CEL - Challenger Gold

[Sean K]

No, No, No.

He was clearly talking about dilution to fund the mine. He just didn't really make that clear to investors. Dilution to keep the lights on and paying salaries and expenses is perfectly acceptable.

Milei slams predecessors in speech to top business leaders

Javier Milei makes annual trip to Bariloche for forum held at Llao Llao Hotel; La Libertad Avanza leader given warm welcome as he complains about “inheritance” from ex-president Alberto Fernández's government.

www.batimes.com.ar

According to sources quoted by the Noticias Argentinas news agency, Milei promised business leaders that a tax cut is "on the way."

Milei also found the time to take a photo in front of the hotel's famous staircase, surrounded by the country's leading businessmen, including Eduardo Elsztain, Marcos Galperín and Federico Braun, among others.

I recall KK mentioned the 8% export tax on gold being included in the scoping study which cost them about $150/oz... That would be a very nice tax to have cancelled.

I think at this stage he's trying to exit stage right and move on.

The only thing going right for this is that they're at a swing up in the market.

Ecuador might be worth $15 an ounce, which will be $50-80M or so.

Nice pay day for KK.

I think he might have doubled and doubled again on this.

 

[Sean K]

This is turning into a desperate, two-bit penny explorer, jumping onto the next bandwagon to keep afloat. When the lithium price goes parabolic again, I expect they will have a lithium target somewhere on their properties.

The promised non-dilutive funding for Hualilan 'early in 2024' has failed to materialise and been replaced with a couple of dilutive placements to keep the lights on. Can only hope the onboarding sophisticated investors have done their due diligence.

 

[The Triangle]

This is turning into a desperate, two-bit penny explorer, jumping onto the next bandwagon to keep afloat. When the lithium price goes parabolic again, I expect they will have a lithium target somewhere on their properties.

The promised non-dilutive funding for Hualilan 'early in 2024' has failed to materialise and been replaced with a couple of dilutive placements to keep the lights on. Can only hope the onboarding sophisticated investors have done their due diligence.


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Reads like an advertisement for Ionic Leach™

Against my better judgement, I dove after the falling knife and picked up shares in this dog last week. Four things I just cannot ignore are:

(1) An extreme pro-business leader in Argentina - I expect policy and law changes to aid CEL
(2) A scoping study with one of the lowest ASICs and highest IRRs I've seen in years on the ASX for projects near 1moz.
(3) Modest/Low Capex to get started - a complex DFS is not going to be a hinderance and plenty of parties could fund this mine.
(4) Just raised $10million @ 8.5 cents. and trading around low 7s

Are they getting back to 20 cents? Doubt it. But are they going to be able to stay over 7 cents? I think so. ORR sat like a dog for years before finally being taken out. I'm hoping this is about where CHZ was at when they were in the 7 cent range for a while before that takeover.

If you are operating in Argentina looking for takeover opportunities - you'll probably more than happily wait to see what regulations change and pay an extra $20, $30 million for CEL in the future as those changes could impact mining profits and cashflows by 10x that amount.

 

[Sean K]

CEL put out a new presentation yesterday that had some fresh information on Ecuador and what was going on with drilling to do an updated MRE this year in order to 'monetise' it.

Last year in a July announcement they said they were doing rock saw sampling which was going to infil the top of one of the deposits which could be used as equivalent to drilling.

Noosa Mining Conference July 2023:

The updated Emerging Growth Conference in May 2024 presentation says that they haven't done anything in this zone.

This is a clown show.

 

[The Triangle]

CEL put out a new presentation yesterday that had some fresh information on Ecuador and what was going on with drilling to do an updated MRE this year in order to 'monetise' it.

Last year in a July announcement they said they were doing rock saw sampling which was going to infil the top of one of the deposits which could be used as equivalent to drilling.

Noosa Mining Conference July 2023:

View attachment 177888

The updated Emerging Growth Conference in May 2024 presentation says that they haven't done anything in this zone.

View attachment 177889

This is a clown show.

Won't be long now until this is on 5-year lows.

Don't know what's going on with this company. There was a flurry of activity but the last two years absolutely nothing seems to have happened other than a stock standard pre feasibility study which you can probably just pick up off the shelf from any consultant for a bucket of KFC these days cuz they're all the same.

As you said it's a clown show. You can't really believe anything they say or any forecasts. I don't think there's a near million ounce pfs on the market that is even remotely as economic as this one. But this company is a perfect example of what happens when the market has zero respect for a board of directors. Throw on some Bellevue or liontown or northern Star people on this board and the share price probably would double and double again.

Only way out of this mess is for the company to be taken over or sold off in portions. I'm pretty shocked that no one has lobbed a public lowball offer of 100 million for the Argentina assets. I really genuinely thought I take over was coming for these clowns. Granted I thought that about CHZ and ORR. Which both seem to be late and disappointing in the end.

 

[Sean K]

Won't be long now until this is on 5-year lows.

Don't know what's going on with this company. There was a flurry of activity but the last two years absolutely nothing seems to have happened other than a stock standard pre feasibility study which you can probably just pick up off the shelf from any consultant for a bucket of KFC these days cuz they're all the same.

As you said it's a clown show. You can't really believe anything they say or any forecasts. I don't think there's a near million ounce pfs on the market that is even remotely as economic as this one. But this company is a perfect example of what happens when the market has zero respect for a board of directors. Throw on some Bellevue or liontown or northern Star people on this board and the share price probably would double and double again.

Only way out of this mess is for the company to be taken over or sold off in portions. I'm pretty shocked that no one has lobbed a public lowball offer of 100 million for the Argentina assets. I really genuinely thought I take over was coming for these clowns. Granted I thought that about CHZ and ORR. Which both seem to be late and disappointing in the end.

I think that will be 3 cents which is entirely possible.

MC down to $87m. I think they've raised more than that the past three years.

I think they went into survival mode after the Scoping Study and it tanked. They might have thought it'd be a catalyst but when you continue to over promise and under deliver, Mr market puts you in your place.

Not sure how they salvage this. Only POG running wild might do it, or a surprise offer from Lumina for Ecuador assets. Might get $5 an ounce for it. Not sure if floating it would be any good in this environment.

Maybe we could chip in and buy it ourselves. Couldn't manage it any worse than KK.

 

[The Triangle]

With the funding arrangements solgold just pulled in for the Ecuador project I would think CEL would also be able to get something reasonable once the pre fees comes out if - it comes out - in September for Argentina

Share price is up today for a rare change. I'm wondering if that's people speculating.

 

[Sean K]

With the funding arrangements solgold just pulled in for the Ecuador project I would think CEL would also be able to get something reasonable once the pre fees comes out if - it comes out - in September for Argentina

Share price is up today for a rare change. I'm wondering if that's people speculating.

What was the solgold thing?

Movement could be something to do with Argentina politics. Not sure what the latest is really but seemed an impediment to investment until Milei got in. But, not sure if he can really transform it.

Drill results from Ecuador were due last month. They had a very deep hole in a presentation on 29 May that claimed 'sulphides logged'.

 

[Sean K]

Looks like they've changed the goal posts again without really informing the market.

I seem to recall they were going to do the next MRE in Ecuador in accordance with the Canadian rules ("read into that what you like", KK) teasing us that they were going to spin it off in Canada or sell it to a Canadian company, like Lumina. At least he didn't put in writing that they had "the other half" of Cangrejos again - inferring they had 20Moz instead of the 8-10Moz likely expected overall.

 

[mullokintyre]

Won't be long now until this is on 5-year lows.

Well, it got a 52 week low today.
ya might be right O 3 sided one.
Mick

 

[Sean K]

I'm engaging my reticular activating system to send positive vibes to CEL for the August comp. It's really only some sort of black magic that's going to get this thing off the ropes.

 

[Sean K]

Trying to get into the 3s.

The only thing that will save this is an earthquake that completely obliterates both it's projects followed by a tsunami to wash it into the ocean of crappy companies whose only value is to fill the stock market with waves of Seine level excrement.

Mr Eduardo Elsztain's placement at 8.5c with a 1 for 1 option exercisable at 14 cents in 12 months is looking like a Bud Fox-like investment.

 

[divs4ever]

Looks like they've changed the goal posts again without really informing the market.

I seem to recall they were going to do the next MRE in Ecuador in accordance with the Canadian rules ("read into that what you like", KK) teasing us that they were going to spin it off in Canada or sell it to a Canadian company, like Lumina. At least he didn't put in writing that they had "the other half" of Cangrejos again - inferring they had 20Moz instead of the 8-10Moz likely expected overall.


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it might be my inexperience with miners , but those grades seem rather poor , i am assuming they are not digging old tailings dams and waste heaps ( easy digging/scraping ) is this viable at those grades ?

just asking

 

[mullokintyre]

Its a dud.
Wasted my money.
Again.
Mick

 

[Sean K]

it might be my inexperience with miners , but those grades seem rather poor , i am assuming they are not digging old tailings dams and waste heaps ( easy digging/scraping ) is this viable at those grades ?

just asking

Ecuador is a porphyry deposit. They are mass tonnage but low grades about .3-.5 g/t. Their Argentinian thing is completely different style with high grade sections at 7 g/t.

 

[Sean K]

Its a dud.
Wasted my money.
Again.
Mick

I'm going down with the ship. I blame KK for telling lies. He was comparing Hualilan to DEG at one point and El Guebo as 'the other half' of Cangrejos. Absolutely full of the Seine river. E-coli for brains and morality.

 

[divs4ever]

gee i normally pass over anything mostly under 1g/a tonne

i do seriously consider 'scavenger projects ' that is re-processing old tailings dams and waste heaps from mines of yesteryear ,

i like to see some likelihood of profit within the first two years of full production ( or better still in full production and positive cash flow , already )

 

[Sean K]

I'm resigned to this going into administration this FY and I have a tax offset, but when there's Milei in the coop we might have a sniff.

The international mining industry has a new pin-up boy – Argentina’s new president Javier Milei.

He is a political firebrand who during the election campaign brandished a chainsaw at his rallies with menace, promising to slash government waste as part of a broader plan to fix Argentina’s long ailing economy.

A self-described libertarian – others describe him as an anarcho-capitalist – Milei has been a busy boy, slashing the number of government ministries by half and devaluing the peso by 50%, among other things.

He is not a believer in economic gradualism. And while there is opposition to many of the changes he already has put in place, and those to come, there is no doubt he has stirred things up.

And the big miners like what they are seeing. BHP said as much last month when it announced it was spending $A3.2 billion to acquire a half share in two big undeveloped copper deposits high in the Andes on the Argentine border with Chile.

 

[Sean K]

Small signs of life here. Well, it's gone up for a few days instead of continuously down. Maybe around 4c was a bottom?

Must be due for some Ecuador results. Doubling the MRE there might give it a kick.

Crickets in Argentina. PFS due soon. Maybe waiting on geotech drilling results and zinc optimisation.

Tempted to recoup some losses on this with some opportunity trading, but it's hard to trust them.

 

[Sean K]

Someone must have read my last post and wanted to get on board. LOL

Something fishy here.