Ovoca Gold Share Discussion Threads

[mikeh30] 07/3/2016 11:23

POLY years high.

[wood fire] 07/3/2016 10:46

POLY up 4% in last 24 hours.!!

[hazl] 07/3/2016 10:36

I think the one thing that is fairly certain is that the directors are canny and I am happy with a small gamble here.

imo

[wood fire] 07/3/2016 08:44

So what would investors rather.

A company loaded with assets, a gold mine to be, cash due, and yet more cash in the bank and POLY shares.

OR

Most of the the rubbish on AIM.

[mikeh30] 07/3/2016 08:39

POLY up again

[hazl] 07/3/2016 08:05

BOZZY Very true its a gamble but you never know which ones are going to fly or crash and burn in reality,I have found.
There is also an article from Elite trader at around that time but what we really need is something current .
Perhaps a Tips TV interview or something or even an RNS!!

[wood fire] 07/3/2016 07:10

The POLY shares are worth way over market cap.

Then add on the cash.

The add on a poss $5M they should have clawed back.

Then add on 100% value of Stakhanovsky.

It's a gift at today's price.

[bozzy_s] 06/3/2016 22:18

Thanks for the Motley Fool link Hazl. Some good nuggets in there (excuse the pun).

I like the fact that the Stakhanovsky deposit, 100% owned by OVG, can presumably be brought back into production cheaply as there is already accommodation on site, and "large-scale sampling has demonstrated that up to 60% can be recoverable using a gravity system only"

Must remember the poor sods who did all that research a few years ago, bought OVG for it's liquid assets, and watched their investment capitulate by >60%. I'd be pretty unhappy if I were in their shoes, and totally understand where Fenners is coming from. It could easily be us in a few years - watching the company sell it's POLY holding and buying a marginal asset from a director's mate for £10m!

Obviously I'm gambling that won't happen, and value will eventually find it's way to shareholders.

[hazl] 06/3/2016 19:26

Very,very interesting thread here.Doesn't take long to read and a more thorough history, I have found than,in some ways, trying to work through,the conventional way.NOT suggesting you only do this but some well-informed posters provide an interesting insight.Clearly Damielle Investments were keen enough to pick them up from Wshak at the time and lets face it the time these investors were posting was as the gold market was going into a decline and arguably going into a likely low for most gold-miners?
IMO AND MAKE OF IT WHAT YOU WILL.

[mikeh30] 06/3/2016 10:55

Follow up article http://www.shareprophets.com/views/1633/ovoca-gold-still-trading-at-half-the-value-of-liquid-assets

[hazl] 06/3/2016 10:36

INTERESTING mikeh30

[mikeh30] 06/3/2016 10:17

POLY holding is now worth £5.5mMore than the mcap.Everything else for free.Sale of assets RNS to add to cash pile will send this over 15p IMO

[wood fire] 06/3/2016 05:50

Even Winnie knows it's way under valued.

That's a first.!!!

[mikeh30] 05/3/2016 22:56

Old but worth a read

[hazl] 05/3/2016 13:30

I will say that I can't be as enthusiastic as you about holding a company up until it delists.
I have not had good experiences myself so can't agree.

[wood fire] 05/3/2016 05:27

All those who have lost on any stock live in the past.

Go to any AIM company AGM where the shares are off 95% plus and you will find 1,2, or 3 shareholders having a rant at the board.

Just the time I like to take a position.

Here you are getting pound notes for 25p or less.!!

Assets is what Mr Walters( D Mail ) tells investors they require when buying penny shares.

To reduce and even remove risk.

[hazl] 04/3/2016 20:12

Have added link on a general note.
Thanks b will get back to you on that,except to say that, clearly before, the investors;some investors in particular it would seem, got themselves worked up about a special dividend ...but where did the idea come from and were they being realistic....?

We have to stick to the facts as you have done and where we are NOW not in the past but at the beginning of a new cycle or so it would seem.

IMO

[wood fire] 04/3/2016 17:30

Russian currency halved that makes the assets dirt cheap to buy. ( and mining costs cheaper)

Cheap oil also keeps costs down.

Pound down V Euro makes the assets worth more.

Share buy backs put an floor on the price.

[bozzy_s] 04/3/2016 17:11

Here's my updated positives and negatives. Have I forgotten to include anything fenners, kiwi monk, hazl, wood fire, mikeh, CuFeS? Fenners I see you've been around these a while. Any more detail on the shareholder action pushing for a cash distribution?

Positives

> Trading at discount to liquid assets (cash + listed shares).

> Trading at huge discount to total assets (including monies receivable which may / may not materialise).

> Management have skin in the game; the road to riches for them is a significantly increased share price. Have started that process with market buy-backs.

> The Russian gold resource might come into play / become viable at a higher gold price. I believe it's a fairly small 0.3m ounces JORC estimate - taken from results PDF. This makes OVG a good leverage play vs increasing gold price (a sector I'm very interested in).

> No debt and almost zero liabilities on the balance sheet (something like £0.2m in total) - the company isn't going bust anytime soon.

> Historically profitable. Retained earnings figure on balance sheet is positive. Almost all small-scale gold explorers/miners have retained losses.


Negatives

> Has always been undervalued by the market.

> Possibility that continued silly valuation vs assets will lead management to delist from AIM, take the company private.

> Always announce results on last possible day before automatic suspension. Not best practice to say the least. One such recent example is PAA which eventually missed the deadline in June 2012. Share price has gone from 500p to 10p since then (it is a basket case company though).

> Risk of future sanctions / conflict / disagreement between Russia and UK/EU leading to devaluation of Russian shares.

> Questionable related party transactions in 2009 when, instead of returning excess cash to shareholders following sale of it's flagship project for $47.7m, the company bought 3 new projects from related parties. These were subsequently written down to zero (but crucially they haven't been disposed of for zero - hence there is no further downside/write-off to happen, but is some scope for recovery if POG recovers. Low resumption costs due to equipment/accommodation already being in place).

> The (mistaken? with good cause?) belief that any value realised by OVG, through cash, through it's POLY shareholding, it's mining properties etc, will be milked by directors and associates rather than the company's owners in general (i.e shareholders).

[wood fire] 04/3/2016 17:06

The POLY shares worth over market cap.!!!

[bozzy_s] 04/3/2016 16:48

I'm not going to do a daily commentary on the POLY share price, or POG, but both up again today. POLY up 28.5p increasing the value of OVG's stake by £220,875 to £5.43m.

I have added 'questionable related party transactions' to my negative list following posts made above. I have also elaborated on 'market always undervalued OVG' by noting there was pressure from shareholders some years ago for the company to repay some of it's excess cash (which was significant at the time) via special dividend / capital distribution - and note that it wasn't successful.

However in my experience value always comes through, even if it takes years. These will find a true value vs assets, even if it means an outsider having to bid for the company, or a group of institutional investors forcing the management's hand.

[hazl] 04/3/2016 08:57

Well, gold rushing up again.....and POLY rises as well....increases our value each time.

IMO

[hazl] 04/3/2016 08:06

I have just a few as a growth share

not a dividend player.

Each have their risks,in my opinion.

[fenners66] 04/3/2016 07:54

Clearly there is no reasoning if you think I had anything to do with extracting €18m + value out of this company.
As was pointed out years ago on the sale of business to Poly there was never any mention of dividends or special dividends.
So how does a small shareholder get value out of this company?
Well some have seen a clear route.....

[wood fire] 04/3/2016 07:31

Pointing out that everything has been written down just helps the Bulls here.

As does all those POLY Shares.