Avesoro Resources Share Discussion Threads

[ukgeorge] 31/10/2017 12:29

It is turning into quite an interesting play. I've bought £6k worth.


Like you say having three mines reduces the risk. I do wish they would do a share consolidation at some point.

[stevie blunder] 31/10/2017 09:01

That looks like a reasonably priced deal. And it creates a Multi mine company which dilutes risk and expands exploration.

I wonder if they raised as much cash as they wanted to? I remember from one of the presentations that they expected the MNG holding would be diluted. That hasn't happened, still at 73%.

With 230k oz next year at 660 cash costs, 1250 gold price cash flow would be over 130M
Cant see pro-forma figures for All in Sustaining Costs AISC.

Around 2.8 Billion new shares to be issued, 5.3 existing giving 8.1 billion so market cap about 160M$. Debt in New Liberty 113M$. Don't know debt in the acquired companies at the moment.

I think it looks OK.

[stevie blunder] 27/10/2017 08:45

October presentation on the website:



Slide 4 says that the consolidation of the 2 MNG mines is expected in October, so must be imminent.

My guess is that this is the presentation the management have been using as they go round institutions flogging new shares to allow the transaction to go ahead. Guess that could explain the recent weakness.

[pottermagic2310] 11/10/2017 15:44

That's an excellent summary from share price Angel. Really puts everything into perspective.

[ukgeorge] 11/10/2017 11:44

From share price angel

Avesoro Resources (ASO LN) 2.15pence, Mkt Cap £114.5m – New Liberty resource/reserve update and new mine plan

• Avesoro Resources reports an updated mineral resource/reserve estimate, a revised 2017 production estimate as well as September 2017 quarterly production results and a revised annual production profile to 2021.

• The resource and reserve report, which was produced by the consulting group SRK and follows Canadian CIM Standards, updates the previous, October 2012 estimate to reflect mining depletion as well as “the use of an open pit depth constraint … which limits the depth to which open pit material is now reported”.

• Overall, the measured and indicated resource of 9.6mt at an average grade of 3.2g/t gold represents a “14% reduction in metal content within the Measured and Indicated categories from 1,143 koz to 985koz.” The latest estimate reports an additional 6.4mt at 3g/t gold (620,000oz) classified as inferred.
• In reporting the updated Proven and Probable reserve estimate of 7.4mt at an average grade of 3.03g/t (717,000oz) at a cut-off grade of 0.85g/t, the company states that “Since the commencement of mining operations at New Liberty in Q4 2014 to the end of July 2017, some 1.8Mt of ore has been mined and processed at an average grade of 2.5 g/t and containing 145koz of gold.”

• Production from New Liberty during the September quarter amounted to 19,885oz of gold “representing a 26% increase on the previous quarter, bringing year to date production to 50,615 ounces of gold.”

• The company has revised its production guidance for 2017 to 70-80,000 oz at an operating cash cost of US$900-950 per oz, implying that it expects to more than match the Q3 production performance during the final quarter of the year. The company attributes the reduction in 2017 production guidance from the previous 90-100,000oz to “a lack of grade continuity in the mineralisation within the Marvoe pit, which resulted in a shortfall in mining production of approximately 10,000 ounces when compared to the original mine plan for 2017, which the Company will not be able to recover before the end of the year.”

• The company reviews the remedial measures it has implemented since the change of management a
year ago.

o Process plant throughput has been increased by 42% to 200tph and recovery levels of 91-93% have been achieved

o Crushing capacity has been increased to 280tph through modifications including the addition of a tertiary cone-crusher

o Measures, including improved mill liner life and reduced consumables usage have improved rushing circuit availability

o Additional plant upgrades including increased oxygen capacity have improved “pre-oxidation, leaching and detox performance”

o Plans are underway to add a second gravity concentrator “to increase gravity gold recovery levels towards the 60% planned in the original plant design”

o The increased throughput rates have reduced the life of the New Liberty mine to 4.5 years and Avesoro has provided a revised annual production profile to 2021 providing details of a planned average 149,000oz annual production over the remaining mine life.

o According to company estimates using a gold price of US$1300/oz, at a 5% discount rate, the revised plan generates a post-tax NPV of US$179m after debt repayment and associated finance charges, through the production of 642,000oz of gold at an operating cash cost of US$659/oz (All-in-sustaining cost of US$749/oz).

Conclusion: Avesoro’s new mine plan reduces the life of the New Liberty Mine but ensures a positive NPV and the repayment of debt. The lower production guidance for 2017 implies that production is picking up and that production rates are expected to improve during the remaining life of the mine.

[stevie blunder] 11/10/2017 10:20

I think the NPV refers to the remaining LOM of 4 years, so any upside depends on bringing those 315k inferred oz into reserves and the extending the life further through near mine exploration to keep feeding the plant.
Also underground development is being looked at.

[the bull] 11/10/2017 09:56

If gold rises and it should come the next financial crisis, this should shoot up i would have thought.

[ukgeorge] 11/10/2017 09:17

Just bought some @ 2.15p

Results looked okay and they continue to turn it around, more mining equipment on its way

[pimsim] 11/10/2017 08:43

Not so sure, post tax NAV of just $179m with 5325m shares in issue is worth 3.36c (2.54p) per share. Add in execution risk + gold price volatility and I can't see any attraction here.

[the bull] 11/10/2017 07:31

I pretty good update I think, extended life of mine and an increase in production, not forgetting further reduced costs. Should breath a bit of life into the share price

[stevie blunder] 03/10/2017 23:30

Beeezzz,
Yes I think there is a risk that as minority shareholders we could get shafted
However they seem to want to have a listed entity and they want to build a medium sized gold miner and make a lot of money
It seems worth the risk to try to go along for the ride

But...... that is what I thought with Aureus mining as well and I am well under water so you shouldn’t listen to me
😎

[the bull] 03/10/2017 22:05

The advantage of a listing is the funding they can get from mug i mean investors

[beeezzz] 03/10/2017 21:15

Stevie......

Are you concerned that a private company is head of this structure, could this be taken private....at a price...

[stevie blunder] 03/10/2017 08:47

Hi Beeezzz,
In the video that Chipperfrd linked to above they say they can get costs at New Liberty down to the same level as the 2 mines they are planning to integrate in the next few months, around 600$ cash costs, a bit more AISC. They also stuck to the forecast of 90 -100k oz in 2017.

They also say that the integration of the mines into the listed company will mean that MNG will be diluted from their 73%, so they need institutional support. That means there are going to be a large number of shares sold to new investors if it goes ahead.

That could be behind the weakness in the price.
But WDIK :-)

Edit: they have been giving production numbers within 2 weeks of the end of the Quarter, so we should get Q3 numbers next week, if they keep to the same schedule.

[beeezzz] 02/10/2017 22:23

ASO production costs are too high, they need to get well below $1000, if gold slips they can still make a small profit....

SP not looking very optimistic...

[goldguru2017] 22/9/2017 14:23

Kestrel Gold (TSX Venture Exchange symbol KGC.V)

Please allow me to bring your attention to this low-market capitalisation, high potential gold/copper exploration company that has assets in the ‘Eye of the Storm’ – the White Gold Area in the Yukon, Canada.


- Recently acquired acreage in one of Canadas most prolific gold areas – the ‘Eye of the Storm’ White Gold Area in the Tintina Gold Belt.
- Easily accessible, excellent infrastructure, safe jurisdiction.
- Sampling just finished, funded drilling programme about to commence
- >100g/T Gold sample from Clear Creek – excellent potential
- Peak values of 12,400 ppb Au from soil sampling on Val Jual
- Relative low market cap – CDN$5.0 million
- CEO with proven track record of growing public companies share price by multiples
- Leading Canadian gold geologist, Jean Paulter, running drilling campaign
- Nearby to discovered goldmines (Coffee, Golden Saddle)
- Val Jual /10 Mile Creek acreage surrounded by active 2017 programs by other companies
- Drilling news flow expected before year-end

Please do your own research on the Company before investing. Thank you for your time.

[stevie blunder] 22/9/2017 14:19

Thanks Chipperfrd :-)

Here are the presentation slides

[chipperfrd] 22/9/2017 11:49

Recent presentation (19th Sep). Worth a look:

[happyholder123] 09/9/2017 09:20

HNR -
TWO wells successfully drilled with abundant oil and gas in samples extracted!
Fracking and FIRST OIL next month!
Don't miss this train!

[the bull] 01/9/2017 07:34

Eric Sprott on the other hand predicts $5000 per oz

[beeezzz] 31/8/2017 21:14

Gold above $1300, is this company producing anything....they really need to concentrate on reducing their costs, gold analyst on bloomberg said the world is awash with gold, and didn't expect any great increase in price..

[the bull] 17/8/2017 12:36

It has risen in the past few days, 3% here and there mounts up

[robrah] 17/8/2017 08:00

And yet the share price is as dead as it was was

[pottermagic2310] 12/8/2017 21:01

Indeed... so everything else does look positive and what lies ahead could be quite promising