Chaarat Gold Share Discussion Threads

[casual47] 14/11/2019 13:28

The shareprice jumped from 28p to 38p just off the back of 1.6m buys by Labro.

It's easy to see why institutions would prefer a placing: imagine how far the shareprice could have gone up by if they had bought the 10m shares on the open market (six times as much as what Labro bought recently).

[casual47] 14/11/2019 13:10

New interview with Artem

[casual47] 14/11/2019 12:40

Who says they have stopped buying? They still have 2.4m shares left to buy and if we are talking about history repeating then the expectation would be that there would be another waiver soon with more buying.

The only question which matters is still: will Chaarat get project finance to complete Tulkubash construction.

If the answer is Yes then the shareprice will be much, much higher than today's.

Imo the writing is on the wall that there will be financing as so many pieces of the puzzle have fallen into place recently for it to finally happen.

Not long to go to find out. Tick tock.

[gorsuch] 14/11/2019 12:24

What I'm saying is, Labro appear to only buy to pump up the share price average for a capital raise, we were bobbing along at 27 until Labro started buying in early September, they are also the only reason the share price ever got to 38, now they have stopped buying the price will go down again, you only have to look at today's share trading figure 0.

[casual47] 14/11/2019 11:58

The previous capital raise was at 30p. The shareprice then went up to 38p.

If you are saying history is likely to repeat then I'm looking forward to where the shareprice can go following a 35p equity raise.

[gorsuch] 14/11/2019 11:41

It's just that I noticed in May Labro bought all through the month, taking the share price from 26.2 up to 32, then when they stopped buying a few days later an RNS appears about capital raise, then the share price dives back down to 28 in June. the exact same scenario happened again, they start buying mid September at 30 right up to last week at around 38, they stop buying and a few days later an RNS about a capital raise, and the share price is on it's way back down.

[casual47] 14/11/2019 11:12

The 3 month average will definitely be below 35p. The 1 month average is higher ...but do we really want to quibble about 1 pence difference?

35p is not a discounted placing in any meaningful way.

[gorsuch] 14/11/2019 11:04

I can’t see how it’s possible to tell whether or not the placing was discounted, without knowing the exact date of the placing to match up with the share price on that day, there are no transaction dates in the RNS.

[casual47] 14/11/2019 09:43

I wonder if this $4.5m extra cash raised (excluding the $1.3m to offset Labro loan) will be used to refinance the Kapan loan.

At the moment they need to pay down the principal of the Kapan loan ($4m paid down already as of end of September).

If they can change this into a regular loan that becomes due when it matures it would instantly liberate about $2-$2.5m extra net cash every quarter to put towards e.g. G&A.

[casual47] 14/11/2019 08:28

You got your wish of more II interest after all, Pabs.

And it was not at a discount so I'm happy also.

[2pablo] 14/11/2019 08:15

Each II probably only took about 1% i.e. 4m so no necessity to publicise so it’s probably ‘need to know’ basis.

[jc2706] 14/11/2019 07:40

I hate it when they say that. I understand that some companies like anonymity but it would be preferable to know who they are.

Still, this continues the process of non-discounted placings and there are few small miners that manage that.

[2pablo] 14/11/2019 07:15

Equity raise @ 35p - II's involved 'new investors including two of the leading global institutional investors'

[juju44] 13/11/2019 20:14

You need to go back to primary school

[sparkyboy1] 13/11/2019 19:42

B0b0 we love you but you are not helpful you know the score.
Yeah you have made lots of money so what do you don't understand northing in life goes up does it

[casual47] 13/11/2019 18:46

First Vice Prime Minister of the Kyrgyz Republic Kubatbek Boronov took part in the third Kyrgyz-British Investment Forum, held in London (United Kingdom of Great Britain and Northern Ireland).

In his speech, Kubatbek Boronov thanked the European Bank for Reconstruction and Development and Chaarat Gold Holding for supporting this event, the press service of the Government of the Kyrgyz Republic reports.

He praised the dynamic development of Kyrgyz-British relations and focused on the great development potential, the positive result of which is a 4.5-fold increase in foreign direct investment in the first half of 2019 from the United Kingdom (totaling $ 64.6 million) .

“The Government of the Kyrgyz Republic considers it important to conduct joint events to expand the horizons of cooperation and enhance business contacts. I am sure that the annual investment forum will serve as a powerful incentive for promoting mutual ideas and goals for the development of long-term cooperation between representatives of the business structures of our countries, ”said First Deputy Prime Minister Kubatbek Boronov.

Characterizing the country's investment potential, Kubatbek Boronov noted that the Government of the Kyrgyz Republic is taking the necessary measures to increase the country's investment attractiveness, protect private property and eliminate all bureaucratic obstacles for investors.

The First Vice Prime Minister emphasized that the establishment of the Institute of Business Ombudsman, designed to protect the interests of entrepreneurs and foreign investors, led by a British citizen, Mr. Robin Ord Smith, was an important event for domestic business.

According to him, measures taken to improve the business climate, support the business environment and attract foreign direct investment have already begun to produce first results. So, according to the results of 2018, the inflow of direct foreign investments increased by almost 40%, according to the results of the first 6 months of 2019, investments increased by almost 60%.

In addition, Kubatbek Boronov noted with satisfaction that the improvement of the business environment was also reflected in the Doing Business international rating. This year, the country entered the TOP-20 of the reforming countries of the Doing Business 2020 rating, having improved indicators by the indicators: “Connection to electric networks”, “Taxation” and “Getting a loan”.

“Work in this direction will continue. Today, investments and projects based on the principles of sustainability (environmental impact, technology and knowledge transfer, innovation and social impact, gender equality) have a special role for us. In the long term, sustainable investments will be of greater value to the country and the population than short-term financial benefits, ”he concluded.

At the same time, the Kyrgyz side called for investment in the republic and consider the possibility of priority areas for investment, such as: tourism, energy, industry, information technology.

The event was attended by representatives of about 10 Kyrgyz and 40 British various companies specializing in such areas as tourism, mining, consulting, investment, ecology, etc.

The forum participants were informed about the reforms carried out by the Government to improve the investment climate and the development of the private sector, investment opportunities of the country.

The parties discussed measures to create a favorable investment climate in the republic, attract British investment in the domestic economy, invest in projects in the mining industry, information technology, the banking and financial sector, tourism and regional development.

[bo doodak] 13/11/2019 17:51

We all have different personalities, characteristics, ideas and some posters enjoy detailed analysis, some less so. Surely it all it does is add to the overall mix of knowledge/risks.

Juju, are you not just a wee bit too impatient, despite already substantial profits. If you are still fully invested you know the risks and have willingly accepted them

[casual47] 13/11/2019 17:50

Creating value for shareholders - Mining Magazine


Mikhail Stiskin, the senior vice president of finance and strategy at PJSC Polyus, Russia's largest gold producer and holder of the world's second largest gold reserves, remarked earlier this year that he was braced for a "wave of mergers and acquisitions" in the gold mining sector.

Stiskin was reacting to two recent mega-deals in the industry: the first, Barrick Gold's US$6.5 billion merger with Randgold Resources, which completed in January 2019, and the second, the $10 billion acquisition of Goldcorp by Newmont Mining less than four months later, creating two giants of the gold mining industry.

There has been much back and forth between the two companies over the last year, with Barrick pursing a $17.8 billion takeover of Newmont in March 2019 that was shelved for a 'historic' joint venture, which saw the two companies merging a large part of their Nevada business.

Stiskin went on to predict that we would begin to see a ripple effect, with similar strategies being embraced by smaller, mid-tier mining companies. This prediction has seemingly been borne out over the second half of the year.

Osisko Gold Royalties announced in September 2019 that it had entered into an arrangement agreement with Barkerville Gold Mines to acquire all of the issued share capital of Barkerville. The consideration was paid to Barkerville's shareholders solely by way of shares in Osisko and represented a total equity value to the selling shareholders of approximately C$338 million (US$251 million).

Similarly, on a smaller scale, Australia's Titan Minerals has recently launched a second formal takeover offer for Canada's Core Gold (the first having been blocked by the British Columbia Supreme Court). Titan has justified its commitment to the acquisition on the basis of a belief that it will deliver both a "substantially stronger balance sheet" and a "more extensive and diversified asset base" than would be possible through organic growth alone.

A readiness to engage in such activity extends throughout the sector. Less than a month after Stiskin's prediction, Canada's Hunt Mining Corp announced its successful takeover of Patagonia Gold. The consideration of £17.8 million (US$23 million) was paid in both cash and shares by Hunt Mining.

Other examples, such as Chaarat Gold Holdings having acquired Kapan Mining and Processing Company CJSC at the beginning of this year for $55 million, demonstrate that growth in the sector increasingly requires M&A activity, as well as organic growth. Described by Chaarat as "an important milestone in achieving Chaarat's goal of building a leading emerging markets gold company", the deal again demonstrated the appetite amongst smaller firms to partake in ambitious corporate transactions. One of Chaarat's stated reasons for pursuing this acquisition was that it would "advance Chaarat's ability to implement future mergers and acquisitions".

Mayer Brown has seen similar motives drive acquisitions having acted for Toro Gold on its recent sale to the Australian listed Resolute Mining, for a total consideration of $274 million, comprised of $130 million of cash and $144 million of shares in Resolute. Just weeks before this acquisition was announced, the managing director of Resolute, John Welborn, had announced that Resolute was planning to list on the London Stock Exchange, viewing it as "a platform to grow", in order to connect with investors that it had not been able to previously.

Looking to the future, the CEO of Sibanye Gold, Neal Froneman, has publicly touted the idea of the company listing on the New York Stock Exchange in 2021, stating that "looking offshore for growth is just a logical extension of where we are now". With Sibanye already having acquired the platinum mining company Lonmin earlier this year, such a move would facilitate the access of another mid-market mining company, with a proven appetite for M&A-driven growth, to a previously unavailable and/or unattainable pool of investors.

Rachel Speight, a finance partner at Mayer Brown, previously discussed rising resource nationalism for Mining Magazine and highlighted the regulatory hurdles that have the potential to derail M&A activity in the mining sector. Regulatory concerns and government intervention is always a concern, but with the outlook for gold price still positive and the amount of M&A activity in the gold sector this year, many counterparties seem to be willing to take on more risk in that respect.

From the sheer volume of M&A in the gold mining sector that we have seen this year, agreement with Stiskin's assertion that the gold mining sector is now "clearly open to M&A" must naturally follow, especially for small to mid-market mining companies who, according to Tom Palmer, the president and CEO of Newmont Goldcorp, will be the drivers of "countless more" mergers once the dust has settled on the M&A activity of the largest companies. Such large-scale M&A leaves many assets to be sold off as part of the harmonisation of their business activities.

In an industry that has, by its own admission, "been criticised for its short-term focus, undisciplined growth and poor returns on invested capital", such aggressive corporate manoeuvres are seen, as stated by Mark Bristow, the CEO of Barrick Gold as an opportunity to "create real value for all stakeholders".

[casual47] 13/11/2019 17:28

What have you contributed to this thread, Juju?

[juju44] 13/11/2019 17:24

You never answered my question. I dont think you can or perhaps you dont want to . It challenges your ramping which has failed to deliver

[casual47] 13/11/2019 17:15

The jury has been out all the way from 8p to 38p.

You have been complaining for half a decade.

Curiously you mostly seem to complain as soon as there is the merest hint of a pullback.

[juju44] 13/11/2019 17:11

Yes , a lot here is something big priced in . So far the biggie hasn't arrived and if it doesn't then in any downturn the share could get thumped . The lack of PI buying suggests the jury is out

[bo doodak] 13/11/2019 17:05

Juju, are you intimating perhaps, that in the event of a general market sell-off, this share is likely to decline proportionately more than similar shares?

If so, I'd agree, and IMO seems an entirely reasonable risk factor to keep re-evaluating as time progresses and reweighting. Shouldn't affect the long-term prospects though.

Without worries there can be complacency.

[jc2706] 13/11/2019 16:55

Nothing logical about the market over short time frames.

This is effectively a share buyback rather than director buys and I have seen this many times before. I have also seen PIs many times start suggesting that something doesn't fit when the share price doesn't behave as they hope!