Cluff Gold Share Discussion Threads

[amargosa] 17/9/2012 15:27

I suppose that's possible, but I suspect it's just heading back to fair value, given the step change in the company's financing potential and the upcoming news flow.

[fitton] 17/9/2012 15:20

Is there a rumour of an approach I wonder?

[fitton] 17/9/2012 12:39

Gold has gone up over $200 oz since the recent low.Company has two potentially good size projects and one that could be very big.Next few resource updates could push the gold reserves well above 5 million oz's.With the Fed pumping upto $40 billion dollers every month into the ecconomy over the next two years gold should move to new highs.Cluff has been undervalued for ever,financing was one of the biggest negatives weighing on the share price and that has now been removed.The company is still undervalued.

[jamesjoel] 17/9/2012 12:15

Still undervalued!

[mickie 3] 17/9/2012 12:07

how much longer will they rise it has gone up an enormous amount in 2 weeks 37pence tell me why please mic

[fitton] 17/9/2012 08:30

I think with Samsung behind the company the shares will now perform much better.Hopefully back to over a £1.Higher when the DFS comes in next month.

[waldof] 17/9/2012 08:16

Picked up 25,000 at 81p on Friday............a lot going for them at the moment.

[tymedici] 17/9/2012 08:14

I wish I had bought more. I will let them go to 100+. Then its decision time. But it depends on the speed of the rise. If it continues to rocket I may be greedy and hold on.

[colino bambino] 17/9/2012 08:01

This is looking extremely strong today.

Any thoughts anyone?

[fitton] 16/9/2012 17:12

The Samsung deal gives the company alot of credibility in the market.I would guess Samsung would have had many other options to looks at in terms of companies requiring finacing etc etc.I would also guess as is normal that there is an opt out claus for both parties as long as certain criteria is achieved.My initial reaction was to think that a takeover was less likley but in the short term without to many complications a takeover would still be quite straight forward.With Samsung behind the company I feel that Cluff should get a gradual valuation re-rating.I my opinion, If the Baomahun DFS is as good as it has been suggested then there is a clear short window of opportunity for any takeover attempt.Either way, Samsung are a massive boost for the company and how it is viewed.

[amargosa] 15/9/2012 14:22

Just wondering how this new alliance with Samsung will affect the possibility for a take-over attempt on the company. At first glance it must make a take over less likely in the short term, however, so far there is only an agreement to fund $20m. My contention has been that any attempt would happen before any deal to finance Baomahun was signed, which still leaves a window open for predators to pounce once the details of the DFS are know, but before the finance is finalized. I just don't see why any large predator would want a small company with big potential once it had signed up to a big finance deal when they could make a move before that finance deal was signed. This is just idle speculation of course, especially so given the road map to Baomahun funding which this Samsung deal represents.

[mechanical trader] 14/9/2012 13:45

Just tipped on Growth Company
Investor........

ecogz Updates ‏@-

#CLF Cluff Gold BUY




14/09/2012
This gold miner looks a steady bet in challenging times...

[ddav] 14/9/2012 10:50

Gold stocks are starting to show signs of life again. And after their strong advance since late July, they are now on the verge of a major upside breakout. Odds are this event will herald a major new upleg.

[mechanical trader] 14/9/2012 08:14

Broker Brief.....

14 Sep Cluff Gold PLC CLF Westhouse Securities Strong Buy 81.00 78.00 112.00 112.00 Reiterates

112p share price target.

87p resistance to get through first.

[bushtuckaman] 13/9/2012 22:59

Mozy, yes thats the problem I'm having. I've emailed them to get is fixed, but had no reply yet.

[mozy123] 13/9/2012 20:47

No bush, its under pre recorded presentations on the dever site, but its a bad link when you click to view

[bushtuckaman] 13/9/2012 18:57

Latest clf presentation from the Denver Gold Forum



I'm struggling to open their video presentation, anyone managed to view it?

QE3 should make tmrw should be interesting!

[ronnie corbet] 13/9/2012 17:13

I take it we have just had QE3

[mechanical trader] 13/9/2012 07:17

CLF(79p)

Cluff Gold boosted by Samsung tie-up.(ProactiveInvestors):-

12/8/12 by Jamie Ashcroft

Shares in West Africa focussed miner CLUFF GOLD (LON:CLF) advanced today as the company revealed the strategic partnership with Samsung.

The initial agreement sees Cluff receive a US$20 million loan. And it will lead to Cluff to supplying Samsung with gold bullion.Cluff says the new partnership is expected to result in a 'significant' financing for the development of Baomahun subject to a positive outcome of the ongoing feasibility study.

In a conference call today chairman John McGloin stressed that importantly the new Samsung deal still allows Cluff to benefit from rising gold prices, as it does not 'hedge' the production that's earmarked for the North Korean firm earmarked gold product.This, he says, is a positive for Cluff.

"We believe that the outlook for gold companies is not too dissimilar to that seen in recent years with worldwide inflation leading to rising gold prices and higher production costs. And this financing ensures that Cluff retains full exposure to the gold prices that will more than offset any costs of inflation."

Cluff will begin supplying gold to Samsung one month after the first drawdown under the initial $20 million loan.
The deal has much greater significance for Cluff beyond this initial loan however as it paves the way for a pivotal and much larger financing deal that will play a part in the development of the Baomahun mine.

"The key issue (announced) today is not the initial $20 million facility (itself), but the longer term opportunities that it unlocks. Importantly the initial facility provides a framework the potential funding of Baomahun, and other development opportunities."

McGloin explains that the terms of the financing are competitive compared with other debt-based options available. And, he says, that it provides Cluff with sufficient flexibility in its balance sheet to allow it to use existing cash-flows from production for further exploration whilst maintaining momentum in the continued development of the Kalsaka/Sega project.

Cluff is on target to produce between 60,000 and 70,000 ounces of gold this year from the Kalsaka gold mine in Burkina Faso, and it will soon enhance the project as it starts mining ore from the nearby Sega mine.

In the meantime the company continues to advance its growth plans with the focus on delivering Baomahun.The project hosts 2.1 million ounces of gold resources. A new resource model and calculation are due next month. That will be an important milestone in the completion of the feasibility study, which is already said to be at an advanced stage.

It is expected that the start up of Baomahun will tip Cluff's annual gold production beyond 100,000 ounces in 2015, and that figure will rise significantly to around 135,000 ounces by 2016.

Earlier today, City firm OCEAN EQUITIES described the new partnership as a 'great deal' for Cluff.

"It also demonstrates a trend in the market for miners to pursue alternative funding options to equity raises," said analyst Christopher Welch."Cluff benefits on several fronts but most importantly it has brought in an instantly recognisable strategic partner into its future developments; a partner with deep pockets and cache in the international community."

Welch adds: "There is an immediate benefit for Cluff in that this deal really strengthens Cluff's financial position as it brings Sega into production and so we expect Cluff shares to have a positive reaction to the news.

"However, the larger benefit is that Cluff has forged a relationship with a global conglomerate that is a large gold consumer. The implications for this are great and reduce Cluff's overall funding risk as well as secure gold supply for Samsung."

[sporazene2] 13/9/2012 06:59

Inside Building, over the past couple of years i think we have failed to use cashflow from Kalsaka effectively. No extension of kalsaka minelife through the exploration, minimal drill results from IC and no delivery or committment date for the DFS in SL.

Additionally, we have raised capital when we were told that kalsaka was the cashcow. If i were lending money i would be concerned our our mgt's ability to manage/use it effectively.

The benefit we have got from both the capital raised and the kalsaka cashflow is yet to be realised and in some cases will require significantly more capital.

Looking at the figures below, and i am happy to be corrected (this is the value of these types of forums), i cant help but think if we would have been more prudent over the past coulple of years we could have got where we are now with the Kalsaka cashflow alone.

Kalsaka EBITDA:

2010: $29m (no taxation)
2011: $46m
2012E:$30m

Other capital:

Oct 2010: $15m
Mar 2012: $36.1m
Recent $20m

Total: $176m
Current cash: $48m(using sptember presentation+$20m loan)
Net: $128m

If i contrast this with MIRL (and i havent done the numbers yet) my gut tells me they have achieved far more (another DFS due out in Q4) with much less money.

[lucky_punter] 13/9/2012 06:37

Cluff Gold boosted by Samsung tie-up
Wed 3:51 pm by Jamie Ashcroft Cluff

says the new partnership is expected to result in a 'significant' financing for the development of Baomahun
Shares in West Africa focussed miner Cluff Gold (LON:CLF) advanced as much as 6 per cent today as the company revealed a strategic partnership with Samsung.

[lucky_punter] 13/9/2012 06:33

Cluff Gold (LON:CLF, TSE:CFG) today unveiled a deal with international trading firm Samsung C&T for a long term strategic partnership that will allow the AIM quoted miner to advance the Baomahun project.
The initial agreement sees Cluff receive a US$20 million loan. It also provides for Cluff to supply Samsung with gold bullion.

[inside building] 12/9/2012 19:41

Sporazene not sure i understand your thinking.
Cluff have borrowed $20m and will put this in the bank.

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.

The agreement is said to cost 10% per annum in financing/loss of profit costs = $2m in year 1 and then reduces as debt paid back in year 2.
So worse case scenario at todays gold price it costs circa $3.5m over two years.
Of course a capital raising by new or existing shareholders in my opinion would have been more expensive and would have been far more damaging to the share price of Cluff. Cluff have proven that they can go and get finance and as they state they are talking to several others.

So taking up the other points you raise.
Burkina Faso production is fundamental to not only producing cash flow for all Cluffs plans but it is the asset that has to be maintained for another 24 months as we will not be producing any ounces of gold from anywhere else. So we have mine and country risks.

I have this feeling that there are two additional strategies being considered by Cluff:

1. Potential acquisition of other companies or assets near Kalsaka (Goldrush Resources - market cap $6m)to enhance Burkina Faso project dynamics. Plus you get several other exploration permits including 300k ozs at Ronguen.
2. Starting production at Yaoure before or at the same time as Baomahun

Yaoure by all accounts could be a 2moz deposit which if they quickly convert this from inferred to indicated they can then look at starting an open pit mine and adding another 100k ozs per annum. This would obviously derisk both other mining assets and would produce the cash flow to allows all assets to be fully explored, delineated and obviously then mined.

I believe McGloin sees the full potential in the company which of course means he gets the full potential in his 1% future ownership of the company.

The biggest clear out that was needed at Cluff was Algy Cluff and Douglas Chikohora. Yes they got the assets quickly in to production without many shares in issue. But they then spent all the money on Baomahun whilst the existing producing mines ran out of gold. This prudent strategy did in fact put Cluff back 2-3 years. In my opinion if the shareholder liquidation would have happened in greater numbers a few years ago we would be producing in SL or would have been mining more at the other assets.

Just some opinion

IB

[sporazene2] 12/9/2012 18:01

didnt get chance to listen to the call but initial reaction is mixed. Very postive that we have Samsung on board to help with the funding burden in SL.

Not that happy we give away $20m of future money to develop BF when we were previous told that it was an $8m capital invesment to bring sega into production. This means $20m less cashflow down the line

This additional money comes on top of the placing earlier this year and being a 60-70k producer which is gnerating some decent cashlow.

I would prefer to see us concentrate on getting into production in SL and then driving exploration and IC development with that cashflow. I accept the need to keep production going in BF but so far delivery of additional resources at Kalsaka has not happened and there are clearly risks to the timelines for sega. It seems we have egernated alot of cashflow over the last 2 years and have realtively little to show for it

I could go on but i wont, i'm still to be convinced that we have the team to deliver, the new chairman appears to be having an impact but i would be much happier if a management clearout took place at a suitable point in the near future, starting with Spivey and Gardner.