Chaarat Gold Share Discussion Threads

[2pablo] 04/6/2020 16:38

After another 20 minutes looking at the concepts of Automatic Trades and Automated Trades I’m none the wiser. Has anyone a link that might spell out what they are/how they work?

Plus I surely would like a leap away from this downward slope we’ve suddenly got on

[casual47] 04/6/2020 16:24

On some days this is quite obvious when you see nothing but O trades followed immediately by same volume AT trade

With such an illiquid stock and with tightly held II shares like Chaarat's it's probably quite common.

[jc2706] 04/6/2020 16:10

This is true.

[casual47] 04/6/2020 16:06

It's not a matter of belief, it is fact. AT trades are done directly between a buyer and a seller whereas O trades are via brokers.

Of course brokers can be on the buy or sell side of an AT trade.

So you can have:

5000 'O' sale by A via broker X
5000 AT trade where broker X sells to buyer B

And vice versa.

So yes, AT trades can influence O trades and vice versa. They are not necessarily independent.

[2pablo] 04/6/2020 15:59

Casual, I know someone explained that to you once but I don’t buy it. When AT trades go through, perhaps a few of them close together, the share price then reacts. It moves in a certain direction depending on if those trades are below the mid and deemed as Sells, it moves Down or vice versa above the mid.

If they were dual trades buy and sell, why would the share price move? No pressure either way

[casual47] 04/6/2020 14:27

By definition AT are both sale and buy

[juju44] 04/6/2020 14:25

I can only see sells

[2pablo] 04/6/2020 14:08

Bit of trading going on all of a sudden, hope it ends well

[fishhead1] 04/6/2020 11:28

I think I read Mr A's average buy in cost is sub 10p so (relatively speaking) he has already made a lot of money to offset any small losses.

[juju44] 04/6/2020 08:25

Looks like he is losing a lot of money

[2pablo] 04/6/2020 07:47

And the reverse?

[casual47] 03/6/2020 21:03

Every 3.8p added to the shareprice makes Mr A $10m richer. (On paper)

[2pablo] 03/6/2020 19:29

Anyway, keep singing, ‘You’ve had a bad day’ and I don’t like them - pitiful volume though

[casual47] 03/6/2020 13:40

Another reason why I think the $17m loan repayment is top priority:

The Labro guarantee arrangement for the $17m has this condition:

"Another 8,000,000 new ordinary shares will be issued to Labro on 31 October 2020 if the Loan has not been repaid in its entirety by Chaarat by that date."

So my expectation is the $17m will be reduced to ~$10m by July and nil by October.

The first step is doable following the recent placing and if the lender converts up to $5m.

The second step will need something additional to happen - perhaps a refinance? Total debt on Kapan should be ~$40m by then if the above happens, which is the original amount they took on as bank debt when they bought Kapan. That was when gold was ~$1300/oz and the LOM was just under 5 years. So plenty of scope for a refinance, imo.

[casual47] 03/6/2020 12:51

We ought to get some news on the new drilling season at Tulku too, Covid permitting.

[2pablo] 03/6/2020 12:28

Casual, no I presume Artem forwarded my enquiry to Chris re. how come Kapan showing a Loss but soon after they did that Q & A. Not sure I got the answer from that but think my query has been lost in the machine.

Yeah, very quiet, surely a new waiver might be in order but if still closed by impending M & A !!!!

[casual47] 03/6/2020 12:26

I am still expecting something to happen on the $17m loan.

As I mentioned before, the Kapan bank loan has a clause that stipulates total debt secured on Kapan may not exceed $41m and they 'test' for this twice a year: at the half year point and end of year.

The $17m has been secured against Kapan recently (originally it was against the Kyrgyz assets) which makes the total debt on it more than $50m.

Between now and the half-year 'test' I expect they will reduce the Kapan bank loan by another $2m so that would leave another $8m at least that needs to be shaved off.

This is why I was expecting Chaarat to pay down the $17m with $5m by end of May to extend the maturity further from end of the year to end of March plus a conversion of up to $5m.

I thought the recent placing was partially done to make this happen, with some money left for e.g. legal expenditures on M&A due diligence.

[2pablo] 03/6/2020 11:59

Casual, if you can explain the vagaries of the AT trades it would be amazing.

News on something must be very close for Chaarat, they are too quiet

[casual47] 03/6/2020 11:15

I wonder if Chaarat is in some gold miner fund, which operates like e.g. Van Eck does.

It could explain the daily small-ish AT trades. Maybe such a fund holds e.g. 2 million Chaarat shares (peanuts) and sells or buys a programmatically calculated percentage throughout the day based on general market/sector/category criteria (rather than anything specific to do with Chaarat).

It could explain why Chaarat is down much in line with other gold miners today.

[casual47] 03/6/2020 08:58

Looks like Chaarat have been strengthening their corporate governance further by hiring an internal auditor:

[casual47] 01/6/2020 08:47

Expected some news today re. the $17m (conversion up to $5m, payment of $5m to push back maturation by another quarter).

The waiver also finished, unused, yesterday.

News might drop in later today I suppose.

[2pablo] 27/5/2020 11:56

Quieter today. Don’t think Mr A has dipped his toes in yet and I’m thinking, between you me and the gatepost, closed period

[casual47] 26/5/2020 16:33

36p !!!!!!!!!!!!!

[sparkyboy1] 26/5/2020 14:50

And if it does keep going up we won't have to listen to bubu moaning all the time what a result