Chaarat Gold Share Discussion Threads

[casual47] 03/2/2016 13:47

If Dekel wanted to get a message out to start a bidding war then today's RNS is not the best way to go about it....

[onedayrodders] 03/2/2016 13:37

bluebell .. you brought up some interesting observations today.

I agree Dekal is clearly frustrated and annoyed at the inflated start up cost and already dismisses it by saying they already have much cheaper quotes.

The Chinese want it on the cheap and Dekel has released this prior to the official stamp to get their message out there for the wider world and hopefully a bidding war.

[bluebell1] 03/2/2016 12:52

Well that's another way of looking at it!

[casual47] 03/2/2016 12:36

That would explain why though I am not sure why it is in the interest of CGH or its shareholders to keep quiet about it.

If someone is sniffing around and is already trying to raise funds then why not announce it formally as such so that perhaps others will start to come out of the woodwork?

Otherwise it begins to look a bit like a backroom stitch up....

[cantrememberthis2] 03/2/2016 11:26

Casual, not if the 3rd party is already a major holder and probably not if they were the same party who produced the DFS... think BBells is onto something...

If you read their strategic options I would not be surprised if this closes up to 7p by the end of the week, here is why:

1x 3rd Party looking to raise funds for POSSIBLE Stake or Outright purchase of CGH
2x Options both massively realistic and exciting because they will apply real quotes
Finally, Bankable DFS pretty much done
Chinese sign-off could come any moment

So happy to add if much lower. Perhaps dilution will be minimal but if there is talks behind the scenes, this could be wrapped up darn fast!

[casual47] 03/2/2016 11:17

Unusual for a 3rd party to already have done due diligence without an MOU / without CGH releasing an RNS about such

[cantrememberthis2] 03/2/2016 11:13

Only a few sellers, they should realise we are awaiting sign off also the most important one:
1x Mining Group has done their Due Diligence and looking to raise fund!

QED

20-40p Target even with the DRAFT-DFS!!!!

Game on, well done holders!

[onedayrodders] 03/2/2016 10:50

I too think their priority since they changed strategy is a trade sale ... seen 20p mentioned here but that would be crime and not sure those investors who paid a premium at 15p in the last placing had 20p as a target for their investment.

Anything less than 40-50p will be hugely disappointing for the board and long term shareholders.

As for today's share price non movement it's probably bcoz we still await official sign off. Once that's in we should start to move up and ifthe bid rumours pick up all sorts of prices and expectations may kick.

Just my thoughts

ODR

[bluebell1] 03/2/2016 10:48

Listen these are all valid points and its the reason everyone is on the fence now. We could see dilution, we could be sold off. But the funding needed for day to day expenses over the next 12 months will not amount to much.
either way I don`t believe NERINs figures they have taken an overly conservative plan. They are here for the assets make no mistake about it. Question is will we receive a fair value for assets in the ground worth several billion? I`d doubt it, but it will still leave many Multiples of today's share price.

[casual47] 03/2/2016 10:43

Bluebell -- If China Non-Ferrous Metal Mining was intending to buy CGH then why didn't they partake in the placing last year @ 15 pence and allowed their share being diluted?

Or were they hoping to pick it up for a lot cheaper?

[casual47] 03/2/2016 10:34

Could be a JV he is referring to.

Money needed to remain a going concern is not creating value generation.

[cantrememberthis2] 03/2/2016 10:29

So what do you make of that particular sentence?
Your management is reviewing a number of options towards creating value generation whilst minimising dilution for our shareholders

[bluebell1] 03/2/2016 10:27

More like the staff and directors will now take shares instead of cash. That`s the only dilution if any you will see here.

[cantrememberthis2] 03/2/2016 10:17

I have 300K shares here, so not going anywhere. As I said I will add on any weakness and also this is a hedged stock against the rest of the market for me. There must be a cash call - he clearly mentions dilution, if you think there isnt Id be interested to understand how we both interpret this term differently.

[bluebell1] 03/2/2016 10:13

Directors hold over 11% of the stock (plus Golan owns 5%+) they have a vested interest here, not like many co.s out their where the bod hold on average less than 2% of the stock.
If they were going for a cash call they would push the share price higher first. This hasn't happened, there has been naff all volume even over the last 6 months on whole the volumes the share price has been walked down on are ridiculous.
But we who take our positions must stand by them.

[cantrememberthis2] 03/2/2016 10:06

Dilution mentioned therefore capital raising required...hence cash needed
QED

[bluebell1] 03/2/2016 10:02

Yes but that admin expense was in the middle of getting the dfs done. Yes dilution was mentioned but also creating share holder value in the same sentence.
Charaat could never raise the funding for this mine, they do not have a proven track record in developing and running a mine let alone one of that size.
They will sell the majority stake in the asset. What is going on is the chinos what to get it as cheap as possible for them.
Hold tough, its all gravy from here on.

[highly geared] 03/2/2016 09:58

Says it all about the market in zilch share price reaction. This is a top quality world class deposit with AISC at a good level. It will be a travesty if it's sold for a pittance as it seems the mine will be developed by the Chinese into a better gold environment and they will duly " clean up".
Juju; where are you?

[casual47] 03/2/2016 09:52

If you check the last interims you'll see admin expenses alone for 6 months were around 1.5 million USD

[cantrememberthis2] 03/2/2016 09:51

Bbell - cash needed me thinks, dilution was mentioned by DEKEL!

[bluebell1] 03/2/2016 09:48

No cash needed, should still have 1.5 million left in the kitty. What expenditure do you for-see over the next 12 months? Naff all.
100% mine ownership.
DFS completed
Buyers already doing due diligence.
We should see a nice ROI here now from this price level.

[casual47] 03/2/2016 09:30

Dekel's tone throughout the RNS is one of exasperation. Looks like his patience with "the Chinese" has finally run out.

After all the long wait this is more of a simper than a bang.

Question is, as it has always been, how much cash (i.e. dilution) do they need to keep ticking over while the "For Sale" sign is out?

[bluebell1] 03/2/2016 09:10

No this is going to be sold to China Non-Ferrous Metal Mining. They already hold a 8.6% stake in the company. This is their next project they have completed the Pakrut gold project in Tajikistan which is now in production.

Yes Charaat have an unbelievably valuable asset but they will sell as stated in the RNS
"As previously reported it is not viable to try and finance the development of the whole Project, so we continue to explore production and sale strategies."

Best case for Charaat is to get some type of free carry plus cash which I believe will happen, and suspect is further along than is being revealed.

[cantrememberthis2] 03/2/2016 08:56

I think it was a very good RNS actually. Their options seem realistic and tangible. It really is now a matter of months till the next step barring regulatory approvals are wrapped up. If the mining group raises the cash boom, JV or sale. If they negotiate options 2 or 3, massive upside at 20p minimum. Will Definitely top up on any weakness. Holding firm for the next stage.

Well done CEO for pushing a release of the DFS, least we know the conservative costs etc!

[richgit] 03/2/2016 08:51

bluebell1

I pray not !!


The foresight is that CGH could be chucking out Gold at far beyond $1900 as a certainty.

That would make this a potential monster money maker.

Our problem is that 98% of potential private investors are not looking at Gold or
have any clue as to what is coming !!!

Let`s say that when pro-rata that figure drops to 93% Gold stocks start to fly.

When it drops to 80%- the frenzy begins.


I just hope Management can keep the story alive until that figure is 93%.


How long now until Physical Gold demand totally swamps the Frauds blinkering
the 98% ??