Archipelago Resources Share Discussion Threads

[hellisreal] 19/3/2012 10:26

Taken from RNS

Archipelago will be reporting results for the year ended 31 December 2011 on Thursday 29 March 2012. (Which I expect to be very encouraging)

In 2012, Archipelago expects to produce between 135,000 and 145,000 gold equivalent ounces at a cash cost of between US$540 and US$590 per ounce.
(Cash cost is low against peers)

[silverfern] 19/3/2012 07:27

well some news on the way at last...

[silverfern] 02/3/2012 19:39

GOod stuff. I bought again this week also such that I have more now than ever before. GOld was rattled at the end of the month but it is still above 1700$

[hellisreal] 02/3/2012 00:53

AR. Has been on my watch list for ages,today I bought my first batch.

Two old articles but worth thinking on again.






Archipelago Resources chief eyes big opportunities ahead for Toka Tindung
3:07 pm by Giles Gwinnett The main takeaway for investors, he said, was that the significant increase had been achieved "with a limited exploration campaign" and "not that big a budget"
Archipelago Resources' (LON:AR.) chief Marcus Engelbrecht says there's a lot more to follow today's impressive resource and reserve upgrade for the Toka Tindung gold project.

This will include more drilling at the flagship project in Indonesia, managing director and CEO Engelbrecht told Proactive Investors, as the firm strives to expand the resource.

Archipelago shares jumped over 5 per cent today, as it lifted the contained gold estimate for the project by 52 per cent, to 2.58 million ounces (previously: 1.7 mln ounces).

Meanwhile, the reserves at the gold mine, which produced 61,200 ounces in 2011, were boosted by 60 per cent to 1.47 mln ounces.

Engelbrecht said the upgrade came after six months of drilling with just over US$9 mln spent.

The main takeaway for investors, he said, was that the significant increase had been achieved "with a limited exploration campaign" and "not that big a budget".

But he added there was a lot more drilling to do, and many more targets, around the main pit, and to the south and west, which had been earmarked for the next 12 to 24 months.

"The reality is that we don't really understand everything which we have," he said, adding that he expected to continue 2012 with an aggressive exploration programme and to deliver yet more "really good results".

"We have five ore sources in our mine plan. We are mining from three at the moment and the majority of them are open at depth and along strike in both directions. There's significant upside," he said.

One area, 3km west of the main pit, highlighted Engelbrecht, not included in today's upgrade, was one previously owned by Aurora (ASX:ARM).

"My geologist tells me it could be a Toka lookalike," said Engelbrecht.

He added that the significant cashflow this year would be used to expand the resource base and looking at ways to expand the resource base and importantly, grow the company.

He pointed out that there was also strong shareholder support for the company to embark on an M&A programme.

Brokers welcomed today's announcement.

"Archipelago has delivered exactly what we expected - a much improved reserve and resource statement, whilst also meeting its production guidance for the December quarter," said Ambrian, which reiterated its 'buy' stance on the stock and 89 pence a share target.

In a note, Oriel Securities said that following the reserve increase, the firm was now looking at the Toka Tindung gold mine as a larger, lower grade deposit and as a result has extended life of the mine to 16 years, including stockpiles.

"Drilling is ongoing and we expect further resource and reserve updates over the course of the year. We maintain our 'buy' recommendation and will update our target price (currently 82p/sh) to include extended mine plan and slightly higher cost estimates."

[lfc4ever] 29/2/2012 08:11

that was only a quarter of the bill!

I had a good year a couple of years ago.

[silverfern] 28/2/2012 17:38

NOr are you if you had a tax bill for £68k

[lfc4ever] 28/2/2012 11:24

had to raise some cash for tax bill and sold £65k of these yesterday.
good to find that i could sell that volume north of 68p and no knock on effect on the share price seemingly not as illiquid as one might fear.

[silverfern] 23/2/2012 17:45

Boadecia Thanks for the MIRL tip. I have been as heavily into SHG as AR, so ...I' m happy. Having played this game for a while I sold a tranche of AR when SHG dipped temporarily to 32p. I've put my holding back into AR as I took a topping from SHG at 39p. That's what is frustrating - I intend to hold AR. but I cannot have it do nothing while the market makes gains - perhaps I should spread bet instead!
MIght have posted these before but check out SXX and EKF

[boadicea] 23/2/2012 09:29

silverfern - The share price here doesn't seem seriously out of line with other early stage producers imho. Arguably, the majority are undevalued after a bad year for the sector in 2011. On a quick back-of-envelope calc I come up with a possible 125p target (assuming gold at ~$1600/oz) without factoring in 'risk' - which for AR I consider to be relatively low. Many projections are based on a conservative $1100 or $1200/oz, which more nearly justifies where we are.

Generally in junior golds, I expect the actual share price to be about half the broker target! On that score we're doing better than average (Ambrian=89p).

However, I do like AR and feel safe with it because in addition to its modest valuation and relatively stable environment we have also had a steady stream of upgrades which can be expected to continue. I therefore hesitate to grumble about a price at which I am happy to add with the expectation of steady appreciation over the next two or three years.

For my more dynamic (risky?) investments I have opted for the likes of SHG, AGQ and CLF.

PS: My other significant holdings include MIRL about which I am highly optimistic in the medium term and MML, which is in a low cost producer class of its own.

[silverfern] 17/2/2012 09:12

$150m profit this year and no takers? THIs is very frustrating. THe company needs to spend some of that on PR

[lfc4ever] 09/2/2012 10:46

buys going through but the share price seems a bit stuck. we need to break and hold about 70p.

[lucky_punter] 31/1/2012 15:52

Archipelago Resources' (LON:AR.) chief Marcus Engelbrecht says there's a lot more to follow today's impressive resource and reserve upgrade for the Toka Tindung gold project.

This will include more drilling at the flagship project in Indonesia, managing director and CEO Engelbrecht told Proactive Investors, as the firm strives to expand the resource.

[timberwolf3] 31/1/2012 12:41

So what are the negatives here apart from low broker targets, i can see the positives

[silverfern] 31/1/2012 12:04

Frustrating ain't the word. Still, am also in SHG so a good day. THis needs the management to spend a bit of money on CIty PR

[lfc4ever] 31/1/2012 10:14

70p providing stubborn resistance.

[amazon_woman] 30/1/2012 15:32

Archipelago Resources chief eyes big opportunities ahead for Toka Tindung
3:07 pm by Giles Gwinnett The main takeaway for investors, he said, was that the significant increase had been achieved "with a limited exploration campaign" and "not that big a budget"
Archipelago Resources' (LON:AR.) chief Marcus Engelbrecht says there's a lot more to follow today's impressive resource and reserve upgrade for the Toka Tindung gold project.

This will include more drilling at the flagship project in Indonesia, managing director and CEO Engelbrecht told Proactive Investors, as the firm strives to expand the resource.

Archipelago shares jumped over 5 per cent today, as it lifted the contained gold estimate for the project by 52 per cent, to 2.58 million ounces (previously: 1.7 mln ounces).

Meanwhile, the reserves at the gold mine, which produced 61,200 ounces in 2011, were boosted by 60 per cent to 1.47 mln ounces.

Engelbrecht said the upgrade came after six months of drilling with just over US$9 mln spent.

The main takeaway for investors, he said, was that the significant increase had been achieved "with a limited exploration campaign" and "not that big a budget".

But he added there was a lot more drilling to do, and many more targets, around the main pit, and to the south and west, which had been earmarked for the next 12 to 24 months.

"The reality is that we don't really understand everything which we have," he said, adding that he expected to continue 2012 with an aggressive exploration programme and to deliver yet more "really good results".

"We have five ore sources in our mine plan. We are mining from three at the moment and the majority of them are open at depth and along strike in both directions. There's significant upside," he said.

One area, 3km west of the main pit, highlighted Engelbrecht, not included in today's upgrade, was one previously owned by Aurora (ASX:ARM).

"My geologist tells me it could be a Toka lookalike," said Engelbrecht.

He added that the significant cashflow this year would be used to expand the resource base and looking at ways to expand the resource base and importantly, grow the company.

He pointed out that there was also strong shareholder support for the company to embark on an M&A programme.

Brokers welcomed today's announcement.

"Archipelago has delivered exactly what we expected - a much improved reserve and resource statement, whilst also meeting its production guidance for the December quarter," said Ambrian, which reiterated its 'buy' stance on the stock and 89 pence a share target.

In a note, Oriel Securities said that following the reserve increase, the firm was now looking at the Toka Tindung gold mine as a larger, lower grade deposit and as a result has extended life of the mine to 16 years, including stockpiles.

"Drilling is ongoing and we expect further resource and reserve updates over the course of the year. We maintain our 'buy' recommendation and will update our target price (currently 82p/sh) to include extended mine plan and slightly higher cost estimates."

[yorgi] 30/1/2012 10:59

LOL so I see :-) No spare dosh this morning I'm afraid :-(

[lfc4ever] 30/1/2012 10:58

now is the time!! my feeling is that we are going to have a very rapid spike, like the one in summer 2011, but this time heading towards £1, not 80p.

as i type, there she goes- bid up to 72p

[yorgi] 30/1/2012 10:39

I'm afraid I'm not in at the moment Ifc4ever I regret to say. Sold at a profit, which I shouldn't have but seemed a good idea at the time although I intended to get back in again but as yet haven't. Still very much on my watch and if funds and price come together at the right time I will be buying back.

[lfc4ever] 30/1/2012 10:00

annual profit before overheads of about US$150million and very significant increase in length of mine, with indications of more to come.

this is due another big rerating in my view- very undervalued.

[silverfern] 30/1/2012 07:54

heck the announcement!

[silverfern] 27/1/2012 11:44

somehting is going on - check out the two last buys

[lfc4ever] 27/1/2012 10:38

once we do pop through this 70p resistance it will be interesting to see where we go to though.

Still 20-30% undervalued in my view.

[lfc4ever] 27/1/2012 10:38

gold going up, big volume, all buys, but no move in the share price curious.

[silverfern] 13/1/2012 13:23

this looks ready to pop - all buys this week, inc me (yet again) today