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London South East Natural Resources Briefing webcast: #Emmerson #Alba #Condor Gold #Gold analysis
Angus Energy in talks to buy 'transformational' gas asset in North England

Member Info for Wile.E.Coyote

Send a private message to Wile.E.Coyote

Member Since: Sun, 22nd Mar 2009

Number of Share Chat Posts (all time): 550
Number of Share Chat Posts (last 30 days): 59

Last Posted: Tue 16:23

Post Distribution over the last 30 days

Tue 16:23

Also, what is the benefit at this stage of the third party agreeing to purchase both loan notes, expect as leverage for future negotiations/equity stake?
Tue 16:19

Need to get a good grasp on what the outlook is going forward and where JA wants to take 7Dig. Certainly going to be a rollercoaster ride here.

One thing that puzzled me from re-reading the last RNS... the third party agreed to buy both outstanding loan notes, however "the redemption notice served by one of the loan noteholders has been revoked". I wonder why that is.
16 May '19

Should have gone with my instincts. As I said the bid was weak for a long while despite heavy buying, did nothing to lift it. Clearly the MMs were forward selling the placing again and screwing over the PI. Should be illegal and extremely corrupt. It was the same pattern as last time which was what concerned me but I got sucked into the 'cheap' 0.2 price anyway.
16 May '19

I didn't say it's not a good buy. I am just giving my opinion on the current state and how far reached some of these ramping posts are. 0.2p is also entirely possible these coming days and I'm not sure what catalyst you think there is to spring this to 0.7p.
15 May '19

Connie - are you on twitter?
15 May '19

Again, that feels generous. The balance sheet might look rosy for the year of disposal, but even with the debtors repaying and efficiency savings, the pre-MMS state was still not profit making. Need to get a solid financial footing, rebuild confidence and win new contracts. Won't happen overnight hence the ludicrous posts from some here of 0.7p again soon.
15 May '19

Well, a very generous guess. I think you underestimate the amount and discount of the raise, which again is why I feel the current MCap is irrelevant (we were at 700k MCap recently and this board was like tumbleweed). Also, the previously forecasts regarding profitability are redundant with the black hole left from MMS leaving and the noted damage to confidence which has affected new contracts being signed. Hence the business likely needs a cash buffer until the recovery is achieved. Positives are the business is going to be leaner with cost savings but will be prudent to allow for the slow start before the recovery can begin in earnest. IMO.
15 May '19

It's on a knife edge of profitability and as jscapper said a lot of the money has gone into investing into opening up the mining of the subsequent phases (as well as plant upgrades).

All we need is a realistic, achievable production run and then a self-sustaining profitable mine will see this multibag with no further dilution. Failure to meet the targets of course and we are in difficulty again. On the positive side, the deeper they dig the better the grade and size of diamonds, so odds are in our favour of hitting profitability.

Would be so nice to eventually be chatting on this board about the potential new acquisitions for Bluerock once we have organic cash in the bank...
15 May '19

Yes, it's clear they expect to have the raise in place before end June (I expect well before).
15 May '19

Was hesitant to put more in but no news is good news I think and have kept some powder dry in case it dips further. 2 x 2.3m were buys yesterday, not roll-over and it has shored up the bid.
15 May '19

Yes, the ramping crew left in a wave of sells yesterday afternoon! Expect the pattern to continue but risky holding at close till the funding sorted. Having said that, 7Dig have been releasing intraday updates, so may catch some off-guard.
14 May '19

I haven't heard a whisper of any funding and based on my reasoning before I can't see why they would attempt to do one post-production update, unless it's positive. Hence I'm questioning whether one is needed at all. I think perhaps not.
14 May '19

We are in agreement here. Just talk of 0.7p or 2p next week is ludicrous. Agree with equity secured value should be much higher, but ramping here is out of control. I expect a short-term dip followed by a sustained upward trend IMO but won't be overnight.
14 May '19

Yes, indeed.
14 May '19

So just a thought experiment, lets say we get an RNS saying 3m equity at a 30% discount, how do you think the market will react? I have my views.
14 May '19

The P&D crew is all over this because of the small MCap. Nice till you get caught in the sell off.
13 May '19

ALLNothing - cautious yes, but not over the standard going concern statements included in the RNSs. Little chance IMO of the company going under and if it did, the assets would exceed the current MCap I think. Also think they will not have an issue getting further finances. If you look back at my previous posts, I think I called it right up to now. Sold out on the recent spike as I said I doubted that the sale of the non-core assets would negate the need for a discount placing. Also said that those who thought that the company couldn't raise sub-1p were deluded given that it was a 600% premium to recent lows.

Optimism is fine, but I would say the only thing that would lead to 0.7p in the near term would be a substantial deal that negated the need for significant dilutive funding. If that happened, then would probably be looking at 2-3p range so definitely multi-bagging potential. But what happens if the only equity on offer is 2-3m at 0.2p? 0.7p will seem far away.
13 May '19

I think you misunderstood me harhoo. I'm very bullish about 7Dig going forward. I'm also cautious and realistic about the current scenario. I could see a very good risk-reward at my original entry (mid 0.3s) and added heavily at the sub 0.2p zone. Happy to trade it when I see it under/over-valued and sold out completely on the recent spike (a good profit, though well short of the 0.75p zone sadly).

My point was there is a lot of unknowns with the equity finance, but positives are that the dilution will be less than originally planned and I made it clear the company is in a better place post-RNS news than before.

Facts are facts though, the market does not like dilution and uncertainty. Dangerous drawing comparisons with companies which rocketed following discount placing as they are exceptions in my experience. Not caring about the level/amount of equity required is plain reckless in my view. Choosing your entry is as important as your exit surely.
13 May '19

Well, the equity deal price is not going to look pretty on paper. But I agree it won't matter in the long-scheme and will draw a line under this and allow 7Dig to keep moving. I think the deal will probably be a % of the closing price at the end of the trading day (on day when confirmation of funding agreed). Thought we might even see blue today, given the company is in a better position following that RNS than where we started, but all the market sees is the grey funding cloud till that's gone. Some selling at the end (presumably from those who bought the dip at 0.257).

0.75p is not going to happen, it only got there when folks thought funding requirement had gone. Whether it ever gets to those levels again depends on the amount of dilution and at what % discount. No point guessing the equation without those details and current MCap is meaningless till that's decided.
13 May '19

The thing I don't get is the market appears to be either positioning itself for a fundraising(?) and/or a more conservative figure for the production targets. It wouldn't make sense to raise after the production numbers, unless they are positive. And if they are positive, probably won't need a raise at all.

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