Mining Minerals & Metals Share Discussion Threads

[bongo bwana] 31/3/2009 10:49

We are but he gave a pre-election undertaking to wear the clan kilt at St. Paddy Day and the nearest he got to that feat was speaking to the Prime Minister (Taoiseach) in our native tongue.

[haydock] 30/3/2009 11:38

Agreed, just an example of the times.

As he knows Africa, thats his oyster

[bongo bwana] 30/3/2009 11:18

HMc is likely to stick to the African continent where he appears to be highly regarded.

[haydock] 30/3/2009 09:51

With the cash to spend in Mali, they have room to move to profitable future ventures wherever they wish.
The market at the moment is their oyster, anything is possible for paper or a few dollars more.
Cash is king in the world of the small miners, amazing acreage is there for the exploring. Glencar can plan the next moves, after the j/v's.


The ceo of HIF was recently rubbing his pennyless hands together at the thought of the free licences that could be had in Santa Cruz Patagonia.
An area which currently has a good record of companies opening up production, whilst the small exploreres are leaving their plots.

[1waving] 29/3/2009 19:10

From Growth Company Investor:--

Home > Recommendations
Glencar - SPECULATIVE BUY
Companies: GEX
25/03/2009

Mining giant Gold Fields has agreed to earn up to 65% of Glencar's Komana gold project in Mali by spending up to £23m.

In addition, Gold Fields is to pay £2.2m for a 15% stake in AIM-quoted Glencar at 4.55p a share and pay the Dublin-based company £880,000 a year in exploration fees for four years. This should take Komana to the stage of a bankable feasibility study and Glencar hints Gold Fields could also help fund future development of a mine at Komana and help with Solana, another project in the region.

Hugh McCullough, managing director of Glencar, says Komana, with a resource formally estimated last autumn at 1.25m oz of gold at 1.6g of gold per tonne of ore, bolts on to the company's existing Sankirini joint venture with Gold Fields. The annual £880,000 to exploration fee will come with no strings attached and Glencar can use it to explore Solona and other prospects.

Originally fully listed, Glencar's shares fell from 10p in 2000 to 1.25p in 2002 after its original Wassa project in Ghana proved a disappointment. Now 4.88p, they could now make progress if Gold Fields' funding looks like making a success out of Komana.


Robert Tyerman
Market cap: £13.4m
PE Forecast: n/a
Share price: 4.88p

[serpicouk] 28/3/2009 16:19

Just to recap – let me know if there are any errors:

£2.2M placement from goldfields – no strings attached money.

Komana concession:

£14M expediture at Komana from Goldfields over 4 years for 60% of Komana.
£8.4M after 4 year period to earn an additional 5% of Komana.
All subsequent capex will be pro rate – if GEX can't raise their share at competitive rates then Goldfields will take another 5% of Komana in exchange for providing financing at +5% of LIBOR which they will recover directly from GEXs Komana cash flow.
Goldfields are now the operator of Komana.
GEX can acquire 5% interest in Komana from Petite Mining for £700K.

Solona concession:

£875K pa for 4years from Goldfields for development on Solona in exchange for an option to enter a JV.
JV terms will be the same as for the sankarani agreement:
Goldfields to earn 65% of Solona by incurring expenditure of £8.4M over 4 years.
All subsequent capex will be pro rate – if GEX can't raise their share at competitive rates then Goldfields will take another 5% of Solona in exchange for providing financing at +2% of LIBOR which they will recover directly from GEXs Solona cash flow.

Sankarani concession:

Goldfields are earning 65% of Sankarani by incurring expenditure of £8.4M over 4 years.
All subsequent capex will be pro rate – if GEX can't raise their share at competitive rates then Goldfields will take another 5% of Sankarani in exchange for providing financing at +2% of LIBOR which they will recover directly from GEXs Sankarani cash flow.

Uganda concessions:

Farm-in (with Grey Crown resources?).

Ghana concessions:

Farm-in to be announced.

My conclusion:
The above is good in so much as it puts a solid foundation under the company but I'm left wondering whether GEX is in danger of becoming a ground breaker for Goldfields. What's left for GEX - virgin soil and a couple of aeromag targets with a few scatter gun drill holes?

In my opinion Hmc would do well to demonstrate and differentiate GEXs activities from Goldfields at this years AGM. Especially in terms of how he plans to deliver true value for GEX shareholders and not just in terms of (required) 'quick fixes' [may not be the best terminology].
By 'quick fix' I'm talking about selling out promising prospects at very early stages. Based on the last 3 years it's looking more and more like GEX can't or don't want to progress too deeply into any one project – wassa hangover?

I'm just not sure selling 2/3rds of each promising prospects at such early stages will derive the best value long term. Is it even a sustainable strategy? In 4-5 years time will we have cup in hand when Goldfields come to negotiate buying out the remainder of Glencars interest?

I shouldn't guess at the end game with Goldfields – it's impossible to know how things will turn out but extrapolating from the deals so far I'm not convinced the share price will make a new high. But getting back to double figures certainly seems reasonable from here.

[bongo bwana] 28/3/2009 10:50

Now - if we can get HMc and his team to apply a similar dexterity to concluding JV's for our Ugandan and Ghananian interests BEFORE the AGM Id be very pleased.

That would leave the drilling results and they cant be bad as GF must have had access to them prior to commencing negotiations on the Komana JV.

[stenick] 27/3/2009 17:10

What a blinding deal, GF has the hustle and we have 35%....LOL...

[robbi123] 27/3/2009 14:44

Thanks SS, looking forward to it.

[share_shark] 27/3/2009 14:42

Hi robbi. Yes he is.


Will email tonight with information.

[robbi123] 27/3/2009 14:38

Hi SS - Think the Oracle is a busy man:-) .

[robbi123] 27/3/2009 14:19

SS - will do mate, many thanks

[share_shark] 27/3/2009 14:15

Techinvest newsletter ?.

[bongo bwana] 27/3/2009 13:05

You should read that again SS.

Are you the drunken man????

[bongo bwana] 27/3/2009 12:45

I zap my emails once their use for reference purposes has been filed.

The drunken man got filed in the bin, Im afraid.

[bongo bwana] 27/3/2009 11:58

SS that 60p yoke is a mystery to me.

I prefer to be crystal clear, occasionally, myself.

[bongo bwana] 27/3/2009 11:56

Not really SS.

[robbi123] 27/3/2009 11:27

Thanks BB - Thats typical, I thought that only happens to me.