Share Name Share Symbol Market Type Share ISIN Share Description
China Nonferrous Gold Limited LSE:CNG London Ordinary Share KYG215771042 ORD USD0.0001 (DI)
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.0% 8.25 0.00 08:00:18
Bid Price Offer Price High Price Low Price Open Price
8.05 9.45
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining 37.07 -16.19 -4.34 32
Last Trade Time Trade Type Trade Size Trade Price Currency
- O 0 8.25 GBX

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Date Time Title Posts
25/11/202000:08CNG - Productive Tajikistan Gold miner741
06/10/202017:13China Nonferrous Gold (former Kryso Resources) - Tajikistan gold producer1,494

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China Nonferrous Gold Daily Update: China Nonferrous Gold Limited is listed in the Mining sector of the London Stock Exchange with ticker CNG. The last closing price for China Nonferrous Gold was 8.25p.
China Nonferrous Gold Limited has a 4 week average price of 8.33p and a 12 week average price of 8.33p.
The 1 year high share price is 16.90p while the 1 year low share price is currently 7.13p.
There are currently 382,392,291 shares in issue and the average daily traded volume is 54,114 shares. The market capitalisation of China Nonferrous Gold Limited is £31,547,364.01.
hounddog10: leopaldall The majority of the debt ($276m) is owed to the major Chinese shareholder and is secured over all the mine and its assets. This debt has been overdue for some years and no default has been called. However the major Chinese shareholder does have the whip hand and could, presumably, call a default. However, they have shown no signs of doing so. As you note the refinancing is very unlikely to be an equity raise which would almost certainly have to be a placing with a new shareholder(s)at a deep discount to the current bombed out share price. This would be deeply dilutive to all shareholders including the majority Chinese shareholder. So, presumably, as you say, it will be a debt refinancing. This is about their third attempt at a refinancing (the first two were announced and nothing happened (no explanation) and it might happen again). However, time they should stand more chance of being successful as they have two years of production history. An important question is whether there will be any element of a debt for equity swap on a part of the debt. This would be very dilutive for non-majority shareholders. I am rather unclear why they have not done this before as it would be an obvious solution and on its loans the Chinese majority shareholder is effectively running equity risk anyway. Perhaps it is because the Chinese go about things differently.
leopoldalcox: Hi all,I bought a small position here a few months back after a discussion on the board.Something from the Interims that I think worth discussing. Sorry if it's already been discussed.The company states it needs to refinance. It's going to default otherwise, before the end of December. What do people think will happen here? If they are looking for an equity raise, surely they should already have this moving. Debt refinacing I would guess, but at what terms? The company isn't in a strong position, but the debtor needs to get its money back through CNG repayment or through grabbing CNG's assets. From the interims:"As mentioned earlier, theCompany currently has borrowings of c.US$362m (of which c.US$353m is theprincipal loan amount and the balance represents accrued interest), themajority of which is due for repayment before June 2021 (and a significantproportion of which is due for repayment before the end of December 2020). TheDirectors believe that the Company's major shareholder will continue tosupport the Company but in order to ensure the repayment of existing loans, abroader refinancing is required. Discussions are ongoing and are expected tobe completed in the near term. Further updates will be provided when arefinancing package is entered into."
hari: Hi Matt, I am still neutral at these levels. Recent Gold price has been great for the Co. But I still do not know after interest payments, how much dent can be made to reduce the debt if at all. I am 100% sure the debt will continue to hold back the share price. I am really surprised , as a very astute and intelligent investor that you are, that you discount that in your valuations.( mean that sincerely) Also Gold seems to be under pressure after the US election. Not sure which way it will go or whether it can hold these higher levels.
ned: I'm no guru, but if the $3300 gold target Eric Sprott enthuses about is hit by end of 2020 then the CNG share price now will just look like call options in the rear view mirror imvho.
mattjos: Fully Diluted Shares in Issue: 390,067,291 Closing mid price today: £0.1485 Market Cap: £57.925m GBPUSD = 1.3144 Therefore, Mkt Cap in US$ = $76.137m From the 2013 BFS, Net Present Value was determined as $263.863m using the following key metrics: $576 Cost/oz (inc. Depn. & Amortisation) 10% Discount Rate Gold prices of: Year 1: $1,500/oz. Year 2: $1,400/oz. Year 3: $1,300/oz. Years 4 thru Year 19: $1,250/oz Clearly those old Gold price assumptions are proving to be far below the current reality, as is the 10% Discount Rate (aka cost of debt). Current Mkt Cap is circa 30% of the 2013 Discounted NPV .. so, there is first value opportunity. That value opportunity is now amplified by the additional 30% differential between gold price assumptions and current gold prices + the differential between the 10% Discount Rate & the reality of CNG's debt costs. I believe the equity is currently mispriced by the market & trades at 40-50% discount to true value. The longer gold prices remain elevated over $1,300/oz, the bigger the equity price anomaly becomes.
danmart2: Few things There is no doubt the mine has high potential The company has a good vision for the mine The company has significant debt that could be managed more successfully given the current availability of cheap credit The share price is low in comparison to the potential BUT is reflective of the company’s performance in managing the debt and lack of reporting thus far. Ultimately it comes down to how much you trust the management. Personally, despite being an investor I do have the opinion they could be more transparent, more pro active and certainly more successful in debt consolidation. Where I see the share price? Short term - hover between 13 - 16p until fiat currencies start to tank Medium term - 30p or higher depending on debt reduction control and Fiat currency decline Long term - too difficult to predict
mattjos: Look at it another way. There is circa 55p (69c) per share of debt, including unused drawdown from last RNS ($270m Dedt divided by fully diluted share figure of 390m). That should be enough headroom to complete Phase II of the plant, effectively doubling production. As the last RNS showed, they are able to access debt much, much cheaper now, as compared to when the mine was under construction & LIBOR is way lower now so, i believe debt refinancing will be at a lower rate such that the overall interest quantum will be lower. For me that 55p figure represents the minimum rise in value per share that will occur as the debt gets paid off & that is going to happen more quickly than planned due to big positive differential between gold prices now and gold prices assumed in the BFS. AFAIC, there is absolutely nothing whatsoever in the price for the neighbouring mineralisation areas, just down the road - which may prove contiguous at depth with the existing Pakrut mine, given their proximity. Once debt is paid off, this could afford to pay shareholders 4-5p per share in dividends per annum .... I’m quite sure CNMIM would want to see a handsome return on their backing of the company in the years ahead. I doubt any will suggest there is much of a speculative element to the share price right now ... insufficient interest just now but, at some point the figures will become uningnorable as the price of gold works its way through to the bottom line and the leverage on the Balance Sheet becomes clearer to the market.
wanobi: many thanx Mj for continuing to share your research with all, much appreciated by the less competent (me, LOL) amongst us, of that I'm 100% sure :-),,, the more I look at CNG, read your research and then compare to others out there the more I come to the conclusion that the share price here is too low,,, so I ask myself why and the biggest single reason I can come up with, is trust... there is so much anti-china rhetoric going on in the world right now, especially from the USA and I believe looking back there have been some awful fraud cases in respect to Chinese companies, listed in the west,,, a simple google search and things like this pop up immediately,,, ... so, to me, provided CNG are trustworthy then we may have all made fantastic investments here,,,, but,,, I think it'll take time for that trust to be recognised by western investors,,,, reliable numbers, better communications and so on,,, fingers crossed that will all come and not a 7am Muddy Waters note telling the world he's short CNG!!! as 2 of my investment hero's say; However, the negative sentiment is not shared by all. Before the latest wave of fraud scandals, Charlie Munger, vice chairman at Berkshire Hathaway and longtime business partner of Warren Buffett, recently said at the Daily Journal Corp’s annual meeting that, “the strongest companies in the world are not in America,” adding that “Chinese companies are stronger than ours and are growing faster,” CNBC reported. Cheers Wan :-)
mattjos: 2012 - 2018, CNG shares traded between 20p and 40p .. mainly at/around 30p. For most of 2016, CNG shares traded around the 30p level just as they started ramping production towards that 2,000t/day Phase I target for the first time. Then the avalanche struck in Feb 17 and shares started their 30 month decline all the way back down to 3p. Pakrut was rebuilt & re-started and achieved the 2,000t/day Processing target in Nov 2018. The company then spent 2/3 of 2019 optimising that processing plant & is now consistently processing 2,000t/day and annualised circa 50koz Gold per year. From 2017 - mid 2019, Gold averaged circa $1,300/oz but, just before they completed the optimisation of the processing plant, Gold really started to move up and has averaged well over $1,550 in that timescale & is now over $1,700. Consistently for 7 years between 2012 & 2018, the market valued CNG stock at circa 30p / share. Before it was productive. Now that Pakrut is demonstrably productive & gold is far above the prices ever even dreamed about in the BFS, the market presently values CNG shares at 14p or, just half the price pre-mine construction. I believe the shares are worth at least three times current price
mattjos: There are some similarities with AAZ in that they are both mining entities but, I don't think they stand much comparison beyond that. CNG is more of a corporate Joint Venture in many ways … a small listed entity with a large corporate (CNIM) standing behind it & also owning a big chunk of it. CNIM has 'extended its umbrella' over CNG and afforded CNG access to CNIM's purchasing economies during construction & access to the debt markets in size & at rates that CNG would never have been able to access as a stand-alone junior entity. Now some will argue that CNIM's executives also being Directors of CNG gives rise to a conflict of interest & therefore the 'deals' are always categorised as 'related party transactions' and these are therefore to be instantly seen as a bad thing but, this is the nature of the JV arrangement and is an inescapable feature of such an arrangement. It does not & should not immediately warrant negativity. Of course CNIM will want Executive level presence on the Board of CNG .. look at what they have invested and afforded to CNG. It's only sensible that they are there to shepherd their investment in this smaller entity - any one of us would do the same. The alternative would be CNG raising the finance via equity & that would have resulted in CNG having more like 1.5Bn+ shares in issue by now. I believe CNIM value the equity in CNG far more highly than to try and tap the equity markets at these sort of prices. They have their eyes set on the bigger, longer term potential of owning a majority stake in a listed gold miner with 100koz rate of production from Pakrut (still open at depth), Eastern Pakrut, Sulfidnoye and Surmyanoye + other targets on the Tien-Shan Fold Belt. The NPV figure is determined in BFS stage by taking into account all the CAPEX the project requires (presumed to be via debt & therefore maintaining the equity issuance constant), the cost of the debt, the projected cashflows resulting from the project over its lifetime & applying a discount to that calculation to bring back all those variables to determine the value of the project at the time the BFS is produced. Arguably the model would be more complex as it would apply a much larger discount to pre-construction stage, the construction stage, the initial startup phase, the full; production phase etc but, these varying levels of discount are amalgamated into an overall Discount Figure (in this case 10%). It is quite clear that the early stage & therefore the stage that attracts the highest level of Discount (50%??) is in the rear-view mirror now as the mine is productive. The asset is producing cashflow & therefore, once those earlier phases of high discount are ticked off, the remaining years of the project are discounted at a much lower %. If 10% was the overall rate assumed at the outset, what is a reasonable discount % to apply to the remaining 18 years of productive operation? It should be less than 10%. I believe CNIM value their equity in CNG far more highly than the market currently values the rest of the free-float
China Nonferrous Gold share price data is direct from the London Stock Exchange
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