Altyngold Share Discussion Threads

[sloppyg] 04/7/2022 13:43

well I have taken some back today.

Still not completely comfortable with the way this Prepayment/RP transaction has been handled but it does feel like just about all possible bad news has been priced in now so lets see how this plays out.

Like the UK broker and perhaps points the way to London finally being used to seek some investment; just hope reputation not damaged irreparably with the qualified audit report

[palisz] 04/7/2022 13:37

Personally I'm not surprised, the management have done everything right for the company, from not diluting minorities, to financially supporting whenever needed. Without them this company would never have survived, now it's thriving and deserves recognition via a much higher share price.... Not advice. But I suspect the sellers last week will be regretting there panic decision.

[chrisdgb] 04/7/2022 13:27

Appreciate all the posts, this is clearly the wrong price........

[goldenshread] 04/7/2022 13:10

This is the key question and answer that matters, in bold are the major points which will quell worries and should restore confidence.



1) Can the Company explain the background to
the qualification in the audit report.



The Company has been progressively growing
turnover year on year. In 2021 alone, the
company managed to increase the sales of gold
by more than 68% compared to the previous
year.

In line with the Company’s plans of
continuous growth and to achieve its
operational objectives for the current period
and looking forward, one of AltynGold’s
subsidiaries in Kazakhstan made a prepayment
to a contractor (an external independent
service supplier),for mining services which is a
normally accepted practice in the mining sector
in Kazakhstan.

The contractor has been providing its ore
mining services for a number of years,
providing a good level of service in terms of
meeting agreed volumes and the quality of
services provided.

On completion of the 2021 contract a further
prepayment was made to maintain the
continuity of operations and further the
production growth into 2022. This was to
enable the acquisition for the contractor’s for
additional equipment and machinery required.

The principal area of concern as noted in the
auditors’ report was the prepayment made to
the contractor raised the risk of non-recovery
in the event of a default on the prepayment in
case of their bankruptcy or other issues. The
Company did mitigate at the time in relation to
the recovery of monies by way of guarantees to
reduce the exposure to the issue..

In relation to current trading the contractor
has already carried out works in the amount of
70% which will be offset against the
prepayment amount, and the risk of non-
performance or default has subsequently
decreased.

Management recommendations as noted by
the Auditors and the Audit Committee are
being acted on and are being implemented.

In order to prevent a recurrence of the
situation from occurring again the company’s
management will review, develop and
implement the internal control policies with
respect to advance payments to suppliers of
goods or services.

[nevgroom] 04/7/2022 12:50

"Read from bottom up"

Should have posted that one first - Really made me laugh

Great feedback, thanks Palisz - Basically, Keep calm and carry on

[goldenshread] 04/7/2022 12:46

Thank you palisz.

It seems the company are keen to provide more updates and improve, the good news is about the prepayment, 70% has now been utilised (the cash situation will increase significantly to compensate) more importantly it seems they will not do this again.

The answers seem professional and well thought out, hopefully some confidence will return, the prepayment 'issue' and delayed accounts wiped 30p/40p of the share price.

Let us see what happens now, Q2 results are not far away.

[palisz] 04/7/2022 12:40

Read from bottom up...

[palisz] 04/7/2022 12:39

5. Website. When can we expect a new
improved company web site?

The Company believes the website is generally
good but the point is taken on board that that
the Company needs to update and refresh the
design and layout – this will be addressed.

[palisz] 04/7/2022 12:38

Teren-Sai. Significant detailed drill results here
have never been released to my knowledge
unlike for other miners. Any results given are in
a summary form only. Why is this?

There are a number of factors that will affect
the share value of the Company. But the the
current level of the share price is disappointing.
From its previous level of trading and
development - the current management have
been progressing the development of the
Company - The Company sees the main driver
to the share price as being results - it is agreed
PR is an issue and this will be addressed - but
we have generally found that the PR firms as
providing very little value at a high cost. The
Company is currently in the process of
appointing a UK based broker.

[palisz] 04/7/2022 12:37

Teren-Sai. Significant detailed drill results here
have never been released to my knowledge
unlike for other miners. Any results given are in
a summary form only. Why is this?

This is being considered at the moment - the
Company is in the process of licence renewal
and agreeing a detailed exploration program
and a detailed RNS to outline the future
developments is to be sent out once the
process is complete.

[palisz] 04/7/2022 12:37

Could the management give guidance of
the expected reserve grade going forward
(Latest 1.97)- in 2022/2023

The expected grade is 2.2 in the forth coming
year - and set to rise after that but unable to
give definitive time scales after that in relation
to moving upto the CPR grade - at present with
the gold price at its current level, it is the
Company’s objective to maximise ore
throughput.

[palisz] 04/7/2022 12:36

The point is taken on board that there needs to
be an increase in the dissemination of
information in relation to the feedback of the
Companies activities - the current format of
quarterly reporting is to be expanded to make
it more encompassing and detailed - and the
aim to is disseminate the information within 4
weeks of the quarter end.

[palisz] 04/7/2022 12:36

Reporting continues to be
disappointingly ;slow and minimal. In these
uncertain times the company really needs
to be making more regular and timely
updates. Especially drilling results, and
other relevant information.

[palisz] 04/7/2022 12:35

With Renaissance effectively out of action
does the Company intend to appoint a new
company broker?
Renaissance/Rencap were initially appointed as
the Company were looking at raising finance in
Russia - the broker had connections in the
Russian market - the attraction was a source of
cheaper funding with a favourable exchange
rate. As this market is now no longer viable -
the Company has been looking at the
appointment of a UK Broker.

[palisz] 04/7/2022 12:34

OK....Get ready... answers to questions raised at the AGM.. follow...
1) Can the Company explain the background to
the qualification in the audit report.
The Company has been progressively growing
turnover year on year In 2021 alone, the
company managed to increase the sales of gold
by more than 68% compared to the previous
year.
In line with the Company’s plans of
continuous growth and to achieve its
operational objectives for the current period
and looking forward, one of AltynGold’s
subsidiaries in Kazakhstan made a prepayment
to a contractor (an external independent
service supplier),for mining services which is a
normally accepted practice in the mining sector
in Kazakhstan.
The contractor has been providing its ore
mining services for a number of years,
providing a good level of service in terms of
meeting agreed volumes and the quality of
services provided.
On completion of the 2021 contract a further
prepayment was made to maintain the
continuity of operations and further the
production growth into 2022. This was to
enable the acquisition for the contractor’s for
additional equipment and machinery required.
The principal area of concern as noted in the
auditors’ report was the prepayment made to
the contractor raised the risk of non-recovery
in the event of a default on the prepayment in
case of their bankruptcy or other issues. The
Company did mitigate at the time in relation to
the recovery of monies by way of guarantees to
reduce the exposure to the issue..
In relation to current trading the contractor
has already carried out works in the amount of
70% which will be offset against the
prepayment amount, and the risk of non-
performance or default has subsequently
decreased.
Management recommendations as noted by
the Auditors and the Audit Committee are
being acted on and are being implemented.
In order to prevent a recurrence of the
situation from occurring again the company’s
management will review, develop and

implement the internal control policies with
respect to advance payments to suppliers of
goods or services.

[mininglamp] 02/7/2022 09:08

It will not be too long for Q2 production numbers to be announced, last year they were relayed to market on the 19th July.

I take the view that the pre-payment to the contractor may have been to fix costs over H1, if that is the case, given inflationary pressure, it may have been a master stroke.

In any-case we are now into H2, so the cash position (given mining costs were paid upfront) should be healthily building, maybe a reference made to it in the next update.

I take extreme comfort that the BOD own 65% of the shares.

[trader465] 01/7/2022 23:00

The only ones in the dark are the minority shareholders, let’s keep it that way!

[researchcentre123] 01/7/2022 22:11

I'm sure you could ask them if they've been to the mine, perhaps if they've held a shovel etc. I'm sure they'll tell you and I suspect they have, but I'm not sure how that helps one way or the other.

[the millipede] 01/7/2022 18:59

So is the answer no? Non execs have not been to the mine?

[stonefold] 01/7/2022 15:33

About 45 miles south of the Seki mine some furnaces have been found that indicate that local gold was being processed 3,000 years ago.

[researchcentre123] 01/7/2022 14:38

NEDs - can you explain please? I'm sure altyn'd show you around if you wanted, but I can't see much point. Their ability to carry out mining is not in question. The problem here is more of how to market and let the world know about shares which are about 5 times undervalued at the very least (50p per share profit or so....at the average sector ratios price wld be £7.50)

[the millipede] 01/7/2022 12:20

I have been watching this for a while.

Perhaps an odd question, but does anyone know if the NEDs have been to the mine?

Has anyone here been to the mine?