Georgian Mining Share Discussion Threads

[balance1] 21/12/2017 10:00

This is good news as it show they want to accelerate the development of the project. He also seems to have plenty of experience dealing with Russians!

[shavian] 21/12/2017 08:51

Experienced COO appointed. Just what we need to get this kick-started. The drift in the share price is down to investor boredom imo. No news is...well..yawn.

[greatfull dead] 21/12/2017 08:17

Good RNS. GEO now will show the doubters. Roll on mid 2018.

Have A Merry Christmas All,
GD

[iloveit] 21/12/2017 06:47

It's down to ceo to assure that all is going very well as planned.If 14p now is a problem then 25p+ will be more expensive of course.But buying cheap now means more shares !

[hobnob1] 20/12/2017 23:53

David

the price of gold from October 18th to today has fallen by just 1% (US$1,280 to $1,266), and, in the same period, the copper price (which is as relevant to this company as the gold price) has actually risen by more than 5%. So what are saying is absolute nonsense. You are also quoting the Shard report, and the company, by saying the future value of the company is based on a potentially huge expansion in the resource to 50mt, in which case the short-term gold and copper price aren't relevant anyway.

Yet in this three month period of apparently wonderful prospects, the Georgian share price has virtually halved.

Something is going on and no one is telling us. Does anyone know why investors are suddenly deserting this stock?

[davidspringbank] 20/12/2017 19:50

Hobnob

According to the chart on share prices, it looks like the share price peaked around 18 October. This was probably following an update to investors. The share price was falling before the Shard Capital report came out and continued to fall. So why was this? For the answer we need to consult the chart for gold which peaked out in September and has been in decline ever since.

[hobnob1] 20/12/2017 18:44

If everything is so great and amazing, how come the share price has nearly halved over the last three months in the middle of a bull market? Shard report seemed pretty vague. There was no price target or anything.

[davidspringbank] 20/12/2017 17:19

Sometimes the initial plans and intentions of man are scuppered by real life. In this particular case GEO thought it had individual gold discoveries on surface, but have been subsequently advised by its geologists that these discoveries could be connected lower down. This has naturally caused the company to step back to take the new information on board and decide on an appropriate plan of action. I would imagine that further information is required and the company may decide to extend its drilling program to confirm the geologists theories.

This news has obviously upset some former investors, who were programmed to follow the original management plan.

I am a new investor with an open mind and it seems to me that the geologist's change of heart is very good news indeed, if it is confirmed by further drilling. It means of course that the gold discoveries could be much larger than they originally thought. What an exciting position to be in and it will help Geo meet or exceed it's 50M/t resource target.

[davidspringbank] 20/12/2017 16:30

Shard Capital visited the site in October 2017 and their report is dated 28 November 2017.

After covering all of the bullet points, here is their conclusion at the bottom of page one:

"With further exploration and resource drilling, GEO has an exciting opportunity to develop a phased development plan in Georgia. The main mineralised zones remain open laterally and to depth and further drilling is required to fully evaluate the scale of the project before selecting the most appropriate development approach. We see significant value accretion ahead if the company continues its run of exploration success."

[noirua] 20/12/2017 16:23

RGM is of course Republic of Georgia Mining Limited. Going by RGM Mining these days as Georgia seems to have dissociated itself from Republic of Georgia to The Country of Georgia.

[noirua] 20/12/2017 15:10

First need is for a tolling agreement on costs with GEO's 50% partner RGM. Then it means having vehicles and diggers etc., in place to deliver both AU or and CU/AU ores.
13 months late delivering ore means the original Shard Capital view that gold would pay for further Copper and gold development has gone on the back burner.
Cash would now be under £4 million with a lot of short term vehicles to purchase.

Quite some time before cash roles in and costs will be hard to restrain.

The shares are good value if you think the problems can be overcome in the very short term. It looks as if that is increasingly unlikely and GEO have perhaps bitten off considerably more than they can chew.

RGM wont be too bothered by delays as they are raking in profits

[davidspringbank] 20/12/2017 11:55

I would imagine that Geo and their partners will be keeping all of their options open regarding the new information from their geologists. I will be looking forward to reading the operations update that we are likely to get very soon. Good luck everyone.

[hobnob1] 20/12/2017 10:32

I heard also that the Shard report is basically a "change of strategy" document. I guess if they are not going to do this deal this local plant, we have to look at this as an exploration company.

[timw3] 19/12/2017 21:55

Correct hence why i sold.

Cash burn will mean another placing. Getting into production FFS like you promised earlier this year.

Management know how to spin a story thats for sure.

PJ1 was right all along.
balance119 Dec '17 - 11:29 - 1061 of 1064
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Thanks David, your report seems to be saying that there has been a change of plan and this whole early production thing using the nearby plant may not be happening after all. I am guessing this is why the share price has collapsed

[balance1] 19/12/2017 20:01

Well, unfortunately for us, it looks like investors prefer cash flow over geology and have fled

[greatfull dead] 19/12/2017 15:45

David,

I second that.

ATB,
GD

[davidspringbank] 19/12/2017 15:42

It's a wonderful problem to have, but going by what people were saying on here, some people were not happy with the change of plan. I'd be throwing a party if individual discoveries I had made on surface turned out to be connected lower down! Lol

[balance1] 19/12/2017 11:29

Thanks David, your report seems to be saying that there has been a change of plan and this whole early production thing using the nearby plant may not be happening after all. I am guessing this is why the share price has collapsed

[greatfull dead] 19/12/2017 10:46

David,

Thank you for the excellent link to the comprehensive report. The report puts things into perspective for 2018 and beyond.

ATB,
GD

[iloveit] 19/12/2017 08:49

Share 7.2k Buy moved the price down?13.8p not very exciting as some inc myself thought this was going to me a big winner.Greg gave out out all the rns news and hopes and so far delivered NOTHING! Production we have not seen as all been shelved typical as hopes now gone very silent.Dyor but gutted on what was built up on rns news hopes .

[nateroyd] 19/12/2017 08:15

That 7200 shares was my buy !!!!

[davidspringbank] 18/12/2017 12:00

balance

Some people are very impatient and do not understand what they have invested in. They hear of a gold discovery and think they will have some of that. Then they hear of another gold discovery somewhere else and decide to sell in order to buy.

Geo has found three areas containing gold and initially thought that these discoveries were totally independent of one another for ease of mining. Their geologists have subsequently informed them that they now think these discoveries are connected lower down. This has naturally caused them to change their strategy.

Read this excellent, well-written, comprehensive report:

[iloveit] 17/12/2017 22:54

I think it's back on track good buying strength Friday last week.Maybe Greg will have thought about rns news over the weekend maybe tmrw morning update.