Chaarat Gold Share Discussion Threads

[casual47] 07/11/2018 08:28

I am still seeing mudslinging articles that are anti-Centerra / anti-chaarat in local Kyrgyz press.

The article I linked above is the Chaarat Zaav managing director's response to the "yellow press" accusing Chaarat of all sorts of things.

Could this be a sign that the Kumtor saga hasn't quite finished for us?

[2pablo] 07/11/2018 06:49

gorsuch - I can't read it either but my take is that's 8 years, Centerra aren't investing in it and the govt knows other mines like our 2 Krygyz branches Tulkubash and Kyzaltash(or whatever it is !) will be taking over by then.

Wish the govt would show some interest in Kumtor and get rid of Centerra like we proposed - any Chinese deal will be a stitch up compared to our deal for workers et al

[gorsuch] 07/11/2018 00:10

Apparently Kumtor is closing by 2026 but the government is not bothered, I can't get to read this article but no doubt someone on here can get it.

[casual47] 06/11/2018 22:32

Interesting read:

[2pablo] 06/11/2018 10:42

Yeah they are staged but he's a smoothie. Proactive aren't going to upset any apple carts but he's a very good spokesperson

[casual47] 06/11/2018 10:28

Pabs, that's what I have been thinking. Good thing they are on our side....for now :D.

Mind you, the proactive interviews are clearly staged and I believe paid for so he doesn't get any points from me for answering the questions.

The interviewer isn't half a smoothy either - I wouldn't leave him alone with my gran for even a second.

[2pablo] 06/11/2018 10:21

Casual, that Artem is a really smooth operator ain't he? Never seems to get phased by any questions, knows his stuff, no hesitation, and never gets tied down to any dates narrower than a certain Quarter.

Smooth, but, quite obviously a nasty bit of work ! He's on our side though, so a few innocent poisonings or disappearences, won't have to bother us

[casual47] 06/11/2018 09:36

A week to go for the interim resource and reserve statement to be published in "early nov".

They still need to raise the remainder of the $50m loan notes. What's the delay? The first phase was done across 16 or so investors (so on average about a million each) so I suppose it can be like herding cats, but can they find no big hitters who can drop a cool 10+ million?

[fishhead1] 05/11/2018 10:28

Would be inclined to agree. This probably seemed like a stretch 6 months ago, but the first resource update (imporving grade and qty) and the continuous bullish noises coming from the company gives me some hope you are correct.

[casual47] 05/11/2018 09:03

I guess one possible reason the BOD changed tack and is going for a more ambitious project finance in q1 2019 rather than "up to $100m" loan notes is because they are confident now that the drill results will lead to an economical mine plan with LOM above 7 years?

Presumably the interim revised reserve model due next few days will get us very close to that?

[fishhead1] 05/11/2018 07:54

Managed to watch the latest proactive interview with Artem over the weekend.

The fella exudes confidence, seems really confident around the current plan.

[casual47] 02/11/2018 17:25

I saw an analyst's valuation this year of Nordgold of $2.5b and he added "with Russian discount" it's probably more like $2b.

Last year their Russian mines delivered less than 30% of their total gold output.

[jc2706] 02/11/2018 17:15

Interesting. Perhaps a deal can be done.

And you are right, Gross does look by far the most interesting of the assets and should be coming on stream now. They have pumped $250m into it so I wonder how much they would expect for all the Russian assets.

[casual47] 02/11/2018 16:28

There was a rumour earlier this year that Mr. Nordgold wanted to exchange his African mines for a cash and shares deal with Endeavour and that he wanted to restructure the business. The geographical spread of Nordgold's assets made a merger difficult and the Russian assets were problematic for this kind of deal also.

So who knows....There might be some sense in offloading the Russian assets for a friendly price...

[casual47] 02/11/2018 16:25

Their Gross mine looks interesting.

[jc2706] 02/11/2018 16:13

Possibly. Had a quick look at those and the resources/reserves look pretty limited for those assets.

[casual47] 02/11/2018 15:29

This one:

Target 2 Russia 225

Could be the Russian mines of Nordgold....

[casual47] 02/11/2018 15:11

He said they're actively looking at three potential transactions for next year (which are not Kumtor)

[juju44] 02/11/2018 15:02

Another very encouraging interview. Artem sure is a cool cat

[casual47] 02/11/2018 14:28

Artem clearly not ruling out Kumtor:



Regarding lifting suspension: "as soon as practicable"

[casual47] 02/11/2018 13:16

For HGM having debt to service and an expectation to deliver an increasing divi every year probably has meant that growth will be steady and conservative, which is great for income hunting investors, but their major shareholders might be persuaded to put a rocket under their investment by turning it into a growth company instead.

They only have 325,222,098 shares in issue, which is pretty amazing.

[casual47] 02/11/2018 12:52

Still think HGM would be a good takeover target for Chaarat. They are, arguably, undervalued, like most miners in Russia/wider region and for 2018 the total dividend will come down to about $53 million.

So if they buy HGM then all that lovely divi could instead go toward cash flow and they could de-prioritise certain of the HGM projects (and even sell some) and direct the resources towards Tulkubash instead, if that makes sense ROI-wise.

At 35% premium on today's shareprice for HGM they would need about $850m.

[casual47] 02/11/2018 12:35

A new presentation on the website:

Selected highlights for your convenience: (I should get paid for this!)

Tulkubash project development timeline:
• Updated reserve report due to be published in early November 2018
• Updated Feasibility Study in early 2019
• Project Finance expected to be agreed early 2019
• Targeted commercial production 2020

As announced on 16 October, given the reduction in acquisition cost of Kapan (negotiated from US$75mm to US$50mm), and the positive financing developments for Tulkubash, Chaarat’s management has reduced the fundraise from US$100mm to US$50mm

• Use of proceeds from the convertible for the acquisition of Kapan has reduced from US$20mm to US$5mm
• Reduction in Tulkubash funding requirement from US$40mm to US$25mm due to advancement of the Project Finance discussion to bring forward financing commitment
• Reduction of ~US$20mm of general corporate purposes and reserves to minimize shareholder dilution
• Chaarat has closed lead orders of US$17.6mm or 35.2% of the US$50mm (only existing debt matures in three years)
• Polymetal will be participating with US$5mm in Convertible Notes