Galantas Gold Share Discussion Threads

[panagos] 09/1/2020 20:49

https://youtu.be/37OWL7AzvHo

[pelgis] 09/1/2020 20:39

Quite a productive day at Cavanacaw it would seem today.....

[gb904150] 09/1/2020 14:47

Surely those other mines are an example of what Cavanacaw and Curraghinalt could (and should) become - big contributors to the public purse.

They would then be generating money for the NHS, infrastructure, education as you say.

A few further successful examples in the ROI:

Some of Europe’s largest zinc projects
- Navan (Tara) zinc-lead mine 111Mt @9.8% Zn (Boliden)
- Pallas Green deposit 42Mt @8% Zn (Glencore)
- past producing Lisheen mine 18.9Mt @15.0% Zn (Vedanta)
- Galmoy mine 6.2Mt @12.4% (Lundin Mining)

Why is it so difficult to do the same successfully in NI?

[panagos] 09/1/2020 14:38

you bet...pelgis can go over on site and check it out himself.

[goldminer2020] 09/1/2020 14:23

I hear she is quite the looker!

[goldminer2020] 09/1/2020 14:21

Pelgis is quite right the royalty does go to the crown and it may not be directly kept in NI.
So you can cut £1.4mil off the total tax take for NI but I am sure that’s still enough to employ a dozen PSNI officers.
Either way anti mining people will never agree - net benefit to NI is there for all to see with taxes and disposable income. As for the shareholders - they have always come last so really Pelgis who is loosing here? NI stands to gain through a new industry regardless of the NIMBY attitude

[panagos] 09/1/2020 14:16

it's, me Pelgis. I am dating the sister of the cousin of the gardener of the nephew of the ops manager of the galantas site...Pls don't tell noone..

[goldminer2020] 09/1/2020 14:13

Oh why stop lying now a Pelgis?

I walked past the mine the last week and counted 9 cars in the car park - tell me did the employees leave their cars when they were made redundant?

[pelgis] 09/1/2020 13:38

i expected you to say that ;)

Dont worry... I wont tell.

[goldminer2020] 09/1/2020 13:35

You may want to read the rules regarding insiders Pelgis! If you are referring to myself I am not inside no.

[panagos] 09/1/2020 13:20

I am Spartacus!

[pelgis] 09/1/2020 13:10

Does anyone here need to post a 'Conflict of interest' or an 'Insider alert'?
If so this should be clearly stated, otherwise if discovered at a later date could have implications.

[pelgis] 09/1/2020 13:01

Re: Goldminer (JT) "The PSNI guard the explosives as if it goes missing it’s potentially going to be used against them - so I disagree Galantas should pay for extra coverage especially when no-one else does. It’s a cost for the NI purse"

Do you really expect the public to bear this cost? GAL and DAL are out to do this cheaply as possible, their only motivation is profit, and will cut costs to any level to keep the profit as high as possible.
Do you really expect the public to contribute to your security- the security that GAL don't even take 'semi-seriously'... How can you even begin to justify this when GAL leave their site open, for anyone to walk around? One at least two occasions the public have been in there, even within the tunnel system itself.

Don't you think the public would rather spend their hard earned cash on more relevant matters- NHS, health, infrastructure projects, education... instead of making Canadians and their shareholders rich?

[pelgis] 09/1/2020 12:53

Goldminer (JT)- your so called 'royalties' is a 4% tax to the Crown Estate, and is used by the Crown for various projects. This money is not earmarked specifically to any region or for any specific purpose. If there is excess, then profits go to the Treasury.

The Crown Estate belongs to the reigning monarch 'in right of The Crown', that is, it is owned by the monarch for the duration of their reign, by virtue of their accession to the throne.

‘Mines Royal’ is the historic name for naturally occurring gold and silver, virtually all of which deposited in England, Wales and Northern Ireland is owned by The Crown Estate.

[goldminer2020] 09/1/2020 12:51

Re-read the post and maybe need to clarify. The PSNI mandate this - it’s not a request by the company which is different with football stadiums and concerts who request it.
The PSNI guard the explosives as if it goes missing it’s potentially going to be used against them - so I disagree Galantas should pay for extra coverage especially when no-one else does. It’s a cost for the NI purse.
They do as far as I am aware supervise the fertiliser under the explosive pre-cursor legislation - I sense you were joking about that.
At Tara it is different they also do not require immediate supervision but the Garda do play a part - I am not sure if it’s charged out but I suspect not due to the tax revenues generated - that’s was the same with Lisheen who did not pay.
This issue here is they cannot police UG and on surface for 24 hours a day which under their current mandate is what they would have to do.

[goldminer2020] 09/1/2020 12:38

When a deal is that good - you don’t tell the world!

[panagos] 09/1/2020 12:36

costa

you are asking the wrong board...…..here people lost their shirts.

[costax1654x] 09/1/2020 11:10

Anyone noticed ORM ?Gold asset in Salamanca and 5 mil £ Cash,no debts, for 3 mil mcap!

[goldminer2020] 09/1/2020 11:09

Also remember they pay royalties and taxes so this is all going back into the NI coffers.

Let’s assume they are correct in cash cost of £500-600 per oz. if they mine the 30,0000z per year as planned that’s £36mil revenue. Already they will have paid around £8mil of wage related taxes and royalties and cooperation taxes. Add another £100 per ounce for a Security tax is another £3mil and they still make £15mil per year free cash flow.

The model they used is correct as once the initial capital is paid they can easily sustain and dividends would be likely especially with +50% of the company with institutions or directors. Good news for the other long suffering 50%.

Who will solve the £15 million dollar question? I think it’s at least another £2-3mil capital burn before this could be realised which means more dilution unless it’s a sale or JV.

[goldminer2020] 09/1/2020 10:52

It all comes down to the PSNI. They mandate to control and supervise the use of explosives. My belief is that they resource it properly or divest their responsibility. There is an opportunity for a private security sector to do this but again would the relinquish control?
They have indicate that they will allow the unrestricted use of the company can meet their requirements - however it’s clear that these have been now met and the PSNI have reneged on that.
Whilst unfair - Galantas have paid for the service. Therefore the company that pays should be given preferential service as not one other single company is charged - including the Kilroot salt mine which people forget about. They blast daily with no supervison of explosives and also have a daily PSNI service. How can this be justified?
Galantas have done everything that the PSNI have requested so I know there is alot of blame chucked at Roland and the operating team but they have held up their end of the bargain.
Hard to see what breaks the impasse at the moment unless there is more to it that meets the eye but as suggested previously the gold is very safe in the ground even if the company mining it is not.
I would not want to be in this at +3p but the company is worth over £25 million and potential future earnings with a now 10 year mine permit are still healthy - as long as they can find a way to operate.
If you take blasting out of the equation - road headers are now more commonplace and whilst the ground is very hard - you can see from the 43-101 that it’s well jointed and amenable to this type of mining so that would be the option I would pursue.

[gb904150] 09/1/2020 09:00

Thanks goldminer for an enlightening post. I was aware of the PSNI issues with transporting explosives but not that the real issues result from a FOI over the costs and the retrospective costs/bill for Dalradian.

Those costs should be partly borne by mining companies if it require an increased level of service. Similar to football teams paying money for extra police presence when putting on matches. That said - where does it end, should fertilizer shipments also have a PSNI presence and associated cost?

In any case, as long as the costs are built in per shipment we would know what to plan for. A retrospective tax bill makes no sense, but an agreement for future shipments does. A simple minimum charge per shipment plus a charge based on the volume.

How do the immense zinc mines (Tara, owned by Boliden) do it? They've not been shut down for a lack of explosives yet they too mine UG.

The costs to all the workers, now redundant far exceed the cost of providing a few explosives.

[sirrux] 07/1/2020 18:25

What's the plan then? Wait until gold doubles or trebles in value. It's very safe in the ground in the meantime. Surely a better way to get the funding to the police is to agree a rate based on gold extracted, effectively a tax but directed towards police resources. As the mining ramps up, if there really is that much gold it could become the best funded police resource on the planet, the gold standard in policing for an otherwise cash strapped service. The Dalradian disputed bill is less than the cost of one gold bar, yet it's holding up the release of lots and lots of gold bars.

[goldminer2020] 07/1/2020 17:19

FOI is the freedom of information request from police service that started all the issues around blasting at underground mines in NI. Dalradian and the PSNI (google it) are both sitting on a dispute over £400k of bills that they want to retrospectively charge due to Pelgis or his mate getting the information on the costs to the taxpayer.

No matter what you hear about Dalradian and their big claims they will get no further until this is paid and the PSNI add resources.

Until this point the discussion with PSNI were good and the mine manager who left in late 2018 after setting it all up had proactive arrangements with the PSNI until it became a scandal. However Galantas did pay for services received - just PSNI do not have resources so company’s hand are tied despite many promises and commitments.

The executive is the Stormont government that shares power in NI. Hopefully that will be restored in the next 2-3 weeks otherwise it’s another election. Then they may be a political avenue to follow as this Galantas was blanked by previous efforts in recent years.

I sat through the planning court cases and it’s amazing one person could delay the mine for so long - ludicrous system borne out of EU legislation.