Altyngold Share Discussion Threads

[excellance] 20/7/2021 14:07

Whoosh!

And just like that the share price bounced.

[excellance] 20/7/2021 13:52

Gold is doing great today!

[excellance] 20/7/2021 13:31

I used the mkt cap of £30m and a standard PE of 10 to represent profit at just £3m to highlight that something is very wrong.

I know that a PE of ten is very unlikely, and I know our final profit should be a lot higher than just £3m.

We do have projected capex, we know the revenues and AISC, and I'm sure we could guess our debt repayments on our $17m loan.

Operating profit must be near £20m pa now based on revenues of $50m and cost per ounce of say $900.

Corporate costs, capex, loan repayments may half that...but we are still throwing off cash in abundance surely, and probably treble the £3m I used earlier.

There is very low liquidity in the market, limited to very small trades, and practically none available to buy.

This points to imminent corporate action in my opinion. The mm closing down trading while a deal is completed to limit their risk.

We know the company have been seeking funding to support our growth plans, and we know that TS drilling data and development plans are way over due. Add to that the appointment of our American director Mr Gallagher, and the recent consolidation to make our shares more attractive to investors...

Which investors?

Are we about to get some kind of corporate action that solves our financial needs and can help with our growth plans?

A JV perhaps?

I doubt a takeover would work at these low prices as the family would make a loss on their investment.

I do think our corporate structure is a problem for new investors, so maybe a JV and issue of new shares in exchange for a chunky capital investment would solve all our problems going forward, but at the current share price we'd be giving too much away to raise the required amount of cash.

Despite our poor share price performance we are in a good position, practically self funding, profitable, huge and growing resources...maybe we just need patience?

[pensionplanner] 20/7/2021 13:05

In my opinion the threat is likely to be if its taken private.

That's why current strange share situation has to be reported.

Yes authorities are often useless, but failing to report is no different.

[cyberbub] 20/7/2021 13:04

The bottom line is: if someone wanted to buy Altyn today with all its huge reserves (a predator is not out of the question), how much would they have to pay? 120p?

[redtrend] 20/7/2021 12:51

Excellence- ALTN's PE will be far less than 10. As stated previously by others, if AISC is $1,000 - 1,100, on the current circa 27,000 oz annualised p.a. at $1,800, that's an EBITDA of $19-21m.

Yes you have to take off some costs for Interest on Loans, Depreciation (which will be nowhere close to current Capex) and Tax, but you'll be left with far more profit than £3m. So the undervaluation of ALTN currently based on 26-27k oz is significant, let alone no value attributed to expansion or the huge resources.

Completely separate to Profit from a free cashflow perspective, due to the expansionary Capex to increase production they'll be very little to nothing of that, but it's all being used in a good cause as we know.

[pensionplanner] 20/7/2021 12:49

Just report it

[goldenshread] 20/7/2021 12:25

Blatant manipulation going on here for whatever reason, note how the double digit 'bot' sell trades are back also.

I thought the new broker was supposed to be watching the trading situation in ALTN stock, yesterday some folk were paying £1.35p for their shares, within a few hours, for no reason, they dropped the price to £1.15p, they will now not allow buyers in but refuse to mark up.

One would expect this in some shady AIM illiquid stock but not on the Main Market.

Renaissance Capital have been next to useless, their £2.50p - £3.10p 'target' prices might as well be fiction, why are they not selling the ALTN story to their clients ??

Infuriating.

[broken_arrow1] 20/7/2021 12:16

For the 1st time in a while IG are now showing 'no quotes available' on any order over 2000 shares.

[excellance] 20/7/2021 11:44

So the market currently values us at £31m mkt cap.

Not exactly a generous valuation.

On a PE of 10 that suggests a profit of £3m pa.

We don't yet receive a dividend.

We are being valued on a purely financial basis, and hopefully upcoming developments will allow the market to factor in some future growth, larger profits.

We have had three quarters of solid performance underpinned by the high price of gold, and in terms of growth we are perhaps near capacity for the current facility bar some grade improvements.

Growth can come from either TS or Seki phase 2.

We need clarity on our growth strategy to get the market to be generous with the PE ratio.

This is the problem once a company starts making profit.

Take for example GGPs PE ratio, and look at their market cap.

[excellance] 20/7/2021 11:22

At least the spread is better post consolidation.

[sleveen] 20/7/2021 09:57

Agreed. Very odd.

[pensionplanner] 20/7/2021 09:51

Golden. The point is there should not be a problem buying shares as balancing supply and demand should be via price. Demand pushes share price up encourages more sellers, etc. No demand and sellers price drops etc. etc.

Altyngold does not seem to comply with this price finding mechanism.

[goldenshread] 20/7/2021 09:44

Managed to get 500 this morning via a limit order, not a big deal but it shows smaller orders do sometimes get filled.

[1madmarky] 20/7/2021 09:22

Once again able to buy with spreadex. They hang off ig. So would assume ig will also allow you to go long.

[pensionplanner] 20/7/2021 08:39

Does that surprise me...NO.

Yet the share price stays the same.

Strange you should mention IG....are they spread betting company. I wonder if they are allowing long on Altyngold?

Not my scene but be interesting as it ties in with comment my broker made yesterday.

[1hercule] 20/7/2021 08:39

aj bell dont allow limts orders on this stock

[goldenshread] 20/7/2021 08:38

Can't even buy 500 shares with HSBC, limit orders are the best bet.

[broken_arrow1] 20/7/2021 08:33

IG only have 3000 shares on offer currently, others are 'at best' for 1000+

[excellance] 19/7/2021 20:14

Gold stayed above $1800, at least for today...

[excellance] 19/7/2021 20:09

Lots and lots of fairly small trades.

Definitely something afoot.

[onedayrodders] 19/7/2021 19:54

When global markets tank it's a free for all mms ... all my AIM shares were smashed today by similar amounts

[pensionplanner] 19/7/2021 18:43

My concern is not about lack of progress but about a sneaky takeover or someone taking the company private as that would explain the sp

[goldrush] 19/7/2021 18:22

Share Capitalisation today is less than 1 year of turnover......Crazy valuation IMHO