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Real-Time news about Gympie Gold (London Stock Exchange): 0 recent articles
|elmbury: Bad news from the colliery - these things can take a while to fix. Just as you feel Gympie is getting itself together, another problem comes along - this is going to hurt the share price considerably.|
|hectorp: I should have added that the dilution of $25m I assume Australien Dollars might drop 3-4 pence off the share price.
Equally, the fact that this is raised to develop the coal and gold production yet further and some element for further edxploration, is money that will be well spent. Next few days will tell .|
|wstirrup: Elmbury, Well..since no-one has posted a rebuttal..I'd have to say..you probably are..:¬))
But, I'm keeping an eye on this one...the next 2 - 10 weeks should see a sharp nudge up in the gold price, (with Iraqi conflict uncertainties) so this may have a positive effect on the share price.
On the coal front, I am less optimistic. With Global warming, and the Kyoto protocol a couple of years back, the long-term prospects for Coal producers are, shall we say....NOT Rosy?
|hectorp: Well the jury is still out, but the fall over over 60% in the share price since last year gives good support and exceptional value even, assuming, which is lets say 60% likely, that the following occur
- the coal seam returns to full production in around two months time.
- the gold seam does return the expected 60K oz in 2003. The cost of production is almost exactly ,50% of today's gold price of USD $372. The gross profit on this output, is $11.4 M USD.
This would permit a return to the reasonable value of around 30-34p we saw before the coal hiatus.
The cost of the longwall, which is 2nd hand, is $10m. The return on ONE year of the superior quality coal production is 2M tonnes of the coal. 3M tonnes are sitting ready to mine. This is, a seriously profitable little coalmine. The mine is capable of 2 M tonnes output P/A .
The Lewis Decline, an underground ramp and road to a lower seam of the gold resource, opens up the possibility of access to over 4 KM of gold lodes.
The company throwaway figure is a possible 6 M oz of resources.
That is world class but we have only seen the tip of that iceberg 100K or less.
The 'resource of the old-timers' had a value of 24Gmmes/Tonne, the recent minings have been at one third this quantity but that is three times the resource concentation of some profitable companies.
The chances are that some seams and regions of the new 'sub-alluvial extensions of the Gympie gold resource' ( I assume that is the old timer resource) could possess large areas at up to, 24 G/T. This would be a wonderful find. However there is little if any, evidence for this and the company admit early exploration will be high risk. The cost of the early exploration is around 14$ an oz.. may be Aussie dollars?
The company raise 40M last summer and recently also announced the 'largest gold exploration in Queensland, possibly Australia'.
I am convinced, that the potential is better than the likes of HEV, CMR, OXB, and some others.
All my own view and as said at the moment I dont hold any stock.|
|hectorp: We need to see this month how the company are resolving the problem with the coal seam which had glitches in Oct -Dec. They are good at getting news out. When this glitch is solved hopefully by around now, I'll buy my stock back.
The prospects for this coal and gold producer (now with a large stake in a neighbouring explorations tartup, Aguilla) are exciting and the share price has seriously drifted to the low 20's.
Assuming an annual gold price above #310 the company should hedge some future production (maybe for 330 plus) . Meanwhile the high grade coal they produce, has a ready Australian market (when the stuff is being produced that is!)
|hectorp: I finally have someone to talk to! Lol.
I beleive Australian gold mines deserve a small premium over SA ones for 'safe territory status' no worries about giving the mine to folk fo another colour or race etc.
Put my toe in today and bought some stock for the ist time in GGD, at the slightly inflated but historially cheap price of 35p.
Australians piled in to buy the A$40m offering recently at a much higher price.
The coal mine is a money spinner and will grow 240% till 2004, it should support the company trhough fluctuations in gold price, which i expect to be around $300 on average over the next 3-4 years.
The gold mine is a producer and will grow, and the exploration side , which is most exciting, is underpinned by cash already in the share price and the fact of the 'Lewis Incline' making more lodes accessible. I'd be looking at a4-5 year holding in the company doubling in value over 2-3 years, with the possibility of 4-5-6 M oz resource finds in that period of time as a bonus.
Gympie Gold share price data is direct from the London Stock Exchange