premium of
5% to LIBOR and would be recoverable preferentially from the Komana
project cash flows, subject to the requirements of senior lenders.
If Gold Fields arranges such financing and/or provides such loan,
Gold Fields would be entitled to procure an additional 5% effective
interest in the Komana project. While it is Gold Fields intention to
provide the finance, if so requested by Glencar, should Gold Fields
elect not to provide such finance Glencar shall be given 120 days to
source alternative appropriate finance and during such period no
dilution of its interest shall occur. If subsequently such finance
is not forthcoming it is each party's intention to agree a less
onerous formula for Glencar's dilution in such circumstances.
7. Gold Fields would be the operator from the start of the
Earn-In Period onwards and Glencar would participate actively in
exploration initiatives and be represented on an exploration steering
All rights, title and interest in and to the Komana project are
currently held by Glencar Mali s.a.r.l. ("Glencar Mali"), which is a
95% owned subsidiary of Glencar and 5% owned by Petite Mine. Glencar
has the option to purchase Petite Mine's 5% interest in the Komana
project for US$1 million.
As part of the overall joint venture terms, Gold Fields will fund an
additional exploration option fee (the "Solona Option") of US$5
million in four equal annual instalments of US$1.25 million over the
Earn-In Period to assist Glencar in funding its exploration
initiatives on Glencar's Solona License ("Solona License") the first
such payment being made on signing the JVA and the remaining on each
anniversary thereafter. The Solona Option terms include Glencar (i)
expensing US$1.00 million of the first annual instalment of US$1.25
million received at Solona in the first year and (ii) expensing
US$0.50 million of the second annual instalment of US$1.25 million
received at Solona in the second year ((i) and (ii) together the "
Funding Expenditure"). In the event that Glencar does not expend the
Funding Expenditure in either the first year or the second year then
Gold Fields shall have the right, but not the obligation, to enter
into a joint venture agreement with Glencar to joint venture the
Solona License on similar terms (including the specific earn-in
terms) to those agreed to by the Parties in the Sankarani
shareholders agreement. Should Glencar fund the Funding Expenditure,
and subsequently decide to joint venture the Solona License, then
Gold Fields shall have a right of first refusal to enter into a joint
venture with Glencar over the Solona License at terms to be agreed
between the parties. Glencar may, if it so decides, continue to fund
and carry out all the exploration on the Solona License indefinitely,
and is not obliged to joint venture the property with any party.
Irrespective of whether or not Gold Fields joint ventures with
Glencar at Solona, it shall continue to be obliged to pay the balance
of the Solona Option over the Earn-In Period.
The proposals, other than the Initial Placement, in the Letter of
Intent are made subject to the following conditions precedent:
1. Approvals of the Government of Mali (if applicable);
2. Regulatory approvals;
3. Petite Mine agreeing to be bound by the terms and conditions
expressed in this letter;
4. South African Reserve Bank approval (if applicable);
5. Approval by the Executive Committee of Gold Fields Limited;
6. Satisfactory completion by Gold Fields of due diligence;
7. Negotiation and execution of the definitive JVA.
Should both parties agree to start the agreed exploration programmes
earlier than the 30 May 2009 and before the JVA is finalised, Gold
Fields will consider sole funding the exploration programmes as an
interim measure. In the event that the JVA is not concluded and the
terms of the Letter of Intent lapse, then Glencar shall reimburse the
payments made to it by Gold Fields.
It is expected that, upon completion of the JVA, an intensive
drilling campaign will be commenced with the objective of completing
substantial infill drilling, testing the Komana East and West
deposits along strike and at depth, and also testing other
exploration targets along the main Sankarani shear zone within the
Glencar's Chairman, Sean Finlay said;
"We have for some time now realised that the Komana project requires
substantial additional exploration expenditure to demonstrate its
full potential. We are confident that the Letter of Intent signed
with Gold Fields will progress to the completion of a joint venture
agreement on the Komana project. We believe that the agreement with
Gold Fields will provide certainty to the shareholders of Glencar
that the necessary exploration expenditure will be spent on the
Komana project with limited additional equity dilution to the Glencar
shareholders. Furthermore, Glencar will have sufficient funds to
explore further its exciting Solona project and our other exploration
interests in West Africa for the foreseeable future. The proposed
joint venture builds on our well established relationship with Gold
Fields and represents a strong vote of confidence by Gold Fields in
the Glencar management, the Komana project in particular and Mali as
a country in which to develop mineral resources."
For further information, please contact:
Glencar Mining plc
Hugh McCullough, Managing Director
Tel: +353 1 661 9974
Davy Corporate Finance
Hugh McCutcheon, Head of Corporate Finance
Brian Corr, Associate Director
Tel: +353 1 679 6363
Nick Rome/Michael Kinirons
Tel: +44 20 7562 3350
---END OF MESSAGE---|
|serpicouk: Interesting that Patagonia Gold gets a mention - for the sake of frivolity...
Since Nov PGD have released : 3 drill reports, a resource statement, a scoping study report and a placing.
Since Nov GEX have released :
Since Nov PGD share price has gone up ~130% and is close to a 3yr HIGH.
Since Nov GEX share price has gone up ~30% and is close to a 3 year LOW.
|serpicouk: Seems a rather muted response from all regarding the JORC RNS and the share price keeps drifting ever lower.
I thought I would take this opportunity to sum up my thoughts (apologies for the length of this post!):
My initial reason for invested in GEX was to balance out my other gold juniors who were mostly taking the 'dash to production' route. I had planned on hold here for 5+years while GEX proved up what could be a substantial multi-million oz deposit.
So several years down the line how are things panning out? Well, I have a number of concerns that I'd like to air (may be others could comment and provide insight).
I'll start with the jorc resource note that came out a few days ago. 1.25Moz @ 1.6g/t. Even with Hugh's warning comments that the revised jorc would be lower than many were predicting, for me, its still too low:
One way to look at it is how many oz could we attribute to GEX a year ago?
Komana W initial jorc contained 520,000oz. SRK stated that some quick infill drilling would add a further 200,000oz. Randgold had demonstrated that Komana E had 280,000oz. That lot adds up to 1.0Moz. A year on GEX have given us a further 250,000 new ounces - albeit to jorc.
In addition, the grade has continued to be low with only a modest increase from 1.4g/t to 1.6g/t. Had the grade been higher then my concern over the relatively small increase in resource base would have been offset. However, if GEX plan to open pit mine this deposit then ounces have to be added at a faster rate than is currently being accomplished.
If they were looking at producing 100K oz pa then assuming ~90% recovery they'd need 110K Au which would be contained in some 2,100,000 t of rock. That's some serious processing volumes and the associated costs will be significant. Hugh alluded to this fact when he referred to gold staying above $700 as a key factor in the success of this venture. With oil taking a dive from over $140 to just $64 I would expect the total cash costs to be considerably reduced. However, this isn't looking like a cheap mining operation by any stretch of the imagination and the associated risks should the price of gold dip at some point in the future will be high.
One aspect I can't help but wonder about is why the drill reports seem to be of reasonable quality, with reasonable grade and width in plenty of holes, but aren't quite being translated into proportional jorc ounces. may be this is just a misconception on my part.
The article posted a few days back suggested they have plenty of money I beg to differ and still expect the coffers to be refilled by the end of the next quarter. I can't see a JV being done on Komana with the current jorc the terms would most likely be unacceptable to GEX. That leaves going to the market to get bridging capital (a million?) until the next jorc (and subsequent JV). Whilst the economy is taking a dive the credit markets seem to be easing so acquiring this funding should be possible although at the current (and ever decreasing) share price this will still represent a dilution of note to existing shareholders.
Other areas of concern:
Do we have a good appreciation of the drill season? What's been drilled, when , how many meters by how many rigs and at what costs? The latest RNS suggests drilling started with only 1 rig at Komana with a second joining soon. Might exploration be scaled back to conserve funds until future funding has been guaranteed?
What were the results of the metallurgical tests?
Also confused by the posted article that initially suggested they would progress with increasing the resource rather than making the dash to production however, in the same article it suggested Hugh's game plan was to use the next monies to start the feasibility study. As previously stated, unless they are throttling back the exploration rate they'll need new monies Q1 next year so is half of the next drill season going toward activities to support a komana feasibility study?
Do GEX feel they will be in a better JV situation with a smaller resource + feasibility study rather than just a larger oz base?
Also curious that he says the market won't support taking Komana past the exploration stage does this suggest Goldfields won't be financing Komana?
The article also raises the spectre of a management buy-out should the share price fall further.
I feel there are quite a few concerns that could be addressed by an investor presentation detailing GEXs plan - or a brokers note. Something to de-risk the unknowns in the eyes of potential investors.
If they are struggling to build a sizeable resource base what will differentiated GEX from other juniors? Many have 1.25Moz, quite a few even have 2Moz, some have 2Moz and an open pit mine already operational and Market caps not that far above GEX.
Also some opportunities present:
Goldfields seem interested in Sankarani although I suspect that as a major they won't jorc to confirm say 500,000oz as a junior would so it will be hard to attribute fair value to GEX for some time.
Potential at other targets present on alternate concessions.
Head grade could be controlled with selective processing resulting in a possible increase in resource grade to 2.0g/t with minimal loss in Au.
Komana remains open in all directions. Particularly interested in what lies beneath 150m.
Last year's drilling will have significantly improved the modelling of this ore body this should result in more accurate drilling which could translate into a faster rate of addition for further oz.
Expectation that grade will be increased when off-shoots are drilled.
Large number of targets identified from the airborne study could result in some positive drill reports.
Market cap only £10.6M. You can buy in ground gold here for less than £8.50 an ounce. Current gold price £460 per ounce.|
Glencar share price data is direct from the London Stock Exchange