Patagonia Gold Share Discussion Threads

[gsg] 10/1/2019 15:15

justino, thank you for your detailed response.

It will be interesting to see what the latest Calcatreu drilling campaign delivers.

[hazl] 10/1/2019 14:58

Thanks...a long time ago now!

[justino] 10/1/2019 14:54

Hazl. We became a small producer years after the 70p high with the low capex Lomada de Leiva heap leach which helped provide some cash but is now closed.

[justino] 10/1/2019 14:52

GSG. I believe we currently have about 1.1m oz already at Calcatreu and remember being told that there were surrounding areas that hadn't had any drilling to date but ground exploration showed they had similar mineralisation. I think the original resource when purchased was circa 800k oz but the data was very old. Modern techniques and s small drilling campaign i think got us to the 1.1m oz.

My 2m oz is speculative but i think possible over the next year or two with one or two decent drilling campaigns.

Remember we also have the 300k oz of high grade at Cap Oeste. It will be interesting to see what we do with that.

[gsg] 10/1/2019 14:22

justino.

May I ask how you arrived at the potential 2m oz resource figure for Calcatreu from the current drilling campaign?

[gsg] 10/1/2019 13:39

Nope. It was an explorer in Santa Cruz, long before which it was an explorer in Chubut.

[hazl] 10/1/2019 13:08

I thought it was a producer back in the day but that's from memory,could be wrong.

[justino] 10/1/2019 11:52

To refresh memories of long term holders and help newer ones.

PGD has circa 24 million shares in issue, hence at the current 105p price a market cap of £25 million pounds.

The share consolidated 100 to one in 2018 at approx 1.25p to 125p. Before consolidation there were about 2.5 billion shares in issue.

In 2011 PGD peaked at 70p, but there were a lot less shares in issue, around 450 million from memory but i could be wrong, making market cap of £300 million pounds. At that point PGD was purely an explorer and hadn't produced an oz of gold. It had the Cap Oeste Project with just over 1 moz. The market was highly charged by gold price speculation (gold got to $1900).

Back to today. PGD has valuable resources, modest but improving production levels and a highly
prospective land package including Calcatreu with over 1m oz and potentially closer to 2 m oz over the next drilling campaign.

Debt is high but it seems the CEO is doing his very best to cut costs and pay down debt.

To get back to a £300m market cap (old 70p) level in today's terms PGD would have to get to a price of about 1200p or £12

For that to happen i think we'd need:

1. Debt reducing rapidly towards zero.

2. Production from all projects of 80k oz per year with all in cash costs of $650/oz (£1250 gold price) so $600 profit per oz or $48m per year.

3. Calcatreu at 2m oz.

Just my opinion and how I hope PGD will turn from here.

[whu0319] 10/1/2019 11:07

Guys : I still think the recent rapid rerating and HUGE potential would well be caused by the rapid gold price rally $1297 last nit at US time (as USD going down), break off and over the $1300/oz will make the economics for the 300,000oz of reserve beneath the open pit at Cap Oeste works out perfectly, let along the forthcoming drilling results on Calcatreu, PLUS free 4 new properties in the area !!! vGiven the last round placing was 1p (100 today), I just CAN Not see why this is not going back to 150-200 range very soon. ! Hold and buy is still my approach !! Just personal position and no advice intended. GLA , Dr WHO

[hazl] 10/1/2019 10:38

...crumbs even lochlea upbeat....that takes some doing!

[gsg] 10/1/2019 09:34

lochlea, indeed. Just wish I had'nt been stuck here for over a decade.

Lets hope the directors can provide some positive vibes. The Calcatreu project shows more promise than all of PGD's other projects put together over the years imo, so eagerly awaiting drill results.

It would be nice to get back to my average, however that will take some doing.

[lochlea] 10/1/2019 09:21

Like days of old GSG you supplying L2 detail on here....... keep it up m8...... it's got a positive vibe attached to it!!!

[goldenshare888] 10/1/2019 08:18

Am I right in thinking that this is only 1p in old pre-consolidation money?

Previous high c 70p in old money I seem to recall?

WOW - Looks incredibly cheap considering production now and assets...

[hazl] 09/1/2019 17:22

So pleased to hear it. Am influenced by the moral issues. Thanks for comprehensive reply

[hazl] 09/1/2019 13:18

GSG As an ex resident of Patagonia...I would be interested to know if you feel they adhere to environmental issues and how it compares to various mining communities?

[gsg] 09/1/2019 08:42

Struth dex. How funny can you be? Thanks for your valuable contribution.

[gsg] 08/1/2019 20:46

There's the odd person on another, bb putting an unsubstantiated bid rumour is in S American press. As an ex resident of Patagonia, I have trawled through the Argentinian press and found nothing.

Just wondering whether the recent price action has anything to do with the latest rns re consolidating the land package around El Tranquilo. It seems coincidental that the price has reacted after this announcement.

Christopher van Tienhoven, CEO, commented:

"With this acquisition, Patagonia Gold will consolidate the properties adjacent or near to its El Tranquilo block, thereby expanding the Company's potential mineral resources in the highly prospective El Deseado Massif region. Future detailed exploration activities will be carried out in the acquired areas in order to seek to increase our inventory of resources."

Either that or possibly drill results from Calcatreu.

[hazl] 08/1/2019 14:09

Gold will be up again at some point I would guess...

[hazl] 08/1/2019 14:08

Gold retreating as more risk accepted on general market ...

[amrishbhim] 08/1/2019 13:53

Mms tree shaking more likely than shorters

[lochlea] 08/1/2019 13:47

Successful shake of the tree by MMs or have we attracted short selling given the sudden impressive bounce?