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OK thanks, I can't work twitter !
Zak twitter. Talking about keyboard warriors etc...aka LTH
Where did you see that Lucky ?
Looks like zak has been paid to try calm things down lol smells of desperation!
Realise I’m a newbie here and almost shouldn’t be entitled to a vote based on when i started buying Vs Manica sale rns.
In fact I’m not even going to vote but I see it this way:
“If he is forced to spend on Manica and Zambia all at once (which he will be at some point) the dilution will be so horrendous it will offset much of any SP recovery. If you have 50% more shares in issue then a 50% rise in mcap won’t move SP dial.
It’s a pig of a deal for those that have been “invested” but the alternative is worse imho
Current mcap 8 mill
With no cash from Manica and a need for cash pdq how does he get the mcap up?
If he sells 30% of the co. at these levels he can only get around 2.5 cash. That won’t touch the sides and then it all gets spirally.
If your b/s can’t support your assets then the assets value can’t be reflected in the SP.
If you really regard yourself as a long term value investor (prob best to avoid these sort of stocks but that’s another convo) then maybe preventing sale of Manica is Best but if your just a punter using Penny stocks for volatility and just want to see 2p sooner rather than later I genuinely think a 15 million cash sale is the way to go.
Like I said, ruthless! Their presence could affect competition for M&A’s as they will certainly want to acquire prospects to increase their foothold.
I think many are just looking at the disposal on face value and not considering the real implications that phase 2 of the mine could have on costs.
Look at it this way, It could very well be that Explorator and MMP may now have different expectations on the timeframe to progress phase 2 or on outlook of the financial returns they expect from the operation through the JV. Colin is clearly not happy to be involved in an underground mine, that is not what the company specialise in.
So for a minority partner is not a comfortable position to find themselves. So the disposal would be the sensible thing to do in that respect.
Years ago I was told by someone in the exploration business that the Chinese will always screw you. Sadly that has been proved the case everytime since. My assumption is that is what has happened with Manica. Colin jumped in only to get shafted. An over complex deal which gave the Chinese all the cards. I think Jiangxi are involved with Ivanhoe , across the border in the DRC. Robert Friedman recently said he regretted that deal.
Jiangxi have had a large stake in SOLG for a while now, they aren't just buying anything willy nilly they are playing games there with the govt over SOLG to get it cheap it's said.
Not wrong at all irishdemon. With this deal, the exploration in Zambia can be far more progressive toward defining a resource to put the project in the forefront when M&A activity steps up.
Just recently reported was that Chinese state owned jiangxi copper are in talks with First Quantum on the sale of stake in Zambian mines.
They are keen to get an operational foothold in Zambia which is a really positive move. Currently jiangxi are a significant shareholder already in FQM with a ‘standstill agreement’ that prevents their stake in FQ from increasing more than 20% from current 18% is their opportunity to take advantage. They will be relentless and potentially ruthless in their search for assets to increase that foothold and could see serious competion for regional exploration projects with defined resources increase even further.
I Wonder which way Alex Terrys voting?
"we need more detail on the potential of any future investments outside Manica, where and how much - a 2 or 3 year plan effectively - to make a properly informed decision."
Great idea. How do we go about demanding /requesting information on the strategy for the company going for ward. CB can't just sell off our main asset and then tell is he's going hunting! His utter waffle on the roasties podcast doesn't fill anyone with confidence. I want project timelines and STRATEGY before being convinced. I've had enough of his inability to give a straight answer. Surely he should know that selling off Manica would anger the shareholders..
And after reading the last few posts itssss A NO FROM ME.
ps thats 6m NO'2s
That is the point surely ? If we have acquired the right Real Estate in Zambia ( and CB certainly knows his onions there from 2008) we could do very well from a self-funded exploration programme at a time when everyone is piling into NW Zambia looking for Tier 1 copper projects.
Am I wrong ?
Cygnus.
I suppose we put money in here for the spikes in the first place so let's hope we get a good 'un in Zambia if that's what happens.
Jezz,
"For those saying it would be dilution look at it this way, would you rather spend the money on our existing site that we know has potential or go rainbow chasing with the money and have no money and no asset in 2027 ?"
You make the assumption that the will be no pot of gold at the end of the rainbow. Seems to me that everybody is piling into Southern Africa where CB wants to reinvst and the grades optained by other comapnies in the area so far look very good. Deals are expected soon and this may be the last oppontunity to jump on board.
To be fair I do think that $15M is a tad low but that is another agrument.
One thing that makes sense now is the lack of figures on Manica earnings despite repeatedly asking about them.
They had been held back deliberately because they would probably make this deal look lame.
It is partly about risk appetite - maybe this the wrong way to look at it, but I see sticking with Manica could only ever get us back up to 2 or 2.5p eventually imo. It won't ever get us to 5 or 6p plus which I want to see a proper profit from holding xtr stock for so long.
In reality we have yet to see anything like an annualised profit of even $4m let alone $5 or $6m and perhaps there is a big argument going on as to how thee opex is arrived at. The current deal is opaque and open to interpretation imo and therefore open to plenty of risk also.
if we had been shown as of todays date that we are actually banking $4-$5m NET profit from our 23% at Manica then it would be a different matter and the staged $16m wouldn't look appealing.
Good post from JDAU's and I that we need more detail on the potential of any future investments outside Manica, where and how much - a 2 or 3 year plan effectively - to make a properly informed decision.
Completely agree
"...would you rather spend the money on our existing site that we know has potential or go rainbow chasing with the money and have no money and no asset in 2027 "
Most SH, I believe, will go for first option. Play the long game.
But by 2027 CB will be circa 84. I doubt CB will be around in a professionally capacity by then and there is every chance he will have "shuffled off this mortal coil" by then
Why should CB care about what's best for long term planning. It is irrelevant to him now !
And he knows it.
SH best interests and CB best interests are now not aligned.
The choice is simple, have $15m over three years and be out.
or
carry on taking the 23% and put that into our share of development of an underground mine.
For those saying it would be dilution look at it this way, would you rather spend the money on our existing site that we know has potential or go rainbow chasing with the money and have no money and no asset in 2027 ?
I think we need more for the asset and payment over a shorter period, if they can't afford to pay us more let them go looking for the cash from a JV.
Why should we get less than it's worth if they can't afford it, I bet they are laughing at CB, We took all the risk in the first instance and when we proved the asset we had to JV to get the gold out of the aluvials. Why shouldn't they give some away to a JV partner , they will have 23% of the asset to give them.
Thnk about it, CB is trying to roll this turd of a deal in glitter.
Based on the following statement from the podcast (referenced) I’m very much expecting some further information/news on pipeline assets before I can be expected to vote on the matter at hand.
“… and I think over the next few weeks, we will make sure that the significance is well understood and taken on board on the importance of that NW Zambian couple of positions we’ve got…”
Ref approx 12:19-12:31: https://m.youtube.com/watch?v=DhOSp4gVb_0
Over to you Colin, you have until 10am on the 9th of Feb to convince us that selling the asset some of us have invested our hard earned and waited years to get into production just as it gets off the ground and efficiencies start being made for a sum of money in staged payments arguably similar to what we expected as a net profit share over the same time period is the right move.
I appreciate the want for control over an asset rather than being the silent partner, but I’d rather be a silent partner in an asset we can be relatively confident on making a good return on for the next several years than selling up to have majority control over an attempted discovery when most of our attempts so far have lead to our hard earned put into an asset we either write off or put on the back burner.
If it was $15m up front (tbh even at that price it seems like a steal considering the current production trend on site) that would sweeten the deal but staged payments?!
With how little i feel I currently know about the boards plan for the way forward I’d rather own the asset I know about and take staged payments from the current profit share agreement with the blue sky potential coming from further discovery in the licence as we put money earned back into the development of our existing, producing gold mine.
BR can stay on the back burner until it’s the right time to sell/further develop and our Zambian assets should be able to be developed from cash flow from an improving situation at Manica: better head grade/improved cost efficiencies/plant up to expected tonnage.
I don’t think I’m alone in my thoughts and at the moment, I wouldn’t say I’m convinced.
Your move CB.
Cardo
It will give CB a good retirement fund for 3 years. Even if he puts new CEO in he will still have a roll as a book end for the next 3 years drawing his spoils.
I have voted against, will my paltry holding make any difference, almost certainly not.
My view is that the money received, over a period of time, will not benefit shareholders and will simply be used for another fishing trip for CB. His personal aims are not alied to those of shareholders, and that may apply across all his many companies and projects.
Me too. Another CB rip-off. 3.2M Votes against.
Thanks for these contributions.
Cyberiachus says 1. Profit of 4-5m not a straight line guarantee 2. we might soon have to stump up 23% share of $10m capex. 3 . $15m equates to 3 or 4 years and can be better used elsewhere.
Andrew thinks a younger man would probably hang on but CB wants a chance at one last blast on the world copper roulette table but both he and Jezoo think this is CB's benefit not for we shareholders. On balance I have not changed my opinion . $15m in the hand right now may just be persuasive but this sale is scheduled to take a few years when we could have been drawing our profit share so it does not make sense to me. The partner seems to have delivered so far and unless they are holding a gun to our head and threatening to stop paying why sell out ? i am voting against. The prospect has done zero for the SP as it happens. So nobody else seems to value it or they doubt if the proceeds when they arrive will be spent wisely.