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AFCR African Con

0.685
0.00 (0.00%)
Last Updated: 00:00:00
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
African Con LSE:AFCR London Ordinary Share GB00B142P698 ORD 1P
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.00% 0.685 0.00 00:00:00
Bid Price Offer Price High Price Low Price Open Price
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
  -
Last Trade Time Trade Type Trade Size Trade Price Currency
- O 0 0.685 GBX

African Consolidated (AFCR) Latest News

Real-Time news about African Con (London Stock Exchange): 0 recent articles

African Consolidated (AFCR) Discussions and Chat

African Consolidated Forums and Chat

Date Time Title Posts
05/1/201509:52ACR Going for GOLD !2,027
02/1/201508:02AFCR.....Romanian commodity bonanza ?147
23/12/201407:57Trade AFCR306
10/12/201415:41TipTV: African Consolidated, bounce towards 0.6p may lead....-
09/12/201416:01African Consolidated Resources1,008

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African Consolidated (AFCR) Top Chat Posts

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Posted at 17/12/2014 12:27 by xscream179
I made my first post on this board a few days ago. I don’t post a lot but sometimes I have something to contribute. I tend to hold for long periods. By way of introduction I first invested in AFCR about 9 years ago. I have long been interested in the potential of Zimbabwe and have spoken to a number of people who travel there. I invest in a small number of stocks and know a lot about those that I invest in. I have met Roy Tucker, Mike Kellow, Andrew Cranswick and recently Roy Pitchford. I believe this is a good time to be in AFCR with much of the available information looking positive.

Expected cash generation from Zimbabwe:
“The Company remains of the opinion as previously announced that the finance introduced into the Joint Venture will be sufficient to commence production at Pickstone-Peerless within eight months at a provisionally targeted run-rate of ore production of 10,000 tonnes per month.” 10k tpm at 5g per tonne /32 g per oz = 1562oz
per month x margin of $450 = $703k/month = $8.4m pa. 50% share to AFCR is $4.22m pa = £2.7m pa. Cost of production at PP has previously been quoted as $600-$700. It will take 2-3 months to build up to 10,000tpm. The necessary machinery has already been ordered. Note that Grayfox the new Zimbabwean investors own 50% of Pickstone, Peerless and Giant the rest of the Zimbabwean assets are 100% owned by AFCR.

The known orebody at Pickstone Peerless has higher grades at greater depths. There are several avenues open to the company to increase production once capital is generated from early operations. It would be fair to include at this point that there are significant political risks in Zim however I think this is clearly reflected in the in the modest market cap.

Shares being traded in the market:
Brimfell sold their 29% holding. The buyers of this stock over just 4 days paid 1p to 1.3p. I think it would be unlikely for them to become significant sellers with the addition of the Romanian project.
There were very high volumes traded around the time of Zak Mir’s potential 25 bagger article however current holders will include people buying in on his recommendation with the hope of the share price multiplying to an assortment of levels above the current price.
The shares from the placing are non tradable yet. I don’t think those who bought in on the placing will be planning to sell for a modest profit at around current levels. Why be tied in for a period for .01 or 0.2 of a penny?

Romania:
As per the last RNS there are some legalities to be confirmed. Once the legalities are sorted out, estimated Jan, it will take three months to restart the mine and possibly a further three months to increase throughput to 10tpm. By this time annualised free cashflow (after tax) is described as $14m-$15m. Noting cashflow is not profit I think the profit to AFCR would be £4m- £4.5m pa from mid 2015 from Baita Bihor. This is my rough estimate not a company figure. “Resources and production facilities (post refurbishment) are sufficient to double production for further $4m investment”. This additional investment is expected to come out of cash flows generated from the first phase production output. Known resources indicate an 11 year mine life. The various metals being mined are equivalent to 6% copper or 10g/t gold. The plant to extract the main minerals is in place and comes with the deal.

I know someone who asked an analyst to scrutinise the Romanian figures. The outcome was that it was difficult to come up with an IRR of less than 50. My rule of thumb is that anything higher than the mid twenties is exceptional.

The way Biata Bihor will be run will include some improvements in working practices that will bring further benefits. For example simply putting the viable ore through the plant rather than all of it will increase the already high grade (6% Cu equivalent) even further. This isn’t just creaming off the good ore. Under state control all the ore was out through because no one in charge asked the people working in the mine for their advice. I understand Andrew Prelea (Romanian CEO) is both a Romanian citizen and an Australian citizen. His in country contacts give AFCR a unique position which has resulted in the current arrangements and the prospects of additional developments through Remin the state mining body.

Conclusion:
The sovereign risk in Romania is substantially less than in Zimbabwe which derisks AFCR’s operations. This will be to the benefit of shareholders. With the price around 0.6p absolutely nothing is priced in. By the time both mines are working later in 2015 my figures above indicate an annualised profit of c£7m to AFCR for the following 12 months. This excludes further improvements enabled by using cashflow to improve operations. The new number of shares in issue will be approx 1182m. If the share price is 0.6p this is a P/E of one (1182x x 0.6p = £7m). If you chose a P/E that is more realistic that is the multiplier from the current share price. I would be surprised not to see a share price of above 2p in 2015. This could be viewed as a cautious estimate. Note that the Romanian element has a lower risk and will contribute more profit to AFCR than Zimbabwean assets. The very fact that there are two independent projects reduces the risk to the company. If it was Zak Mir making these points the share price would be over a penny in 24 hours.

XS
Posted at 16/12/2014 16:36 by yorgi
POG not doing us any favours I guess although it is what the price will be doing next year that is important and not today with respect to PP whereas BB is a polymetallic mine. What is clear to me the present share price is not reflecting the true value of our company.

We will just have to hope for a buoyant start to 2015 as it does not look like we are going to get much of a santa rally this year on the markets :-(
Posted at 16/12/2014 08:50 by yorgi
Not the direction we would like to see on the share price but buyers coming in on the dip again and once again wider concerns can't be helping.

Anyone who has been following AFCR of recent times will know how quickly we can change direction.
Posted at 11/12/2014 09:03 by themattbarnes
can someone just clarify something for a newcomer.

There is a plan to issue a load of shares at 0.5p but this hasnt been agreed yet, so are people buying the current shares not the new shares?

why is this good news as it has brought the price down massively, and if the company is issuing shares at 0.5p why is there any indication the company thinks the share price should be higher than that?
Posted at 20/11/2014 15:17 by yorgi
Wongman I can understand your comparison with EMED and look at the value of EMED compared to AFCR ! I believe the political concerns are greater than reality. I also do expect we will producing before EMED are producing as well and in my view the upside from our present share price is also far greater.

Also don't forget we have other projects in Africa and also one in Romania which we have not had a great deal on information on. I think we have a lot going for us and the recent drop in share price has been well overdone..
Posted at 20/11/2014 07:45 by tez123
Courtesy of Torino on LSEThe AFCR storyAFCR in my eyes is the most undervalued share on AIM at the moment. As you can see from the RNS's, AFCR will be PRODUCING GOLD, within the next 2 to 6 months – yes GOLD PRODUCTION. So where does that value AFCR? Well let's look at some Gold explorers which are nowhere near producing, and therefore nowhere near making any revenue or profits: Solomon Gold – just a gold explorer is worth £22 million. Central Rand Gold is worth £ 14 million – once again only an explorer, and with an offer worth over $150 million dollars on the table. So now you're beginning to see how our market cap of currently £10 million is looking cheap. Now let's look at a gold producer – and see how much it was sold for... Archipelago Resources (formerly of AIM) – was sold for £338 million – and it produced 140,000 ounces of Gold (we will be producing 120,000 ounces of gold – read the RNS's) So as you can see we are the most undervalued share on AIM – we will be profit making shortly, so even 15p looks cheap! This is the next GKP of 2009 or a Fitbug... Don't miss out
Posted at 19/11/2014 13:07 by yorgi
Although 1p looks some way away at this moment that could quickly change if enough people recognise how undervalued we are buy in for the journey to production next year and with it then a share price several multiples of the present share price in my opinion.
Posted at 11/11/2014 15:13 by paleje
The reason we're not getting recognition for world class asset pp is, imo, purely that the world class asset is in the wrong post code. In my view, that situation is slightly better now that we have Grayfox as partners although they got a giveaway price they will hopefully earn it. POG at its current level or even a bit lower would still leave us profitable wouldn't it Yorgi? I read somewhere our all-in costs are ~700/oz.

I think our share price will certainly improve nearer production but shorter term on any update on the Romanian asset which was alluded to in the JV RNS and which will seem a lot safer to investors, it will give us some balance. It was noteworthy that Grayfox wanted the right to swap debt for equity in AFCR, not Newco, under certain conditions....which would indicate they'd like to have exposure to a new postcode too:)
Posted at 11/11/2014 12:45 by yorgi
I'm looking into next year here Oilbuy so theses short term movements don't worry me they just present and opportunity to buy some cheap shares. The present share price is not a reflection of AFCR's value today or looking forwards in my view.

It is nervous investors and traders parting with their shares to quickly in my view.

Some of what I have read elsewhere on BB recently suggested to me that quite a few people who done hardly any research on AFCR before diving in......they are probably the same that are now departing.
Posted at 11/11/2014 12:35 by yorgi
If we are moving back to discussing AFCR as opposed to AIM then as Loverat has commented AFCR could quite easily double in fact treble from here in days......but it may not of course.....but I have invested here looking for much larger gains over the next twelve months and beyond as PP moves into production and the BOD release news of developments or the way forwards on any of our other assets.

The present share price is crazy no other word for it in my view. If Brimfell had not decided they wanted out regardless then I have no doubt the share price would be a lot higher. In the mean time it will take time for those shares to move from short term traders to longer term investors and from there we will see the share price rise in my view.
African Consolidated share price data is direct from the London Stock Exchange

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