Cluff Gold Share Discussion Threads

[amargosa] 07/8/2012 07:43

They can't do much with the project until the rainy season ends in November, but to give some respect to the SL people, if they can't get the money together in the right quantity at the right time (because the MCap is too low), then they need to sell the project to someone who can.

Are they delaying the DFS in order to drill out more resources - so they can then sell the whole project? Make the DFS as robust as possible, not to get finance, but to achieve a higher sale price?

From the article:

"Ultimately", says Pete, "people are very aware of financing risk. But we are not too far away from the point where we will demonstrate how we will finance Baomahun." Something will be announced, he promises, before the Denver Gold Show, which gets underway on September 9th.

That announcement could trigger a re-rating for two separate, but related reasons. First, the very existence of a financing plan will go a long way towards assuaging doubts about Cluff's ability to grow in the current adverse economic climate. And second, it will show that the new chairman is just as adept as the old when it comes to bringing big money to the table for development.

Edit: there appear to be no major issues with operations from the interview with the CFO, it's all about the finance package. They also appear to have abandoned their pledge to reveal the type of funding for Baomahun concurrently with the DFS; I didn't think it would be the finance package announcement that would come first though!

[sporazene2] 07/8/2012 06:18

article in minesite, resource statement (and presumably DFS) delayed again

this level of incompetance is staggering. Spivey has delivered absolutely nothing since he came on board

[pineapple1] 07/8/2012 00:14

A presentation from Goldfields CEO about challenges faced by all the miners and the reigning in of future capex by some miners ,plus lots more.A good straightforward explanation by an industry leader.

Prem124....Take a look at P12 + re cost inflation and future cost inflation expectations if you think CLF can avoid this.

[prem124] 06/8/2012 15:49

It is a question of how much share price whacking is deserved based on late resource update.
At some point CLF is going to be a takeover candidate and my guess is that they are pretty cheap now. Being honessed I am happy with share price at the moment as I am starting to accumulate.

[sporazene2] 06/8/2012 15:13

prem, we are 5 weeks late with a resource update, it was due in June and they (gardener) said in June it was coming in June

the share price deserves to be whacked

[prem124] 06/8/2012 14:00

What happened here is not much different than what happened in entire sector. If there were major issues the share price would slide but atm you are basing this on speculation. Not every gold company has experienced such a increase in costs and some are starting to produce ounces cheaper as cost of energy and labour (i.e. less exploration in 2012-2013) takes effect.

[pineapple1] 06/8/2012 10:15

The fall here must surely indicate a skeleton in the cupboard or operational balls up some where. I wonder what its is.Could be a number of potential bomb shells of course.

Personally i reckon its issues of costs going thru the roof.ABG cost per oz went up 40% last set of numbers..

Unless we see a big rise in the price of gold i expect to see a few players going to the gold miners graveyard .I doubt gold will blast off any time soon.

No sign of capitualtion selling yet as its low vol .Guess that will happen in the 30,s (if it gets there) as peeps throw in the towel.....imho

[amargosa] 06/8/2012 07:30

Just had a quick skim through the 2012 Q1 results (7 June 2012) and picked out a few things we are waiting for:

Sega/Kalsaka

A preliminary economic assessment is underway setting out the plans to mine and truck the Sega resources for processing using the existing Kalsaka plant, which is expected to be completed within six weeks.

In addition to Sega, exploration continued at the Kalsaka site during Q1, following up on prospective areas defined along strike from the existing mineral reserves. Some additions to the short term oxide life of the mine are anticipated from this work, with full results expected to be available in Q3 2012.

Baomahun

As a result of the delay in finalising the resource statement, it is now
expected that the final feasibility study will be completed in August 2012.

A total of 3,100m over 21 holes has been drilled to date in 2012, and a further 2,900m over 15 holes are anticipated to be drilled by the end of July at which time drilling will cease due to the rains. Results from this drilling campaign will be released once available.

Yaoure

In addition to the diamond drilling programme, 19,400m of RC drilling has been completed at Yaoure in 2012 to date. This drilling is mainly targeting a potential zone of mineralisation with a strike length of 1.8km between the existing Kongonza and Angovia 2 prospects.

[amargosa] 02/8/2012 08:28

I think the plan is thus:

Yaoure: drill out 1Moz sulphide resource in 2012; continue drilling 2013 until have 2-3 million oz; restart oxide mining 2012 and continue until CIL plant is built in 2014/15?

Baomahun: start building plant in nov/dec 2012 (in dry season) subject to decent financing terms; if not, slow down the build process until decent financing terms available, using cash flow from BF. Or sell the whole project once DFS and additional exploration drilling establishes worth.

Kalsaka: transition to Sega ore (oxides) in 2013 (higher grade and 90% ownership); 100k oz forecast for 2013; extend oxide life until Baomahun up and running in 2014 via exploration at both Kalsaka and Sega; then build CIL plant to mine sulphides at both locations. Run heap leach facility concurrently?

As regards the share price, I suppose they believe strong upcoming newsflow will boost the share price Of course, that means they do actually have to put out good news from time to time.

Worth a look at Orezone; they have suffered a significant decline in their share price too. It's a sector-wide affliction; where's the turning point?

Edit: IG claiming the H1 results are out on 15 Aug.

[fitton] 01/8/2012 14:25

Lets hope the management have a plan because it is painful to see the share price at 50p.Delays and more delays,these guys get paid very good money to perform.How much longer and how much lower before the shareholders are taken out of there misery.

[pineapple1] 01/8/2012 08:57

Did Orezone have a lock in period on the Sega px with 11m CLF shares.Can,t see any reference to it ....

[amargosa] 01/8/2012 08:39

The share price is below the price when the company listed in 2004. Whatever the reasons, that has to be considered a huge failure given what has happened to the POG since then. I cannot imagine the major shareholders being happy with that. There must come a time in such situations when these investors examine the current situation and prospects and decide the best outcome is to split up the assets and sell the lot individually, or at least change strategy to reflect shareholder requirements rather than management's. I think we are certainly at the stage of examining the options - the M Cap doesn't even cover the net worth of the Baomahun project ($172m @ $1100 POG - and they must have spent an additional $20m on it since then -[Jun 2010]). In order to finance Baomahun ($200m), the management probably thought the M Cap would have been much higher by now (say, close to £200m), so that any dilution would have been palatable to shareholders, but it's not, it's around £80m. It's decision time - the uncertainty over Baomahun financing is toxic for the share price.

[amargosa] 31/7/2012 18:26

The interims should be this week or next, so should get a full update on what's going on. I can't see the DFS next month as they have said it will be about 2 months after the Baomahun resource update, unless they are now able to do that concurrently somehow. We are waiting for lots of news and I know things take time in mining, especially in Africa, but Jeezzz....

With regard to trading, it's very odd - as soon as there is the slightest hint of support strength, it's met with a barrage of AT sells to cut it off at the knees. Hmmm.

[fitton] 31/7/2012 15:40

Must be about 10 days or more that the purchases have been more than the sales and the share price falls at the end of the day.What are the odds of the company producing the DFS in August.Some very serious questions will need to be asked if they don't.Only about a year overdue.

[amargosa] 30/7/2012 08:16

Interesting finance deal over at London Mining.

[fitton] 27/7/2012 15:24

Company has no hedge and I believe that to be the right policy at the moment.Things do change but right now gold should be on the up again andno need to hedge.

[amargosa] 27/7/2012 14:24

Or you could just phone up the company and ask them, that will give you the facts.

[onehanded] 27/7/2012 14:24

Have NO problem with cuff gold, hold some stock BUT as share price suggest has problems and the smart investor needs to spread the risk. Have a average down price of 48p. Risk / reward

[onehanded] 27/7/2012 14:17

Need to check hedge report then


Unhedged gold miners such as Kinross, agnico eagle and goldfields BUT dangerous on a falling gold price but massive rewards on gold price rise. Though to play gold for investor best to track LSE listed AUCO tracks the Russell global gold index and in sterling.

[amargosa] 27/7/2012 14:11

Go back and research again - no hedge and 60-70k oz in 2012, 100k oz 2013. If you want to track some index, that's fine and your business, but not sure why you would present false info on here.

[onehanded] 27/7/2012 14:11

Unhedged gold miners such as Kinross, agnico eagle and goldfields BUT dangerous on a falling gold price but massive rewards on gold price rise. Though to play gold for investor best to track LSE listed AUCO tracks the Russell global gold index and in sterling.

[pineapple1] 27/7/2012 14:06

Hedged.......are you sure as i,ve not seen any mention of it b4.

[onehanded] 27/7/2012 14:02

not enough and hedged

[amargosa] 27/7/2012 13:59

'Gold minning stocks THAT do produce gold, going to be sort after soooooon.'

What do you think CLF does?