Altyngold Share Discussion Threads

[jc2706] 01/8/2019 20:37

They are only pulling 15k oz out of the ground per year. $100/oz rise will only give them an extra $125k per month so if that price has been around for 6 months that is an extra $750k in cash. Considering they are looking for $13m it will take them over 8 years at that rate!

So, I think that it is pretty clear why they are looking for a loan to improve production.

I would also point out that miner's valuations are generally based on the reserves they have. It is better that they are in the ground than non-existent.

[tim000] 01/8/2019 18:11

Pog has risen sharply only since the equipment was purchased. Average pog in May was 1284, rising to 1359 in June and 1413 in July. I expect 2019 H1 was profitable, but higher throughput and gold prices could be transformational in H2. Sorry, you’ll have to be patient a little longer.

[excellance] 01/8/2019 17:37

The gold price is very high, very rewarding for gold miners, so cash should be gushing in, yet they needed loans to buy equipment!

The reserves of 2m+ Oz may aswell be on the moon.

[wrighty46] 01/8/2019 16:01

Definitely agree. I might try finding some personal emails of some of the bod later and fire a few off. I'm more than happy with the risk/reward here though short and medium term. I would rather be topping up into an ascending share price but end of this month moving into September could get very interesting. I'm convinced with the recent small bank loan secured and the major shareholder loan we will secure the required financing shortly especially with pog at $1400 atm. All imo. GLA.

[sandeels] 01/8/2019 15:21

Weighty, I've been trying intermittently for several years. The office at Eccleston Sq is a nameplate so all the receptionist can do is pass on a phone message.
No one has yet called back. At least they're consistent(ly useless).

[wrighty46] 01/8/2019 13:56

A few more for me today. Really is priced at going bust levels. IMO dont think it will. Have had no replies from a number of emails I've sent, which I dont like at all. A bit of shareholder interaction goes a long way in my book. Nearly all PM companies down today so buying a bit cheaper I hope. We shall see. GLA

[jc2706] 01/8/2019 09:25

Excellance,

I am not sure what you expect. Anyone who has been around ALTN for the last few years will understand what they are like. This investment is speculative based on the gold price, the recent acquisition of equipment and the potential for a long awaited loan appearing. Do not expect much communication in the meantime!

[excellance] 01/8/2019 08:25

Golden tickets on a plane that's going down further every day!

[jc2706] 31/7/2019 08:17

To be fair to SolGold, the assets in Ecuador were not even on the books when they listed. Their focus was on the Solomon Islands. It wasn't until 2012 that they bought into Ecuador. But I get your point!

[tim000] 31/7/2019 06:27

I think it was researchanalyst who made an excellent point a while ago that global gold supply is constrained by how long it takes nowadays to bring new mines onstream (and that production from existing mature mines is declining and getting more expensive to mine). Solgold listed 13 years ago and is currently valued at over £500 mn. And yet it is still many years before its exploration licences will be turned into actual production. So which company would you rather be invested in, SOL or ALTN? Whenever you have a product that is fixed/falling in its supply, while global demand is increasing, what happens to its price?! Researchanalyst thinks pog will hit $1800 this year if I recall correctly. I don't know if that's right or not, but given the world remains in an ultra-low interest rate environment and that geopolitical and economic uncertainty continues to increase, prospects for pog haven't looked this robust for many years. Wrt ALTN, last year was awful operationally, it couldn't have been much worse. And yet it only required pog to have averaged about $1550 and the company would have broken even. At $1800 pog it would have made pre-tax profits of about $4 mn, and earnings per share of about 0.1p. Given how many factors other than pog are now working in the company's favour, I'm hopeful that the annual results for 2019 are going to be extremely impressive.

[tim000] 30/7/2019 19:36

Golden tickets, excellance, golden tickets! Hold on to them tightly.

[excellance] 30/7/2019 18:55

wont matter if they go bust

[tim000] 30/7/2019 17:50

OK, but will any of those things affect the share price in the longer term? And they actually pay themselves peanuts, look at the AR.

[excellance] 30/7/2019 17:28

how hard can it be to update the website once a year?

how difficult is it to do a nice powerpoint presentation?

six directors?

i bet theres more directors than digger truck drivers!

i bet directors pay is more than the entire work force on site!

[excellance] 29/7/2019 18:44

free stock charts from uk.advfn.com

[roguetreader] 29/7/2019 16:41

Hi TF

Yes I still have a core holding of MML.

From research it is ‘my understanding’ that any offer from AR would come under the ‘City Code’ on Takeovers and Mergers, where these have a statutory basis within the UK. The Takeovers and Mergers Panel are referenced within the LSE Rules as the authority on such matters via the site below.



Within ‘The City Code’ document under the Mandatory Offer section F, paragraph 9.5 states:

‘An offer made under Rule 9 must, in respect of each class of share capital involved, be in cash or be accompanied by a cash alternative at not less than the highest price paid by the offeror or any person acting in concert with it for any interest in shares of that class during the 12 months prior to the announcement of that offer. The Panel should be consulted where there is more than one class of share capital involved’

The above sources are where the supposition in my previous post is extrapolated. To my mind assuming my supposition is correct (not guaranteed as the rules and legislation in The Code are complex and my interpretation could be incorrect) then it will be interesting to see what (if anything) is announced in the results at the end of July re debt conversion to shares.

If debt is converted to shares at 3p or even above 2p I would see this as being bullish for the minority shareholders, as to me it would indicate AR and the BOD’s focus is still on getting the company into profitability as a listed going concern and are not necessarily poised to try and get the remaining equity on the cheap. If on the other hand they convert at under 1p then all bets are off IMO.

Personally, I am not looking for or interested in a buyout at 3p, having been with the company in one shape or form from HMB, Goldbridges through to Altyn I want it to go through to full production and realise its full potential. That is why I’m still here.

RE AIM – I believe the Takeover rules are voluntary for AIM companies as they are not ‘Listed’ and would need to be drawn up and included as part of the initial prospectus as an AIM company.

RT

[jc2706] 29/7/2019 13:12

Indeed but I do sense the tide turning with the acquisition of the equipment recently combined with the rise in gold prices. We need some evidence of an increase in production on the back of the equipment and then, clearly, the new financing coming through but I do feel that there is at least some room for optimism compared with a share price that shows none.

[vish65] 29/7/2019 12:47

Thats the other issue. 100k ounces has been a target or wish for at least 10 years as LTH can probably confirm . For various issues 20k has been the best they can do.

If they want to fund partially from generated cash it means a stepped change they have yet to achieve and then consistently achieving it.

The jury is still out and the market will need convincing.

Great potential as always ....but...

[jc2706] 29/7/2019 12:19

It just hasn't been updated for a long time. If they had got the finances when they were aiming to then that was the target. Now I suspect that the target is around 20k with 100k oz shifting out to 2021/22.

[excellance] 29/7/2019 12:11

The website still says they target 100k Oz pa by 2019.

?

[chrisdgb] 29/7/2019 11:25

Very interesting, that would be hugely powerful..........!!!!!

[tightfist] 29/7/2019 08:11

Hi RT,I think we met on the MML thread a while ago? .A very interesting post, I will take a look at the Mandatory Offer rules when I get chance next week; out of interest do you know if the AIM rules and the the LSE rules the same? I have always been curious why HMB/ALTN chose the main board and higher costs.Good luck, tightfist

[roguetreader] 28/7/2019 14:13

In the Interim Report 2018, bonds to the value of US$9.7m were converted into equity shares for AR at a value of 3p per share.

In the 2018 Year End Results, the report stated - ‘It is the intention to convert the remaining shares and interest into ordinary shares’.

If when they do this conversion and ‘if’ it is again at 3p per share, then ‘my understanding’ is that this will underwrite any future offer by AR for the shares held by minority shareholders to a minimum of 3p for the 12 months from the conversion date. If the conversion price is at a different price from 3p then the new price will become the minimum price they can offer should they wish to take the company private over the following 12 months.

The above supposition is based around my understanding of the Mandatory Offer rules and may therefore not be correct. Does anyone have a more informed knowledge of what the position is or is my summary largely correct?

IMO if they convert the remaining shares and interest at 3p and my supposition is correct, then it makes the shares an extremely attractive bet over the next twelve months, given the current share price
RT