Galileo Resources Share Discussion Threads

[the bull] 06/8/2019 16:34

I would say stinks of good news on way before placing, we shall see soon

[andplus] 06/8/2019 13:46

Stinks like placing. So unpredictable Colin nowadays

[excellance] 30/7/2019 13:19

⚽ 👜

[the bull] 30/7/2019 13:15

Galileo Magnifico, Magnifico o o o o oo o o o o o o o

[mreyeguy] 30/7/2019 12:46

There's a MUG like you on every board haha

[mreyeguy] 29/7/2019 19:35

The mugs will lose everything on this dog poo haha.

[excellance] 29/7/2019 11:08

Ball ⚽ bag 👜

[mreyeguy] 29/7/2019 05:42

You pays your money and all that ha ha , expect to lose it haha

[mreyeguy] 29/7/2019 05:41

The Bird will shaft you mugs once again here haha

[cmackay] 26/7/2019 20:58

Makes more sense.

[excellance] 26/7/2019 20:49

Worked buy.

[cmackay] 26/7/2019 18:32

Apologies, I just realised it was actually yesterday morning rather than earlier today. What was the bid/offer yesterday morning?

[cmackay] 26/7/2019 18:29

At 0.545p, I would say sell. The price held up to it well if it was a sell though.

[the bull] 26/7/2019 17:17

Any ideas on the 5M trade, buy or sell

[the bull] 25/7/2019 22:11

I have plenty of long term shares where my conviction isn't strong enough to keep averaging down, but some I do

[the bull] 25/7/2019 22:10

Sleveen, if you are a trader then yes, maybe that's good advice. But for me, I believe this will be a ten bagger, thats a 20M market cap company so not a wild valuation for the expected revenue that should start building. But pre announcement is a traders dream and a dream for long term holders. I say long term only arriving to the party by chance a few weeks back.

[cmackay] 25/7/2019 18:31

Wasn't there a placing in April? How are you calculating that to have been spent already?

[sleveen] 25/7/2019 18:01

XTR just shafted PIs with a 30% discounted placing following a spike in the share price

That fate awaits GLR holders on any spike in the sp, so take your profits quickly on any spike.


IMHO

[bookwormrobert] 25/7/2019 12:32

Hi Plat Hunter!
Good to see you here as well.
There will be two big costs to the Star Zinc operation - the contract mining and the contract trucking. Both don't required any capital investment, but they do require working capital to sustain them until the first revenue comes in. I'm assuming this will be six months from the start up of operations.
Colin Bird estimates $2m per year for the contract mining and trucking, so I'm assuming $1m is required for initial working capital.
It may help to remember:
1. The contract mining is more like quarrying than conventional mining. It has a very low strip ratio (1:1), and will require only limited use of explosives. Since Star Zinc has been mined previously, there is already a pit entrance, etc.
2. As regards the trucking, the ore will have an average zinc content of around 10% - that's really high. The distance from Star Zinc to Kabwe is 125km, mostly up a decent road. If you allow for two drivers per truck working daylight hours, that should equal two round trips per day.
All in all, I think the share price will move well ahead of any placing, and in the end we'll be looking at a dilution of about 20% to get Star Zinc into production. (I.e. I'm basing my calculations on GLR ending up with 500m shares in issue (before warrants at 2p etc.), rather than the 404m currently. Colin Bird owns around 13% of the company, so he won't want to dilute himself more than can be helped!

[the bull] 25/7/2019 12:23

Hi BWR, thanks, I am also banking on the share issue after the news once it is at higher levels, hence buying now not waiting, hope we are right on that one.

Plat - Colin has a hatchback so can do the initial runs to keep costs low.

He did mention investing in a crusher so that more could be transported each time

[plat hunter] 25/7/2019 11:54

Would it be an incorrect assumption to presume that one of the biggest costs will be in transporting the ore from Star to Kabwe?

it of course very much depends on the density of the material but it costs JLP roughly $2 er tonne to transport tailing from Platcro to Eland.

Establishing what the rough costs of mining and transporting the ore will be will give a great indication of the size of the initial project dilution required. Maybe 2 million, or a 1 for 1 issuance?

[bookwormrobert] 25/7/2019 11:25

Hi Bull!
Good to see you here as well as in JLP!
I don't think there will need to be that much dilution to get Star Zinc into production.
The company raised 500K back in April, and it can't have spent all that much since then. So I think they have enough cash to keep going for now.
They will need working capital for the contract mining operation - I estimate about six months' worth, which should equal about $1m (taking CB's own estimate). There are various ways they could get this money - Glenover or Ferber sale, Jubilee pre-finance arrangement, bank loan etc. However, that said, I think an equity raise is the most likely way. That equals a maximum dilution of about 33%.
BUT, Galileo won't really need to raise money until after the offtake has been signed and the small scale mining licence issued. Surely the share price will be much higher by then? That would imply a much smaller dilution.
My fundamental position here is still that this share is currently completely mispriced. AIM can do this sometimes, and we should all take advantage as much as we can!

[observer007] 25/7/2019 11:22

I watched GGP go from £3m m/cap to £25m and will not do the same here, £2m entry point is unreal - I know there were fewer shares around but this did hit 12p once if I
recall.

At 1p this would only be valued at £4m