Cluff Gold Share Discussion Threads

[mozy123] 12/9/2012 13:38

The deal speaks volumes about avalability of gold for industry. Samsung are going to the miners directly to secure future production. Why not just buy from a bullion bank i hear you ask :)

No gold in them vaults!

[mechanical trader] 12/9/2012 12:56

12 Sep Cluff Gold PLC CLF Seymour Pierce Buy 81.88 76.25 136.00 136.00 Reiterates

136p share price Target

[underperformer] 12/9/2012 12:01

Samsung C&T have evolved out of Samsung Corp a general trading company similar to the Japanese ones, which also has a construction division. I guess they will be supplying any gold required by Samsung electronics Semiconductor division for packaging.

But yes I think it signals further Korean involvement - it wouldn't surpise me if the other trading companies were thingking similar.

Wish I'd been smart enough to buy these GLA.

[underperformer] 12/9/2012 12:01

Samsung C&T have evolved out of Samsung Corp a general trading company similar to the Japanese ones, which also has a construction division. I guess they will be supplying any gold required by Samsung electronics Semiconductor division for packaging.

But yes I think it signals further Korean involvement - it wouldn't surpise me if the other trading companies were thingking similar.

Wish I'd been smart enough to buy these GLA.

[pineapple1] 12/9/2012 09:34

I think the S Korean Won has been savagely devalued a couple of times in the past to,so althought i doubt a small investment of their undoubted mountain of cash from their global success is likely thru worries about this again in the short term,you never know for sure what they are thinking.A bit of diversification is a good thing.

I live in SE Asia and the Koreans are buying up everything around my area.They have plenty of money.

[peterpowell21] 12/9/2012 09:29

very good deal.
they were talking about this type of finance the other day on cnbc.
seems they will both benefit out of this type of deal.
take the worry about dilution away completely now,imho

[amargosa] 12/9/2012 09:28

My immediate reaction was what's in it for Samsung - but listening to the CC, I'm less confused; they are a big corporation, they use gold in their electronic devices and they are clearly interested in diversification. The CC centred more around what the deal does for Cluff than Samsung; these are the early stages for the alliance, but there is I feel a lot more to come from the relationship. Interestingly during the CC, the analysts were actually congratulating the CFO on the deal - I think there is a certain amount of shock surrounding the deal.

[pineapple1] 12/9/2012 09:28

Ok thanks Malta.

[maltatrader] 12/9/2012 09:24

yes pineapple....same samsung

remember samsung also do civil & engineering works....not just electronics

[pineapple1] 12/9/2012 09:16

Bizzare deal to me. Is this the same Samsung i think it is with the galaxy tab or somebody else.

[dubjon] 12/9/2012 09:16

Very interesting - the big corporations want a piece of the action.
This looks an excellent long-term deal and answers some of the funding questions that have been hanging over Cluff for a while now.

A screaming buy?

[amargosa] 12/9/2012 09:11

Very interesting deal.

[maltatrader] 12/9/2012 06:08

12 September 2012 AIM: CLF/TSX: CFG



Cluff Gold plc

("Cluff Gold" or "the Company")



Strategic Alliance between Cluff Gold and Samsung



Cluff Gold plc, the dual AIM/TSX listed West African focused gold mining company, is pleased to announce that it has signed a Memorandum of Understanding for a long term strategic partnership with Samsung C&T Corporation ("Samsung"). This alliance commences with an unhedged US$20m facility to provide additional funding to Cluff Gold to further the development of its portfolio of assets. The Memorandum of Understanding provides a general framework for the potential long term funding of Baomahun and other development opportunities.



The initial facility forms part of a wider strategic alliance between Cluff Gold and Samsung which is a global trading company. Cluff Gold has a producing mine, Kalsaka in Burkina Faso, and a strong pipeline of development assets which is expected to generate a long term production profile. Through this long term partnership Samsung will have access to a reliable supply of gold bullion, underpinned by the Company's strong operational and management team whilst Cluff Gold will benefit from Samsung's financial support. The relationship is expected to result in a significant financing in Cluff Gold's Baomahun project, subject to the outcome of the feasibility study, together with an ongoing commitment to jointly assess other opportunities in the region.



Under the terms of the agreement signed today, an initial US$20m of debt finance will be drawn immediately, supported by the Company's interest in its Kalsaka/Sega project. These funds will be used to strengthen the Company's balance sheet and ensure the Company remains well funded during the development of Sega to continue the ongoing exploration and development work across its asset portfolio.



Subject to the outcome of the feasibility study, the alliance envisages a further substantial financing for the development of Cluff Gold's Baomahun project in Sierra Leone, which has 2.1Moz of indicated resources (25.6Mt at 2.5g/t)[i]. Baomahun is fully permitted, with work ongoing to complete a feasibility study.



The Memorandum of Understanding does not require any exclusivity between Samsung and the Company in respect of further financing and is not binding on either party in that respect. Negotiations with other debt providers will continue in parallel with the due diligence undertaken by Samsung.



John McGloin, Chairman of Cluff Gold, commented:



"We are very pleased to have formed an alliance with Samsung as we develop our project portfolio. This agreement provides immediate financing support on competitive terms compared to other recent financings without the requirement to hedge any of our current or future gold production. More importantly, it also offers a framework for a cornerstone financing in the Baomahun project or other development opportunities, capable of satisfying a significant portion of the total Baomahun financing needs. The initial US$20m drawdown provides us with the balance sheet flexibility to use existing cash flow to fund our exploration programmes whilst maintaining development momentum at Sega and Baomahun. We look forward to working with Samsung as we deliver our Company strategy to grow into a mid-tier producer through the development of our existing portfolio whilst looking at other accretive growth opportunities in the region."



Samsung Facility - Key Terms and Conditions



The key terms of the initial US$20m facility drawn down today are as follows:

· Initial term of 22 months, repayable evenly over the final 12 months from the Sega asset's cash flow

· Interest payable of 2.5% above US LIBOR

· Cluff Gold to sell 1,929 ounces of fine gold per month to Samsung at a 2.25% discount to the London Gold AM/PM LBMA dollar gold fixing price on the day prior to delivery. There are no hedging requirements as the price of gold is not fixed in advance in any way under the facility

· Facility secured by a charge over the shares of Cluff Gold's subsidiary company, Cluff Mining (West Africa) Limited, which holds the Company's interest in the Kalsaka/ Sega project.



A 1.75% facilitation fee is payable immediately on draw down of the first tranche of the facility. The total cost of the facility is estimated at 10% per annum.



The Company will host two analyst and investor conference calls, firstly at 9:30am UK time later today with the following dial-in details:

UK Toll-Free Number: 0800 368 1950

Participant PIN Code: 126506#



The Company will then host a second call at 9:30am EDT/2:30pm UK time later today with the following dial-in details:

UK Toll-Free Number: 0800 368 1950

Canada: 1-866-561-8617

USA: 1-866-928-6049

Participant PIN Code: 277298#

[jdk14] 10/9/2012 22:28

New presentations on the web site - no more news about funding!

[inside building] 10/9/2012 20:08

Well Libra have off loaded the best part of a million shares.
Interestingly the Cluff website had only recorded them holding 15,046,642.
The latest notification states they have reduced from 15,581,221. On further investigation it would appear that they did not advise Cluff of a prior shareholding which was actually at 15,699,834. If you look at the link below you will see this on the stockwatch link:



Now Libra have been in Cluff for several years and have purchased shares at a variety of levels. So unless we see more selling this does not look like they are trying to offload their total holding.

The other observation is that it stated the transaction was undertaken on the 7th September. Well nearly 900k in shares were not sold/reported via the markets in one day at all last week. So was this a private transaction to a willing buyer?

IB

[jdk14] 10/9/2012 19:53

Why?

ps - thought we were told there would be SL funding info before the conference!

[mechanical trader] 10/9/2012 18:58

Get ready for tomorrow.

[mechanical trader] 10/9/2012 13:16

Nice to be through the 75p
resistance.

Tend to come with a strong run
in the afternoon so we might see
high 70ps reached.

[goldrush] 10/9/2012 07:57

Guys

Been watching CLF for sometime ....Looks cheap so just joined for first time with 14,700 purchase.

Best wishes to all.

g

[mechanical trader] 07/9/2012 13:34

Should help CLF....

Paul Kavanagh ‏@KavanaghKillik
Probability of QE3 next week above 50% ....Goldman

[mechanical trader] 07/9/2012 09:45

Cluff Gold

Broker share price targets....

Cluff Gold Broker Views

Date Broker Recommendation Price Old target price New target price Notes

24 Aug Westhouse Securities Strong Buy 74.38 117.00 112.00 Retains
16 Aug WH Ireland Securities Buy 74.38 101.00 90.00 Reiterates
15 Aug Seymour Pierce Buy 74.38 136.00 136.00 Reiterates

Norwich And Peterborough B Society.

[amargosa] 05/9/2012 07:16

I would be disappointed if there was not some form of announcement by the end of the week; why promise the market something and then not deliver it? I suspect they are trying to keep the predators away by implying that finance is close to being sorted for the Baomahun project. The recent Minesite comment is bang on - we are very close to the point where Cluff needs to get on with building the mine or let someone else who has the financial muscle get on with it. The Chairman sees himself heading up a significant business over the next 5-10 years, but that potential he has identified is also there for all to see - will Cluff survive in tact over the next 4 months?

[mechanical trader] 04/9/2012 21:29

11th of september...still time IB.

Fingers crossed.

[inside building] 04/9/2012 21:27

Sierra Leone

As we all know Cluff are poor at news flow to investors. In the August 15th RNS they stated that they were awarded an additional licence in SL. Makong South which is North of the Victoria licence and was awarded to Cluff in March 2012. I have tried to research a bit about the licence and it would appear that it was previously held by Axmin Inc of Canada who i believe disposed of all of the Sierra Leone assets to Polo Resources. So it would be safe to assume that Polo or Axmin failed to maintain this licence and that the SL government put it back on the market. If this is the case did Cluff get Makong North as well?
The Polo assets are now under their subsidiary Nimini who refer to Cluff in their website.



I thought this was of interest because to me it indicates that Cluff believe there is more than one mining asset that could be developed in SL and this could be another future growth opportunity once Baomahun is established.

IB