Incorporated in Canada in 2007 under the name 99 Capital Corporation, Giyani Gold is a gold exploration company involved in the purchase, exploration, evaluation and development of gold resource properties in both Canada and South Africa. The group aims to build a portfolio of under-explored, past producing gold assets.

The company listed on the Toronto Stock Exchange in 2011 and on the AltX of the Johannesburg Stock Exchange (JSE) in 2013. Giyani’s main focus is the development of the Rock Island Gold Project in Limpopo, in which it has a 28.8% interest. Rock Island has prospecting rights to five gold exploration projects in the Archaen Greenstone Belt, a 70 km long and 15 km wide area which has the potential to be developed into a multi-million ounce resource.

The group’s Canadian assets include four mining and exploration projects in Northern Ontario. The company’s financial results are reflected in Canadian Dollars. The live online JSE stocks chart shows that Giyani share price has stalled, in line with continuous delays in the company’s projects.

For the 2015 year, Giyani Gold made a loss of more than $11 million, resulting in an accumulated deficit of $28 million. The company is the third to try and make profits from the Archaen Greenstone Belt in Limpopo, with the previous two attempts failing.

Although the company has said that it gives South African investors an opportunity to buy into significant exploration and expansion upside, processes are currently stalling. In addition to working capital requirements, Giyani must secure sufficient funding for existing commitments and exploration costs, and has admitted that there is significant doubt over whether it can achieve this. Management plans to secure financing through purchase of common shares, issue of new equity instruments and entering into joint venture arrangements.

The group has entered into a 50:50 joint operation agreement with Corridor Mining Resources to share the costs of exploration at Rock Island, in the form of a loan account. It is forecast that the loan will be repaid from proceeds of the sale of the asset. After pumping $1.7 million into exploration at Rock Island, exploration permits expired in 2015 and the Department of Mineral Resources is yet to renew the rights. As a result, the value of the Rock Island Gold Project was written down to $0.

Giyani Gold has no cash on hand and its exploration objectives are subject to securing funding, a task it does not have any guarantee of achieving. As a result of the uncertainty, Giyani shares have been suspended on the JSE. It remains to be seen whether the company can extract value from its assets and become a worthwhile investment. Even if Giyani shares do start trading again, they will be the epitome of a high risk, high reward purchase.

Investors who do want to buy gold stocks are better off choosing to buy into established gold mining companies over a junior exploration venture such as Giyani Gold.

Materials

Metals & Mining

Precious Metal Mining

We have made it simple to buy JSE listed firm shares online. The easiest way to buy Giyani Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Giyani Group and assist you with the setup and management of your stock portfolio account.

1. Start by Filling in the BUY THIS SHARE form.
2. Insert your name, email, telephone number and monthly remuneration.
3. Then, Indicate the amount you are looking to invest in Giyani Group.
4. Click the “ INVEST NOW” button
5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)

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