The accumulated dilution over the past few years impacts long term holders ( looking to recover their money) and puts a ceiling on what new investors might gain if all goes well if you invested <1p.
If a new investor, I think this time around and subject to hitting stated production targets and with gold at or above $2600, a realistic share price of 5p over the next 18 months isn’t out of the question. |
The dilution is 260% and you sold down 93.6%. Hence an extremely strong case to invest. Debt down and production rocketing. |
You can't change the past.Investing now at less than 2p is the relevant conversation.Buy back in now and enjoy the ride. Don't just type drivel because you brought at 14.5p and sold a few weeks ago at 0.93p. It's history. |
2019 number of ordinary shares in issue 249,707,991
2024 number of ordinary shares in issue 900,186,117
The dilution percentage is 260.3%.
The current share price is 1.2p.
To recover from dilution, the share price must increase by the same dilution percentage. This means the price needs to increase by 260.3% to return to its pre-dilution value.
So, the share price would need to rise to 4.32p for investors to recover the value lost due to dilution. |
trader, lets see what happens over the next few weeks and months! If they are not getting anywhere near their goals then well done you for warning everyone but if they are I'd change your username.....just saying :-) |
16% dilution to clear debt equivalent to 50% of the MCAP.Great deal. Lying or you don't understand? |
The details are in the same news update.You have taken earlier forecasts, ignored the updates and assumed the future will repeat itself. Ridiculous. The operation is different now.You've also missed information about the gold content in the dore and produced nonsense forecasts. Plus ignored the reduced credit costs in 2025Pure negative lies |
The only technical issue I see is the gold was technically nicked, and some more gold worth over $10m was technically lost
"Debt significantly reduced"
at the expense of destroying almost half the shareholder value through dilution |
"they had technical issues"
"technical issues resolved"
What exactly were these technical issues? And how were they resolved??
Do you have links?
Thanks in advance |
Yes, however they had technical issues, as reported in September 2022. These were resolved in 2023, however, significant debt taken on to cover the lack of revenue. Debt significantly reduced now and technical issues resolved.I'm sure you noted the Nov 2021 gold dore to gold bullion ratio - 94.669%. The balance being silver. |
Didn't she say the same a few years ago? I was hot air, where did the money go?
however our current expectation for production in 2022 has been revised to 14,00 oz, rising to 20,000oz in 2023.
On 17 January 2022, the Group announced the export of the first commercial gold pour of 42.96 kg gold doré, which included the 14.46kg poured in November 2021. This produced 40.96 kg of gold bullion (1,307 Troy Ounces) and 1.72 kg of silver bullion (55 Troy Ounces), and revenues of US$2.4 million, of which US$1.1 million was credited as payment of the Gold Loan. Since January, the Group has exported and received income from 46.44 kg of gold bullion (approximately 1,493 ounces), 1.7 kg of silver bullion (approximately 100 ounces), resulting in US$2.84 million of revenue. The Group continues to produce and export gold monthly |
 Good to see the continued recovery in share price now the CLN issue has been resolved!
A reminder from the last update with another probably due in a few weeks:
9 December 2024
Goldstone Resources Limited (AIM: GRL) is pleased to provide an update on the progress of operations in respect of the Homase Mine and heap leach operation in south-western Ghana ("Homase").
· The production ramp up continues to advance in line with expectations and remains on target for expected production for the remainder of 2024 and going into 2025.
· 34% increase in average monthly production, with 380 ounces of gold doré produced in November (average production during 2024 of 250 ounces per month) - see Figure 1 for the bar poured.
· The second shift started in November 2024 and stacked agglomerated ore totalled 45,000 tonnes.
· Civil engineering continues to progress the construction for Cells 6 and 7 for the continuation of the mining operations for the planned ramp up of production into 2025.
Emma Priestley, Chief Executive Officer, commented:
"Our ramp up at Homase continues at pace and we remain on track to deliver our stated objective of producing 1,000oz pcm from January 2025. November was a great month on site, with gold production up 34% from our yearly average, and we stacked a total of 45,000 tonnes of ore, supporting our upward production trajectory into next year. |
Quiet today. What increase will generate some dialogue? |
Shorter term , the share price needs to double for the loan note conversion and consideration shares to make a profit. £2.7m is a lot to convert on a whim, so it suggests they are confident of the company will finally deliver on the production targets, AISC and profit generation. |
The CEO could exercise 17M share options if the targets are met. 50% at 2p, 25% at 2.5 and 3p. If the price rises to 10p on great results and progress on the Akrokeri Mine, the profit would be circa GBP1.3M. I believe an additional 60M shares are held by the CEO, currently worth GBP660kPotential value of 77M shares at 10p is GBP7.7M.What would you do - skim gold dore out the back door or grow an efficient business, with an ever dropping AISC? |
What a bizarre message. A list of ways you think gold can be stolen from a mine. Related to a stock you don't hold. Try running the numbers on how much wealth is created if the share option targets are achieved and exercised at 2, 2.5 and 3p so the share price rises to 10p. Add this to the very large existing holdings of the executives.How does this compare to robbing a few nuggets of dore gold from the field?Clearly you've never focused on adding value to anything in your life. You'd be far wealthier and less vindictive, if you had. |
Don't judge everyone by your standards.The management will be rewarded much more by producing great results |
How Easy Would It Be to Skim Gold?
1. Ore Grades (g/t):
• By underreporting the grade of ore processed, directors can misrepresent how much gold is actually extracted.
• For example, reporting a grade of 1.2 g/t instead of the actual 1.4 g/t reduces the expected gold output on paper, allowing the “missing”; gold to be diverted.
2. Gold Recovery Rates:
• Recovery rates (e.g., 60%-75% from dore) can be understated to account for “losses” during smelting or refining.
• This discrepancy can easily mask diverted gold if auditors do not verify recovery rates independently.
3. Unrefined Dore Bars:
• Dore bars are shipped to refiners for final processing. Unless independently weighed and tracked, discrepancies in dore weights can conceal theft.
4. Collusion:
• With only one or two individuals in charge of data reporting, collusion between key personnel (e.g., mine manager and finance director) simplifies the process.
5. AISC Manipulation:
• Skimming gold increases operational costs (AISC), which can be justified to investors by citing equipment failure, ore dilution, or external factors like inflation |
Yes space, it certainly is! I had to sell some HSP a couple of weeks ago for the festival period but mainly for selfish reasons ie bar bill! |
Just some peeps selling taking cash out. End of the year is an expensive time. Some people need to pay their end of yr tax returns too.
December pour should be announced around mid January |
You ignore that fact the MCAP before was GBP7.5M which priced in the debt of GBP2.8M. So share numbers increased 16% but the rise in value of the business grew much more. You can't ignore the removal of the debt and only look at the extra shares. At 1.9p the value of all the existing shares rose due to this deal. |
The 2.8M debt conversion plus future interest cost is a fanatic deal for 16%. It's just typical AIM Market stupidity. The next report balance sheet and revenue report will show a huge U-turnThey'll have positive cash flow before Q2 2025, so will clear more debt. Debt free by the end of 2025 and the AISC will drop through the floor as the g / t rises the deeper they dig. Markets react slow. |
I made it 20% extra shares not 16% but very happy with it as a solution esp at the 1.88p level they converted at.
Question now imo is does production rise as predicted if so then holders should be happy bunnies as future updates come out. |
To compensate for dilution, the price per share needs to increase by more than the percentage of dilution. This is because the value that was once concentrated in a smaller number of shares is now divided among more shares, so the price per share must rise proportionally more to restore your original share’s value.
If a company dilutes by 50%, the price of each share is effectively cut in half, because the ownership is now spread over twice as many shares. To bring your investment back to its original value, the price must double (100% rise) because the new price needs to make up for the lost value caused by the increase in the number of shares.
If the company’s total value stays constant but the number of shares doubles, each share will initially be worth half as much. To restore the original value per share, the share price must rise 100% i.e., double in price |
“saves huge future interest costs”
The future interest costs have been saved at the cost of 16% of the value of the whole company 🤷a94;️ |
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