Goldstone CEO Emma Priestley was kind enough to make time for an update call with a small group of shareholders to update on operations at Homase along with plans for drilling at the high grade Akrokeri mine. 2022 looks to be the busiest year yet!
If you have followed my blogs and had a gander at my research notes you’ll see that Goldstone Resources is one of my main investments. In fact I first covered the company when the shares were trading at 2.9p
Goldstone are developing their AK-HM (Akrokeri & Homase) gold projects in the highly prospective Ashanti gold gold belt in Ghana. Goldstone are now a producer one of the one in five thousand exploration companies to achieve this acolade!
Investor Call…
If you scour the bulletin boards you’ll find plenty of ‘so called’ investors whinging about lack of news and communication from the company. This is wholly un-justified. There have been regular updates and if you follow the company twitter account, plenty of updates on both projects with imagery and even videos showing the mine in action. I suspect there are hidden agendas and pretty much why I don’t personally follow the boards these days and just stick to reading the RNS and official social media accounts of the company.
I’ve had a few catch-ups with Emma and she’s always willing to get on the phone and chat to individual or groups of investors if requested. The latest call I arranged was with several investors who all got a chance to chip in with some questions.
As I’ve said before, Goldstone really are ‘walking the walk’ now and your average retail investor doesn’t probably really just what the company have achieved, funding the mine build without equity dilution, building a gold-room in just six weeks, achieving first gold pours and cash-flow and as per the investor call, already paying down a quarter of its low $4m debt.
All of this in just under two years – I’ve been on the circuit a while and that’s delivery right there, not bumbling along from raise to raise with a few meaningless RNS in between like a plethora of AIM companies. And that’s why I believe Goldstone will be a solid investment over the coming months and years.
You can listen to the call below, here are a few highlights if you want to listen later.
The company have fixed early production recovery issues now they under stand the mineralisation mix better.
Further Homase pits are being drilled particularly focused on where there are higher grade zones.
The company are maintaining there 20koz maiden year target for 2022 with further drilling success and expansion across the five pits expected to increase this figure meaningfully into 2023 and onwards.
Post drilling the company are planning to issue a revised JORC which I would expect to substantially increase from the current 600,000oz Homase resource.
Drilling and trenching commenced at the 100% owned Akrokeri mine, a former operating mine. Akrokeri has mined head grades of 24g/t with some areas sporting grades of up to 51g/t. Post drilling the company will be able to consider either a refurbishment of the mine or if possible even shallow pits – interesting drill to watch this one !
The company plan to fully repay debt this year, expand production and resource and in the future start returning cash to shareholders via a dividend!
Have a listen, no punches pulled, just saying it how it is and from my point of view, a happy investor!
At £45m Market Cap with an operational mine on the balance sheet, a maiden 20k ounce pa that is likely to increase significantly over the next few years, low comparative costs and zero debt achievable this year – it’s cheap in my view!
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Disclaimer
Research materials prepared based upon my own analysis and research. Accuracy cannot be guaranteed and research notes should not be taken as investment advice. Please always do your own research.
