Altyngold Share Discussion Threads

[tim000] 06/7/2024 11:03

I don’t think that’s correct excellance. Issuing debt is a financing transaction and certainly does not necessitate an RNS. It’s not regarded as market sensitive information. Nor need they inform bond holders precisely how they plan to use the proceeds. Sign-off of a new acquisition partly or wholly financed with the proceeds of course is market sensitive and would trigger an RNS.

[excellance] 06/7/2024 10:47

They can't publicly raise funds for a new material development without telling the market, therefore it extra funds must be for either to cover a shortfall in revenues Vs capex on Seki, or, the previously announced TS development.

Maybe we'll get an RNS this week to clarify.

[tim000] 06/7/2024 10:34

At the start of the year, paying wages of 1mn tenge required production of 1.07ozs of gold. Today the comparable figure is just 0.88ozs, an 18% reduction.

[tim000] 06/7/2024 10:13

Since the plant expansion is nearly complete and the published guidance for capex this year and next should be financed from internal cashflow, that does suggest the bond proceeds will be used for some hitherto unannounced project. Of course it could be accelerated investment in TS to bring forward first production. But yes, it’s also possible that it’s for an acquisition. I agree, the fact that funds have already been raised suggests something is afoot.

[goldrush] 06/7/2024 09:10

tim000

It is very interesting regarding your comments from Aidar at the AGM about Freedom Finance wanting to divest of their producing /and non producing gold assets. Now with us having raised $10m with Freedom Finance during the week which is the first part of a $100m bond facility makes one think tthere must be news coming down the pipe shortly. IMHO.

[excellance] 05/7/2024 17:31

Very low volume again today, even as gold looks to test recent all time highs.

[excellance] 05/7/2024 15:19

I can feel a "whoosh!" coming on soon...

[pensionplanner] 05/7/2024 14:50

Tim: I suspect it will be a good future for gold and silver, as for many nations debt is simply out of control and will require something to change or more flight to gold and silver and where more and more countries are happy to accept payments for resources other than in dollars or even other fiat currencies. Gold seems to be universal with the potential of returning to some form of gold standard, and its no coincidence more and more countries have insisted on repatriating their gold reserves, albeit some countries still haven't received theirs back, with many excuses as to why the logistics are difficult, which seems a poor excuse.

[tim000] 05/7/2024 14:22

Good day for gold, and tenge falling too.

[gizmohican] 05/7/2024 08:22

Pension I agree Aidar and his family have excellent biz acumen, they manage on a steady and sure footing taking their time to build a robust biz. I have full faith in their decisions going forward and am really looking forward to the next year. The market will soon have to catch up as they are valuing companies far higher then Altyn based on truly less positive fundamentals.

[pensionplanner] 05/7/2024 08:13

Interesting, but did Freedom Finance acquire these assets through failed debtors, or through purchase. The latter doesn't seem as likely if they know nothing about mining, and if its the former, real diligence needs to take place in if/why the asset failed, but I have every faith in Aidar and his family, who being from Kazakhstan will know or find out everything there is to know before committing to anything, and if they decide to go with something, its for good reasons.

[excellance] 04/7/2024 23:56

Turlov is Russian but is now a Kazakhstan citizen after renouncing his Russian citizenship in 2022, and also has St Kits citizenship.
Freedom Finance is a big company in Kazakhstan.

[tim000] 04/7/2024 23:36

I think I mentioned that at the AGM, Aidar reported that the owner of their lender (Freedom Finance?) owns mines (producing and non-producing) which he wants to divest because he knows nothing about mining. I think it very likely that before we are acquired, we will grow considerably through our own acquisitions. That’s why the family believe we could be a billion-dollar business in the longer term. So I think acquisitions are almost inevitable and will be financed by debt and equity issuance. If the acquisition price is sufficiently attractive and the vendor is willing to accept ALTN shares at a premium to the current price, I see no reason why an acquisition couldn’t happen in the short to medium term.

[excellance] 04/7/2024 22:55

My thoughts on the question of acquisitions is that an RTO partner may wish to acquire us to get their hands on TS AND a London listing, and this solves the problem of the family having too much control. We'd need some cash for DD and legal costs for that.

[goldrush] 04/7/2024 21:42

Researchgcentre123

L2 is a good tool for that....it is an indication. Having a good broker is also extremely useful to discuss what they can see/enquire as to what is on offer etc

[goldrush] 04/7/2024 21:30

excellance....It depends on the terms....maybe the seller cannot afford the equipment,drilling costs etc and is prepared to get into bed with ALTN...it could be a mix of some cash, a royalty and maybe some equity. But it could be earnings enhancing to us very quickly with obvious positive affects to our share price and get us into the sphere of operating in just more than 1 site etc.....and then comes TS.....Could get exciting round here....IMHO.

I think the chart is looking primed....

[excellance] 04/7/2024 21:05

Why would a mine owner sell a producing mine for cash, they would surely want equity?

Why would Altyngold buy a producer for cash unless there was something else like licenses or equipment that they wanted.

[tim000] 04/7/2024 20:42

Doesn’t it depend on the price? Assets are normally acquired with a mix of debt and cash and/or equity.

[excellance] 04/7/2024 20:17

Hard to see any justification for selling bonds and spending the raised cash on a producing asset, that makes no sense.

It makes sense to raise money in this way to procure capex equipment for either Seki or TS, interest paid with production and redemption of face value in three years from much greater future profits.

[researchcentre123] 04/7/2024 18:48

So does having this info mean you can see how much you can buy without increasing the price by trying to get too much at once?

[tim000] 04/7/2024 18:47

At the AGM Aidar said producing assets were available to buy. I agree with you Spike that any substantive acquisitions should be adding to production immediately.

[excellance] 04/7/2024 18:42

Some fool sold 22,000 shares this morning, took all day to work by the look of it.

[excellance] 04/7/2024 17:50

It is interesting and refreshing to see how this company funds itself given that they prefer not to dilute. It's a lesson for all to follow.

[goldrush] 04/7/2024 14:40

Pension Planner

Agree with your post. That is why I put a hypothetical post up yesterday about needing the money to kick start TS expanded drilling etc

[spike501] 04/7/2024 14:39

Mold breaker - this expansion doesn’t go to 100k oz it goes to roughly 60k oz. They need another 1mpta processing capacity for 100k oz.

The $100million bond program doesn’t imply they will do $100million quickly or even at all - it’s just efficient doing all the prospectus and other documentation under one umbrella so they can do quick and cheap issuances as and when they need instead of repeating the effort each issuance. I doubt they yet have firm plans for full utilization but they do have flexibility.

A lot of the bank loans are equipment loans and these will be secured on the equipment and so will be much cheaper than unsecured bonds. These shouldn’t be replaced.

They may well be on budget for the expansion but if it has interrupted production it may have increased cash needs short term. I struggle to see they can install all the new equipment without substantially impacting production, but let’s see.

11.25% is pretty expensive for acquisition finance unless it is producing - for me they should focus on Seki expansion and first production and production licence for Teren Sai before they look at acquisition unless it is a cashflow producing asset (and even then I’d rather focus on what they have)