RE:RE:RE:RE:RE:RE:Galane Sells Its Mupane Property The company has benefited. Mupane has enabled them to aquire Galaxy, which has a much higher potential than Mupane. Higher resources, higher production according to mine plans (when they reach phase 2), longer life of mine. If they show the market that they can deliver according to their plans, share price will go up.
So far, they haven't. Ramp-up of production at Galaxy has taken longer than initially planned. According to earlier statements, they should have completed phase 1 by now, which would have given them an annual production of 27k oz/y. Instead they are now forecasting 15.5 - 18.5 for 2022. Which is probably one reason why share price is where it is. OTOH the last two years have been extraordinary, and South Africa has seen more lock-downs and restrictions than most countries.
If they deliver the forecasted production from Galaxy at the forecasted AISC ($900-1000), they will make a decent profit. If they deliver on their plans to gradually increase production there, that should give the market more confidence. Time will tell.
And then there is Summit. According to Nick, Summit will produce 22k oz gold and 1.4M oz silver per year. AISC of $730 if you consider silver as a by-product credit. If we see concrete steps toward production, that should move share price significantly. Though they still need to come up with $8.5M for the final payment, but they don't intend to do so by selling stock.
If GG delivers anything close to their plans, market cap should rise a lot. I believe (!) the risk/reward here is very good. I do to some degree understand your scepticism towards mangement, as they have been too optimistic in the past. But I think the potential upside here is so big that I choose to be a shareholder. Management and insiders hold 48% of the shares, so their interests are aligned with mine.