Altyngold Share Discussion Threads

[excellance] 30/6/2020 08:00

My opinion is that a bonds issue of this magnitude gives the company access to a broader spectrum of investors, particularly institutional ones, so increases market exposure and credibility. It also gives us $10m capital finance at a specific yield in a world that could very soon see inflationary pressures.

Good job by all concerned.

Now, how will the share price respond on this final day of Q2 H1?

[excellance] 30/6/2020 07:55

Altyn shares were trading at about 0.50/0.60p at the time the bonds issue was announced, so that gives us an idea of what the "cost" is.

The share price has 4 bagged since then, so we can't really complain.

[excellance] 30/6/2020 07:51

The share option incentive in at zero cost to Altyn, and if there is an option price the company will get that cash too.

The question for me is, why were we so intent on raising cash this way?

Diversification of sources of funding sounds great, but what specifically are the terms and benefits for us?

[stevea171] 30/6/2020 07:50

No mention of an exercise price means there is none in Altyn speak!

[stockknobjockeyvanbookstino] 30/6/2020 07:46

Hopefully there is an exercisable price of c 1p which would raise a further £1.5m......

[tim000] 30/6/2020 07:43

I want detail!

[highly geared] 30/6/2020 07:35

Stock options worth c. £3 million so, in my view , insignificant in the bigger scheme of things. Bizarrely, if they come onto the market ( sell) it will increase liquidity and possibly reduce the spread (lol). However , if Freedom Finance have any sense, they’ll hold the stock or drip feed it into the market at much higher prices.

More importantly, $10 million raised for Capex/ production expansion. Altyn were very keen to get the bond issue done , so they clearly have a plan to ramp up production rapidly.

[cyberbub] 30/6/2020 07:35

154M shares (over 5% dilution) is a fat fee for a $10M bond issue, it does smack slightly of cronyism, but I guess that's how business works in these places.

[excellance] 30/6/2020 07:29

4 December 2019

In line with its effort to fund growth initiatives and diversify its sources of funding, Altyn is raising a 10 million USD bond on the Astana Stock Exchange. It’s use will be dedicated to the company’s capital expenditures.

The results of the book-building (4-6 December 2019) and bond terms will be announced at completion.

The Company will use its best endeavours to place the bond but there can be no assurances that the bond will complete

For further details of the book building please follow the link below :

[golden prospect] 30/6/2020 07:26

$10m bond complete but no mention of stock option is a surprise

From previous announcement "As part of the bond placement agreement, Altyn is issuing stock options (exercisable by 1st October 2020) to the sole manager JSC Freedom Finance for 154,028,981 shares upon full placement by the end of June 2020."

[tim000] 30/6/2020 07:26

Not just "what will they do with them" (I assume cyberbub you mean the bounty shares), but "what will they do with them" (the proceeds of the bond issue). The latter will tell us a lot about the future direction of the business, and how quickly the Directors plan to grow output.

[excellance] 30/6/2020 07:24

"As part of the bond placement agreement, Altyn is issuing stock options (exercisable by 1(st) October 2020) to the sole manager JSC Freedom Finance for 154,028,981 shares upon full placement by the end of June 2020."

Could the options be at zero cost to freedom finance?

[stockknobjockeyvanbookstino] 30/6/2020 07:13

Probably don't need to mention the options until they are exercised, but unusual not to say the exercisable price, even if they are at zero cost.

[excellance] 30/6/2020 07:09

As expected, the bonds issue is now complete, a significant feat has been achieved for this "private company".

Another $10m in the coffers...

[cyberbub] 30/6/2020 07:07

Full bond issued. No mention of the 'bounty' shares which is odd. I guess the key in the short term is what will they do with them...

[aberloon2] 29/6/2020 22:59

Thanks HG and Brasso, part of the fascination of shares is the psychology, and i'm now searching for teacups and golden crosses everywhere :)

[highly geared] 29/6/2020 22:51

Aberloon ; entry point is critical with stocks + having a clear plan and sticking to it no matter what. Opportunity is infinite, capital is finite.

Learn about charts= ‘foot prints’ of money from collective psychology, that repeats itself ( fear and greed and all the manifestations in between).

[brasso3] 29/6/2020 22:49

Stick to the ones that have good revenue/ profits when your new whether that is miners or oilers. I have made many mistakes chasing explorers over the years. AAZ (gold) and PTAL (oil) are worth a look IMO for companies that should not keep you awake at night.

[aberloon2] 29/6/2020 22:44

I can identify with your family members Brasso, Covid and boredom being the catalyst for my interest and now i'm hooked. I think i've spent a small fortune getting to grips with the do's and don'ts. My sole interest is to beat the return i would get by having the money in a bank, however, i never realised how much i hated the colour red until now :)

The most important thing i've learnt is patience, impatience is expensive. I'm mostly with oilers and miners, seems to be the right time for some of them.

[brasso3] 29/6/2020 22:24

HG

I agree with the strategy and I hope to make some big money on gold miners over the next few years. I have notice friends and family talking about general stocks recently (the type of people who have never invested before). I am therefore wary of the indices topping out and mostly in gold at present.

[highly geared] 29/6/2020 22:20

Brasso; hopefully just the start.

My criteria was also based on each business having low AISC so they stood up to scrutiny at average $1500 gold.

So , AISC to be $700-$800.

The reason to hold is gold price “ leverage “. If you’re producing 50k oz , for every $100 rise = $5 million to bottom line ( dividend or higher share price). I think the gold price peak is about 3-4 years away , so provided execution risk is closely watched , the time to sell is years away yet. If we see a mania developing and people at the supermarket are talking about gold investment, it’s time to quietly sell up , but we’re still in the foothills of the Himalaya’s so to speak..

[brasso3] 29/6/2020 22:12

HG

Looks like you are on a good run with ALTN, BMV and GRL! :)

[highly geared] 29/6/2020 21:56

Other than Altyn, I’ve a similar amount in BMV. If they get financed in July, they’re reopening 2 ex gold mines in Korea with 5 year plan to get to 100k oz. 50/50 JV with SAU. Low cost fast start up production from small cap level.

Ditto GRL, awaiting final permit to commence low cost initial production of c. 20,000 oz fully financed. Again small cap.

My focus has been on these early stage low start up cost early producers + Altyn with its huge reserves and potential to increase production.

My other goldie is GPM , essentially a gold stock investment trust, with a basket of miners. You can GPM on steroids if you buy the subscription shares, but remember the expiration date!

Bought most the above 6-12 months ago, now time to watch things unfold...

[brasso3] 29/6/2020 21:45

I tend to only on producers but have a mix of different size companies (AAZ, ALTN, SHG, HUM, FRES and TSG. I did have some SRB but sold out recently. I would like some larger players too so might top up on CEY/ HGM.

[tightfist] 29/6/2020 21:39

Hi Brasso3,.Appreciate your ideas on diversification amongst goldies - which have now risen to half of my portfolio..... providing volatility in spades!.Whilst I hold five producers (and one pure explorer) the out-performance and potential of SRB and ALTN have made them very over-weight, despite a little trimming..Maybe I should look wider and try to appreciate other goldie shares/funds possibilities - have you any thoughts to share?.Cheers, tightfist