Hi All,
Thanks for the summary Wombat, I was also there (and dont get to post much so sorry for delay) and can confirm your summary detailed the meeting really well.
The key points I took away were (and sorry if I'm repeating):
1. Graphite metallurgy seemed to really excite Christiaan with expectation of result in 1-2 weeks. A JV outcome in modular plant increments would be the plan going forward.
2. I felt that the unanswered question from the meeting (and to be fair, they did answer a lot, and the shareholders basically ambushed mid-presentation with a raft of questions) was why abandon block A to test the prospective new lease (further away) unless there was a belief that Block A was not as productive as hoped. Unless the new untested area's shallow depth & artisinal recovery evidenced is the driver; but this wasnt really explained for mine - or I'm slow.
3. They called out mining in last 4 mths has been massively hampered due to the wet season which has now finished (so I'm still not expecting much inventory increase at next update). The description of revving diesel trucks in sticky mud and pumping out water sounded rough. For those alluvial diamond share investors in the forum, you've seen this in Angola but interesting to confirm same impact here.The treatment plan is the same - stockpile in dry, treat in wet.
I expect this is also a hint that most of the recoveries to date have been from artisinal miners but the new mining kit should evidence better recovery now machines are running and weather is permitting (plus new prospective ground).
Maybe I'm reading too much into this too.
Although my theory may explain lack of intel on current inventory as this may not represent what the plant is recovering - so not appropriate to provide.
Also, I note the above was really refreshingly honest and, for me, explained why the recoveries in last month update were lower than I was personally expecting. The next months recoveries will really be key (but not this month's output in my view).
4. Given the above, I really appreciated understanding how the artisinal miners are controlled - ie they are paid salary to basically provide the gravel. They then use a MUS provided wallaby jig at MB1 under view of Mustang team. The miners then get bonus payments per stone found. Particularly in dry season this will be easily controllable as water is hard to source & miners dont know what they have until they wash it. Simple but effective.
5. I got the feeling the board were going to get there with the cash position until auction. By my takeaway this will be via non-dilutive raising if needed - either by help from good investors or otherwise.
6. I'm not an expert but also note in the upgrade of the plant, there is only conveyor belt prior to the cement mixer thingy, after that all the material is transported via pipes (slurry?) as the mud & rubies were sticking to conveyor belts previously installed. So this 'should help recovery too - not sure if important but wasnt mentioned before.
I didnt see much in the drone video, but hey, I'm no engineer. I was more happy with the process rate at 250tph vs Gem's 300 for a lot more cost.
7. The board were calm, realistic in approach, focused on the same things we are all worried about and addressing these as would be expected by a prudent company. Although to be unreasonably critical, why was the financial controller sitting with sunglasses on the top of his head through the whole meeting? Cmon man, you're in finance.
Summation:
Whilst I've been as stressed and upset as any on the forum, with an average buy-in above 9 immediately prior to the last cap raising and a holding too big for comfort (well it was to start), I've tried to be as objective as possible in the above comments.
Overall, my takeaway from this meeting was that the group have addressed (or are addressing) the concerns I felt were important/key - working capital, inventory grading, market intel, recovery rates & reason for ditching prior strategy. I have confidence they will lead the company over time to see this come to its potential. The board were clearly of the opinion that the stock was massively undervalued and I share the fear that there is too weak a register for the market cap (albeit some comfort Gemfields are in slight disarray).
My personal plan is certainly to hold through and see where we get to as I believe in my own long term view of the MC - but please DYOR.
I'd be happy to hear any other thoughts/takeaways.
PS - nice last couple of days trade too.
Cheers
Capn Amazing
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