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Was this the Feb 15th CC or did I miss one?
The update on Galane Article is just out, about 5 pages appended to original article "Buy Profitable And Future 110,000oz Miner Galane Gold For $26.6 Million, Comparison To $316 Million Pure Gold" https://seekingalpha.com/instablog/535947-darp-research/5648819-buy-profitable-and-future-110000oz-miner-galane-gold-for-26_6-million-comparison-to-316#comments
Both OTC and TSX side up 12% today, maybe related to article. BTW management agreed in interview that 2023 Galne should be <1 PE based on todays price.
It starts with what you see below, however I suggest reading the entire article as it is an update that requires reading the original for proper understanding.
3-31-2022: In Person Interview with CEO Nick Brodie and Chairman Ravi Sood Post Mupane Sale
I traveled to the 121 Mining Conference in Las Vegas to meet with Nick Brodie and got the bonus of Ravi Sood also being there and spent several hours with both. Seeking Alpha member Angel Marauder was in the same meeting. A quick take is that I am now even more positive on Galane than before the meeting.
The Mupane Divestiture
The biggest change for Galane in 2022 will be their sale of Mupane, which was their only producing mine until Galaxy came on-line in late 2021. As this original article on Galane points out above, I was never high on Mupane and never invested in Galane until the Galaxy Project with a 1,000%+ IRR came along.
What did they sell it for? $1, but they eliminated $18 million of debt and liabilities as a result, so the real price they sold it for was $18 million, about 50% of Galane's market cap. Mupane is a high-cost and short life mine so I think the deal is a big positive. The deal likely will finalize in next 30 days or so and they said no hiccups yet.
Edit: It is up 7% on TSX and 12% on USA side, about 5 month highs for both. Ravi told me he expected .60 Cad Galane stock if gold went over $1900 two years ago, is surprised it has not run yet.
Hyper cheap gold miner. Just when not if that ends.
The update on Galane Article is just out, about 5 pages appended to original article "Buy Profitable And Future 110,000oz Miner Galane Gold For $26.6 Million, Comparison To $316 Million Pure Gold" https://seekingalpha.com/instablog/535947-darp-research/5648819-buy-profitable-and-future-110000oz-miner-galane-gold-for-26_6-million-comparison-to-316#comments
It starts with what you see below, however I suggest reading the entire article as it is an update that requires reading the original for proper understanding.
3-31-2022: In Person Interview with CEO Nick Brodie and Chairman Ravi Sood Post Mupane Sale
I traveled to the 121 Mining Conference in Las Vegas to meet with Nick Brodie and got the bonus of Ravi Sood also being there and spent several hours with both. Seeking Alpha member Angel Marauder was in the same meeting. A quick take is that I am now even more positive on Galane than before the meeting.
The Mupane Divestiture
The biggest change for Galane in 2022 will be their sale of Mupane, which was their only producing mine until Galaxy came on-line in late 2021. As this original article on Galane points out above, I was never high on Mupane and never invested in Galane until the Galaxy Project with a 1,000%+ IRR came along.
What did they sell it for? $1, but they eliminated $18 million of debt and liabilities as a result, so the real price they sold it for was $18 million, about 50% of Galane's market cap. Mupane is a high-cost and short life mine so I think the deal is a big positive. The deal likely will finalize in next 30 days or so and they said no hiccups yet.
Interesting. Indeed that would be huge amount of gold.
New Galane article by @Larry Hall https://seekingalpha.com/article/4497771-galane-junior-miner-bright-prospects
Here is my comment:
I have a large position and have bot more in the .10s in last two days.
What excites me is currently Galane is a 4 PE gold miner (trailing 12 months), but gold is much higher now and the Mupane Mine related debt (vast majority) is going away with its sale. At the same time the Galaxy ore body at the Galaxy Mine has just in Dec gone into production, and is much lower AISC. So profits will go way up at the same time that debt goes way down. Debt is the main thing that is holding Galane back both stock wise and funding Summit wise. The main gem Galane owns is the Galaxy mine, millions of gold oz resources.
Yet all this for just $38 million market Cap! In the future they can be making more than $38 million profit a year with Galaxy and Summit going, two low ASIC mines. The Galaxy mill which is quite new is way bigger than the current mining rate. Obviously they plan to grow Galaxy Mine production. As this mine cross section shows https://static.seekingalpha.com/uploads/2021/10/10/535947-16338709121900315_origin.png they have vein after vein there with tunnel access to all and are just mining one vein now. BTW that project just into production had a 1,000%+ IRR, the highest have ever seen.
Their neighboring mine has found that the deeper they go the higher the gold grade becomes. Galaxy has just been mined for decades on the easy upper parts of those veins. All the veins are open downward, and they are very wide veins.
Galane may have 5 million oz of gold at Galaxy alone, it has not yet been drilled deeper. I suggest readers read Galane's newest presentation and watch video interviews they have done. https://www.galanegold.com/_resources/presentations/corporate-presentation.pdf
https://vimeo.com/340191652?embedded=true&source=vimeo_logo&owner=392495
CRUX interview
I agree, $2200 could happen in weeks
Yes BornAgain, here is comment on it:
New Galane article by @Larry Hall https://seekingalpha.com/article/4497771-galane-junior-miner-bright-prospects
Here is my comment:
I have a large position and have bot more in the .10s in last two days.
What excites me is currently Galane is a 4 PE gold miner (trailing 12 months), but gold is much higher now and the Mupane Mine related debt (vast majority) is going away with its sale. At the same time the Galaxy ore body at the Galaxy Mine has just in Dec gone into production, and is much lower AISC. So profits will go way up at the same time that debt goes way down. Debt is the main thing that is holding Galane back both stock wise and funding Summit wise. The main gem Galane owns is the Galaxy mine, millions of gold oz resources.
Yet all this for just $38 million market Cap! In the future they can be making more than $38 million profit a year with Galaxy and Summit going, two low ASIC mines. The Galaxy mill which is quite new is way bigger than the current mining rate. Obviously they plan to grow Galaxy Mine production. As this mine cross section shows https://static.seekingalpha.com/uploads/2021/10/10/535947-16338709121900315_origin.png they have vein after vein there with tunnel access to all and are just mining one vein now. BTW that project just into production had a 1,000%+ IRR, the highest have ever seen.
Their neighboring mine has found that the deeper they go the higher the gold grade becomes. Galaxy has just been mined for decades on the easy upper parts of those veins. All the veins are open downward, and they are very wide veins.
Galane may have 5 million oz of gold at Galaxy alone, it has not yet been drilled deeper. I suggest readers read Galane's newest presentation and watch video interviews they have done. https://www.galanegold.com/_resources/presentations/corporate-presentation.pdf
https://vimeo.com/340191652?embedded=true&source=vimeo_logo&owner=392495
CRUX interview
What will be the fastest growing mid tier gold miner in next 3 years or so? Maybe GCM. GCM owns 44% of ARIS.
Frosting on cake is this, on top of everything else:
Unique opportunity for Aris Gold to acquire an initial 20% ownership interest in Soto Norte with an option to increase to 50%
> Soto Norte is one of the word’s largest undeveloped gold projects – hosts Indicated Mineral Resources of 8.5 Moz Au and Inferred Mineral Resources of 3.6 Moz Au2
> Soto Norte has tier 1 scale and economics – independent Feasibility Study3 by SRK, SNC Lavalin, and Minesa prepared for Aris Gold demonstrates production of over 450,000 gold ounces per year at average AISC of US$471/oz from 5.0 Moz Mineral Reserve
> Aris Gold will work hand-in-hand with the local communities to ensure protection of the Soto Norte project’s ecosystem
> With the Marmato Upper and Lower Mines and future 50% ownership of Soto Norte, Aris Gold is on a path to attributable production exceeding 400,000 ounces per year at AISC of approximately
US$650/oz
Presentation on new deal here: https://s28.q4cdn.com/389315916/files/doc_presentations/2022/03/21-March-2022-Aris-Gold-investor-presentation.pdf
glad loaded up more in .50s,18% today, wow.
CRUX video this week on GFG. CRUX is asking for questions over on CEO.ca
Excellent news out, they hit 54 meters total over 1 gram gold near surface and another hole with 4 gold zones including the headline high-grade 7.5 meters at 8+grams!
GFG Expands High-Grade Gold at Montclerg with 8.34 g/t Au over 7.5 Metres East of the Prolific Timmins Gold District 03/22/2022
Additional high-grade and bulk tonnage gold intercepts from four new assay results from the inaugural 2021 drill program at the Montclerg Gold Project
Hole MTC-21-006 returned 8.34 grams of gold per tonne (g/t Au) over 7.5 metres (m), 40 m east of hole MTC-21-005 that graded 4.82 g/t Au over 26.0 m
MTC-21-007 intercepted multiple bulk-tonnage zones above 125 m depth that graded 1.40 g/t Au over 31.1 m and 1.11 g/t Au over 23.0 m. Assay results from the remaining five holes are pending and expect to be received in the coming weeks
Drilling resumed in March at the Montclerg Gold Project with a 5,000 m Phase 1 drill program
SASKATOON, Saskatchewan, March 22, 2022 (GLOBE NEWSWIRE) -- GFG Resources Inc. (TSXV: GFG) (OTCQB: GFGSF) (“GFG” or the “Company”) reports new assay results from four drill holes that have intersected multiple zones of significant gold mineralization at the Montclerg Gold Project (the “Project” and/or “Montclerg”), located 48 kilometres (“km”) east of the prolific Timmins Gold District in Ontario, Canada (See Figure 1). In 2022, GFG plans to drill approximately 10,000 m at Montclerg in parallel with a significant regional exploration program at its Goldarm and Pen gold properties.
Today’s results are from the inaugural drill program which was completed in the fourth quarter of 2021. To date, the Company has released assay results from nine of the 14 holes that have successfully returned both high-grade and bulk tonnage intercepts from the MC Central target (See Table 1 and Figures 2-5). The remaining five holes include additional testing of targets at MC Central and initial tests at MC East. The Company expects to report assay results from the remaining 2021 drill holes in the coming weeks.
Brian Skanderbeg, President and CEO of GFG, stated, “Our early drilling success at Montclerg is demonstrating the continuity of the system with both high-grade and bulk tonnage components. These recent results are expanding our understanding of the system and its structural controls; the intensity of the alteration, veining and sulphidation that we are seeing is consistent with a large-scale gold system. With our Phase 1 2022 drill program well underway, further assays pending from 2021 and encouraging metallurgical results from our partnership at Rattlesnake Hills, we are off to great start and look forward to an exciting 2022.”
Rest and fig links here: https://s21.q4cdn.com/712049373/files/doc_news/GFG-Expands-High-Grade-Gold-at-Montclerg-with-8.34-gt-Au-over-7.5-Metres-East-of-the-Prolific-Timmins-Gold-District-2022.pdf
Thanks,there will be new article on SeekingAlpha onGalane in next week or two. By Larry Hall.
Superb value here.
Thanks NYBob
Bill says they were amazed at how high the gold recovery was on solid cores. Q+A now https://attendee.gotowebinar.com/register/8133997228348689164
Add on: Had heard via 2nd party that GFG said they expected zero recovery on at least one core, they picked it as worst case, Yet they got 18% of the gold out anyway. Bill said he can not understand being how impermeable that core was how any gold was pulled out of it, yet 18% came out. This is amazing good news.
The bad news is they will not be in production in the next year, but maybe in 2 years,
My best guess at this time is it will work. This will be one of the biggest revolutions in gold mining. As they put it it is so cheap to do that a mine that would get 97% gold recovery yet lose money, could with this get 40-50% recovery and be very profitable, the same mine. GFG owns 9% roughly of G11. And they may get $125+ million dollars of profits off of this first use of Choridate In-Situ gold mining at Rattlesnake deposit.
Recording will come out of this webinar
My interpretation of GFG/G11 In-situ results at Rattlesnake. Superb news, and comes it at roughly the highest level of recoveries was hoping for. In my article https://seekingalpha.com/instablog/535947-darp-research/5611282-gfgs-game-changing-in-situ-gold-mining-deal-tiny-downside-and-huge-upside#comments said:
"If the AISC at Rattlesnake is $500 that would be $1,300 margin times GFG share 66,667oz = potential profits of $87 million. Current GFG market cap is $13 million so that is a 6 bagger just in cash in the bank if things went that well. And GFG gets $7.5 million cash payment from Group 11 outside of mine revenue too in the deal, then add it they get a large amount of stock in Group 11. And if gold is $2,400 and they do not have to rubblize the ore and get 50% recovery so have a $200 AISC then 100,000 oz times $2,200 = $220 million potential profits for GFGSF. I will be thrilled with the $87 million, but the 2nd scenario is possible."
Their non-crushed whole half cores came in at 48.2% gold recovery, closer to the 2nd scenario, beyond the "thrilled with" 1st one. If half way that is about $150 million in profits, to be conservative can call it $120 million of profits with virtually no investment by GFG, G11 does that. This news is 4 months late in coming so shocks me it is so good, was guessing they were having troubles, but ended up as superb results.
There is more. If you look at charts in the PR link https://www.globenewswire.com/NewsRoom/AttachmentNg/a1009505-e0b3-4e64-a969-f4aca467896d They are getting 30% of the gold in 5 days. In-situ recovery at the mine even if you triple that to 15 days, yikes, who has ever heard of getting 30% of your gold out of a mine in 15 days after you tunnel to the ore? Maybe 5 years is average on that, In fact at Rattlesnake being that open pit is the alternative and say a 15 year mining period, that is 5 years to get 30%.
So they will get their first 30% of profits incredibly fast, about 125 times faster than an open pit mine, wow. And you get 99% of the gold you will get in 30 days in the lab, so maybe 100 days in the field? Absurdly fast. If takes even a year, still absurdly fast.
Being their new land package in Canada now has a proven high grade gold system, that makes it worth the entire market cap of GFG. So Rattlesnake/In-Situ is on top of that. The stock doing a 20 bagger+ since my article was published seems quite possible.
Cheers
GFG Receives Positive Initial Metallurgical Results from Rattlesnake Hills Gold Project Partner Group 11 Technologies 03/15/2022
SASKATOON, Saskatchewan, March 15, 2022 (GLOBE NEWSWIRE) -- GFG Resources Inc. (TSXV: GFG) (OTCQB: GFGSF) (“GFG” or the “Company”) is pleased to report that it has received positive metallurgical results from the Rattlesnake Hills Gold Project (“RSH Project”) located in Wyoming, U.S. from its option partner, Group 11 Technologies Inc. (“Group 11”), (see news release: “GFG Signs Option Agreement with Group 11 Technologies to Advance the Rattlesnake Hills Gold Project with Disruptive Technology”). Provided below are the first test results in the process to develop In-situ Recovery (“ISR”) technology for gold mining using EnviroMetal Technologies Inc. (“EnviroMetal”) non-cyanide and environmentally friendly leaching solution. The gold recovery tests from uncrushed half-core samples demonstrated recoveries ranging from 15.9% to 77.5%, averaging 48.2% while the bottle roll testing of crushed material returned gold recoveries ranging from 38.3% to 89.5%, averaging 61.4%.
“These initial results have exceeded our and Group 11’s expectations and this is an exciting development for our shareholders, stakeholders and the gold mining industry as a whole,” stated Brian Skanderbeg, President and CEO of GFG. “We look forward to the next phase of testing as they continue along the path of proving and adapting ISR technology to gold mining.”
Dr. Dennis Stover, Group 11 and enCore Energy Corps’ Chief Technical Officer and co-discoverer of the in-situ recovery process in the uranium sector, said: “Group 11 is very pleased with the initial tests which showed strong results to extract gold from the existing core samples with an environmentally-friendly solvent. This first step will provide the basis for future tests to be conducted on the use of the lixiviant in combination with ISR technology. Group 11 is working to create new environmentally-friendly options to extract gold and other metals through less invasive ISR extraction which is in widespread use in the uranium sector.”
LIVE WEBCAST – MARCH 17, 2022 11 AM ET
Group 11 and their partners will host a webcast on Thursday, March 17 at 11:00 am Eastern Time (8:00 am Pacific Time) to discuss the results of the Phase 1 tests, next steps and to answer any questions from shareholders. Shareholders, analysts, investors, and media are invited to join the live webcast by registering using the link below. A replay of the webcast will be available. Please join us: https://attendee.gotowebinar.com/register/8133997228348689164
Below has rest and tables of recoveries
https://www.gfgresources.com/news/press-release-details/2022/GFG-Receives-Positive-Initial-Metallurgical-Results-from-Rattlesnake-Hills-Gold-Project-Partner-Group-11-Technologies/default.aspx
It is doing well. The question is why, Rattlesnake or Canada?
GoldSpot article out.https://ceo.ca/@sustainabedude/goldspot-discoveries-gets-paid-to-receive-mining-royalties-a-revolutionary-business-model
Goldspot Discoveries Gets Paid To Receive Mining Royalties - A Revolutionary Business Model
Snip: They are backed by the high-profile names in the industry, among which are Eric Sprott (holds a 20% stake), Pallisades Goldcorp and Triple Flag Mining. The current market cap is around $105M cad. All that while revenues and investment gains are expected to increase multifold over the next few years. Morningstar says Return on Equity is an astounding 80% in the last full reported year (2020). The Allen EV/EBITDA is about 3 and the PE Ratio of GoldSpot is about 4 on UncleStock.
GoldSpot article out.https://ceo.ca/@sustainabedude/goldspot-discoveries-gets-paid-to-receive-mining-royalties-a-revolutionary-business-model
Goldspot Discoveries Gets Paid To Receive Mining Royalties - A Revolutionary Business Model
Snip: They are backed by the high-profile names in the industry, among which are Eric Sprott (holds a 20% stake), Pallisades Goldcorp and Triple Flag Mining. The current market cap is around $105M cad. All that while revenues and investment gains are expected to increase multifold over the next few years. Morningstar says Return on Equity is an astounding 80% in the last full reported year (2020). The Allen EV/EBITDA is about 3 and the PE Ratio of GoldSpot is about 4 on UncleStock.
NYBob, TPRFF will do great as a stock, already has as a company
Compared COSTCO to 3PE super value stock,TPRFF. COST has grown sales 50% in last 5 years, TPRFF has tripled sales in last 5 years.
COST has 5% EBITDA margin, TPRFF has 46% EBITDA margin.
So TPRFF is growing 4 times faster with 9 times higher profit margins. TPRFF has a 3 PE, COST a 44 PE, so TPRFF has a 15 Times better PE on top of growing 4 times faster with 9 times higher profit margins. I would rough that out as overall about a 25-50 times better investment.
If anyone is wondering why the SPY -2% and QQQ -3% are dropping hard on Friday while while oil stocks were up 3.5% and gold stocks were up 6%, this is the reason. The market is rotating out of terrible investments into good ones. It always does that later than it should.
Cheers
GCM will go on a multibagger run starting anytime. The setup is there. It has outperformed GDXJ by about 7% in last 6 months, but still is silly low valuation. A 3 bagger in 18 months would be my guess. It is #1 position have.
Cheers
NYBob there is a video out by someone else that came to same conclusion on debt being wiped out with the deal Galane did
Thanks Sade123. If they stopped selling stock do you think they survive?
Bubae, Thanks! Liked all that info. So do you think they need to sell stock now? Seems to me the rent should cover interest? If so wait and sell stock 4 times higher.
It can run now(Montclerg).Rattlesnake would be steroids.
4.82 grams over 26.0m including12.32 g/t 5.5 m;
Big news this is just a snip, link has rest. So now GFG has with this and prior single drill hole proved a major gold system at Montclerg. This alone justifies all of GFG's market cap as of yesterday. The Rattlesnake, Pen and Dore projects are all for free IMHO. Quite the deal, especially with the 100s of thousands of oz of gold at Rattlesnake that can likely be mined very low AISC in-situ. We will get Rattlesnake test results this month said Brian on 6ix conf call.
SASKATOON, Saskatchewan, Feb. 10, 2022 (GLOBE NEWSWIRE) -- GFG Resources Inc.(GFGSF)(“GFG” or the “Company”) reports new assay results from three drill holes that have intersected multiple zones of significant gold mineralization at the Montclerg Gold Project (the “Project” and/or “Montclerg”), located 48 kilometres (“km”) east of the prolific Timmins Gold District in Ontario, Canada (See Figure 1).
During the fourth quarter of 2021, the Company drilled a total of 3,210 metres (“m”) from 14 holes in its inaugural Phase 1 drill program. To date, the Company has received drill assay results from five holes and have successfully returned both high-grade and bulk tonnage intercepts from the MC Central target (see Table 1 and Figures 2-6) with highlights including:
Hole MTC-21-005:
Upper Footwall zone: 4.82 grams of gold per tonne (“g/t” Au) over 26.0 m including 12.32 g/t Au over 5.5 m; and
Upper Footwall zone: 11.29 g/t Au over 1.7 m
Hole MTC-21-004:
Upper Main zone: 0.73 g/t Au over 24.2 m; and
Lower Main zone: 1.24 g/t Au over 10.4 m including 2.37 g/t Au over 4.1 m
Lower Footwall zone: 1.23 g/t Au over 15.5 m including 3.09 g/t Au over 3.3 m
Brian Skanderbeg, President and CEO commented, “These great results confirm our belief in the potential for both high-grade and bulk tonnage gold mineralization at Montclerg. We are very encouraged by the stacked nature of the system, impressive widths and the relationship to historic drill holes that extend over a strike length of more than 1.3 km. The intensity of the alteration, veining and sulphidation that we are seeing are consistent with a multi-stage, large-scale gold system. Hole MTC-21-005 is the best hole ever drilled on the Project and may be amongst the best greenfield intercepts from the Timmins region over the past decade. As we await the remaining assays, drilling at Montclerg will resume in the coming weeks.”
https://www.gfgresources.com/news/press-release-details/2022/GFG-Drills-4.82-gt-Gold-over-26.0-Metres-and-Continues-to-Intercept-Multiple-Gold-Zones-at-the-Montclerg-Gold-Project/default.aspx
NYBob got your mesg. On Galane they are giving it away and at same time giving away almost all the debt and liabilities they have. Their balance sheet is cured by it. It is a positive, talked to Nick about it.
Now TPRFF is my #1 positive, a 3 bagger this year is possible.
And GFGSF released great news today, 26 meters with 5 grams in new property, they say maybe best hole in 10 years in entire Timmins district for exploration hole. Will post it there on ihub. Tiny mkt cap and 3 other properties including Rattlesnake in-situ gold. Montclerg is now worth all of GFG mkt cap rest is free.
On Galane, this deal to divest Mupane to management is positive, they are getting rid of almost all debt by doing this.
Interesting stock. Just found it. It seems they just went profitable. So if correct why can they not cashflow their way out of the debt?
Any shorts on the stock here?
Hard to say. The drill result in Canada was very good. On core soaking way behind but have talked with Brian and he says strictly matter of very slow assay results, the tests are over. G11 does have control of getting the assays.
They are late on news-ButComing
The soak tests are done awaiting assays. And drill results from Q4 should be soon too.
The stock has held up well without news.
Quite a bit of news this week:
11:24 AM EST, 01/18/2022 (MT Newswires) -- Orea Mining Corp.(OREAF) on Tuesday reported a non-brokered private placement to raise gross proceeds of up to $500,000.
The company's stock slipped 6.9% on last look on Tuesday.
The private placement is for up to 4.2 million units at $0.12 per unit. Each unit is comprised of one common share of Orea and a half warrant.
The company plans to use the proceeds for general working capital purposes.
VANCOUVER, BC , Jan. 17, 2022 /PRNewswire/ -Orea Mining Corp.(OREAF) ("Orea") (FSE: 3CG) provides an update on the request for a final appeal filed by the French Government on the renewal of the 5-million-ounce Montagne d'Or Gold Deposit mining titles, located in French Guiana, France, owned 44.99% by Orea and 55.01% by Nord Gold plc (the "JV").
As announced on October 7, 2021, the French Government filed a request before the Supreme Court of France (Conseil d'Etat) to hear a final appeal on the renewal of the Montagne d'Or project mining titles, which are renewable for a term of up to 25 years. Two French courts previously ruled in favor of the JV and ordered the renewal of the mining titles.
The Supreme Court is to decide on whether to admit and hear the appeal. In principle, an appeal before the Supreme Court has no suspensive effect, therefore the initial court rulings to renew the mining titles should, in theory, be upheld and implemented, even if a final appeal is allowed.
Orea and the JV believe that a decision by the Supreme Court could be expected sometime after the French Presidential election. The second and final round of voting to select the next President of France is scheduled for April 24, 2022.
Furthermore, the JV filed additional pleadings before the Court of Appeal in Bordeaux to issue an injunction ordering the French Government to pay a fine of 20,000 Euro(~US$23,000) per day to the JV, retroactive to the date of the initial court ruling of December 24, 2020.
$OREAF For newbies to Orea,There is Article-SeekingAlpha
Welcome aboard!
https://seekingalpha.com/instablog/535947-darp-research/5654929-orea-mining-what-is-billionaire-backed-company-2_2-billion-of-high-grade-gold-worth-23#comments
Orea Mining: What Is A Billionaire Backed Company With $2.2 Billion Of High Grade Gold Worth? $23 Million?
OREAF .118 now +19% up. Still see no PR, but 1 year ago they did not PR for 7 days after decision.
Chart? Love it, it is right on upper Bollinger Band. The bands are widening. Last time it broke upper band after it widened OREAF tripled from .08 to .26. about July 21.
Make that .12 new high and +21%.
Make that .1276 about +29% And Cha Ching it broke that upper Boll Band now.
Have found a confirming News story, this in French TV https://la1ere.francetvinfo.fr/guyane/la-compagnie-montagne-d-or-conserve-ses-concessions-1196482.html They do get 25 year renewal. It mentions that the antimining outfit will try and get gov to kill it anyway, but to do that the gov would have to pay Orea, to buy them out is my read, as Orea has the legal right to mine there now.
Notice below the government gave up fighting Orea at prior court decision, it was an outside NGO group that took it to French equivalent of US Supreme Court. That hints the Government is not all that adamant on this issue.
The stock went to .26 in Sept based off of prior non final court victory, being this is final legal victory should go a lot higher. It is amazing that no mining website has picked up on this, guess language barrier as both articles are in French. Orea needs to comment, has anyone called them?
The first legal battle against the Montagne d'Or company stops: the 25-year concessions are maintained. On December 30, the Court of Cassation rejected the latest appeal filed by the NGO France Nature environnement. This does not mean that the mega-mine project resumes... but the Russian-Canadian Consortium NordGold-Orea retains its concessions.
Véronique Bedz/Franck Leconte/MCT • Published on 5 January 2022 at 05:57
The first act took place in January 2019: following the mobilization against the Montagne d'or mega-mine, the government announced that it wanted to put an end to the project and refused to extend the concessions granted to the company for 25 years. This concerns two concessions: Montagne d'Or and Elysée.
Act 2 takes place a year later. The consortium is attacking the state before the administrative court. On 24 December, the TA annulled the State's decision, and requested the renewal of the concessions. But the Ministry of Economy and Finance is appealing.
July 16, 2021, act 3: the Administrative Court of Bordeaux rejects the appeal. The government is rejected, but it is not yet the end of the process. the NGO France nature environnement files a third-party opposition petition against the decision of the Administrative Court. It was therefore the Court of Cassation – the highest court – that had to decide in this case.
Decision taken on 30 December
The site of the company Montagne d'Or
The site of the company Montagne d'Or • ©Jocelyne Helgoualch
The decision fell on December 30: the appeal of France nature environnement is rejected. Nothing now stands in the way of the renewal of concessions. The Russian-Canadian Consortium can therefore prepare a new project, and submit it to the authorities, to obtain an operating permit... a new economic, environmental and judicial battle will begin. At the same time, another procedure is still ongoing. The association France nature environnement has referred the matter to the Constitutional Council, considering that mining in French Guiana could go against the government's objectives, in terms of climate protection.
The current mkt cap in USD is about $22 million as they have about 205 million shares.
In legal docs NorGold has valued the mine:
10-22-2021. Nordgold files Lawsuit Valuing its 55.01% of Montagne d'Or Gold Project at US$4.6 Billion against France.
Curiously Nordgold has set themselves up to pay Orea a lot more ($3.76 billion) if they buy them.
OK a total value of $8 billion is too much, but a current value of $1 billion would seem feasible. This is a huge and high grade deposit, one of the best waiting to be built. Orea own 45%, that is a current value of $450 million, yet before a PR comes out from Orea on this it is trading for $22 million. I bought another 300,000 shares based on this news today, got them for about .093 avg and now have about 1 million shares.
What is $450 million divided by $22 million? Just about a 20 bagger.
What is the NPV officially. I found this from 2017:
Bankable Feasibility Study3
NPV (5%): US $370 Million (After-tax)
IRR: 18.7% (After-tax)
CAPEX: US $361 Million
(After Surplus Tax Credit Refunds)
AISC: US $779 per ounce gold (LOM)
(Including reclamation & closure)
LOM: 12 years
Production: 2.57 Moz (LOM)
237,000 oz/year (years 1-10)
Average Mined Grade: 1.73 g/t Au (years 1-10)
3 For more details on the BFS, refer to news release dated March 20, 2017
Mineral reserves are inclusive of the Measured and Indicated resources and are reported at varied cut-offs dependent on lithological rock types, economics, metallurgical recoveries and a gold price of US$1,200/oz.
OK gold is $1820 now. But when the gold price goes up 50% the value goes up a lot more, all gold mines have leverage to the gold price. Also more ore becomes profitable to mine. There has been some inflation since 2017 but not 50%. At a $900 AISC each oz makes $300 profit at $1200 and a $900 profit at $1800 so that is 3 to 1 leverage to gold price. 2 to 1 leverage would be conservative. So at 2 to 1 that would be $740 million Net Present Value, that sounds reasonable.
$740 Million x 45% = $333 Million / $22 Million = a 15 Bagger. Or in USD $1.57 a share or Cad $2.00 a share. This is entirely possible. The main risk I see is the article is a fake. I went thru website page after page, it appears to be a major French Guyana newspaper.
Now the astounding back to back +20% days for Orea that baffled me makes sense. Once this is PRed the stock should go over $.50 USD. Hence why bought 300,000 more shares.
Cheers
2nd link, does it ever load?,wheelieThingFor5mins now