Goldstone Resources Share Discussion Threads

[arab3] 12/6/2020 12:54

Good luck spacedust, I am only 65% down now !

[spacedust] 12/6/2020 12:48

I added 50k. Here's hop8ng that if this ever hits 50p then I'll be not only break even on my 2009 and 2010 purchase but I'll 10 bag on todays purchase.

Do miracles really happen

[spacedust] 12/6/2020 11:28

Could the volumes chart be added on this thread ?

[anley] 12/6/2020 10:16

No stopping the management now.........full steam ahead............

[kcaco] 12/6/2020 09:28

Thanks . I’ve bought some more this morning . I can’t see it going back if they are so close to production.

[flashheart] 11/6/2020 22:49

Check out Highly Geared posts. They'll give you as good an insight as you'll get at present.

[kcaco] 11/6/2020 21:44

I missed the re listing today .( no signal working outdoors ) . Plus I had decided to stop looking at the chat as It was getting a bit tiresome playing the waiting game . A lot of new names to the chat obviously with the news ( is this the norm when you get a share shoot up in price ?)
. So to those posters who posted on the chat before the suspension And the rush of new posters (you know who you are) ..what’s your opinion ? I’ve said before I’m new to this game . I know everybody tags on IMO or DYOR ..so I’m cool with that . but I am genuinely looking for a few opinions with reasons

[highly geared] 11/6/2020 21:33

Space dust, if production goes well and they get some good follow up drill results at Akrokeri indicative of high grade ore availability, and gold pushes to $2500, you’ll get your 50p.

[highly geared] 11/6/2020 21:29

72,000 oz initial production over c. 3 years with AISC of $852 and estimated average gold price of $1750 over the period = c £52 million net revenue and likely above £40 million at EBIT level.

With the resources likely to be expanded significantly,I think anything below £25 million market cap is a steal.

The environmental permit application approval timetable envisages confirmation later this month. If mine construction commences July, production should start later this year. Production start and the gold price macro environment could hardly be better.

[spacedust] 11/6/2020 21:26

You'll have to go back as far as 2010. That's how long I've been waiting. But 50p may and well truly be hit if gold goes to 2500.

[spacedust] 11/6/2020 21:22

Arab I need 50p just to break even so no I'm not buying any. I've been in this well in excess of 10yr.

I remember Bendigo mining buy8ng these for 6p (todays 60p) at a premium when the price was 3p then.

I should have sold out at 12p (today's 120p)

After that it was raped by consolidation

[highly geared] 11/6/2020 21:21

Reminder:

DEP Highlights

-- The shallow, free dig mining of the oxide/weathered ore zones only at the Proposed Mine
-- Based on establishing a cyanide heap leach processing facility and recommends using a contract mining method

-- Total initial capital costs (including pre-stripping and contingency) estimated to be US$6.5 million

-- Summary economics
- An after-tax Net Present Value of US$19.5 million (at a 10% discount rate)
- An after-tax IRR of 143% at a gold price of US$1,300 per ounce (oz)
- An after-tax payback of the initial capital cost within 1 year
-- The DEP estimates that the mineable resource from the Proposed Mine is approximately 82,000 oz of contained gold in oxide ore with a projected 82% recovery from 2.17 million tonnes of oxide ore at an average grade of 1.2 g/t gold (the "Mineable Resource")

- Mineable resource is part of the AKHM JORC Resource of 602,000 oz
- Recovery based on proven by column leach testing at University of Mines and Technology Tarkwa ("UMaT")

- The Company is proposing to also place tailings from the former Akrokeri Underground Mine ("Akrokeri Tailings"), which the Company estimates to include approximately 91,000 tonnes at an average grade of 2.27 g/t gold, equating to approximately 6,500 oz of contained gold with a recovery of 73%. Recovery rate based on bottle roll test-work completed by ALS Laboratories Kumasi

-- The DEP estimates that the total plant feed from the Proposed Mine and the Akrokeri Tailings will be approximately 2.26 million tonnes with an average grade of 1.2 g/t gold giving total ounces to the plant of approximately 88,500 oz

- The DEP estimates that the heap leach facility will recover, in total, approximately 72,000 oz, giving an overall Life of Mine ("LOM") recovery of approximately 81%

-- Proposed LOM projected to be five years, with an average all-in cost, that includes capital plus cash costs, of US$852/oz

- LOM capital cost, including sustaining capital costs, estimated to be US$8.4 million

[highly geared] 11/6/2020 21:10

Look at the IRR and payback period!
Look at the potential to expand resources and production from initial cash flow.
Look at the resource potential from Akrokeri.
Look at the AISC v. Price of gold.

[arab3] 11/6/2020 20:14

Any company names Wooster ?

[wooster4] 11/6/2020 19:58

marketanalyst - there are far better companies that trade at far greater discounts to nav than this. And by the way what's meant by a sophisticated investor?

[highly geared] 11/6/2020 19:12

I picked up £2.5k at 3.875p in the moments after it started trading this afternoon. I have a decent amount bought at 1.62p and 2.3p. This is a hidden gem that has huge potential. Production should start in the next 2 months and the numbers look great. Being on trend and 5 miles down the road from the 42 million oz Obuasi mine makes for huge upside...

[arab3] 11/6/2020 19:05

Will you be wanting in then spacedust ?

[spacedust] 11/6/2020 18:23

Will be down badly tomorrow

[arab3] 11/6/2020 18:01

You could buy and sell betwen 4 and 4.5 in the last 20 mins, good luck for tomorrow

[flashheart] 11/6/2020 17:55

That's after hit hit 6.5 on the offer which I wasn't going to chase. Hopefully in for more in the morning if reasonable.

[marketanalyst1] 11/6/2020 17:27

Private investors would be wise to note the following about Goldstone Resources:

• Formally awarded a 10yr mining lease on the Akrokeri and Homase Licences on the 14 February 2020 by the Government of Ghana. Both licences are situated in the Ashanti Gold Belt, Ghana.

• The asset boasts a gold recovery rate of 87.5% and an IRR of 143% (at a gold price of US$1,300).

• The asset boasted a Net Present Value of £14.9m (at a gold price of US$1,300 per ounce) on September 2019. However, at the current gold price of $1,700, the asset boasts an NPV of £19.37m.

• The company raised £3.4 million on 16 March 2020 from sophisticated investors to finance the advancement of its Akrokeri-Homase Gold Project (AHGP) into production.

• The company withdrew £235,000 from its £2.35m Asian Investment Management Services gold loan. Drawdown period extended to June 30, 2020 should they need the remaining £2.1m.

• Heavy weight gold investors Paracale Gold and BCM Investments took part in the bond issue.

• The company confirmed, on 30 April 2020, that it was on track for gold production in H2 2020 at its AHGP asset.


So, with a current market cap of £11.75m (4.7pence per share), and less cash of £3.5m, means the market is valuing the company’s Akrokeri-Homase Gold asset at a paltry £8.25m. Compare this to the asset’s current value of £19.37m.

Thus, a base valuation of 12pence per share (or a £29.3m market cap), that factors-in the current NPV of AHGP alongside the company’s cash balances seems eminently sensible.

But here’s the real kicker;

Valuing the company on a DCF (Discounted Cash Flow) model throws up significantly higher values, especially considering that the company is only a couple of months away from production; implying an extraordinary upside on the stock, and underpinned by a waning global economy that is accelerating the unfettered printing of fiat currency, and which will gradually lead to a $2,000-plus gold price.

Thus, take cue from the shrewd money taking LONG positions in the stock today.

[arab3] 11/6/2020 17:22

What price did you get in at flasheart?

[herb clark] 11/6/2020 17:15

Can you buy through HL App?