Altyngold Share Discussion Threads

[sandeels] 07/8/2019 13:07

...or a'funding received' release!

[jc2706] 07/8/2019 12:49

I don't think that you ought to be looking for improved levels of communication to stimulate a price rise because I doubt that we will get it. For a share price rise the only communications necessary are half yearly reports and a 'funding received' release! The former will confirm production/revenue/cash/profitability improvements whilst the latter will suggest that 'you ain't seen nothing yet'.

Of course, if the half yearly reports are negative then you are not going to see a stellar price increase!

[wrighty46] 07/8/2019 12:37

Must start to play catch up soon. Should be moving comfortably into profit now. Just need the company to start being a bit more proactive. GLA

[stonefold] 07/8/2019 12:32

Time for ALTN's shareprice to follow other gold miners like PAF.

[chipperfrd] 07/8/2019 12:16

I'm not :-)

Pity ALTN cannot manage it :-(

[jc2706] 07/8/2019 12:03

To be honest, you wouldn't be too upset with an annual return of 11%!

[chipperfrd] 07/8/2019 11:52

The US$ Chart for comparison shows a trend of +8.93% pa over the same period.

[chipperfrd] 07/8/2019 11:47

Yes JC, I get the LBM.Gold (in Sterling) trending up at an average of +11.06% pa since 2002 on Sharescope.

In my view it is a much better reflection of underlying inflation than the massaged CPI/RSI figures coming out of the treasury!

[jc2706] 07/8/2019 11:38

Yes, fascinating. In some currencies the gold bull market has never really stopped which goes to show how poor the currency is! To be honest, if you stick to GBP it still looks pretty bullish from 2000.

[stonefold] 07/8/2019 10:56

Gold price continues to rise.
Change the currency to KZT Kazakhstan Tenge for the lower gold price chart.



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Hopefully the 6 months to 30-06-2019 report will clarify when the new equipment started to contribute to production. The actual dates when the loader and truck arrived has not been stated.
It is somewhere between the 2nd May 2019 and 11th July 2019

01-05-2019
"...During the year the Company placed an order for an additional LHD Caterpillar (Ioad-haul- dumper) at a cost of US$0.7m, which will increase the total number of underground LHDs to 3. This is expected to increase the supply of feedstock to the processing plant to approximately 40,000t per month. Advance payments have also been made for an additional truck to be also delivered in May 2019 at a similar cost. The Company is also expecting to purchase a further haulage trucks towards the end of the year. .."

Implies number of u/g LHD on 01-05-2019 was 2, with expected delivery of 1 LHD and 1 dump truck later in May.

Then on 11 July 2019
" ... Underground machinery delivery

In March 2019, the companyï¿;½s major shareholder, African Resources Limited committed to providing 400m KZT (USD 1.1m) unsecured loan towards the acquisition of underground equipment with the intention to further boost the production.

As a result, the company purchased the following new machinery:

- CAT R1300G loading and hauling machine with a bucket capacity of 3.1 m3 from CAT Kazakhstan;

- TN-430 underground dump truck with a lifting capacity of 30 ton from Sandvik Kazakhstan.

The equipment complements the existing fleet of underground equipment which in summary is:

- Two TN-430 dump trucks and one Sandvik TN-320 dump truck;

- Two CAT R1300G loading and haulage machines. ...."

Implies number of u/g LHD on 11-07-2019 was 3
Implies number of u/g dump trucks on 11-07-2019 was 4

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It would be good to see increased production figures to benefit from the higher gold prices.

[wanobi] 06/8/2019 15:45

thanx for trying wrighty, much appreciated :-) Cheers Wan :-)

[wrighty46] 06/8/2019 15:34

Appears a few others are taking a punt here or adding. GLA still no replies to numerous emails which pees me off a tad.

[wrighty46] 05/8/2019 13:55

All buys today apart from the 1st trade. Gold showing no signs of reversing short term with what's going on around the world. This has got some catching up to do now. Let's get to the end of this month and hopefully things may become a bit clearer. GLA

[roguetreader] 05/8/2019 10:14

Agreed, I added half a v small bedroom recently and have a limit order at .0039p for a few more...even though I did previously say I was done adding until the results. The potential reward is so explosive even although the risk is v high, that I couldn't stay fully on the sidelines at these prices.

[jc2706] 05/8/2019 09:55

The way things are currently panning out, they will require a reduced amount of funding to achieve their targets. However, it should be pointed out that, currently, they have not persuaded any bank to loan sufficient money to make a sizable difference on acceptable terms. Should the new equipment produce the required results then I think that the funding should be forthcoming. If it is then the results should be enough to transform the business and, with the gold price being as it is currently, it is likely that a greater amount could be funded internally.

Caveat: there are a lot of 'should's in that! Execution risk is still high given the track record of the company. I will not be betting my house on this! Perhaps the dining room and the odd bedroom.

[tim000] 04/8/2019 06:21

Of course the company’s budgets were based on very different assumptions for pog and exchange rates to those pertaining today, reducing borrowing. My assumption about there still be enormous capital requirements included development of a mine at Karasuyskoye.

[roguetreader] 03/8/2019 18:56

I notice my post 466 got the funding the wrong way round when I stated they only need $13M from external sources with the rest from cashflow. It is actually the other way around; the bulk as per Chips's post comes from borrowing with the remainder $13M+ from cashflow.

[chipperfrd] 03/8/2019 15:49

Their investment plan (2016) was for fresh CAPEX of c. US$42m of which US$20-30m needed to come from external sources, the balance was to be derived from generated cashflow.

That plan was supposed to deliver 100koz pa from Seki by 2019. Clearly this has not been achieved!

Hopefully, the new U/G equipment purchased from the limited funding achieved this year will provide a boost to production and restart the delayed expansion. Time will tell but the interim financial report should provide some clues as to progress.

Chip

[tim000] 03/8/2019 11:47

Going through the Annual Reports, about $80mn has been invested in the business over the past decade, and no doubt the Directors would wish to invest another $80mn over the next decade too, in order to achieve their long-term target of 100ozs pa production. That’s not likely to come exclusively from internal cash generation. So it will be interesting to see to what extent the majority shareholder, and new external investors, are willing to see dilution of the former. I guess new investors can be attracted, but not until the company has transformed its profitability and the share price is much higher. While obviously there are risks of the business being taken private, I think the majority shareholder would prefer the scenario I describe above - they can’t have infinite reserves to invest in the turnaround.

[vish65] 03/8/2019 10:47

Well they have increased from 60% to 69.8% over the past 8 years. Why stop now when the price has fallen to 0.4p ?

No real need to communicate to the minority whose voting rights are worthless.

Are minority holders making capital available? No.

What is the likelihood of stake building by someone in what is a family run company , owning virtually 70% and operating in Kazakhstan.? Low.

just my opinion. Still holding and hoping .

[chestnuts] 03/8/2019 09:00

Sloppy

I sold out of these because of the large shareholding and the fact they could take it private at a moments notice but if they were to buy out the remaining share holders i think they would have to offer 2.1p the price they bought in at .

[sloppyg] 03/8/2019 06:51

It is strange. The owners clearly held back from going over the 70% threshold when they converted 9.7m of the 10m convertibles. They say they intend to convert the remaining 300k once they have sorted the necessary admin. Not sure what that means but it will take them a fraction over 70% ownership.

Kara intrigues me as well. Top of my head we paid something like 25m for the rights and continue to plough money into it. In simple terms how could Seki be worth less than Kara to a potential suitor. Why however did we spend 1.5m I believe on Kara last year ad then scramble around to try and get a 1m loan to buy key equipment for seki. Something does not add up there.

In short, unless games are played, I struggle to see how even the worst case scenario results in a return to shareholders of less than the current market cap.

The lack of comms is a concern however

[roguetreader] 02/8/2019 21:02

To be honest I've given up trying to second guess what the BOD ARE thinking other than my paranoia re taking it private on the cheap. I do think the next set of results are going to be key given the recent move up in gold coinciding with a potential move into profitability.

[sandeels] 02/8/2019 19:51

Is there a strategy to keep the share price artificially low by giving no inf and not answering calls/emails? Other than those already discussed here are there any other reasons why they might want to do that?