Altyngold Share Discussion Threads

[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.

[jc2706] 25/6/2019 14:42

Not so sure whether it will be a convertible. I suspect just a traditional loan given the institution but since the company doesn't seem to want it secured against the assets, it would not surprise me to see this attract a 15%+ coupon. Personally I would suggest that they just go for it. The transformation in terms of production profile combined with the very controlled cost base should make this easily supported and paid back in double quick time with gold at current levels. This should have been done a long time ago.

[excellance] 25/6/2019 14:26

A convertible loan probably.

Or dilution with warrants?

[jc2706] 25/6/2019 13:00

Difficult to disagree with a lot of this. The shortcomings of the company have created an opportunity. The valuation is on its knees on the back of the inability of the company to progress the operations. The asset remains highly attractive and the situation is likely transformed by a suitable loan and a strong gold price. Assuming that the gold price remains strong, evidence of improved production as a result of the (limited) new equipment would cause this to rise. Reception of a loan to complete the transformation would cause it to soar.

[roguetreader] 25/6/2019 12:49

Researchanalyst1
I'm not going to disagree with the sentiment of your post as I own more of these than I probably should,but it may have something to do:

- Jurisdiction
- Trustworthiness of the major shareholder to do the right thing by the minority holders
- The total lack of communication by the board to the minority shareholders
- The delays and continual missing of milestone objectives
- Finances that continually look to be on the brink

That said I believe the positives you outline and the gold price now moving north make it a spectacular upside bet if you like high-risk.
RT

[chrisdgb] 25/6/2019 12:04

We have a long way to go here but it is a start and let us hope we can get more coverage.............

[wrighty46] 25/6/2019 11:41

Thanks for that, pretty much the reasons I've been buying here. GLA

[mikro1] 24/6/2019 22:55

I've been watching this for a year or so - I'm in quite substantially as of a week ago - I wanted a company that is highly geared to the gold price and this fits the bill. Also I feared the owners would take it private once a year had passed since their last investment but they didn't, which makes me hope they want it to succeed as a listed company

[wrighty46] 24/6/2019 14:59

Atb wan hope weve picked up a few before it gets interesting. GLA

[wanobi] 24/6/2019 08:22

wrighty, I've bought 500K ALTN this am, many thanx, let's see how she goes, cheers Wan :-)

[wrighty46] 21/6/2019 07:35

Morning all gold appears to be finally on a bit of a run. I feel here is as good a place as any to be. If the company have hit processing and production has increased next update could indicate the start of a decent turnaround here. GLA

[sandeels] 20/6/2019 20:15

jerrypike - please will you ask what management plan to do in terms of regular reporting going forward, now that things seem finally to be gaining traction? There is a yawning credibility gap with long suffering PIs who are fed up of being treated as mushrooms.

[chrisdgb] 20/6/2019 14:38

Gold...............boom....

[shareho1der] 20/6/2019 13:12

I wonder what assets ALTN will acquire with the loans from the Bank.

[jc2706] 20/6/2019 11:59

Was going to buy more this morning, got a price, got distracted and then the price offered was 5% higher. Thought I would let it drift back and when I came back to it is was another 10% higher!

[wrighty46] 20/6/2019 09:35

Started my buying today. Looking for some news here next month or so.GLA

[tightfist] 18/6/2019 13:48

Thanks, look forward to hearing - AGM statement, or not! .Looks like we have a Sale to be delay-posted? Not that daily trading counts for much here. IMO the biggest threat is being taken private....... that thought is holding me back at present..Cheers, tightfist