2016 The Great Irish Share Valuation Project (Part IV):
Company: Connemara Mining Company (CON:LN)
Last TGISVP Post: Here
Market Cap: GBP 1.1 M
Price: GBP 1.45p
Oh Lordy, Teeling companies always seem to come along in pairs though the long-term CON price chart is far more abysmal! I suppose shareholders should be relieved my forecast of a 100% share price decline hasnt happened CONs only fallen 70% since! Compared to diamond exploration in Botswana, I guess desultory gold & zinc exploration efforts in Ireland obviously arent as exciting. Again, Teelings hooked an impressive farm-out partner here Teck but has since ended up dependent on their indifferent mercy. Unfortunately, even though the annual cash burn here is low (due to the companys farm-out policy), CONs cash less net payables position already puts it in the hole:
EUR 495 K Cash 545 K Net Payables 281 K Cash Burn = Zero
Give me strength again & again, worthless.
Price Target: Zero
For related links/graphs/files & other TGISVP analyses/price targets: Google the Wexboy investment blog.
Connemara Mining Company plc ("Connemara")
New Gold System Identified in Inishowen Drilling
Connemara Mining (AIM: CON) is pleased to report results from the first two drill holes in a four hole programme on our licences in Donegal. This is the second drilling campaign conducted in the area.
The first two holes have encountered what is believed to be a new gold system in a Green Bed environment contained within quartz calcite veins, shears and an altered unit. This type of geology is known to host very large deposits in other parts of the world.
A 1m section in hole 16-MR-05 contained an average grade of 2.48g/t Au with a 33cm quartz vein at 6.85g/t Au. A 2.98m section at 0.27g/t Au contained multiple quartz calcite veins within sheared, fractured pelite. Another group of quartz calcite veins over 0.55m ran 1.37g/t Au. An altered unit within the semipelite contained a grade of 1.03m at 0.33g/t Au. The mineralisation is still not well understood but these results in this particular geological environment are extremely encouraging with potential for additional mineralisation along strike and at depth. Each hole was located 100m apart. So far the presence of sphalerite in quartz veins has been a good indicator of gold. The second batch of results is expected shortly.
John Teeling, Chairman, commented "A significant and exciting indication from these results is that we have identified a new gold system of a type known to contain large gold deposits. Finding gold in fault zones, shears and altered zones shows there must have been significant gold bearing fluids there at some time.
This is still an early stage project. We await with interest results from the remaining two holes which are being analysed. These will be available within weeks."
Connemara is a diversified exploration company with principal assets in gold, zinc and lead exploration licences in Ireland. The company holds interests in 32 licenses covering an area of approximately 1, 290 sq km.
This announcement has been reviewed and approved by Gavin Berkenheger (BSc. Hons) in his capacity as the Qualified Person for the purposes of the AIM Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange.
This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.
Read Northland Capital Partners's note on CONNEMARA MINING COMPANY PLC (CON), out this morning, by visiting https://www.research-tree.com/company/IE00B2357X72
"Connemara Mining Company has raised £400,200 (gross) through the placing of 20,010,000 shares at 2p per share, with a one-for-one warrant at 5p per share. The placing represents 26.4% of the Companys issued share capital. Following the placing the Company will have 75,789,711 shares in issue. Connemara Mining Company will use the proceeds from this placing to undertake the next phase of drilling at its gold projects located in Donegal. The Company plans to commence drilling in the coming weeks..."
"LSE:CON:Connemara Mining Company has been trading at no more than 1.25p since November, but a 12-line statement detailing the acquisition of five licences in Ireland - plus a quote from chairman, John Teeling - caused its share price to rocket by ..."
Connemaras a John Teeling vehicle it drills holes in the ground for a living, ostensibly to discover gold or zinc. Sigh, Im not sure Ive got the energy for these junior resource stocks this year :-( But we can dispose of Connemara very easily it hasnt even got a whiff of resources, let alone reserves! So Im going to commit the same misguided & short-sighted analytic errors as before well, according to the meat-puppet experts. [Two years of my price calls beating them now, you'd think they'd finally be embarrassed - um, too busy nursing their losses?!]
Actually, props to the meat-puppet who despaired of me treating junior resource stocks as investment companies. Why thank you what the hell else do you think they are? [Hmmm, that's possibly a very interesting post there]. And have you ever come across investment companies with such ridiculous expense ratios? The inevitable failure of the majority of these companies is down to simple math not bad luck, as the suckers like to believe. Net cash, less net payables (if appropriate), less annual cash burn, is usually a good valuation methodology:
409 K Cash 324 K Net Payables 359 K Cash Burn = Zero
Price Target: Zero
For links, charts, file, and other companies, see the Wexboy investment blog.
2013 The Great Irish Share Valuation Project (Part I)
Company: Connemara Mining
Prior Post: Here
Price: GBP 7.625p
Oh God, what a place to start CONs another John Teeling venture. Primary focus is on zinc which Ireland actually possesses in economic quantities, as evidenced by the interest/ownership of Xstrata (XTA:LN), Vedanta (VED:LN), Boliden (BOL:SS), etc. But attentions increasingly being diverted to Irelands newest prospecting craze: Gold, in Wexford & Wicklow!? Or should I say its oldest craze this was last popular 200 years ago. CON has no reserves/resources last year, valuing it solely on net cash less 1 year of estimated cash-burn, I deemed it worthless. Since then its been sliced in half, and its still worthless.
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