Altyngold Share Discussion Threads

[novicetrade68] 28/4/2023 09:29

If part of the increase in AISC/admin were due to the below, then it is perhaps less worse - also if it helps to lift production numbers in the future ;

'AltynGold has been accelerating the opening of deeper horizons with the development of transport declines #1 and #2 below +100m mark. During 4Q22 mining operations at the Sekisovskoye mine were carried out at +150m, +134m, +117m and +100m levels.'

[tim000] 28/4/2023 09:21

G&A normally includes depn, I haven’t had the chance to confirm this with ALTN’s accounts. More capex/assets implies more depn, but of course there is more going on than this.

[tim000] 28/4/2023 09:12

Sorry, yes, the results are published in US dollars. That’s why currency losses arise, but there may be another reason I’m not aware of.

[king suarez] 28/4/2023 09:06

These would be an excellent set of results, if not for the admin expenses (wtf is going on there?). An INCREASE to $12,244k for FY.

Actual costs of production were 16% higher in H2 than H1 ($15.1k to $17.2k), I guess reflecting inflation, however total admin costs jumped from $2,714k to £12,244k for the FY - meaning H2 admin costs were $9,530k - what on earth?!

As a result, ALTN were actually cash flow negative in H2 by about $1m.

Can't say anymore without seeing the full results and accompanying notes, but a suitable explanation for this increase in 'admin' expenditure is desperately needed imo.

They said this in the H1 update:

"Administrative costs have been contained and were US$2.7m which is similar to the prior period. Inflationary pressures are increasing in both Kazakhstan and the UK, and the management will be monitoring the position closely to ensure that action is taken to minimise any significant increase in costs to the Company".

Repeat:

"and the management will be monitoring the position closely to ensure that action is taken to minimise any significant increase in costs to the Company"

And???

[novicetrade68] 28/4/2023 08:51

Their revenue was $62m but with a lower gold price during the period ($1775) - with some luck this year closer to $1900-$2000.

[sclper] 28/4/2023 08:42

I just checked a chart of the Tenge/USD there wasn't much difference between the start of 2022 and the end of the year, only around a 5% fall in the Tenge

[researchcentre123] 28/4/2023 08:42

Sleveen that's only the cash paid and there would be some write down. It may be there's been a lot more ordered/yet to be paid for and written down. The millions borrowed were to expand so hopefully that's already happening.

[sclper] 28/4/2023 08:38

If you look at the half year report profit after tax was just under $11million. How the hell has that dropped to $7million for the full year. There was a massive change of costs in the second half of the year with admin expenses rising dramatically and this new sponsorship expense plus the currency exchange differences. This is not normal for a listed company

[tim000] 28/4/2023 08:35

Exchange rate gains and losses arise because the assets are held, and valued, in a different country/currency to the country/currency in which the accounts are published. So the sterling value of the assets falls when sterling appreciates against the Tenge, as the assets are valued in Tenge (on a cost basis, not on a market value basis). In reality, the Tenge market value of the assets will have increased, but accounting conventions don’t allow this. A balance sheet loss has a counterpart in the P/L account as an exchange rate cost.

[sleveen1] 28/4/2023 08:30

if $3.5m is spent on plant/machinery that wouldn't affect the P&L, it would be capex on the balance sheet.

[researchcentre123] 28/4/2023 08:27

Stevea you've never liked this company! 3.5m extra spent on equpt and plant with expansion as I expected - I imagine that's a big chunk of ofit gone there but will hopefully lead to better stuff in the future

[sleveen1] 28/4/2023 08:27

Now on my avoid list.

Too many accounting failures.

[stevea171] 28/4/2023 08:22

Dodgy accounting and late reporting, non reporting of company matters reflect a company that thinks it can do what the hell it likes and regulation is a minor inconvenience ...

The Assaubievs won't take necessary advice on running a company. Who is accountable for this? The man at the the top. Aidar Assaubiev.

[tightfist] 28/4/2023 08:19

Yes, I noted the Cash and Cash Equivalents line.... There is a lot going on operationally with up-front expansion spend and TS exploration too, not to mention inflation!

[sclper] 28/4/2023 08:14

Profit is about a third of what was expected

[stevea171] 28/4/2023 08:12

It seems the problems of completing an audit at ALTN that occured last year have not been resolved by this management. The new auditors as I suspected are having trouble as well. This is not normal.

Head/s should roll.

[sclper] 28/4/2023 08:11

Is it a coincidence that the accounts look dodgy with new cost appearing and a delay in the auditors signing of the accounts. The cash figure looks highly suspect as well!

[researchcentre123] 28/4/2023 08:10

In some ways I expected eps to go down as they have started new operations which will not yield any gold whilst they set up, expand the plants etc. It would be non-sensical to expect anything else. I do wonder how exchange losses work. Will be interesting to see the accounts. Might have made more sense to suspend straightway, but I suppose this gives pple options

[tightfist] 28/4/2023 08:04

For me, the eps has dropped 28%, and the suspension shenanigans is hardly going to help the PE rating in the market, at least in the short term, DYOR

[redtrend] 28/4/2023 07:58

Before the currency forex which doubt will be repeated this year, profit was $13.2m.

Rising inflation has hit all business costs in 2022 for companies, however in 2023 oil prices have relaxed and gold is now touching $2,000.

I would like to know what the admin sponsorship expenses are too which will be explained in accounts. It could be advance payments to contractors? On other side they have huge trade receivables positions of circa $31m and their payables is only circa $6m. Quite amazing for £37m market cap and one huge positive. But obviously suspension will eclipse this.

[researchcentre123] 28/4/2023 07:56

I am wondering what the currency losses are and how they are worked out + if they'll happen every year or are just a one off

[highly geared] 28/4/2023 07:49

A mixed bag with profit after tax and currency adjusted substantially down to £5.6 million. On the flip side , a post tax PE of around 7.5 is hardly demanding and with increased production and higher gold prices, you’d continue to argue it’s undervalued at these levels.

[researchcentre123] 28/4/2023 07:45

Wldnt compliance be material to the accounts?

[golden prospect] 28/4/2023 07:44

Administrative expenses sponsorship programmes $3.654m,
material impact on PBT which has dropped $4.853m yr on yr.

[researchcentre123] 28/4/2023 07:43

On admin maybe they're paying better wages to management - given they've been underpaid for years it may be that was on a promise management'd do better as company does which wldnt be unreasonable.