RE:RE:RE:RE:RE:RE:I hold thist Stock since Sandspring Resources.Brioche, have you sold all your gcm shares yet or are you still pretending to be a shareholder while continuously bashing your own holding?
1) you think toro is a mal investment? with 10 million oz gold, a very long life, tier 1 like deposit that most gold miners would love to have.
paredes is the ceo of gcm, the same bad management Brioche has been bashing for so long, but now he says the opposite contradicting himself, saying the ceo is great now that he is leaving. Brioche information is wrong or he is deliberately lying. paredes has not been with gcm for 15 years, he came on in 2014, came from big oil companies, and was not some gold miner expert. who replaces the ceo? woodyer of course.
"What would they do in case of dispute with the new team ?"
serafino and martinez (former minister of mining) are still directors, telfer and woodyer has extensive experience in south america.
"Remember they lower the aisc. "
this is wrong. the small contract workers are higher cost and lower grade. they were former small scale illegal artisinal miners that were converted to eliminate their use of mercury and give them jobs when mercury use was banned. from the filing these small contract workers ore was 8.46 g/t in 2020. in previous years their grade was even lower. it is only recently that they delivered higher grade, but at higher cost to gcm. gcm recently gave them a pay raise which increased aisc, they are not lowering aisc. 15% of ore is not significant to gcm earnings.
"Take a look at the upper surface in marmato."
gcm/aris is not mining marmato surface. artisal miners using mercury to mine the surface is irrelevant.
2) the news release already said they invested $31 mil on toro in h1. implying that they have done nothing without showing a photo is stupid.
3) taking marmato upper mine to 50k oz was always the plan of gcm. how can you blame woodyer for that? they guided 40k+ oz rate by end of this year. crying like an impatient baby does not change their plan.
how else do you want to pay for soto, with dilution shares that you will cry about again? they pay wheaton with more gold up to a certain number of oz, then the stream % drops long term.
4) big npv and long life with expansion potential makes the 20% irr worth it. a small project with 50% irr that lasts only 3 years is not as good as a 20 year project with 20% irr. $500 aisc makes it very appealing.
if you listen to telfer, he says it is easy for him to get funding, but very hard to find large tier 1 type of deposits. B+ rating gives access to low cost funding.
soto is further out in the pipeline after toro and marmato expansion. completion of these 2 projects will generate huge cashflow that easily pays for soto.
5) woodyer was not part of the executive management team of equinox. his leagold share price was flat when it merged with equinox. woodyer building edv was a success as i said before. i personally made money on edv.
it is funny how Brioche does not mention telfer. he has done so many good things, made a ton of money for shareholders, that it is hard to dig up dirt on telfer.
Brioche, you have been complaining about gcm management for years(?), now that they do change the management team, you still complain?
if you think telfer + woodyer is so bad, then please name some gold miner management teams that are better! not counting royalty companies because they are financers, not miners. do you need more than one hand to count all the better management teams?
Brioche, you are only mad because the gold price is making all gold miners go down, not just gcm. the sooner you sell, the sooner you can stop crying. then when gold goes back up, you can cry again for missing the boat.
Brioche wrote: Tobi,
You are recitating the prospectus for the merger .
You should observe what's behind the scene .
A) the assets
1) segovia ..(what was the cash cow , by which everything has been possible , feeding everything apetite , mal investment , divi etc..)
The colombian manager Paredes ( there for the last 15 y) is stepping down within few weeks. Who to replace him ? I hope you are knowing 13/15% of the prod is coming from "small miners " and their contracts. What would they do in case of dispute with the new team ? Remember they lower the aisc.
Take a look at the upper surface in marmato .
2) toro : despite what serafinito sold us , 15months ago , did you see any picture , photo , video of the site ? What are the real advancements there ?
The only event we got , is the pfs once again postponed , of course for good reason ...the merger ..Remember they also need a last environmental permit.
3) marmato : the legendary Woodyer sold us a 2022 prod of 50 k + oz gold there . Q2 report said they exited 15.300 oz at $1480 aisc for H1 , with the fanfastic 7400 oz at 1530 for Q2. Strong improvement lol. So ...50 k really ?
Of course " there is a price for the construction" ...bla bla bla...
But the most worrying ,is that the legendary woodyer has already 15% of the output to wpm .( to buy 10% of soto) . At this pace , all the marmato output will go to wpm soon...-))
4) soto : monstruous capex . 20% irr without any correction for inflation ! Crazy . No doubt the new aris will become the main owner as it's already officialy the operator . So $300 mil to give to mubadala . ( my bet is Mubadala will exchange a good chuck of shares for debt ( convertibles) meaning in case of difficulty more dil ..i.e eqx ) plus 600 mil to find to be built . ( you can add 30% for sure )
Wpm rubs irs hands.
5) age : i don't see theses guys running the company for long . It means along the road potential new team , new direction ... and new losses.
I insist on the fact this team is clearly saying everywhere they want to be a leading gold miner in s.america..by oz .
Always the first sentence of their pr . They never never tell u , which profit and above all what the stockprice will be.
If you want an exemple , have just a look at equinox . Same narrative , same ex team , same participants : a one million oz company !!. At the end all time low for the stock.
B ) you do not know where the price of gold is headed . We have heavy tensions everywhere in the world , a pshychopath guy talking nuclear ad nauseam , and... inflation as never . And gold seems ...dead.
To end , i do not short , i just follow Lassonde to exit step by step . If time is money ,then the gold sector is one of the worst sector. GLTA