Counterbility I have tried to be prudent and cautious with my numbers but find the share price target of 70p to be entirely achievable. We do not know if there will be any further dilution but if it comes it could be by the power partner buying into Kibo by paying a significant premium for their shares or more likely (and no doubt the preferred option) an outright cash injection to pay Kibo for their historic work at Rukwa. This could be as high as $20m in my view. There are interesting times ahead for sure. I expect the shares will start to respond to ever growing investor demand over the next few weeks.
RE: Power plant
Thank you for that analysis. If one considers the commercial aspects to this transaction, one must expect logic to dictate that some form of forward cash would apply in the main to release of a material proportion of the power generation element. However one should not exclude the possibility of a further sum becoming due to reflect signature of an offtake agreement for the power plant from the mining element. Overall I consider your estimate of the likely annual return from the power element to be understated through prudence and an over zealous reduction to a mere 10% ownership. But of course we are still in the same ball park magnitude wise.
Rumours circulating on ADV$N of a large short position in KIBO. Talk is 10m-25m shares to be bought back. WOW if true. Would explain the share price drop The shares will surge if they have to buy that number back
Share price will get back to 1.9 /2.0 within days imo. Happy here for once.
KIBO-National Strategic Energy Plan
With the RCPP included in Tanzania's National Strategic Energy Plan I would think it is a little more than news. As a stakeholder any Positive RNS (or news) is good for me.
RE: MM's Prank Day
Cant win Its like ECR - you keep announcing news that shows progress / risk being managed and the sp doesnt move. Begs the question as to whether this should be in an RNS (as its clearly not materially affected the SP) or just posted as News.
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