China Nonferrous Gold Share Discussion Threads

[jeanesy] 26/5/2020 21:22

looks like a few chunky sells today but very little movement in shareprice

[mattjos] 24/5/2020 22:53

Indeed eke, even more compelling if Gold breaks out past $1,900 during the Autumn/Winter this year!Eventually the market will get it jeanesy & the shares will certainly not be offered at this level when even a few more arrive

[jeanesy] 24/5/2020 22:30

Keep banging that drum Matt , one day some investors might hear you ! At the moment very few people want to listen to the evolving story here . Not long now until the results in June which will tell us how things are progressing !

[mattjos] 24/5/2020 12:10

From H1 2019 Results:Production Revs: 20,881,000Production Costs: 13,582,000Gross Profits: 7,299,000Total Production: 15,557ozTherefore achieved average Sales price of $1,342 / ozGross Profit / oz of Gold: $469Operating / Production Costs / oz: $873We know that rate of Production improved significantly in the second half as tonnes of ore processed rose and n umber of ounces gold produced rose at even higher rate.Once we get the FY Results, we should be able to determine how much more financially efficient/productive Pakrut was in H2 & get a much clearer understanding of the overall metrics for the mine.Then the H1 2020 figures will really only be the first time that 'the market' gets the opportunity to see the headline figures for the mine ... unless they have been doing the maths from earlier statements.For me, I think we'll see Operating / Production Costs reduce to circa $650 - $700 / oz and Gross Profit / oz of Gold rise to $900 - $950 / ozAssuming Gold price continues at these sort of levels & Phase II delivers the expected increase in Production & associated economies of scale to further reduce costs then, Gross Profits could be $1,000 / oz off the back of 100,000 oz of production.That's a Gross Profit of $100m ! .... no way the Mkt Cap is going to hang around at this paltry level with those sort of metrics.

[mattjos] 24/5/2020 11:31

From FY18 Accts:"In assessing the carrying amounts of its exploration, evaluation and licensing assets and mines under construction at Pakrut, the Directors have used an independently prepared and Director approved bankable feasibility study: - The period used in management's assessment is the anticipated life of the mine to the expiration of the license in 2030 with revenues being generated from full production from January 2019. - Gold revenues have been estimated over that period at a price of US$1,300. - The calculation assumes a mining capacity of 2,000 tonnes of ore daily increasing to 4,000 tonnes per day. - The total cost per ounce is estimated to be around US$650 with a gross margin of circa 60%. - Royalties have been calculated at 6% of sales revenues and corporate income tax at 15%- A discount rate of 10% has been utilised.The calculations have been tested for sensitivity to changes in the key assumptions. The most sensitive inputs in the calculation of the value in use are operating costs, the gold price, and the discount rate. An impairment to the mine value would occur if the discount rate were to increase to 12%, gold prices fell by 1% or costs were to increase by 1%.

[bazboa] 19/5/2020 15:17

Come on CNG gives us something...all other goldies are moving

[mattjos] 18/5/2020 08:38

Gold continues to power ahead today ... $1,760 now

[dvwrd] 15/5/2020 19:01

Good to see a few more buys coming in today and I for one am quite happy with the steady progress. Gold doing the business again today and wouldn’t be surprised to see it breach ath in $ within 4 months, here’s to hoping anyway!

[wanobi] 15/5/2020 16:13

no problem Mj, WW,,, it's us against the MM's :-) LOL,,,, thanx for your kind words WW, cheers Wan :-)

[walter walcarpets] 15/5/2020 16:07

wanobi: thnks, will check it out. New to your thread and very much enjoying it. Lots of savvy people on there! Thanks for the reply Matt. No doubt this will come good and I can stop moaning. :-)

rgds walt

[mattjos] 15/5/2020 16:04

In the absence of an 'AT' trade, relatively small amount of PI buying here could easily & quickly push the Bid price above the indicated Offer & things would not seem to change until either an AT Trade came along or, an auction was forced to re-base the price.

[mattjos] 15/5/2020 16:02

Well done for sharing that wanobi. Two very good interviews that everyone should take the time to watch & carefully listen to, imo.

Just the way the game is played, Walter. Everyone tried to get the best price they can, be it buying or selling.
If folk can disguise what they are up in their efforts to get best prices, they will certainly do so & don't think that MM's will not sell you what they do not actually have - they will. Their job to make a market & if, in doing so, they lose money, that is just part of the deal for them. They'll look to make it up another day.

[wanobi] 15/5/2020 15:55

WW, take a look at these over the weekend and all will be revealed for you :-) Cheers Wan :-)

Spencer Crooks, ex Director of Market Making at Winterfloods talks to Tamzin Freeman, piworld.

Spencer gives us a fascinating insight into the day in the life of a Market Maker.
This is the first of two parts. The second part goes into more technical details of market making. Both parts are a must watch, to understand what’s going on behind the scenes to determine how stocks are priced.

[kfr20] 15/5/2020 15:49

Quite decent volume today, hopefully it will crack 15 pence soon.

[mattjos] 15/5/2020 15:47

Here's Level 2 just now so, hard to argue there is demand for the stock right now as the Bid (13.3p) is actually higher than the indicated mid-price (13.15p):



But, it's being made to look like there is not such demand at the end of each day because several of those Bid prices (from those with access to DMA or the ability to enter orders 'On Exchange') get withdrawn at 4.28/4.29pm, just before the closing auction.

In the absence of other persisting orders on the book or with the MM's, to form an Uncrossing Trade in the closing Auction, the price 'appears' to look static on the day & so people think there is no demand.

All is not as it may initially seem.

[mattjos] 15/5/2020 15:21

i think just a function of the fact that sellers at these prices are few & far between fozzie … I do not doubt that the market in the stock will become more liquid as/when this gets over 20p & then we'll see an improved spread but, between now and then, just have to suck it up.

We've been over 20p briefly once already, eight months ago but, that all happened rather quickly & once the liquidity arrived, the price retreated to have a rest and gather up some more energy & more buyers. That rise simply 'alerted' the market to the possibility & probably put this on a few people's watchlist, in readiness for a pullback.
We've had that typical zig-zag two stage retreat off the highs over the subsequent 6-months, all the way back to the 7p zone & now, over the next 8 weeks the price has quietly risen 86% off those lows - with virtually no fanfare & only very few seemingly interested investors.

It is getting harder and harder to pick up a sizeable chunk of stock in one hit so, it needs to be done piecemeal & that is what we're seeing .. there is constant background accumulation at steadily higher prices & for good reason, afaiac

[wanobi] 15/5/2020 15:21

aha, there's my trade :-) GLA Cheers Wan :-)

[bazboa] 15/5/2020 15:06

Would also be nice to get quarterly production updates at some point

[fozzie] 15/5/2020 15:05

Well done MJ, a better more up to date website will be great as is having a channel of communication with the company. The share price rise does feel a little like pulling teeth doesn't it, I would hope the rise toward 1800 and some good results will propel this forward. My only real gripe is that the spread is so wide pi' s are reluctant to jump in, this has to change at some point.

[mattjos] 15/5/2020 14:49

keep trying mate … i am always very polite and express my genuine interest in the company & do now get quick friendly replies

[jeanesy] 15/5/2020 14:42

I did but didn't get a response several times. Perhaps i don't have your bedside manner ?

[mattjos] 15/5/2020 14:37

i am not pushing them for news jeanesy …. i'm sure they have enough on their plate just now with the CV-19 situation, although their extremely remote location will be beneficial at this time.

I believe one of the easiest & quickest PR improvements they can make, is to simply improve their website and get some current photos on it.
Let investors see the achievements to date and then the figures, as they come in, should reinforce what people can now see.

As I have already suggested, please all do contact Maryna in the London office by email - make yourselves known & ask questions.
She is a very nice lady who always replies and is passing all investor feedback over to management. As shareholders, everyone has a right to communicate with management about the company we own. Make the effort.