Chaarat Gold Share Discussion Threads

[casual47] 05/8/2020 08:43

Thanks, Pabs.

This could do with some translating:

"These other expenses relate to mark to market adjustments to finalization of concentrate invoices typically related to final commodity prices"

[2pablo] 05/8/2020 08:39

Artem reply :

Hi pabs,

Good to hear from you.

TC/RC rates are generally consistent throughout the year as these are fees negotiated on an annual basis. For 2020, total impact of TC/RC is expected to be between $150 to $180/AuEq oz sold. Therefore we expect to see the TC/RC remaining flat throughout 2020. TC/RC are expenses miners must pay to smelters for further processing of concentrates. In H1 2020, TC/RC plus other expenses were reported as c. USD 234/oz as there were other expenses which contributed to the higher number. These other expenses relate to mark to market adjustments to finalization of concentrate invoices typically related to final commodity prices

I cc our Chris, our CFO.

Best,
Artem
------------------------------------
So, hopefully not continuing TC/RC at $234 an oz

[2pablo] 04/8/2020 21:27

markaf - haven't really seen you posting here or anywhere for that matter. Unlike Sparkyboy, I'd presume you have sold up at a profit - do tell.

Strange time to sell unless you're hoping to get back in lower. Haven't seen Mr A bailing and he's not going to see this fail.

[juju44] 04/8/2020 19:03

Put some into Canadian silver miners - huge gains happening

[sparkyboy1] 04/8/2020 16:30

markaf sad to hear this i hope you have not lost to much money but you will be right good luck

[markaf] 04/8/2020 16:19

Just to give you a heads up guys, I've sold my holding in this after having stuck with it for about 10 years so it should double in the next few days.

[juju44] 04/8/2020 12:20

Lot of self denial here .. they are not delivering on all that was promised / inferred 2 years ago . Failing in a raging gold bull is poor show

[casual47] 04/8/2020 12:20

They do get penalties for e.g. lead content, AFAIK, but it would seem strange for the increase to be caused by only penalties.

[casual47] 04/8/2020 12:16

It's certainly lacking in transparency to not explain a $84/oz cost increase (that's the average for H1, potentially it is a whopping $168/oz in Q2) . Shouldn't matter that it is not AISC, cost is cost.

[2pablo] 04/8/2020 12:13

Have asked me old buddy Artem about those smelter costs (Treatment Charges-TC and Refining Charges-RC)

[jc2706] 04/8/2020 11:59

Which seems a ridiculous hike to be honest. Worth contacting them to find out what is going on with this.

[casual47] 04/8/2020 11:52

If q1 TC/RC was $150/oz then if all things are equal and we can make linear assumptions the TC/RC in q2 could have been $318/oz. If this carries through into H2 then it could be:

Q1 150$/oz
Q2-Q4 318$/oz

Meaning an additional cost (compared to $150/oz) on top of AISC of ~$6.8m over the year

[casual47] 04/8/2020 11:43

Largely within expectations but surprising to see the TC/RC increase from $150/oz last year to $234/oz. I thought those were largely fixed costs agreed in advance. Maybe this is Covid related? These costs are in addition to AISC and add an $4.6m cost increase (compared to $150/oz) when annualised over 55k pa resources so not insignificant.

Question is: is this a one-off or will it be continued across the year, and if the latter, as the $234/oz is averaged over H1, when it was $150/oz in Q1 AFAIK, then does this mean it will be higher still in H2?

This update is not going to set the world alight but it shows the Kapan mine is buzzing along, steadily paying off debt and also able to support upgrades to improve costs and output and also, so it seems, further exploration at the East Flank.

As they said previously "steady and stable".

The two big questions, for me, still remain:

1. Are they going to be able to refinance the $19.6m investor loan, as indicated in the last presentation, and if so how will it be done?

2. Are they going to be able to do Tulku project finance "end of q4" or is that likely to be pushed back

The answer to (1) may provide clues to (2)

[jc2706] 04/8/2020 11:38

Another dim comment by juju44. Will someone let me know when he makes an interesting comment? Until then I am just going to filter the donkey as he is just a waste of the energy required to move my eyeballs to read his pathetic posts.

[juju44] 04/8/2020 08:50

Wow , not good . Looks like the lame donkey is heading for the knackers yard

[2pablo] 04/8/2020 07:44

A lot of stuff in the H1 update, nothing too sensational or disruptive.

I read the report as generally continuing well with operations despite the difficult Covid conditions. The Krygyz is clearly experiencing Covid outbreaks and hopefully our one has been contained now.

[richgit] 01/8/2020 13:30

At this point in time it looks like we are going to see Gold beyond $2400 by year end.

I genuinely look forward to buying more CGH when it has solidly held
into my 50p next buying target.

Having bought more of most of my UK listed picks,I was once again left with buying
Canadian listed stocks to spread risk,where I would point out there are dozens
of high quality Gold related stocks going for Peanuts (IMHO)


Hopefully I will have good reason to considerably up my stakes in CGH and SHG.

I haven`t sold a single share in CGH and certainly happy to patiently hold
this potential Gold Giant,as so far everything is on track.


When the $Multi-Billion valued Gold producers prove what is their ridiculous undervaluations,the likes of CGH will look so seriously undervalued.


IMHO

[casual47] 30/7/2020 18:29

CS - it's in the presentation, based on average broker estimates

[crapshoot2] 30/7/2020 18:24

Casual how do you get to the NPV figure of a billion dollars for Tulkubash and Kyziltash?

[casual47] 30/7/2020 16:16

Quite. This is why I think what happens (or doesn't happen) with the $19.4m will be a pretty good indication.

[jc2706] 30/7/2020 16:02

Pre-Covid of course. I am not suggesting that capital isn’t available just that I don’t know how available it is currently. I am suggesting that it won’t be long before financial companies are falling over themselves to lend money to gold miners.

[casual47] 30/7/2020 15:22

JC, VTB has invested majorly in Jerooy in Kyrgyzstan, so it is possible. Also of course, they got $40m for Kapan from local banks in Armenia.

That was when gold was barely $1400/oz.

If they hadn't mentioned it I wouldn't have laboured the $19.4m so much but they have set an expectation now both in terms of the presentation ("expected to be refinanced to 2023") and in terms of the penalties if it doesn't happen (8m shares to Labro if not repaid by end of October).

So clearly, they want this done.

[jc2706] 30/7/2020 15:18

Whilst the world is awash with capital at the moment, I am not sure how much of this is available to gold miners in out of the way places. If we look at the 2007 financial crash loans were virtually impossible to come by for a while and then they started chucking cash at any company that could spell the word ‘gold’. I am pretty confident that the latter will happen again but are we yet in that position?