Goldstone Resources Share Discussion Threads

[highly geared] 03/4/2020 11:01

Good move TD. I see multiples of the current price from here with a 3 year view. The macro picture for gold is probably the best it’s ever been. Being in a producer is where it’s at and the revenue generated in the first 2 years will allow them to expand the resource and the asset value whilst generating cash flow, so self funded with no more dilution.

[the deacon] 03/4/2020 10:22

Taken a position here. There's a lot to like over the next 6 months, and commencing operations once the environmental permit is received should prove a significant inflection point. Just £7m market cap is a steal for this company on the cusp of funded production

[anley] 03/4/2020 08:20

Why Gold may be going to $3000oz The thread is a bit long but short term I am looking for $1700+ and then over $2000 say within 18 months. https://seekingalpha.com/article/4334223-gld-why-gold-is-headed-for-3000?utm_medium=email&utm_source=seeking_alpha&mail_subject=must-read-market-recovery-sooner-than-most-expect&utm_campaign=nl-must-read&utm_content=link-12 The Warrent team are going to make a fortune if this all comes to pass but BB posters I am in this as well.

[highly geared] 02/4/2020 16:49

Anley, no , I’ve excluded the warrants that will be dilutive but raise cash. There’s a bigger picture ‘narrativeR17; here in terms of Homase pit, Akroterri high grade veins along strike to the nearby Obuasi 42million oz mine and the synergies or interest that may occur. If, as is possible, the deposits are linked, it doesn’t take an idiot to work out what might happen in 2-3years time as GRL are producing and hopefully expanding the resource...

[anley] 02/4/2020 16:31

HG......does that include the Warrants to be issued at 3p.........not that it matters to much as it will be additional working capital. AND to help matters inflation will also help the share price...................

[highly geared] 02/4/2020 14:07

My target price is 25p for mid/late 2022 based on the above figures and assuming no further dilution.

[anley] 02/4/2020 13:50

Thank you HG for your estimates which I agree with. If the minable resources c.82,000 oz oxide ore are mined (82% recovery) by say end 2021 and gold stays at $1700 oz then the figures explode with all debt repaid - then there is a further injection of capital via the warrents and perhaps a take-out by a nearby competitor....... I am much warmer to the Gold story than several months ago........well done Emma.

[highly geared] 01/4/2020 13:59

Agreed Anley. Thinking forward to 2021 and assuming they do c. 30,000oz, and assuming $1500 gold ( to be conservative), based on the Aisc of $852, that’s $19.44 million operating revenue most of which goes to EBIT. I’d expect some of this to go to ongoing Capex and some to exploration to expand the resource but it still points to perhaps £5-7 million of net EBIT. That could value GRL at £30 million (5x EBIT) assuming the resource is expanding and they come up with a solution to mine the refractory ore below the oxide. The likely scenario in the first 2 years is the profits being recycled to develop a much bigger operation with a 10 year + LOM and say 50-75k oz/annum production.

[anley] 01/4/2020 10:19

I agree HG and furthermore the price of Gold could rise substantially as there is a shortage for delivery.............the other point is that if everyone cashed in the ETF Gold Fund shares there would NOT be sufficient Gold to settle every shareholder.......that is one to watch. Gold at $1700 could also make these shares worth more than 6p.......lets hope so for many shareholders have suffered in GRL.

[highly geared] 31/3/2020 18:18

NPV of Homase is c. £16 million. The gap between this and the share price should close once the environmental permit is received as project finance is now sorted. Hopefully around 6p/share by late June...j

[anley] 31/3/2020 12:53

A few shares have been released this morning to take care of MM and a few buyers........that is good.

[spacedust] 31/3/2020 10:30

As long as the sentiment is with us that's important in the short term

[trader365] 30/3/2020 18:23

Obuasi is on lockdown, there will be no gold mined by GRL this year "Following an announcement of a lockdown in Accra, Kumasi, Tema and Obuasi effective today, Monday March 30, 2020, there has been a mass movement of residents from the affected regions to other regions especially to the northern part of the country" Https://www.ghanaweb.com/GhanaHomePage/NewsArchive/Coronavirus-Stay-away-from-runaway-travellers-entering-your-region-Gov-t-advises-908086

[spacedust] 30/3/2020 16:30

Let me know when you've reported and what action they will never take

[maverick247] 30/3/2020 14:18

Final permit due and we start productionMeanwhile mm's manipulating the price of which I'll be reporting to FCA given two over ask buys and making it repeatedly NT which is not a fair and transparent market !

[trader365] 27/3/2020 19:56

Virus cases in Ghana grew by 82% yesterday alone. httpS://en.wikipedia.org/wiki/2020_coronavirus_pandemic_in_Ghana

[jrangy01] 27/3/2020 11:29

The junior miners have flexible operations able to respond faster to change , When the majors are affected it will inevitably lead to an increased gold price since many have delivery obligations. I predict > 2000 $. The higher the price the better value the juniors at gold 1700 $ grl NPV circa 10p per share only on Homase HL project, there is still 600,000 oz in Jorc below that and the high grade Akrokerri mine, so huge additional value dyor...

[highly geared] 26/3/2020 18:16

Anley, little point in engaging with Narcissists and other toxic types. Filter button is apt.

[trader365] 26/3/2020 18:07

anley - If you have me on filter then you have no need to comment, and I'm sure 'most' are intelligent enough to form their own opinions and make their own decisions. Idiot! If people believe this mine will be constructed and producing gold within three months when the whole mining sector is slowing/cutting production and going on C&M then they are obviously not very astute investors. Http://www.canadianminingjournal.com/news/covid-19-coronavirus-impacts-spread-across-mining-sector/

[anley] 26/3/2020 15:47

I have TRADER filtered as everyone else should. Production starts after issue of permit = Late June going into July = News release. Next stage = News release on how production is going and anything else the board wishes to announce. Forecast price (dangerous to do) around 4p by July 2020 but I still don't have a real handle on the cash flow and profitability in 2020/21.......I think HighyGeared had a stab in a previous post.

[trader365] 26/3/2020 15:19

Highly Strung - I love conspiracy theorists Production in 3 months?? The mine is not yet constructed you plonker! And with Covid-19 being present in the Obuasi mine there will obviously be no construction activity for the foreseeable. Expect an update informing the market of a delay to mine construction.

[highly geared] 26/3/2020 13:12

Production in 3-4 months as CV hopefully abates and gold is $1600 + and still trader365 defames the CEO. The timing to production start couldn’t be better in the macro sense but don’t let a personal vendetta using the anonymity of an internet bulletin board stop you. What a sad Individual you are trader..

[stonesp2] 26/3/2020 13:11

Perhaps the rise will be sustained this time ...

[stonesp2] 24/3/2020 12:52

That's a surprise... gold should buck the trend eventually..