Chaarat Gold Share Discussion Threads

[2pablo] 16/6/2020 14:57

Blimey, looks to be moving on apace. Perhaps we'll be up for it, then, no doubt, our 'friends' on here will be back

[casual47] 16/6/2020 10:03

The lenders are not in the business of mining themselves, they are streaming companies, so assuming they won't sell on the assets I guess they will be looking for an operator once all the problems have been resolved?

[casual47] 16/6/2020 10:00

Looks like lenders are taking control of Amulsar:

Lydian Announces Proposed Plan of Arrangement With Secured Creditors and Cease Trade Order

TORONTO, June 15, 2020 (GLOBE NEWSWIRE) -- Lydian International Limited (“Lydian”; or the “Company”;) announced today that the Company, together with Lydian Canada Ventures Corporation (“Lydian Canada”) and Lydian U.K. Corporation Limited (“Lydian UK” and together, the “Applicants221;), have scheduled a motion (the “Motion”) before the Ontario Superior Court of Justice (Commercial List) (the “Court”) to be heard on June 18, 2020 in the Applicants’ Companies’ Creditors Arrangement Act (“CCAA”) proceedings, pursuant to which the Applicants will seek an order of the Court accepting the filing of a plan of arrangement (the “Plan”), authorizing and directing the Applicants to call, hold and conduct a meeting of the Senior Lenders (as defined below) to vote on the Plan (the “Meeting”;), approving the procedures to be followed at the Meeting, including voting procedures, and setting a date for the hearing of the Applicants’ motion for an order of the Court approving the Plan. If approved, the Plan will result in Lydian Canada and Lydian UK exiting the CCAA proceedings through a corporate restructuring and a mechanism for the winding up of the Company.

The Plan will implement a restructuring which will result in the Company’s existing senior secured lenders, Orion CO IV (ED) Limited, Resource Capital Fund VI L.P. and Osisko Bermuda Limited (the “Senior Lenders”), owning and controlling a restructured Lydian Canada and its direct and indirect subsidiaries including Lydian UK and Lydian Armenia CJSC. The Plan provides for a full and final release of all claims against the Company and its directors and officers, which includes all claims of the Company’s Senior Lenders. Claims against Lydian Canada, Lydian U.K. and the other subsidiaries of the Company, including Lydian Armenia CJSC, will not be released and will remain outstanding after implementation of the Plan. As a result, only the Senior Lenders will be entitled to vote on the Plan, while other parties, including unsecured creditors whose claims are unaffected, and equityholders, will not be entitled to vote nor receive any distributions under the Plan. Following implementation of the Plan, the Company will have no assets and the Company will commence proceedings to be wound up under Jersey law, which will include the cancellation and extinguishing of all ordinary shares in the capital of the Company. Access to the Plan and all corresponding materials relating to the Motion will be available on the court-appointed Monitor’s website, provided below.

In addition, as a result of the Company’s previous announcement that it has not complied, nor is it planning on complying in the future, with its required continuous disclosure documents, the Ontario Securities Commission has informed the Company that a cease trade order has been issued against the Company.

All inquiries regarding the CCAA proceedings, including the proposed Plan, should be directed to the court-appointed Monitor, Alvarez & Marsal Canada Inc. (email: [e-mail] or telephone: [phone]). Information about the Company’s CCAA proceedings, including all court orders made and the Monitor’s reports, are available on the Monitor’s website, at: hxxp://www.alvarezandmarsal.com/Lydian. A copy of the Plan will be available on the Monitor’s website shortly.

[jc2706] 10/6/2020 16:29

I was listening to a podcast the other day where they indicated that the average development time for a gold deposit was increasing. They suggested that it was likely 30 years now. I think that this is a bit on the high side but 10-20 years has always been considered normal.

[max244] 10/6/2020 14:50

Nothing particularly insightful here but I’m still amazed by how little of this stock trades. I’m in similar mkt cap companies where £500k-£1m trades most days. Whereas we have another day where it looks like barely £10k will trade. Still a long way from broad participation, which is why it can gap up and down on vapours.
The Kyzyltash update prompted a wry smile. I first invested in 2011 specifically for the development of this deposit and it looks like, assuming no (almost inevitable) slippage, we could get first pour in 2026. No get rich quick here. Still think this could be more like get very rich, very slowly - assuming all goes ahead.

[casual47] 10/6/2020 12:19

I think that an M&A may be a circumstance where the directors are not allowed to buy.

If he starts buying before any such news then I guess M&A is off the table for now?

Lydian have enough (borrowed) money to last them until 1st July. What happens after that is up to the lenders. CAT and one other have already been allowed to start enforcement proceedings on the moveable goods which were financed through them.

[jc2706] 10/6/2020 08:11

I don't think that the Kyzyltash news would have meant that they were in a closed period but the new waiver ('operation share price support') is welcome.

[casual47] 10/6/2020 07:38

Let's see when he buys. Whatever stopped him from buying during the previous waiver may still be 'active'.

[2pablo] 10/6/2020 07:19

I honestly, no-one will believe me, predicted Mr A would get another waiver today !!!

They often double or triple up on rns’s and perhaps Mr A could not purchase until that report was published yesterday

[jc2706] 09/6/2020 19:41

Not a door handle casual47. A bigoted door handle!

[casual47] 09/6/2020 14:57

JC, might as well start a discussion with a door handle. Nothing fruitful, or intelligent, will come from it.

[juju44] 09/6/2020 13:11

Describe yourself and I will find one

[jc2706] 09/6/2020 13:05

Apart from ageism, what other prejudices do you enjoy juju44?

[juju44] 09/6/2020 10:24

Benbow is way past his sell by

[2pablo] 09/6/2020 10:03

Yes, good update. Bob Benbow still alive and kicking and got his old mate on board. A lot of Tulkubash works should be meaningful for Kyzyltash especially the infrastructure

[oli12] 09/6/2020 08:14

Nice little update this morning about the Often overlooked Kyzyltash

[jc2706] 07/6/2020 14:17

Only one company - Altyn. More a recovery play in a bullish sector than anything else.

[casual47] 06/6/2020 15:16

JC, i think you're already invested in Kazakhstan companies?

I came across this, looks like they're handling Covid rather badly: 10% of all registered covid cases in Kaz come from one oil field. This is probably more an indicator of the fact that testing outside of western owned companies is virtually non-existent.



I think this may be one of the reasons why despite the high gold price it will still be possible to pick up bargains for M&A. Privately owned companies will still struggle to get access to cash for capex. Whatever profits they make it can't be anywhere near enough to cover the capex that is needed to keep exploration ahead of production and the fleet/hardware etc maintained/replaced.

[casual47] 06/6/2020 14:05

When you look at how Chaarat is categorized on the Norges Bank website it appears that the main category is "Kyrgyzstan" rather than the fact it is a gold mining company.

It may be how institutions work e.g. diversify their funds according to categories - by industry, by geography etc. There are not many listed companies you can invest in to get exposure to Kyrgyzstan. The fact it is a mining company may be secondary for some I.e. it may be more likely to find Chaarat in an "emerging markets" fund than a gold mining fund. I think this is one of the reasons why a FSU focused and diversified miner might make sense as it could get a lot of attention from institutional funds who want diversified exposure to FSU/CIS emerging markets. You could almost re-engineer it by looking at "what do II funds want to invest in" and then build the company accordingly.

[casual47] 06/6/2020 13:58

As we saw it doesn't take much to bring it to 36p, even without Mr. A.

They must be working on something as they didn't do the placing for nothing. I still believe the main reason for it was to facilitate the moving of the $17m debt from the Kyrgyz assets to the Armenian asset, which in itself I believe was to help facilitate the Ciftay venture (if you spotted the note at the bottom of the AGM results you will have seen that there are some technical or procedural steps that still need to be finalised before Ciftay can take up their current share of the joint venture. While the JV has been conditionally agreed it is not yet active).

News of Ciftay actually taking up the JV should / could help with a boost as it is a tangible proof that Tulkubash is advancing financing wise and also in one fell swoop it will remove a chunk of liabilities off the balance sheet (the work carried out to date is accounted for as a liability until they take up the JV)

[jc2706] 06/6/2020 13:00

The management play to their own tune. If they release news it will be something a little more substantial than 'hi!' I suspect.

[2pablo] 06/6/2020 07:47

PoG dropped quite a bit perhaps explains poor gold miner sentiment.

Chaarat need to drop a beauty of an RNS soon, perhaps just an update on operations, coping with Covid, might be something

[casual47] 04/6/2020 17:58

Yes. Official total deaths to date:

Armenia - 176
Kyrgyzstan - 20

[2pablo] 04/6/2020 17:18

That’s good, Armenia seemed to get the virus more but neither country took off (hopefully)

[casual47] 04/6/2020 16:49

I believe the state of emergency in Kyrgyzstan re. Covid has been lifted. Some restrictions are still in place but we may get news soon re. drill season and local workforce joining the Ciftay crew at Tulkubash.

They are also starting to charter in Chinese workforce for the various Chinese operated companies so I guess we could see the Ciftay crew be replaced? (I think they live on site 3 months or so at a time)