Georgian Min. Share Discussion Threads

[ryan83] 15/8/2016 14:08

most things are

[sleveen] 15/8/2016 12:46

70M tonnes is the size of the resource not contained metal.

How you get $3.3bn from a resources that isn't JORCed is beyond me.

[ryan83] 15/8/2016 12:21

Noirua

"A promise to update within the next few weeks is eagerly awaited as the signed MOU should be going ahead now and it appears it may not now do so"

it is not a case of the MOU not going ahead - its simply how it goes ahead because of teh sheer size. Meetings between JV partner and NMG this week and updates soon.

[noirua] 15/8/2016 10:42

Market sees that MD Gregory Kuenzel has delayed, maybe reneged, on promises to take ore from Kvemo Bolnisi to the Madeuli mine processing plant as a first priority to bring in cash.
A promise to update within the next few weeks is eagerly awaited as the signed MOU should be going ahead now and it appears it may not now do so. That would be reneging on an earlier promise and now a certain amount of trust is lost in Kuenzel's statements, going forward.
He needs now to reassure the market, mining surface gold could now compromise future deeper mining in the area: Surely he new that already or should have.

" -- Up until this recent discovery, the Company was focused on bringing a small gold-bearing oxide target to production; however in light of the new discovery a staged production of gold and copper has been assessed as being much more value accretive, much more cost effective and will avoid compromising the now larger target"

The above shows that NMG may now abandon plans to deliver ore in the 3rd Quarter. The market has given its reaction to this as the company will need to present updated plans and how they intend to finance the delays.

updated 14:23

[bad gateway] 14/8/2016 13:29

Short and sweet interview from Friday with Greg Kuenzel. He gave sensible reasons for the delay (imo) and stated update coming soon.

[ryan83] 12/8/2016 18:18

Put it this way, 70mt is worth just over $3.3bn. That's one target of 18. There David Garedji mine also which has 450k oz gold at 4g/t. And that only covers approx 10% of the David Garedji mine. There's going to be some crazy numbers in term so resource and NPV. I would not be surprised to see a resource of approx 15-24m oz gold equivalent over the next 9-12 months. This is indeed world class. The trouble NMG have is investors

1) associate the bod with the old Austrian assets - which whilst are shelved are not shelved because of the project merits but how early stage it is and how much it would need funding

2) they don't yet fully appreciate this Georgian asset. It obviously seems 'too good'

3) short termism on not producing from the starter pits yet with it bieng pushed back

DYOR but I have a big holding here now. Gla

[oilbuy] 12/8/2016 11:15

7M late reported buy at .155

[oilbuy] 12/8/2016 08:19

Full ask now !

[oilbuy] 12/8/2016 08:11

Great twist Ryan. Im sure some dilution is inevitable along the way , however the resource is world class and $600 per ounce extraction. From a development/capex perspective this is very attractive.

[bad gateway] 12/8/2016 06:59

Bought some yesterday too, can see why traders were disappointed not having the immediate cashcow but the added resources leaves plenty of scope for new news to be positive so hoping I caught somewhere near the bottom while I sit on them and wait it out.

[ryan83] 11/8/2016 20:37

Oil buy/yorgi - I have read the RNS a good few times and spoken to a few people. I have added 15m today.

[juju44] 11/8/2016 17:06

Nope, todays RNS was to cover the fact that they were not going to deliver on earlier promises . Poor show

[iloveit] 11/8/2016 14:34

Well there you have it ,news today has done the trick out come the tree bashers .Mopping up cheap stock and off they go very shrewd at this price .

[oilbuy] 11/8/2016 14:16

Looking at reality. The buyers today are reading the RNS in a bullish light. The sellers were in for a quick buck. Worth adding at this level.

[noirua] 11/8/2016 13:21

richgit, it is the summer doldrums phase for gold, as you say, until the India and China gold buying season kicks in from September.
Copper is still half the price of 5 years ago despite an uplift in the last few months. Zinc is up 60% this year.

[yorgi] 11/8/2016 13:11

Agreed Richgit, all very true.

[4marlin] 11/8/2016 13:10

This is another to watch closely but I do not see good gold grades yet and I suspect more dilution is coming.

[richgit] 11/8/2016 12:55

Noirua.

Assuming what they say is correct..

"The significant discovery has resulted in the Company refocusing its efforts on expanding the resource development programme to incorporate new styles of mineralisation with a view to developing a much larger deposit with potential to far exceed previous estimates"

..it would be madness to NOT at least consider the above possibilities.

The so called Market will understand at some point the logic of seeing if there is far more there,before they finalise anything.

Quite obviously not appreciated by those that thought the shares would soar
on the imminent cash cow hope- yet a greater to come cash cow will surely attract attention in time.


It is Summer,so Market reactions are Summer doldrum related whilst we wait to see if the Anti Gold Cabal lose control of Paper Gold etc etc.

IMHO

[yorgi] 11/8/2016 12:53

"Significantly Increases Size of Au & Cu Target" my understanding it is adding value to our company and significantly so I would say a totally wrong market reaction for anyone looking at the long term here.

I can understand some may be disappointed that mining is not about to get underway as we had expected but as long there is nothing sinister in that decision then it is positive news today and the market has got it wrong for the moment.

The MM's clearly read it that way this morning as well, although they might not always get it right one only has to look at the initial market reaction to a lot of RNS to see that.

I would expect we will see an interview with Greg over the coming days, maybe even later today when hopefully he will explain with more detail the decision.

I was looking at NMG for the longer term and have taken the news as positive.

[4marlin] 11/8/2016 11:36

I think that the market has reacted correctly to this news.
I have a small position

[noirua] 11/8/2016 10:30

Significantly Increases Size of Au & Cu Target


The Company is also pleased to announce that it has signed a Memorandum of Understanding ('MoU') with its local partner's production companies, JSC RMG Gold and JSC RMG Copper (together 'RMG'), outlining mining and processing arrangements for the future production of precious and base metal ores mined at Bolnisi.

---

Noricum significantly ups size of Au, Cu target

[oilbuy] 11/8/2016 08:05

Uncertain where the market is taking the share price. As you said deviating from the original objective. A lot of investors in for the cash generation clearly disappointed and concerned going forward with the certain possibility of dilution.

[sleveen] 11/8/2016 07:59

When's the placing?

[mostyn] 11/8/2016 07:58

This is all about expectation at the moment. Production was expected within the next couple of months and now it isn't. There may not be further dilution but the market clearly doesn't believe this. Directors talk about increasing shareholder value, but most boards seem to have little idea of what drives a share price. There is very much a timing issue as to when this "value" is created if the company has to issue large numbers of shares to develop a particular prospect. What this generally means is that the trajectory of a share price rise (if it does actually rise) is much slower than it would otherwise be.

I still hold a couple of oil stocks where they have had to issue so many shares ("to create shareholder value") that I am down over 90%. Fortunately I did sell the bulk to take a much smaller hit. I'm not saying that Noricum will be affected in this way as the price of gold is rising nicely, but dilution can be a real killer.