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Share price is drifting but has been remarkably resilient given working cap funding required, debt levels and Demir exit. The company itself offers no investment case. I guess just wait and see what they come up with - a technical plan and how they propose to fund it.
DS, the investment case has to be 520,000oz worth $1,250 million. Even at a 1% valuation, that's 25p a share.
The latest study shows an NPV of $72 million for Clontibret.
The $72M NPV was announced in 2011 based on $1,372/oz. It should be a simple matter to update to $2,400/oz.
Indeed you would think if they are serious about developing a project they would update the resource, costs and revenues to demonstrate an investment case to investors, rather than use a study that is 13 years old. However those are the numbers that are in the market.
There's a lot more than half a million oz too. No step out drilling has been added to it for years. The prof is confident of a couple of million ounces at Clontibret. Plus they have only drilled mostly to a couple of hundred metres. Plus you have Clay Lake valued at zero which is a joke.
There really isn't more than half a million oz. That's all that's been reported. Anything else is unqualified speculation based on no data, no plan from the company. There has been plenty of infill and stepout drilling at Clontibret yet no update to the resource, no drawings to illustrate the impact of the drilling. Why not share more with investors? Clay Lake is valued at zero because nothing has been presented to investors to persuade them otherwise.
Price slipping more - a working capital placing at 7-7.5p would seem a reasonable expectation at this stage, they may need a deeper discount than that.
"Clontibret as well, looking at 2 or 3 million ounces there"
Good to look at CMCL's announcement on Bilboes in Zimbabwe. PEA on a refractory gold deposit at similar grade to Clontibret, but with a resource of 3 Moz it is 6 times the size. Capex is $400m and NPV is $300m. Costs there will be much lower than Ireland.
Some people here need to get real.
"The possibility of a world class gold deposit at Clay Lake is, in the Board’s view, becoming increasingly likely."
Couldn't be more vague.... "....possibility.....in the board's view.....becoming increasingly likely."
What is world class anyway?
"major companies watching progress and very impressed"
After 20 years the prof should really put some skin on these rumours he drips out, otherwise that’s all they are.
Recent quote from the prof: "obviously going to be more than one mine"
Obviously. I sold out in October and still look in from time to time.
GLA.
Obvious to a professor of physiology but not obvious to a mining company who spent 2 years and over €5 million looking at it?
When an announcement of proposed JV lands it's going to fly.
The possibility becoming increasingly, well... possible 🤣
World class means numerically in the top 10% by metal contained, in the case of gold, over 3.2Moz proven reserve (yes, reserve not resource).
So of say 1,000 operating mines worldwide, take the 100 largest and the lowest of these would be 3.2Moz
The point Goldbug is that there's half a million ounces at Clontibret and at a 1g/t cut off more like a million. With some step out drilling it's likely to be more than that. Prof believes at least a couple of million. Clay Lake has wide intersections of gold over large areas that is suitable for bulk open pit mining.
£4m market cap with gold over $2300 an ounce. That is ridiculously low.
Fairview trying to make a point but completely missing it. The Clontibret resource is reported already at a 1 g/t cutoff. It is 517,000 ounces. The first round of Demir drilling was stepout and came up with very little. Therefore how are more ounces above cutoff "likely"?? A director belief statement is valued by the market at zero. Put it in a JORC compliant announcement, independently estimated, then we will see. Until then.....
I don't care what the idiot thinks. Goldbug do you agree that £4m is a ridiculous valuation or are you posting on here for no obvious reason?
If you spent your time checking facts rather than hurling insults you might find that no matter what cut-off grade you use, there is not 1 million ounces at Clontibret. This is what the company reports.
FV - no obvious reason??? A question was asked, what's world class? and I obliged with the correct answer.
As I pointed out earlier, $0.12 (9p) is very low for 520,000oz worth $1.2 billion. Even at 1% that's 25p a share.
Is there more gold, a lot more? Undoudedly yes. Is there 5M, 8M, 20M ounces (as the company has variously claimed in the past)? Undoubebly NOT, it's a fairytale that would get you in front of the Securities Commissions is you claimed it elsewhere without independent technical evidence.
IMHO the problem here is not the project, it is management grandstanding and consistently failing to move forward. How $5M was spent and not one single ounce added beggars belief! Why do they insist on trying shareholders patience so? I have no explanation. Do you?
Okay Goldbug well I personally do think Clay Lake could be world class as per your definition. I would be very surprised if there wasn't more than 3 million ounces there. It's not high grade but it doesn't have to be if it's close to the surface and over a large area.
We agree that the valuation here is too low, even for what they have at Clontibret.
I also agree with your comment about $5m spent and not an ounce added. I'm surprised you blame management for that though. In my opinion Demir were absolutely hopeless. They drilled 8 holes I think at Clontibret and 8 at Clay Lake in 2 years. That is a joke. I was sick to death of them and I think it's good news that we're seeking a partner for mine development this time.
A large area even near the surface will never get permission to destroy large swathes of prime Irish farmland for a non essential metal extraction.
The stock is priced below the value of a theoretical gold resource as the mine to extract it will never happen. The market has known this for a long time.