Chaarat Gold Share Discussion Threads

[2pablo] 25/8/2018 09:44

Casual - nothing back from Bob B. yet, nor did I copy to [e-mail].

Yes, it's strange that the Govt has virtually said nothing. Not sure if they commented very early on alongside Centerra when the latter completely ridiculed the idea.

Anyway, it must be game still on - the only reason I can think of that it could be off and not yet released to us, would be another deal needed to stop tanking on return from suspension.

[casual47] 24/8/2018 15:01

Great, Pabs, would be good to know the answer. Did you copy in [e-mail] also? It's the contact email they put at the end of all the RNS releases.

I contacted Linda a month or two ago but she never did get back to me. Though I think she probably couldn't have answered me anyway -- I asked her why it is that given Kumtor's importance to Kyrgyzstan there wasn't any official response or acknowledgement at all (at the time) from the government to the Chaarat offer.

Since then I have seen a local newspaper article where some official (forget who) mentioned that the Chaarat offer was passed "to the relevant department" who would study it and pass their feedback on accordingly.....which is a nothing answer really. I also asked what the expected steps would be with regards to the government and expected timelines etc (again, probably too big an ask for a country like Kyrgyzstan where things happen when certain people want them to happen).

[casual47] 24/8/2018 09:07

The article mentions 100 ton gold...that would be 3m ounces.

[casual47] 24/8/2018 08:58

Here's the article that goes with the YouTube clip I posted earlier - nothing new new but an interesting insight from the men at the coal face

[2pablo] 24/8/2018 08:51

Have asked Bob Benbow, just because I've communicated with him previously, what our options might be if we get to Oct 24th (6 months) and still nothing has changed with regards Kumtor.

[juju44] 24/8/2018 08:31

Not as much confidence around as there was a couple of months ago . If they were capable of pulling off the big one surely they would have done it by now

[oli12] 24/8/2018 06:41

One imagines at some point we move onto plan B. Given the list of possible acquisition targets Chaarat has identified then one would anticipate that tentative discussions have already taken place ahead of any change in strategy.

[casual47] 23/8/2018 08:54

Chaarat don't need to remain suspended until the deal is done btw. All they need to do is publish the admission documents....from RNS:

"trading in Chaarat's ordinary shares was suspended on 24 April 2018 and, in accordance with AIM Rule 14 and as previously announced, will remain suspended pending the publication of the required AIM Admission Document (or an announcement being made by Chaarat that the Acquisition is no longer in contemplation by Chaarat)"

[casual47] 23/8/2018 07:29

The six month rule is there but WRN which was suspended years ago, incidentally also for a reverse takeover, is still listed as far as I can see....(don't know much about WRN so not sure what is going on there....looks like the company was liquidated, so not sure why still status of 'suspended')

[2pablo] 23/8/2018 06:44

Thanks for article on Longstop date Casual.

Anyone know if we are going to be affected by the 6-month 'have to de-list' rule. If not I'll ask Artem and Co since I've lost my Linda woman.

[gorsuch] 22/8/2018 23:23

I wonder how that will impact on our suspension?? we should change the company name to Rip Van Winkle exploration, just in case we don't get around to re-listing.

[casual47] 22/8/2018 21:41

There we have it: the fifth extension, longstop deadline pushed back to November 2nd



(Edit, had misread date initially, now updated above to 2nd November. This means it's being pushed back more than two months)

[casual47] 22/8/2018 16:29

Oleg Pankratov explains zero GDP growth

14:01, 22 August 2018, Bishkek - 24.kg news agency , by Julia KOSTENKO

The Economy Minister of Kyrgyzstan Oleg Pankratov explained today at a press conference why GDP was not growing.

According to him, the economy of the republic depends on the work of the gold mining enterprise Kumtor. Its indicators affect GDP growth.

«In the first half of last year, Kumtor worked actively in the rock bed with a high content of gold. GDP growth reached 6.2 percent. In the second half, it moved to the rock bed with a low gold content. Because of this, we remained at zero level of GDP growth,» said Oleg Pankratov.

He added that if Kumtor worked according to the announced forecasts, we would see GDP growth of 2.5-3 percent at the end of the year.

[sparkyboy1] 22/8/2018 13:59

Oil12 lets hope that saying no news is good news i know What you mean 5 mouths all talk but not much happening. If we go back on the market as it is now we will drop like a stone so lets hope something big comes up.

[casual47] 22/8/2018 13:54

For the hard-core fans:

A clip posted today featuring men being interviewed while at work doing drilling things at Tulkubash. Nice views of the valley.



I don't understand a word and there is no subtitle facility as far as I can see.

[oli12] 22/8/2018 13:32

When does management at Chaarat say enough is enough and move on. I would love them to pull off a deal however given Centerta Gold won’t even talk to us it appears unlikely any agreement will be reached unless the government interve however this again looks unlikely given the silence to date. Hopefully September will bring closure. Surely we have to re list soon as per AIM rules.

[casual47] 22/8/2018 13:17

Another opinion piece published today in a different local paper by the same guy of the article I posted earlier. Nothing new:

[casual47] 21/8/2018 14:42

No-brainer aspect of the Kumtor proposition:

The lender is securing less than $400m debt against an asset that has about twice the value and a FCF of at least $100m per annum.

Kyrgyzaltyn will become a preferential shareholder but a shareholder nevertheless so behind any creditors which should be a sufficient guarantee. The only snag, at least from a Western POV, is the fact that the asset is in Kyrgyzstan with all the risks that involves. So even such a no-brainer may not cut mustard with Western lenders. For Russian lenders however this should not be a problem.

The same reasoning goes for the equity piece of such a deal: the country risk would sit better with investors from the region.

We know Centerra is seeking financing to develop its Turkish asset. With all that is happening in Turkey and the wider malaise with regards to gold and miners this might be a bit tricky at the moment. So a deal is still to be done?

[casual47] 16/8/2018 16:38

Yes, Chaarat Zaav is the Kyrgyz subsidiary.

If you have a free 10 minutes or so might be interesting to watch this YouTube clip of an interview with the MD there. It is in Russian but you can use YouTube's autotranslate / caption thing, it's not 100% but you get the gist.



(I think the autotranslate version may only work on desktop)

[2pablo] 16/8/2018 16:27

What's Chaarat Zaav? The local office of our company in Bishkek?

[casual47] 16/8/2018 15:41

Locally, in Kyrgyzstan, they have already been stressing the difference between Chaarat Holding company and Chaarat Zaav. There was that one video of the Chaarat Zaav managing director making clear that Chaarat Holdings is quite a different company when asked about whether the Kumtor offer was a credible one.

[oli12] 16/8/2018 15:16

Still waiting for the Chinese to sign off on the definitive feasibility study NERIN started years ago .... one of Dekel’s many DFS non of which were definitive.

Apart from the name this is a VERY different company from the one that listed all those moons ago. I guess eventually the name will change too depending on what we purchase.

[casual47] 16/8/2018 14:14

The Chaarat website has a Chinese language option. It is not up to date. The last presentation that they have translated was from November 2017.

I suppose they are done courting the Chinese money?

[jc2706] 16/8/2018 11:51

casual47,

I don't expect the interim release to lift reserves enough to improve the life of mine. Actually, I think that it is more than likely that reserves will not increase at all in this interim statement. I am becoming more confident that the 2018 drilling season alone will be enough to get to this level. I suspect that the interim statement will signpost a very significant increase in oxide resources, suggesting that the ultimate target here for oxide alone is in the realms of the current sulphide resource. They are talking about district scale now and all the long term pointers are looking like a globally significant resource - tens of millions of ounces.

I think that one peripheral benefit that rapidly proving up the existing deposit provides is to show the government that Chaarat already possess a deposit that can reasonably be spoken of in the same terms as Kumtor. So the argument goes, support us with the Kumtor bid and we will provide you with a path to Kumtor II.

[casual47] 16/8/2018 11:37

JC, do you expect the interim resource statement to be a material game changer in terms of getting finance before Christmas?

In the original FS RNS (link below) they said a conservative estimate was that 2018+2019 drilling could increase the FS measured reserve of 16m t at 0.91g/t (470k ounces) by 100-150%, which would get us to 1m oz reserves and a LOM of around 7 years.

A substantial increase in grade will of course enhance that effect.

Just not sure the interim resource statement will have covered enough drilling to really move the goalposts economically?

A lot needs to happen before the full 2018 results are out (sometime in q1 2019): loan needs to be repaid, basic G&A funding for 2019 obtained etc. Not sure all that can be done solely based on interim results.....which is why I'm still clinging to an M&A of sorts happening.