Sunday, May 27, 2018
John McGloin

John McGloin

Amara Mining

AT the time Amara Mining’s John McGloin declared his company would build one of Africa’s largest gold mines at its Yaoure property in Ivory Coast, in October 2014, the gold price was hovering around the $1,250 per ounce level. The trouble is that for most of 2015, the metal has bounced between $1,050 and $1,150/oz. That’s not good news when you’re drilling with limited cash reserves at the end of which will be a capital raise of $440m. Amara successfully raised $20m in February 2015 following from $30m a year earlier, but a further $10m from the World Bank’s International Finance Corporation (IFC) through a 16 pence/share subscription has not yet materialised. McGloin insists the funds will flow, but these are harum scarum times for gold juniors. Amara is financed to mid-2016 – possibly later if the IFC cash injection can be renegotiated – and it continues to pepper the market with promising noises about Yaoure, where mineral resources increased 20% to 7.3 million ounces. Yet actual positive cash flow seems an age from materialising in a market context where daily survival is the most pressing matter. There’s a legal matter with a former mining contractor in Burkina Faso that also seems to be sitting on the share which fell 45% in 2015 to about 8p – half of the IFC’s proposed entry. Yaoure would produce an average 247,000 oz/year over 10 years if it is developed.

LIFE OF JOHN

McGloin is a qualified geologist and graduate of Camborne School of Mines and has worked for many years in Africa. As a banker for Arbuthnot Banking Group and Evolution Securities he has participated in the affairs of market luminaries such as Mark Bristow’s Randgold Resources. Before joining Amara, McGloin was head of mining at Collins Stewart.