They are. Based on the stock exchange release, these were taken for trading on 11.1, so selling should be possible (trading in them has apparently taken place on 13.1).
Indeed, this time too, old shares, new shares, or subscription rights have not been completely in sync during the share issue. Finnair’s issue was, of course, exceptional in terms of discrepancies.
Tuesday (19.1) is then the last day to trade subscription rights, if you happen to hold any!
What does this bring up?
Nothing major, really. It’s a good thing for the company, of course, that there’s interest in secondary subscriptions too, as it was important to get the offering through as fully as possible to have the chips for development in the coming years. There might even be an acute need for secondary subscriptions, as there’s no concrete information yet about the intentions of the largest owner, TVL Gold, and Transatlantic, which became a large owner through a corporate restructuring, regarding the offering. These two parties own a significant share of the company (TVL Gold’s ownership was a quarter in November), and it would be important to cover any potential missing subscriptions from them with other subscriptions.
Interesting announcement. Especially if it had characterized in some way what the content means compared to the previous mining operations in Pampalo. Of course, the details confirm what has already been announced.
The results confirm that the ore veins continue at deeper levels of the Pampalo mine. All reported results have already been taken into account in the existing resource estimate and will be used in the mine planning for the Pampalo deep extension. Endomines plans to continue underground drilling in the mine area, focusing work especially on the ore veins below the 855 m level, once the ramp and other development work enable this.
Promising concentrations seem to have been found there, at least when compared to previously achieved concentrations in Pampalo, although more detailed analyses would require a geologist’s credentials. These drilling areas therefore seem suitable for further development, especially considering current gold prices. For the Pampalo overall, it would also be important that production could be continued by deepening the mine even after the deep extension investment, which enables 2.5-3 years of production.
Comments on Q4 results?
More impairment charges from Friday & Pampalo than expected. Friday to start in H1 and Pampalo this year. Production forecasts only with the Q1 business review. Is all the bad news already baked in when the offering was reasonably successful at 214/281 msek/?
The share price has already fallen to the offering price of €0.25, so the market doesn’t seem to have much confidence.
Nelonen probably didn’t have any production. So, it was expected.
An interesting spring.
Yes, confidence is being dug out of a very deep mine. And rightly so, given the track record of recent years. Of course, the slight drop in the spot price of gold has also put pressure on the stock.
In itself, the post-stock reconstruction seems to be progressing according to the company’s expectations based on the Q4 report. Of course, there’s still the beginning of the year to contend with, as production from Friday will only start after the thaw in Q2, and preparatory work in Pampalo will take until Q4. Even in terms of development work, projects that consume some cash seem to be high on the priority list. Of course, in recent years, the company has tried to proceed with full throttle and has slipped into the ditch a couple of times, so there are good reasons for patience, even if a negative cash flow causes impatience.
In my opinion, write-downs should not be given significant weight. They do not affect the future potential of the projects but will at least partly reduce depreciation in the future. In terms of the balance sheet, the limiting factor is also not equity but cash.
It feels like the company is very tight-lipped about information. I personally took a loss for a few years and eventually sold my shares before the latest offering.
Do you think they’ll strike gold this year, or will they be digging into shareholders’ pockets again in the autumn?
At these prices, I don’t dare jump back in; I’m waiting for some concrete evidence of progress.
This year is indeed make or break for Endomines regarding production. I suspect that there might be few investors left for the next offering if Friday isn’t in full production volume in H2 and Pampalo hasn’t made significant progress. Of course, Endomines doesn’t, in principle, burn so much cash that the risk of an offering in the fall would need to be considered in any scenario. But this doesn’t mean that negative cash flow wouldn’t need to be reduced/reversed as soon as possible.
Since you clearly have some idea about the company, does history in any way support that success?
The results, especially in the US, are weak (of course, the wastewater pond breach that started the negative spiral was also a very unfortunate event), but fortunately, history is not a guarantee of the future. As I understand it, the local team at Friday has been strengthened, and a healthy cash position is also important for ramping up operations, as there are always surprises and quick fixes can require liquidity. In addition, my own feeling is that the current group management is moving at a patient pace, which also adds a touch of confidence that they will keep their eye on the ball and complete previous projects before taking further steps.
At Pampalo, Endomines’ production went quite well during its final stages, and I believe that the organization built on this foundation will get things rolling reasonably well now too. The ore at Pampalo is what it is, and it’s not possible to make the mine profitable with any production tricks if the price of gold doesn’t significantly exceed previous years’ levels.
Gold has already slid quite a bit from its peaks. I’m no gold specialist or anything, but all we need now is for it to go below $1500/oz.
This has happened. The background is likely the rise in long-term interest rates and the calming of the dollar’s weakening. I am not a specialist in gold myself, so I rely on the consensus regarding gold prices, which still expects a relatively high price level of 1700-1900 USD/oz to last in the coming years. This, of course, remains to be seen. For a gold mining company, a change in the price of gold (in both directions) is naturally the most important single driver and at the same time the first item to be noted on the risk list.
Some light in the midst of darkness…
Based on the description, he seems to be just the right fit and senior enough to restart gold mining projects.
This investment has certainly been directed to the right place. I hope the results are as strong as the CV suggests.
https://endomines.com/en/investors/investor-materials/release/?releaseID=17DB592353B73EE8
Pampalo deep 5.36g/t
At Endomines, the board of directors is also undergoing significant changes, with only two members continuing and three new ones being proposed (announcement). It seems that industry substance expertise is being sought for the board as well, which I believe is quite healthy considering the company’s development stage.
In Pampalo, the mine preparation seems to be progressing according to plan, but there has been no news from Friday yet. Winter and the muddy season should gradually be over in Idaho as well, so that too should start soon, or there have been setbacks. From a market perspective, the trend has been quite positive again in recent weeks, as (to my understanding) a slight decrease in long-term interest rates and a weakening dollar have pushed the price of gold up by a few percent closer to the $1800 per ounce level.
Endomines will release its Q1 report on May 20th. I will publish a preview at the end of next week.
More expertise on the board.
Threat or opportunity?
More events. Threat or enabler?