Altyngold Share Discussion Threads

[excellance] 10/12/2020 23:47

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[stevea171] 10/12/2020 13:09

ALTYN PLC: Third quarter productions results and financial update
08/12/2020 7:00am
UK Regulatory (RNS & others)

Altyn plc ("Altyn" or the "Company"), is pleased to announce its third quarter production results.

Highlights:

-- The company has been granted a supplementary credit line of KZT 3bn (USD
7m) from Kazakh Bank JSC "Bank Center Credit" (BCC). The loan is
repayable in instalments over a term of five years and bears an interest
rate of 6%. The loan will be used to increase processing plant output in
line with the company's plans.
-- Revenues increased significantly, up 38% quarter on quarter (qoq) driven
by higher gold prices and the claw back of accruals relating to timing
differences of the sale of production to the refinery from the previous
quarter.
-- Average grade increased by 3.3% qoq. The Company expects further
improvement in grades over the coming quarters given the ongoing mining
and reserves uncovering works.
-- Delivery of a JSB crawler excavator with a bucket capacity of 1.8 cu. m,
equipped with a buoyancy machine. The equipment will be used for loading
ore on portals 1 and 2 and crushing oversized ore.
-- Regarding the COVID-19 situation, the Company has put additional measures
in place to ensure the health and safety of its personnel. There
continues to be minimal impact on the production operations of the
Company, however management will continue to closely monitor the
situation while cooperating with the relevant authorities.

3Q20 2Q20 1Q20
Ore mined tons 134,715 143,400 92,324
Contained gold ounces 6,794 6,930 4,376
Ore milled tons 92,567 94,057 92,909
Average gold grade gr/tone 1.55 1.50 1.49

Gold poured ounces 3,492 3,610 3,380
Revenue USD m 6.31 4.58 4.58

For further information please contact:
Altyn plc
Rajinder Basra, CFO [phone]

[onedayrodders] 10/12/2020 13:07

The resource dwarfs the 34m debt … if shareholders get screwed so does the 70% board owned shareholders. Unlikely IMHO

[excellance] 10/12/2020 13:07

I agree.

That is why the share price tanked.

The "teething problems" comment was intended flippancy, yet holds some truth.

The loan commitments are tiny when compared to the potential return.

I think we all agree that production should be at about 30,000 oz pa by now, yet in Q3 we were at half of that. But what if we are producing at our 30K pa rate now in December? Will that yield enough operating profit to manage debt repayments?

Of course it will.

Let's get all the bad stuff done in 2020 so we can put it all behind us, and look forward to 2021 with optimism.

[golden prospect] 10/12/2020 12:53

excellance, one admires your optimism and especially the comment "Just teething problems", but all this surrounded by $34m debt. I have gone back to re-read the Q3 report, it has highlights only and no detail; what a nonsense. I can't believe they would even bother to say grades have improved by a meagre 3% quarter on quarter. A rubbish grade increased by next to nothing, not worth highlighting imo.

[excellance] 10/12/2020 12:41

Just teething problems.

It is obvious that corporate action is planned.

It is also obvious that they had to take a new loan to cover short term operating costs due to the inefficiency of the mill and parts of the production process.

We have struggled, time frame may have slipped, the share price has been hit hard as a consequence, and we are all left wondering if they can plug the gaps, get the plant working at a reasonable rate and efficiency.

Yes or no?

Do they even have the right equipment and processes, and suitably skilled mining and production engineers?

These things take time.

Having worked on commissioning of equipment and production processes I know that sometimes kit can stand for weeks awaiting parts from a factory in America or a team of contractors from Brasil.

It is frustrating, but they will work through the problems, sometimes going backwards a little so they can go forwards.

2020 is a year of development.

2021 promises to make up the shortfall.

Keep faith, this is where money is made or lost!

[roguetreader] 10/12/2020 12:22

KS post 5280 is “IT” in a nutshell. Can they deliver having now taken on the debt. I admit I am getting to be more glass half empty on this as time goes on and have big doubts. They were profitable before taking on debt, but IMO This increasingly looks to be at the expense of under investment in the Plant when it was needed and therefore that profitability is suspect. I remain here with much reduced position as I still think the potential if they do pull it off is huge. The downside is they screw it up pile on the debt and the resource disappears as collateral to the creditors and shareholders get screwed. Finely balanced and I feel we are finally going to see a resolution one way or the other in 2021.

[golden prospect] 10/12/2020 11:31

The challenge for 2021 will be to make progress and service upto $34m debt if credit line is exhausted. May be the plan is simply an equity raise to clear all debt.

[sloppyg] 10/12/2020 11:23

well we at least know why they felt a 100:1 consolidation was required as a 10:1 only would have seen us back in single figures again before long !

[king suarez] 10/12/2020 11:02

Sorry for bizarre double post

[king suarez] 10/12/2020 11:02

The company was profitable and cash flow positive BEFORE taking on any debt AND with gold at a lower price than today, so if this debt does not increase production and cash flows it will have been a disastrous decision - surely, having had the mill operating at a much higher level in recent years, the investment can get it back there and more? Otherwise why bother? Could have just spent the organic cash flow on exploration instead with a view to flogging it off to a 'proper' miner - keeping the faith!

[golden prospect] 10/12/2020 10:58

KS, it would probably have been better to be exploration only company. But now they are a producer they will have to bear the consequences of servicing substantial debt. There will never be transparency, that's an expectation too far imo.

[king suarez] 10/12/2020 10:52

We're priced as if we were just an exploration company with perhaps 500k oz gold JORC and nothing else, let alone we have a 3m+ oz resource, positive cash flow, plant and mine infrastructure in place etc.. got to be rock bottom price around here, surely?

[tightfist] 10/12/2020 09:23

Potentially the best aspect of the new NED appointment and his direction (if he has the necessary clout) will be the pressure for ongoing TRANSPARENCY! IMO if we get that then we should have a transformation of prospects.....

[stevea171] 10/12/2020 08:31

ODR. Nope. Like you I'm a relative newcomer. I've been here only 15 months or so but long enough to see patterns. Yes, no Barrick.

But what I expect from the company whatever problems they are having is to be upfront with shareholders and to treat them with respect that is due. This they fail to do. So zero credibility from me.

[jc2706] 10/12/2020 08:27

I don’t think that there can be any reasonable argument about the performance of the mill - sub-optimal would be a conservative statement. The debate is whether the investments made will correct this in the near term or whether the company has just wasted it somehow! I am going to give them the benefit of the doubt for now. In the meantime the company is priced as a 12k producer.

[onedayrodders] 10/12/2020 08:16

Steve ... I think we all accept they are no Barrick Gold in every sense ... but I'm guessing many accept that and are here because of the resource and anticipated continued gold bull run.This aspect does never go away.Risk reward is still on here despite everything.You have been here even longer than most I believe so I can understand your frustration but at the same time none of what you say should be a surprise.

[golden prospect] 10/12/2020 08:11

The company have thrown tens of millions of dollars at upgrading and fixing things in the last twelve months yet the skeletal reporting figures are abysmal. The conclusion is obvious, despite many other blinkered views; i agree with stevea and sloppyg.

[onedayrodders] 10/12/2020 08:04

.... now we have this intriguing left field appointment with serious corporate action and finding links from the US.ALTN are many things at the money but not a dead duck IMHO

[onedayrodders] 10/12/2020 08:02

It's defo all cloaks and daggers here are the moment.We have production just steadily upwards with hardly exciting grades albeit improving on both parts, they have completed usd 30 odd million fund raising over the last year with shiny new equipment and 7m of that funding thrown at them just the other day....

[stevea171] 10/12/2020 08:00

And a couple of other strange things further to my post 5259 above.

From H1/20 Interim report:

"Gold recovery averaged 79.8% during the 6 month period (H1 2019: 81.53%).

•H1 2020 gold production from Sekisovskoye was 6,990oz, compared with H1 2019 of 5,561 oz. The level of production in the period was affected by the scheduled process plant maintenance which was largely completed in H1 2020."

This 'scheduled mtnce' was largely completed in H1/2020. And yet in Q3 instead of making inroads into the backlog of 49kt from Q2 the mill fell a further 42kt behind whilst operating at a fraction of capacity.

Secondly, Mill recovery is usually a "must" to be given when reporting quarterly figures. H1/20 79.8%. All other miners provide this.

Yet here in Q3 there is no recovery percentage. Is this just an oversight whilst in a hurry to put out the Q3 report, consisting of just a few paragraphs 5/6 weeks after nearly all other miners have reported Q3 figures or something else?

[nevgroom] 10/12/2020 06:38

"This poster is speculating that the mill was working to capacity for 4 months"

No he didn't - Fake news (I think there's a theme going on there!!)

Didn't read the rest of the post when the first paragraph contained a blatant lie.

[jc2706] 10/12/2020 06:20

Excellance,

You're beginning to sound like a character in Dad's Army. "Don't Panic"!