Altyngold Share Discussion Threads

[wrighty46] 28/6/2019 10:59

Good morning all. Some decent buys going through. Building a new base after the loss hopefully. Finance news hopefully next month. Production should be up now following recent guidance from the company. GLA

[jc2706] 26/6/2019 17:04

Agreed with all of that.

[excellance] 26/6/2019 16:55

I agree. I think maybe the company were asking too much too soon, and at the time gold was trading sideways.

With money in the bank, after loan repayment, and more work done to reduce risk, and with markedly higher pog, maybe the bankers or others will come knocking later.

For now, we need more work done, more cash earned, more time, and a continuation of tge gold bull run.

From rags to riches...

[jc2706] 26/6/2019 16:26

The bank will assess risk and offer accordingly. They are not noted for their racy investment methodology so any risk will be reflected in the terms which were clearly not acceptable for the business. I think that the business has to shoulder some of the blame as well as they are not willing to use the asset as collateral - something that would clearly reduce the risk.


With the money provided and the equipment purchased you would hope to see some impact on the production numbers. Armed with these and the stronger gold price it is likely that better terms could be negotiated.

[excellance] 26/6/2019 16:22

16 April 2024
Update on expansion of processing plant


26 September 2022 half year report
The Company had a successful 6 months with milling of ore exceeding 300kt generating an increase in profits to US$11.6m.

The Company’s aim is to develop the mine at Sekisovskoye moving from its current level of processing to 1mt of ore in a phased development. The current plan is to move to 650ktpa in the current period and progressively move up to 850ktpa in the medium term.

Production
The milled ore was 306,599t (H1 2021: 262,744t), in the current period, an increase of 17%.
Average processed gold grade in the period was 2.06g/t (H1 2021: 1.88g/t).
Gold recovery averaged 83.44% during the 6 month period (H1 2021: 82.18%).
H1 2022 gold production from Sekisovskoye was 16,965oz, compared with H1 2021 of 13,066oz
H1 2022 gold sold was 17,542oz, compared with H1 2021 of 12,560oz

25-7-22
Loan application for US$40m from Kazakh Bank JSC “Bank Center Credit” has been approved by the bank’s credit committee.
The loan is repayable in instalments over a term of six and a half years and bears interest at 6%.

31-1-22 Q4 21 results
Revenues increased 12.8% QoQ to 14.44 USD million
"The Company posted record revenue of $14.4 million for the quarter, during which time gold prices were stable. This record was primarily supported by our efficiency and low-cost production base. It’s worth noting that our annual revenue for 2021 is substantially higher than our company’s current market valuation, making us one of the most undervalued gold mining stocks on the London Stock Exchange. With gold prices now on the rise and our improving operational excellence, I am positive that we will deliver even better numbers in the coming year"

14-9-21 Investor presentation


Renaissance Capital broker note

___________________________________
19-7-21 Q2 2021 production report
The Company is continuing with the development at Teren-Sai and will provide updates on the outcomes once the data from the drilling and exploration is fully analysed. The preliminary derived results are looking promising and prospective.
------------------------------------------------------------
30-4-21
With its strong financial position and additional funding raised, the Company has also continued its exploration program at Teren-Sai. The test production run as reported in the RNS news release in 2021 yielded good results in terms of grade, and the expected low cash cost of production will have a positive impact on the results of the Company in the future... Kanat Assaubayev Chairman

The Company has also invested additional funds to expand the exploration program at Teren-Sai. The Teren-Sai area is large, covering in excess of 198km which the Company has split this into a number of areas. After initially concentrating on Area No.2 the Company has now expanded its exploration programs into Areas No. 1 and 5.

The Teren-sai exploration program has been expanded and accelerated during 2020. The Company views the site as a very valuable asset that will add substantially to the production capacity of the Company once it is fully functional.

-------------------------
African Resources (Assaubayev family) bought/ converted:

- 498,254,976 shares at 2p originally
- 583,648,617 shares converted at 3p (16-Dec-2013)
- 28 February 2014 and 5 March 2014, the placing of 550,000,000 new ordinary shares at a price of 2.175p
- 117,730,632 shares bought from Blackwill at 3p (17-Jan-2018)
- 233,333,333 shares converted at 3p (Feb-2018)

That creates an overall average of 0.255p or post 100-1 consolidation, 255p

[excellance] 26/6/2019 15:05

Disappointing that after months of dd the bankers weren't prepared to offer acceptable terms, so I have to assume they saw high risk.

The local bank and our primary shareholder provided the cash to allow us to increase capacity, and maybe if we've got more income the bankers will be more willing to deal?

[excellance] 26/6/2019 11:27

The recent move by the fed to signal rate cuts is the trigger for this gold breakout, because it means that "normalisation" will probably not happen for decades, if ever, and QE IS the new norm.

So weimar Republic here we come...Maybe?

[jc2706] 26/6/2019 09:29

I don't disagree with the underlying principles of your thesis by the way. It is one that I have espoused for well over a decade. In fact I wrote a report for a company in 2007 detailing what I felt were the dangers of debt, the potential economic impact and the likely affect on the business so am well versed in the arguments.

[jc2706] 26/6/2019 09:26

"Altyn is materially mispriced."

"The company’s shares should be changing hands at 3 X its current trading price of 0.54p without any funding RNS."

I don't disagree but that doesn't mean the price will go up without a trigger. It may be that the gold price alone can be that trigger but the prospect or, preferably, the reality of increased production is far more likely to achieve this.

I do not believe that gold will break $1800/oz by September 2019 but I would love it to be the case.

[jc2706] 26/6/2019 08:24

I suspect that 12.5% would very much be the best you could hope for and they should bite their hands off if they offered that. But if you think about the difference in the company by raising production to 40-50k Oz, whether it is 12.5% or 20% is relatively irrelevant as the cash generation would be considerable.

[wrighty46] 26/6/2019 07:55

Its logical that the 2 small loans recently received were to purchase equipment that would allow the company to increase production. I would think that once the company proves to the bank production is up on such a small injection of cash, this will allow negotiations to conclude. Coupled with a decent pog and hopefully improved gold ore content should tick last few boxes. Anything around 12.5% interest rate is probably about best we can hope for imo. Nai GLA

[jc2706] 26/6/2019 07:52

Researchanalyst1,

It wouldn't be the first company to trade at a considerable discount to assets. It always requires a trigger to realise the value. Gold price is part of this but a loan and/or production improvements to the level suggested would likely be a trigger.

[jc2706] 26/6/2019 07:48

Excellance,

They have already rejected loans that do not meet their criteria and I don't see why they would not do this again having waited years for the money! Let's hope that this latest rise in gold will persuade each party to come to an arrangement.

[jc2706] 26/6/2019 07:46

I am not sure that we need to speculate on buying additional assets. Apart from their main asset they already have an additional property that requires exploration that they bought for a considerable amount and will not want to lose the licence due to insufficient work. Anyway they have stated what the additional funds would be used for.

[shareho1der] 25/6/2019 21:29

I don't know the role Rajinder Basra plays here but he/she is also a chief finance officer and the company secretary of Kemin resources, a company with substantial mining deposits in Kazakhstan. Do your own research.

[shareho1der] 25/6/2019 21:18

May be they want to use the loans to buy another assets in Kazakhstan. In my opinion, I think the CEO has links to another assets which he wants to acquire. Time will tell.

[excellance] 25/6/2019 19:46

My take is that these have debt, want more debt, and hope to use the funding to ramp up production.

They will have a business plan to present to the banker, and the banker will want a piece of the action, an element of control, equity convertion or dastardly covenants, and some security to mitigate risk.

[jc2706] 25/6/2019 17:57

excellance,

It wasn't that long ago that the production target was 100k oz. The resource would certainly support that.

[excellance] 25/6/2019 16:42

Nice close BTW

[excellance] 25/6/2019 16:42

Treading water is no good, but the new dumpers will increase thruput significantly, and mine improvement and higher grades multiplied by a significantly higher gold price and we should gather a load of cash quite quickly.

15,000 Oz is small scale and needs to be St least treble that.

So, all eyes on the bankers.

[jc2706] 25/6/2019 16:17

Well, the company is at break even on very low levels of production. Even with just the new equipment they have acquired combined with improved grade they are estimating a significant rise in production levels and, hence, profitability and cash generation. And that is without the gold price rise we are experiencing. I think that repayments should be OK. It is just the coupon that will be hard to swallow.

[excellance] 25/6/2019 15:26

The problem is that repayment ability depends on the pog and although I am bullish on gold I could be wrong. What if the pog retreats again?

The banks will want a guarantee or security.