The CRND Board either can't do simple arithmetic or have deliberately sought to mislead private investors. Not only did they get the value of the PUNO court case award wrong they failed to count the votes correctly at the recent EGM at which the Board gave away the companies mining assets to creditors and will be diluting shareholders to near wipe out with a 'reliable' fundraise from new broker from hell, Peterhouse Corporate Finance. It's already good bye to the incompetent CEO, Lola Trollip, thank goodness. However, will chairman Simon Charles be able to count the fingers each private investor uses to vote for his departure and fellow directors at the AGM later this month? Have the Board been incompetent or have they deliberately driven the company into the ground to the benefit of a minority of CRND's investors/creditors, who have picked over the spoils? DYOR.
Not only have Central Rand Gold shareholders seen their investment half due to the Board of Directors signing up to the Bergen death-spiral finance agreement. Where Bergen forward sold millions of shares flooding the market and driving the share price down from 2.5p to 0.45p. They completely duped the BoD because they never intended to take up any warrants at circa 3p. This part of the agreement was a complete red herring making the BoD think it was a good deal and that the share price would rise and the warrants would be exercised.
Now the Board of Directors has appointed Peter House Corporate Finance Limited, the broker from hell. Check out Nyota Minerals LTD (NYO) to see just what a nice supportive broker Peter House is and what has become of Nyota Minerals another struggling miner with virtually no cash.
Peter House offered to fund Nyota, which would have meant massive dilution for shareholders, but then never delivered the funds and may have allegedly shorted Nyota's shares in the process further driving down the share price. Nyota's Nomad resigned. Peter House wouldn't fund Nyota unless they found a new Nomad. They couldn't and Nyota has now had its shares cancelled on AIM with little to no chance now of raising any funds to continue. Shareholders were completely screwed over by their Directors, Peter House, their NomAd, Beaumont Cornish Lt, and AIM. Nyota found a replacement NomAd but AIM wouldn't permit them. Nyota is now insolvent. Game over.
Don't be surprised to see Peter House offer £500K for millions of shares at 0.05 p, delay funds which then never arrive and CRND will go bust.
Does nobody on the Central Rand Gold Board of Directors have any idea what terrible financial decisions they are making?
How can Chairman, Simon Charles, allow these inexcusable mistakes to be made?
Yes they can BUT underground mining can be expensive and labor. intensive if they go back in with jack hammers as the main mining method, we have CEO that has mining experience that has not had the chance yet to show what she can do HERE.But I believe the funds are to low at the moment.
Valuable post from Gibbo on lse-uk:
You got to love this bit:
"...that your board is devoting considerable time and effort towards finding an appropriate outcome for shareholders."
Thank you for your e mail. I am sorry I have not replied to you sooner I did ready your e mail but was unwell last week and ended up having to go to hospital last Friday.
I, like you, am also disappointed at the difficulties which the company has faced and in particular this year. We have been very unlucky. Please be assured that your board is devoting considerable time and effort towards finding an appropriate outcome for shareholders. I note your statements about any disposal of the assets. Be further assured that, if and to the extent that occurs, which we very hope will not be the case, any such disposal would be on appropriate arms length terms. There will be, at least for such time as I am this companys Chairman, no cute deals at Central Rand. We continue to work to seek to leverage value from the assets. We are seeking to ensure, now people are back on site, that production resumes as soon as it possibly can and we shall update the market in early course. Regards, Simon"
But at least company directors did bother to publish news for once.
I'd say the upcoming strike seems like a wonderful opportunity for CRND to push away much of their responsibility:
"As reported on 10 May 2017, the negotiation of annual wage increases has ended in a dead lock, and the employees have embarked on industrial action in the form of a strike. The Company reports that relations are worsening and that management of its subsidiaries have been excluded from the premises, preventing the Company's Board of Directors from receiving timely and accurate information about the Company's operations, including the Company's finances and meaning the Company's operations are not delivering any cash flow.
Whilst every effort has been made to reach a resolution with the strikers, the Company continues to lose production days due to the industrial action and will do so for the immediate future until the dispute is resolved. Even then, it will take time for the operations to resume at usual levels. Whilst the Board of Directors continue to exercise the utmost prudence in the Company's cash expenditure this loss of revenue combined with recent and previously announced operational setbacks has materially negatively affected the Company's cash position.
The Company continues to work with Mr Wang to arrange the delivery of the final tranche of the loan announced on 10 January 2017 and is reviewing other funding options, but cannot guarantee successful timely agreement in these discussions.
The Company cannot therefore guarantee that it will be able to meet its financial obligations as they fall due. The Company has operational cash commitments totalling approximately US$1m in the coming month. The Company has accordingly requested a suspension in trading in its shares. The Company hopes to update the market presently."
Now that's quite a smack into the face of longtime holders!
Also very odd to see that some of the former decent 300k or 1M share holdings have turned into trash value in recent months:
Looks like this paper mill (some on lse-uk refer to this as "gold mine") has stabilized for now. Suddenly you see repeated large buys around 0.60p:
16:07:26 / 0.6p / 400,000 / 2,400 gbp
Ha! Only a few years ago this has been a substantial holding!)
- The current rebound could continue as high as 0.80p, where likely the first bounce.
- Mid term buy-alert IF the strong 0.80p barrier is climbed.
- Trend confirmation as soon as 0.93p is climbed.
- Long term bullish trigger is waiting high in the sky, around 1.35p.
Best to adjust the auto-trading system - and let the machine do the work and headache of when to buy
If any of these are real people throwing the towel at 0.67p(!), then they are dead on the street with this. 250K shares used to be a substantial holding here.
Looks like the company is squeezing out the last juice... actually they seem very uninterested about anything. Its probably made out that the outfit will be sold in a private deal - because despite this ridiculous trading range - the mine still remains there.
More shares for Bergen this time at 0.7p 🙁 This bridging loan and minimal news is not helping the share price. Difficult to know if Bergen are accumulating or dumping shares on the market for a quick 25-30% profit as they are well known for doing in the past.
The BoD advised recently they have enough cash for working capital so it's surprising to see Bergen still picking up cheap shares. The company needs to crack on with toll treatment and report some positive operational news. AIMHO. DYOR. Good luck all genuine holders
Yepp, you're probably right. Puhh, looks like things turn nasty now with the Sp diving below the super-crucial 1p line - ouch! Actually a bit sickening!
Poor souls, if those are real sells / throw-the-towel-sells. Those 250k and 1M chunks used to be very decent holdings, when CRND was 8, 10 or 15p.
But its probably as you say: Bergen is simply cashing in as planned and squeeze another tiny bit of money out of here.
In my opinion company insiders will have it delisted, save all the costs, grabb the outfit on the cheap (plus all of the land rights!) and store this away for some sunny day...
I had hoped we'd finished dealing with Bergen by now, but no, more shares for the death spiral provider (see Savannah Resources 2014 http://www.savannahresources.com/news/news_2014.html). If they are true to form they will get shares at 80% of the average of five daily volume-weighted average prices of the shares and dump them at the market price, which may drag our share price lower, unless there is a flow of good positive operational news to prop up the share price. I expect it's Bergen's selling that has contributed mostly to the last decline in the share price.
Thanks KJK7. Good point. A average gold grade of 0.7g/t is good, but an indication that the grades can be upgraded to 2.5 to 5 g/t would be great, if achieved.
Hopefully the metallurgical test work on the concentrate material achieving an encouraging recovery outcome from 88-97% will be realized at full scale, given the outcome was achieved under small scale test conditions.
Thanks KK17. You raise a good and fair point. Yes I agree despite water levels rising significantly, due to the heavy rain fall, from 160,67m in Nov 2016 to 134,34m on 1 Jan 2017 (which was higher than 21 Feb 2106 145,28m), the rate water levels went down last week was faster than the rate of the winter rise. I assume this shows that the pumps are effective and hopefully the rate is sustainable :o)
The point I was trying make that since January the water levels have dropped by five meters in a week which is a big drop I also except that December was a big disappointment with the levels in which the share price fell to 0.96 and some long term holders through in the towel.
Sorry I will not use thread "water levels have risen"as I think it would have been appropriate in December BUT not now as it send the wrong message.
On mine waste dumps I think they will get a lot more out of them than 0.7g/t as in 1890 /1900 Not very efficient at recovering all the gold also its crushed material so I do not think it will need to through a mill.
I have provided some of the figures below. My understanding is the further the water level below the surface the better. Therefore in accordance with the RNS the water levels started at 145,28m below surface in Feb 16 and went down during the year 160,67m by Nov, but then rose again (closer to the surface) due to the heavy rain in the last two months 22-23 Dec 143,20M
The water levels for Jan 2017 have risen higher than December to 134,34M below surface. They are starting to go down again, but at 139,34m for 8 Jan that level is still higher (closer to surface) than the end of December. Do you agree?
In any case we aren't mining much underground, because the gold price isn't high enough yet compared to the cost of mining it (all-in cash operating costs per ounce US$1,643 Jun 2016), so toll treatment is keeping the company going. One of our peers Goldplat have been doing this profitably.
0.7g/t from the Mine Waste Dumps appears to be good. Compare this to wannabe miner Greg Kuenzel and Noricum Gold where they claimed "additional significant near-surface gold sulphide mineralization" with a gold grades of between 0.18-0.23g/t in Georgia.
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