Morning Mumble: Chaarat Gold Holdings (CGH)...SXX + AMEC

Good Morning, 

Chaarat Gold Holdings (CGH) preliminary results are out. With 9 months since CGH last spiked and an overriding sell (EMC CGH Sept 2014), CGH is looking more positive. If the market is capable of accepting the fact CGH's assets are in Kyrgyz Republic and the Chinese connection risks, then things are starting to look positive. 

With sufficient cash to complete the DFS (Definitive Feasibility Study) that is due very soon. It’s a case of what the shareholders will end up with, as the entire project is likely to be funded/developed utilising Chinese companies. This includes their 9% shareholder China Nonferrous Int'l Mining Co. (also involved in the DFS). 

CGH have a JORC of just shy of 6.1m Ounces, (6.096m/oz.) when "various" mining methods are applied to maximise the project, with the bulk being measured and indicated within the high grade ore, circa 4.6m/oz's. 

The suggested economics, assuming the Kyrgyz Republic don't pull another fast one, are starting to stack up. CGH have secured an extension to the power supply quota, where the cost of power is less than 3¢/kwh. To put this in perspective, the UK is averaging 15¢/kwh with South Africa (to the miners’ detriment) at around 13¢/kwh. 

It’s noted CGH have now removed the additional expense for a tunnel (at least for the first 10 years anyway). One shall await the DFS but at 10-11 pence, assuming a conservative valuation of the measured and indicated + cash, it’s got better appeal than 9 months ago! Will 2015 be “a milestone year for Chaarat." It’s wise to consider Centerra Gold's technical report (TSX: CG)

A quick thought goes to Sirius Minerals (SXX). The North York Moors National Park Authority environmental consultant report Amec Foster Wheeler. Will they agree, diary date of 30 June 2015 NYM Site

More perhaps later, very busy morning! 

Atb Fraser

Morning Mumble: Carnage Part 1 Retail, Sugars & Safety in metals...Tate modern...(not so) and Silver WTH

With commodities on the slide the market introduced contempt  for the pricing with recovery in the iron ore producers in Asia and flat in the UK. However, looking at retail, why did Mothercare not snatch their arm/hand body off. The rights issues is a joke, as stated, any holder should have sold on the news...not now! It's cost them dear, the rights issue is a positive for the company, not for the holders. See: Morning Mumble: Iron Ore (From Kumba via Pilbara to Marampa) & LGO's placing...and does Mother Care?! (Poor I know).

Tate & Lyle came in with a lot of known issues all being stacked together, what the market are doing pricing the Co at such a level is beyond me. I have an aggressive target price on TATE of 465 pence. I'd avoid any longs in principle (subject to news changes) until the next warning coming in January. Sucralose might just save TATE, but quality is the key. Something PureCircle might need to look at...Tate still not valuing their Stevia Tasteva (TM) brand with no mention of it. The dividend statements might save them some short-term pain!

Metals has had support come in at last, with some stability across the board save for Iron Ore. Precious metals steady as they go, one would have thought the new trading opportunity would have improved things for gold? The Shanghai Gold Exchange should sort their data out but perhaps that will come over time but volumes were the highest for awhile so I dipped my toe in, the conversion issues to Yuan are very prohibitive, will the exchange last? 

Staying semi-precious with profit being a rarity, what are some silver producers doing with the current price is beyond me! What's the purpose to produce something more expensive than the price achievable! Hochschild’s (HOC) might just have a shock if this continues. Perhaps changing banks and broker to HSBC would assist the price? (please excuse my sarcasm there). Afterall, the writing was on the wall (Morning Mumble: ManFlu (Death Bed) & Pedra Diamonds & the fall of silver?). Rather obvious and not so long ago?

Its best if I let people work out what's going on with Chaarat Gold with NFC and NERIN to prepare DFS for them. Why parties would not be taking profit is beyond me....perhaps I'm myopic! Chinese involvement and cooperation, perhaps there's more profit to be had? Surely there's better out there, Amara? 

Apologies for the brief it has been a manic morning, with Alibaba shorts going brilliantly and in short supply now! Mothercare, FX and gold, I bought some gold at 1217$/oz (Volume is increasing), long that is!

Atb Fraser