Mining Minerals & Metals Share Discussion Threads

[bongo bwana] 23/2/2008 18:25

William Cummins has retired as has another Wassa period director. The remaining directors were around for Wassa.

The only significant risks appears to be that GEX may not get a mine operating at Komana before the gold price begins a downward trend and that GF will rule the Sankarini project area licenses as not worth the bother. There are no funding issues! Komana currently has the characteristics of having the potential to be a significant mine which will most likely be a JV between GEX and another.

[amt] 23/2/2008 18:16

1waving - As I stated I only have a small holding. A few hundred pounds to be exact and so havent bothered to do much research since Wassa, when I effectively wrote off my investment. I am waiting for someone to post something re-assuring though rather than skate over the history. Perhaps the company is under different management, I dont know. The ridiculously low share price vs value of the reserves seems almost too good to be true. Anyway enough said I will just sit back & read what you all have to say and maybe, maybe invest some more at some stage in the future.

[bongo bwana] 23/2/2008 18:03

Serp - what additional data do you require on Reb?

"amt" on the brink of being filtered!

[1waving] 23/2/2008 18:00

amt
It seems to me that you are fully aware of the answers to your questions, particularly as you purport to be a long term shareholder.

I now believe your posts on this thread are disingenuous and so will treat your posts as such until you can prove otherwise.

In short, I now regard you as a deliberate nuisance poster

[amt] 23/2/2008 17:48

1waving - I have a small holding. I have purchased a few more since the Wassa debacle. I am not convinced though and hold in hope rather than conviction. I dont think Wassa can be easily dismissed it was a total and utter disaster. Are the same Directors still in place ?

[bongo bwana] 23/2/2008 16:30

Serp - I dont mean to be rude but Ive posted the details on the Teberebie deal previously. A recent illness had temporarily affected my memory of the detail but my recollection of the key points is as follows:

1. Glencar established a JORC resource of 500,000 ounces there,
2. Teberebie has since produced 5million ounces and it is reckoned to
contain another 5million ounces of economically recoverable gold,
3. Glencar had to surrender its interest in Teberebie as Irish exchequer
regulations prevented the transfer of funds raised in Ireland to Ghana
for such purposes.

Where have you heard the 500,000 ounces JORC before????

[serpicouk] 23/2/2008 16:15

Wassa always crops up in discussion - anyone know what the deal was with the Teberebie Mine?

[bongo bwana] 23/2/2008 12:32

Well said 1Waving - you beat me to it this morning.

"Amt" - if you had been researching this company from before the Wassa period and that research had extended to the quality people in GEX you would have put your faith in the firm and averaged down at the time measured as appropriate for your circumstances.

I did, in fact I would have put the bank into GEX if I had available funds. The outturn for this belief/trust/investment has been nothing short of spectacular. Personal circumstances during the pasy year have dictated the liquidation of a substantial portion of my immediate post Wassa shares trance purchased.

My faith in GEX and its people was justified then and remains justified now and IMHO the current share price represents a tremendous buying opportunity once again. This time I dont have the cash but I have another couple of shares which just might bring me in £16,500 and £40,000 respectively during the course of the next 12 months. These accumulated funds (if they materialise) are destined for GEX.

Thats my position. Its my belief in the people in GEX, how they do business in African countries, the freshness of the clarity and honesty of their communications with their shareholders, their their accessability to shareholders makes this company one to be in.

[1waving] 23/2/2008 11:41

One of the most important assets in investing and trading is understanding sentiment and your own psychology. If you now own this stock, given that it has caused you pain before, and if it is worrying you so badly now, you should stop the pain and get out.

If you do not own the stock, to what end and purpose are the recent posts you have put up on this thread ?
Do you hold the shares or not ?

As for the comment on a take out for company, that has been addressed on the thread several times, a JV at Komana is the favourite, a bid from a major is possible when it has say 2m resource ounces and maybe a further 2kms of strike length.

[amt] 23/2/2008 10:07

Maybe and I hope you are correct. However it is true that the company was as good as worthless after the last fiasco when it looked to be a dead cert bonanza and it all fell appart. According to valuations from earlier posts the upside is enormous but what are the chances of that coming to fruition, probably small otherwise the other mining companies would have taken it out.

[1waving] 22/2/2008 22:11

If you are referring to having to sell it's interest in the Wassa mine in 2002 which was not profitable as the gold price was then $250-300, the statement of 'in a similar position now' is ridiculous.

Cash in the bank, no material debt obligations, fundamentally sound, top JV partner, building a resource, high demand for gold, currently $940.

Always do your own research even though someone may have tipped it.

Without that upset in 2002 we would not have the good fortune of the opportunity we have now. Glencar has successfully discovered two major gold deposits in the past and is now on to it's third. !!!!!!

[1waving] 21/2/2008 13:09

Just for a moment, thought you were trying a bit of arbitrage, phew.
What you've done certainly does add up.

[dr fillip strange] 21/2/2008 13:01

1 Waving not looking to make money out of the transaction just to get a cheaper Share price for my wee GEX top up, just paid 8.97c Per Share for 17k shares on aim which would have cost me 9.60c per share on IEX a saving of €107 or 7%, it all adds up.

[1waving] 21/2/2008 12:49

Watch out for being churned by a broker. Don't forget costs and spreads. What you are talking about is arbitrage with a currency risk. You need to have split second timing and very good management for that type of risk. Prices can and will move in an instant. Very high risk.

Beware !

[dr fillip strange] 21/2/2008 12:38

Just checked with my broker, and the answer is yes buy on IEX sell on AIM & Vica Versa....sweet!!

[bartender18] 21/2/2008 12:35

Stange trade, first buy well above the offer, then a large sell, but a tick up.I hold and want to buy more. Waiting for some sign of improvement

[dr fillip strange] 21/2/2008 11:48

Is it possible to buy Glencar on AIM and sell it on the Irish stock exchange?

.........................Bid Ask
currently trading on AIM 6.55p 6.75

Stg/€ .7529 => €uro AIM 8.69c 8.96c

currently trading on IEX 9c 9.6c


.64c Per Share cheaper to buy on AIM

[1waving] 20/2/2008 23:37

Serp,
The $500 asset value per oz is a base figure which is 'useful' to work from, maybe in the currently unlikely event of a bid, but mainly useful to arrive at a value per oz to Glencar. Glencar will have done a lot of work to get the project to an advanced stage so should retain a strong %age, this may give a JV partner 55%. Take another 20-25% off for additional factors so that totals 75-80% off the asset value of $500. This gives Glencar $100-125 per oz value on the Komana resource so multiply that by the number of ounces there and add in the value of Glencar's other license areas and assets to value the company.

There are so many variables with additional drilling and news to come, the price of gold, mining costs etc, it seems that trying to put a value on the company can be rapidly outdated.

I think the one thing that stands out is the outstanding value of Glencar.

[serpicouk] 20/2/2008 22:33

1waving - excellent contributions as usual.

Not sure I'm comfortable with the use of asset value for any valuation of GEX. The numbers will be huge and (unfortunately) are never likely to be realized.

When I estimate the current/future value of GEX I've typically used an in-ground value rather than estimating an asset value as above. I do this with all my explorers who are some way off production - or in the case of GEX may JV out/off load the resource before production.

As they say, 'all gold in the ground is not created equally' - so hard to put a meaningful value on it until we have a better understanding of grade, depth and potential costs etc. Not to mention the prevailing Gold market. But $40-80 seems to be a nice large ball park that others have used - in fact I believe Davy's research note last year used $50/oz for Komana West with a headline gold price of $600.

Not sure what your thoughts are on this. Of course, $80 and 'just' 2,000,000oz would still see a very handsome return for all here.

Serp.

[1waving] 20/2/2008 19:15

The numbers do look very strong but they are the words of a very respected gold investor.
A simple way that I use occasionally is current price of gold $900, minus production cost and initial capital cost $300 + $100 = $400.
$900 - $400 = $500
Multiply by number of ounces, at Komana I'm comfortable with 2,000,000oz
Then you get a simple asset value.

Essentially a very similar method to the one above, easy to do without pen and paper.

NB This method for deposits over 1m oz only