Galantas Gold Share Discussion Threads

[riskmanager1] 28/11/2018 20:23

California, youvare right!

[cast_no_shadow] 28/11/2018 20:12

Augustus yes I’ve invested in many miners. An example is AAZ over the last few years. I’m more in to Cryptos now however.

Galantas already has a fully functioning mine and the design of the new mine is simple so capex is small.

Grades are very high which is why the cost per oz is so small.

Yes cash cost do not = profit (I’m an FC of a company so understand this fairly well), however I used a very low low PE ratio of between 3 and 4.

It’s s small, tight ship and overhead costs depreciation and debt servicing will not be that high.

A valuation multiples higher than where we are now is very likely in the next year IMO (as production ramps up and the project is de-risked).

I’m maamzes there wasn’t more fan faire after the positive result in court.

[panagos] 28/11/2018 20:03

RMAgreed with most you say but EQX has 2 properties in California and 1 in Brazil, dont think they own one in Nevada.

[augustusgloop] 28/11/2018 19:36

And there is no way that I am going to believe that mining is cheaper in Northern Ireland than in some $5 per day wage rate, 3rd world country.

[augustusgloop] 28/11/2018 19:32

cast no shadow,

I take it that you have never invested in a gold miner before?

The relationship between cash cost and cash flow -- is somewhat complicated.

Look at most AIM miners that state similar cash costs - with gold at $1,200 = none of them pay dividends. Nearly all of them do placings. None of them show significantly increasing cash balances over the long term.

[riskmanager1] 28/11/2018 19:26

You should listen the last video of Riland on Proactiveinvestor. PP is almost done and fully subscribed.

Now it is the best time to invest.

[doobydave] 27/11/2018 23:19

Worth making the point that a lot depends upon getting this placement away. Otherwise GAL will end up approaching banks for a large loan in an environment of rising interest rates. If so, company debt will anchor the share price for till kingdom come.

Presumably this is what Róisín Magee was brought on board for (see RNS 15 Oct) - she will hope to tap her contacts. If all goes well and Ross Beaty can be kept fully onside, we've got a decent chance of securing a good future that hopefully entails a rerating.

Fingers crossed.

[cast_no_shadow] 27/11/2018 21:34

$1 million profits? Utter nonsense. The preliminary economic assessment stated cash costs of $500 - $600 per oz depending on production levels.

Gold at $1,200. So let’s say $600 per oz cash flow. The price of oil is plummeting and grades have been very high so the above cost could come down!

Anyway at 30,000 oz per year that’s $18 million cash flow per year or £14 million! A valuation of around £50 million once production ramps up is not unreasonable.

Not to mention upside of future resource and LOM upgrades.

[the count] 27/11/2018 16:03

--->AUGUSTLOOP

Idiot!

[bahamasoil] 26/11/2018 14:13

Past performance will hopefully be surpassed if we get anywhere near the 2014 Plan
17.15.6 DAILY AND ANNUAL ORE PRODUCTION
Annual mine production is expected to peak at 225,000 tonnes per annum. To mine 35,000 to 40,000 equivalent gold ounces per annum the mined grade at full capacity must exceed 5.0 g/t.
Table 48 (below) displays the annual and daily production rates require to meet the LOM plan.



Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
AVERAGE


Annual Ore Production (t)
51,711
168,299
224,383
203,880
195,672
102,437
157,730



Monthly Ore Production (t)
4,309
14,025
18,699
16,990
16,306
8,536
13,144



Daily Ore Production (t)
198
644
858
780
748
392
603



Ore Mined Grade (g/t)
5.8
5.2
5.0
5.3
5.6
6.4
5.4



Mined Ounces
9,622
28,026
36,411
34,568
35,531
21,098
27,542

[riskmanager1] 26/11/2018 12:44

Good luck with your other investment! Gal is an underground mine which is way more productive than an open one.

Anyways you think you are right and me too. Since you are not a shareholder but a basher i dont listen to you. 5m in debt is very very low.

More news coming guys! Stay tuned!

[augustusgloop] 26/11/2018 12:28

The debt on the balance sheet is about equivalent to about half the market cap of a few days ago.

If they get back to similar production levels as previously - they should make a similar profit. = about $1m per year.

So, lets take an enterprise value of about $20m
in a year's time they might be making a profit of about $1m per year again.

That's not cheap!

Yes, they might increase production well above what it used to be -- but they didn't manage to achieve that previously.
Why should it be so different this time?

Perhaps everything will go according to plan this time -- but experienced investors here will tell you that is the exact opposite of what has happened in the past.

I like Roland, I think that Gal is well run.
But, given the trouble that the neighbours cause at every change that is required.
The maximum production here may be much lower than punters believe.

[riskmanager1] 24/11/2018 19:50

Wow what a statement. Where do tou see debt? Not profitable? Which planet are tou living?

75% IRR... why are you posting on this company if you not believe.

Basher or just an other part of the small group against mining.

Will see who is right between Melquart, Ross Beaty, Roland OR Augutusloop that dont know how to read a financial statement.

Debt hahah

Have you seen conpany like Hart Gold with a lot ot debt, reources lime Galantas... look at the valuation.

RM

[augustusgloop] 23/11/2018 21:53

I doubt that there is much corporate interest.

Look at how profitable they were when previously producing.
Take into account the loans.
Take into account the time and cost of getting back into full production.

5p is not an unreasonably low price for a placing at this stage.

Punters may compare them with Dalradian - but that is because D is vastly over-priced based on unrealistic hope.

Nearly all AIM miners fall 80+% between the selling of hope and the mine actually making a profit.

[bageo] 23/11/2018 21:15

finally good news

[doobydave] 23/11/2018 17:10

Hmmm... just got in to see the good news.

I can't see the share price rising much until the placing is done and confirmed as fully bought. Wouldn't it be nice if it were over-subscribed! Meantime, 5p should be a floor, but it'll also be an anchor for a while IMO.

With corporate interest lurking, we could be due a very interesting couple of months.

[nobbygnome] 23/11/2018 15:32

So the price is hardly up from the level when we knew there was a fund raising. That would suggest this news was almost guaranteed. I don't think that was in any way the case so certainly the meagre price rise is ridiculous....

[gb904150] 23/11/2018 14:50

I still don't think the market has reacted to the fact there is a party interested in buying up GAL.

Perhaps waiting for greater confirmation than a minor paragraph in an unrelated RNS?

The Company has received, through an advisor, expressions of interest in the Company's Omagh properties and operations. The Company will advise shareholders if matters of substance arise that may lead to corporate action.

Now that the pesky, long running issues of judicial appeals are no longer hanging over us and with the new 30koz plans in 2019 this should finally start to re-rate.

I feel it was somewhat unfair wrt to the timing. Surely not a coincidence on the discounted fund raising only a few days before the share re-rates following the favourable hearing.

[panagos] 23/11/2018 13:52

This PP makes real sense to shareholders only if Roland with Melquart had to do it to fence off any unwelcomed bid for the company on the cheap as they would hold 50% of the company.

my take on the PP

[riskmanager1] 23/11/2018 13:48

They will keep it as low as possible to het this PP done.

[nobbygnome] 23/11/2018 13:37

You can suddenly buy 200k on line at just below the offer. Perhaps they have found a seller...

[panagos] 23/11/2018 13:25

it was option money redtrend (only it was a free option) ..."proposed placing" remember?

so judgement had gone the other way they would forget it, now.

It's always nice to buy a pound for 50p right?

[panagos] 23/11/2018 13:22

don't sell lads, this is worth minimum 15p right now.

[redtrend] 23/11/2018 13:22

I wonder if GAL did an open placing what share price they would be able to raise £4million at...

Considerably more than 5p that's for sure.