Interesting release today of part of what went wrong. I think reading the report it shows that everybody including managment got ahead of themselves with the start up of the production side and what they could get out of the tailings. In hindsight - it wasn't smart to rely on the "assumed" production figures for further funding exploration into Mako and maybe the share consolidation was done a bit soon. Good to see them bite the bullet though and move ahead with drilling towards Mako. They have made a mistake, and it will take a while to restore market faith (fair enough too!!) but I think it is a market over reaction to some extent. Although I want to see the finer detail on the fund raising before I start thinking optomistically again. Interested in other peoples reading of the announcement. malachii
This company has really shown why other companies do so much drilling and resource definition before moving into mining... as far as I can tell they took a gamble and didnt upgrade their resource to measured... I may be wrong and havent seen the right releases - but if they had an infered resource then that means only a scoping study could have been done - a valiant attempt so save shareholder value? Or shortsightedness and poor planning - you be the judge I like to assume the best - so ill go with a valiant attempt to increase shareholder value and it didnt pay off... I dont currently hold, but was litterally planning my finances to buy in about a week before the announcment.
http://www.brr.com.au/event/89732 * Mako lode by march * 2/3rds of offering taken up by institutions * Production of gold continues
Don't get me wrong - they stuffed up. BUT - I have been impressed with how rapidly they are dealing with the problems and that they are putting a plan in place fairly rapidly to move ahead from here. I have TENTATIVELY bought some more (only a small amount) as I think most bad news (and more) has been priced in and short of a collapse of the gold price - I think most risks have been removed or planned for. VERY TENTATIVE buy in my opinion only. DO lots of research yourself. VERY HIGH RISK!!!!!!!! malachii
I was just about to eye roll and be all 'Its their affiliates and not them directly' But looked it up and does seem to be them directly, at least in the role of asset managing and making the decision. Not just a proxy. Interesting indeed
Good announcement about Mako this morning and good to see them pushing the company at the London forum. A very early positive indication that management are getting back on track. Still very high risk though. malachii
Just came across this in the news. Any comments would be welcome.... http://www.brisbanetimes.com.au/bus...or-castlemaine-goldfields-20120416-1x2f3.html
It'll be a damn shame if they get control - other than the screw up late last year over being over-enthusiastic with their estimates of the gold content in the waste ore they had left over from the previous owners - this company has really good potential with a lot of the risk behind them. This is probably the reason for the takeover offer - Liongold can see the risk profile falling and they want to get in before the general market recognises (probably in the next general report) it and reprices accordingly. malachii
From the annoucement itself: About LionGold LionGold is a Singapore Stock Exchange listed and Bermuda incorporated gold mining and exploration company with a market capitalisation of approximately SG$790 million (A$600 million) as at the date of this announcement. LionGold holds a diverse portfolio of tenements ranging from producing gold mines to development and exploration in concessions. It currently has investments in projects in Ghana and Mali. LionGold has undertaken a change in strategy to target consolidation of precious metal assets through acquisition, having previously been engaged in investment in renewable energy businesses. LionGold's objective is to become the Singapore Stock Exchange's first mid-tier gold mining development and production company. Further information on LionGold can be found on their website at www.liongoldcorp.com On 28 March 2012 LionGold announced that it had closed its takeover offer for Signature Metals Limited ("Signature"), an ASX-listed gold exploration and mining company, with acceptances totalling 76.2 per cent of Signature's shareholders. Signature owns 70 per cent of a producing mine at the Konongo Gold Project in Ghana.
Well there is no chance of that now lamp, because unless CGT receive a better offer, you will receive 2 shares in Liongold for every 9 shares of CGT you own.
Can't say I'm overly impressed with this deal. Management don't seem to have done the right thing by shareholders. Isn't the project on the verge of becoming profitable, the company has enough capital and should have sufficient cashflow to not need another capital raising. Unless the management know that there are more problems, but then why would Liongold be interested. They would know what they are buying. A soon to be cash cow?
I dont know much about this company - but they seem to be making mistakes and have cut corners as a gamble and it hasnt paid off - and they cant afford to re-work it and go back to resource definition, they know they dont know where the gold is exactly. I dont think they understand the their own deposit anymore But ive just been watching from he side lines - they may have serious presure from major shareholders - dont know
What Mal and glam said - Bad call CGT do the hard yards reap the reward not do the hard yards and stop at the finish line to see if a bigger runner can carry you of the threshhold to share the medal.
