Altyngold Share Discussion Threads

[golden prospect] 06/12/2022 22:16

I think stock is mischief making. Bdo resigned over 3 weeks ago, and in the closing para said we confirm that none of the reasons for ceasing to hold office and no matters connected with our ceasing to hold office need to be brought to the attention of members or creditors of the company.

[excellance] 06/12/2022 22:15

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are
further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our qualified opinion on the Group financial statements and our unmodified opinion on the Parent
Company financial statements. Our audit opinion is consistent with the additional report to the audit committee.
Independence
Following the recommendation of the audit committee, we were appointed by the Board of Directors on 26 March 2013 to audit the financial statements for the
year ended 31 December 2012 and subsequent financial periods. The period of total uninterrupted engagement including retenders and reappointments is 10
years, covering the years ended 31 December 2012 to 31 December 2021. We remain independent of the Group and the Parent Company in accordance with the
ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard as applied to listed public interest
entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. The non-audit services prohibited by that standard were not
provided to the Group or the Parent Company.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Directors’ use of the going concern basis of accounting in the preparation of the financial
statements is appropriate. Our evaluation of the Directors’ assessment of the Group and the Parent Company’s ability to continue to adopt the going concern basis
of accounting included:
p Testing the integrity of the forecast model checking the accuracy and completeness of the model, including challenging the appropriateness of estimates and
assumptions with reference to empirical data and external evidence with specific focus on the following assumptions: gold price, production, costs, gold grade,
recoveries and foreign exchange rates and assessed their consistency with approved budgets and the mine development plan, as applicable.
p Comparing budgets to actual figures achieved to assess the reliability of Director’s forecasts.
p Discussing the potential impact of COVID-19 with management and the Audit Committee including their assessment of risks and uncertainties. We formed our
own assessment of risks and uncertainties based on our understanding of the business and mining sector.
p Evaluating Director’s sensitivity analysis and performing our own sensitivity analysis in respect of the key assumptions underpinning the forecasts. We assessed
the validity of any mitigating actions identified by Directors.
p Confirming the terms of all borrowing facilities in place and that the terms are not breached and reviewing the repayments to check these are accurately
reflected in the cash flow forecast.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast
significant doubt on the Group and the Parent Company’s ability to continue as a going concern for a period of at least twelve months from when the financial
statements are authorised for issue.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.

[stockknobjockeyvanbookstino] 06/12/2022 22:14

Nope, keep at it..

[excellance] 06/12/2022 22:14

Qualified opinion on the financial statements
In our opinion, except for the possible effects on the Group financial statements of the matter described in the Basis for qualified opinion paragraph below:
p the financial statements give a true and fair view of the state of the Group’s and of the Parent Company’s affairs as at 31 December 2021 and of the Group’s
profit for the year then ended;
p the Group financial statements have been properly prepared in accordance with UK adopted international accounting standards;
p the Parent Company financial statements have been properly prepared in accordance with UK adopted international accounting standards and as applied in
accordance with the provisions of the Companies Act 2006; and
p the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements of AltynGold Plc (the ‘Parent Company’) and its subsidiaries (the ‘Group’) for the year ended 31 December 2021 which
comprise the consolidated income statement, the consolidated statement of comprehensive income, the consolidated statement of financial position, the
company statement of financial position, the consolidated statement of changes in equity, the company statement of changes in equity, the consolidated
statement of cash flows, the company statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The
financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards and as regards the
Parent Company financial statements, as applied in accordance with the provisions of the Companies Act 2006.
Basis for qualified opinion
As at 31 December 2021, the Group reports a prepayment of $14.5m (2020: £Nil) which relates to amounts paid to its sole subcontractor in advance, and in
anticipation, of services being rendered and in advance of a service contract being offered for tender, awarded and signed.
This amount is reported within prepayments shown in note 18 with the details discussed in note 27. For the reasons set out below, we were unable to obtain
sufficient appropriate audit evidence about the existence and valuation of the Group’s prepayment or its validity or recoverability, nor were we able to establish
whether the prepayment at the year end, or prepayments made during the year were made to individuals or organisations which represent related parties and
therefore whether undisclosed related party transactions exist. Additionally, the information obtained during the course of our audit calls into question the validity
and potential related party nature of the prepayment of $3.6m as at 31 December 2020 settled in the period as detailed below.
In respect of the Group’s prepayment, we sought to obtain sufficient, appropriate evidence through the performance of the following procedures:
p made inquiries of management regarding the nature of the prepayments and reviewed the accounting entries.
p reviewed the primary supporting documentation: signed contract dated 21 April 2022 (which was signed after prepayments were made), correspondence with
subcontractor, tender documentation, tender approvals, supplier confirmation of year-end balance, bank payments and request for payment from the
subcontractor.
p reviewed the increased production achieved to date and forecast for 2022 which, as stated by management, motivated the request by the subcontractor for a
prepayment to be made.
p reviewed a guarantee from the subcontractor to Management of DTOO Gornorudnoe Predpriatie Baurgold stating that the prepayments are recoverable.
p assessed whether the subcontractor and equipment supplier are potential undisclosed related parties to the Group and performed public source searches and
verification checks.
p requested the Audit Committee to undertake independent checks into the validity and recoverability of the prepayments, and a review to identify any related
parties relationships or transactions.
p reviewed the disclosures in relation to the prepayments including the subsequent events disclosures.
In the performance of our audit procedures, including a review of an investigation carried out by the Audit Committee, we noted the following:
p prepayments of varying amounts were made to the principal subcontractor during the year in advance of a contract being signed with inconclusive evidence
provided as to the reasons for the prepaid amounts or the appropriateness of making such a prepayment.
p a prepayment as at 31 December 2020 for equipment was repaid to the Company in 2021 shortly after one of the prepayments to the principal sub-contractor
for very similar sums.
p the contract signed on 21 April 2022 with the principal sub-contractor details that a 50% prepayment of the contract amount is required, but does not
acknowledge the amounts already pre-paid to date.
p we were unable to substantiate the financial viability of the subcontractor to support the guarantee provided to management of DTOO Gornorudnoe
Predpriatie Baurgold in a letter dated 28 April 2022.
p the prepayments to the subcontractor had been approved at the subsidiary level, but not at PLC Board level
p two current principals of the sole subcontractor, its owner and director, have been business associates of the Group’s major shareholder but the existence (or
otherwise) of a related party relationship or transaction could not be established.
We have been unable to obtain sufficient, appropriate evidence by performing alternative audit procedures and, therefore, were unable to determine whether any
adjustments to the prepayments or the related accounts and disclosures, such as the Group’s cost of sales and the Group’s related party disclosure, were necessary.
Were any adjustment to the Group’s prepayments balance, or its related accounts and disclosures, in the financial statements to be required, the strategic report
would also need to be amended.

[stockknobjockeyvanbookstino] 06/12/2022 22:05

Nope, keep looking……;

[excellance] 06/12/2022 21:57

26-9-22
These interim financial statements do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2021 were approved by the board of directors on 24 June 2022 and delivered to the Registrar of Companies. The report of the auditors on those accounts was qualified in relation to not obtaining sufficient audit evidence in relation to a prepayment at the year end. Further details are available on page 37 of the annual report.

The financial statements have not been reviewed.

[stockknobjockeyvanbookstino] 06/12/2022 21:34

In the public domain.

[excellance] 06/12/2022 21:30

BDO LLP have resigned over pre payments in the results?

Where is that information?

[stockknobjockeyvanbookstino] 06/12/2022 21:15

I sold because the Auditor has resigned over the lack of clarity about the prepayments.

[excellance] 06/12/2022 17:34

I guess we'll see incremental increases as equipment arrives and is put to use, but it may be a lumpy rather than a smooth ramp up. Didn't they mention building a third ramp to prevent interruption of current operations?

Either way we are going up, sooner or later.

Then add TS.

I wonder what our reserves estimate will be once all of this drilling gives assay data to crunch for the bean counters?

[tightfist] 06/12/2022 17:00

KS: Yesterday they said "...We are now in a position to implement the expansion plan towards 1mtpa production within two years in line with our strategic growth plan..." which indicates to me that we will not/cannot see a step change of +60% in Ore Production rate, but IMO a plan that progressively puts the new mine and processing Capex/manpower/training to work over an extended period..I would suggest it's a reasonable (but not guaranteed) expectation that we will see a progressive rise in ore throughput and Au production.... The potential cherry on the top is line-of-sight to an operational TS. tightfist

[excellance] 06/12/2022 16:52

Gold will shine again, and so will ALTN.

We are seeing ALTN rerate now.

[king suarez] 06/12/2022 16:40

trader465 - that's why we're at 90p today, instead of £5+.. either an opportunity to accumulate a holding at a derisory value and wait, OR, come back in a couple of years time and maybe you can still buy at 90p and get a multi-bagger re-rate the day the 2025 financials are released.

More realistically, probably a slow re-rate upwards towards fair value OVER those 3 years as progress towards production growth is made?

You take a risk now in buying before operational success and take the potential burden of opportunistic cost of 'dead money' or you come back later and hope you are lucky enough to find the share price still in the doldrums when on the cusp of a financial and production re-rate.

People were happy to pay £3 not long ago when production was much lower and the funding was not yet in place to grow to 60k+ ounces (gold price was higher mind). If the sector gains interest again, then this should lift ALTN regardless?

[wrighty46] 06/12/2022 16:40

Been here about 7 years bought and sold a few along the way, most of the apparent red flags for this stock are slowly being removed. Happy to hang around these levels for another year or so. Am accumulating again now. GLA

[trader465] 06/12/2022 16:16

KS - Yeah but 3 years? With the macroeconomic uncertainty and lots of moving parts before they increase production I doubt most can see further than the end of their nose at the moment

[golden prospect] 06/12/2022 16:13

In the meantime making net profit over $10m every six months is not to be ignored

[king suarez] 06/12/2022 16:10

"it’ll be 2025 before higher production is reflected in the annual financials"

But... the market is 'forward looking' - so 'they' say?!

[trader465] 06/12/2022 16:06

Excellence - RRM said that didn’t they?

Spread and liquidity is a problem here, and then there’s the jurisdiction risk to hold it back.

Although they look cheap at the moment, there’s no production uplift expected until 2024, it’ll be 2025 before higher production is reflected in the annual financials

[golden prospect] 06/12/2022 16:01

I imagine many prefer to see organic growth helped by loans rather than the unpredictable cycle of funding via shares. Seems like investors have a platform to potentially enjoy spectacular share price growth, and this may become apparent when goldies are on radar.

[excellance] 06/12/2022 15:45

Maybe, but the fact is we've got the funding in the bank and a plan. How many others can say that?

[bsg] 06/12/2022 15:28

I guess a couple of years of them using the money 'wisely' and paying the interest and or debt before this goes anywhere?

[quinan] 06/12/2022 14:39

Are we not above £1 yet? this bank deal is a far better solution to the bonds with the Russian, but it's still not taken off, crazy should be well past £2.50 by now.

[excellance] 06/12/2022 13:25

I do like their very cautious dilution free approach.