Contango Share Discussion Threads

[jessieduke2] 25/5/2023 20:05

Coking Coal washed but pre manufacture:
Every 10k tonne offtake per month = ~$10m FCF per year @ net back $80 p/tonne

Wirtgen surface minor can mine up to 1,000 tonnes per hour. unsure of washplant capacity per hour(?) but total month mined @8h per day is max 200k tonnes.

lets say they manage 50k tonnes of washed production (a 75% reduction of mining run rate) would give lots of headroom to make this target. Therefore offtakes available are 40k tonnes on top of already signed offtake with A to Z investments (10k p/m)

50k in offtakes gives FCF ~$50m per year.

Manufactured Coke production (intended second product from mine with Strategic JV partner, see RNS dated 5/12/2022):
latest RNS (24/5/2023) states net backs per tonne of manufactured Coke increases to $300 per tonne. No guidance given on expected production output from coking batteries and also need to know capitol build out cost and split of $300 per tonnes with partner to take a view of potential for the second product.

But +2bn tonne resource, there is a lot to go for.

[apfindley] 25/5/2023 12:57

Yes timeliness have slipped here and they've dodged around trying to decide what sort of operation to commence with.But the asset is huge and once stable revenues are incoming, we'll have a good base to build upon and set sights for a much larger mining capability.It's going to happen, and certain types of investors are upset that they didn't 10bag their stake within a few weeks of buying here.

[ohojim] 25/5/2023 12:54

The news in Zimbabwe is worth monitoring if you are wondering about your pear shaped investment.

[festario] 25/5/2023 12:34

Not bitter APF, just realistic, based on experience. You yourself have pointed out some terrible scams on the market, and I respect that.I'm surprised that you arent at least sceptical, based on the lack of share price appreciation in the run up to being cash generative. It just doesnt add up.

[apfindley] 25/5/2023 12:29

A bag of lemons would be less bitter than you.

[bad gateway] 25/5/2023 12:12

If its a scam they're working very hard at it.
New tweet again..



I get the feeling markets waiting on a sales have begun rns after all the delays which seems fair enough.

[festario] 25/5/2023 11:44

It's very dodgy, like all African miners. Been saying it for a year or so. Remember PRG?They had diamond mine kit delivered, installed, were all cashed up and they even bought a second mine. Then suddenly it all disappeared and was an out and out fraud.

[mayroad2] 25/5/2023 11:42

Noticeable lift in volume of sells after autumn's distribution of sharea to Sable/CGH shareholders. 98m issued with a reported breakeven of around 3p - that could explain the constant chunks of sales being slowly released into the market ?

[marvelman] 25/5/2023 11:39

Interesting post waving..appreciated

[1waving] 25/5/2023 11:24

.
There is something deeply wrong with the trading in CGO shares that has been going on for quite a while.
Look back over the last 2 - 3 years on a basic candlestick chart with volume on a daily basis. You will see for multiple days there has been over 20 or even 30 million shares traded in a day. At the time 30 million shares would have been over 10% of the shares in issue ........ but there has not been any declaration of change in holdings with a TR1. That is more than strange.

Add to that I have been looking at the intra day trading, looking at all trades for the day on a regular basis for some time. That shows repetitive trading patterns which are very much on the shorting side and there seems to be an endless supply of shares to short with. So far today's trading is a very fine example of that shorting.

Lots of questions there and I hope it is not something I came across in another resource company some time ago, but it does have similarities.

Will continue watching as the company advances and see how this plays out for the time being. Have not changed my holding at all but am becoming cautious.

.

[sirmark] 25/5/2023 09:34

Looking very good now... things certainly moving !

[xow98] 24/5/2023 11:47

Washed Coal Production Commences at Lubu…

[jailbird] 24/5/2023 10:59

If needed I would also expect bank debt loan as it will be producing I would asking questions if shareholders are diluted again

[sirmark] 24/5/2023 10:35

They start generating in the next few weeks... blimey some people have no clue...they don't need money now ..they are making it !! (and IF and that's a massive IF they needed anything the capital markets would be open now revenue streams Bank loans, bonds plenty of non dilutive options available now) I can see this being bought out within the next twelve months IMO

Massive reserves.

[jailbird] 24/5/2023 10:28

CGO spent over half of it the first month and that was 6 months agoAnd it was fully funded Upto Q1 2023 Cash-flows delayed by over 2 months You get my point , Seay's have consequences to the balance sheet It will ne producer , not disputing that . But I would not consider just be buying yet

[jailbird] 24/5/2023 10:01

Aim , you are right there, but the Co will be over 2 months behind target.The Company is now fully funded to reach first cash flow from the sale of coking coal from Lubu at the end of this quarter. Revenue The Company generated no revenue during the period under review but anticipates making first coking coal sales by the end of Q1 Liquidity, cash and cash equivalents As of 30 November 2022, the Company held GBP3,314,359 (2021: GBP2,419,266).

[aimmafia] 24/5/2023 09:51

They have just raised 7.5 million lol

[mayroad2] 24/5/2023 09:40

Who are these b3ll3nds who appear.and trot out the same unsubstantiated b0ll9cks in bulletin boards on every company after a decent RNS - they're a mighty strange breed !

[bsg] 24/5/2023 08:40

Something like a placing at around 4p or so?

[jailbird] 24/5/2023 08:34

Bsg Tend to agree with that near term .I just think the company will need to bolster their balance sheet first before profits are seen Already seen how long offtake agreements take to agree and complete

[bsg] 24/5/2023 08:30

I think they're going to have to show they can make a profit before this reaches double figures. Probably a couple of years away. Lets hope it doesn't just stumble along making a nice living for the BOD. Wiping its face from year to year.

[sirmark] 24/5/2023 08:23

This will be double digits very very soon as this massive news sinks in truly remarkable we'll do the team !!