Sapan Gai, CCO at Sovereign Metals, discusses their superior graphite test results. Watch the video here.
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Attractive
Hmmm... perhaps about as attractive as a random lass in the pub after plenty of drinks... truth is, its only a matter of time till "sobering up" when the facial reality will kick in...
I've sold my holdings at a loss
GLA to those that remain
its your money and your investment that you are risking by investing on what is an unknown
Course it will get voted through. We must give OO a chance to show that with his influence he has in West Africa that the deals they have been working on for some time will come to benefit the company and us. He deserves that at least right?
....... "provide funds for investment that tie into our strategy to identify attractive investment opportunities in the oil and gas sector, primarily in West Africa."
We'll soon find out just how attractive hey....
E_AL - i totally agree it will be voted through
but the question is as an investor, how much you believe in that OO and the ADME team will invest wisely in a project(s) that will make significant income to justify the capital raises, past experience of all the Directors in ADME doesn't show me any confidence in this, so we will wait for after the meeting to see if any investments are put to Shareholders
"i am also of the belief, that if it isn't voted through, there is no long term future at adme."
@Dan Peel Hunt, Zark Capital & Andrew Frangos together hold the majority of adme's shares so it will get voted through.
i'm not holding
when Sheikh was involved i was more interested at what the next step was going to be, its never been seen where a minor royal gets involved, he has other involvements in the sector which we could see from his website and it was more of what if, but i'm a cautious investor (been burned badly on some (FRR / PREM) and made money on others AGP / JOG / AMC / 88E)
years investing in AIM i now try to invest in undervalued stock with a concrete plan for a future, with assets i can appraise my way (not an optimistic company report)
I'm cautious on AJE for a number of reasons, 1. MXO tried to offload it a few years ago so the BOD were never overly keen on this in first place, 2. the current two production wells run dry end of 2021 and with no profit share until circa March 2020, there is only an 18 month period (c6 lifts) where there was any money due back, based on last lift RNS thats c$3.6m (£3m) of net revenue to ADME with Overheads of c£2m, that leaves c£1m Net to company in next 30 months after expenses without any further investment, 3. Phase 2 development plans (just the plans) have been delayed continually) and the Operator has previously indicated CapEx of over $1bn, while there is a huge resource at AJE, there doesn't seem to be any solution to this problem, none of the AJE partners are particularly large and have the availability or the strength (IMHO) to borrow this amount of money without very restrictive covenants and higher rates
This brings us back to the future and realistically its a bet on the confidence of the BOD to bring an investment opportunity that makes long term profits and justifies the potential mass dilution that is to voted on in less than 2 weeks
i am also of the belief, that if it isn't voted through, there is no long term future at adme.
I made a similar statement 18months ago on Valirix regarding the dilution, they had Conversion notices to adhere too but the ShareCap would be breached, it was either (accept the mass dilution and a willing seller getting shares at 20% of current price or vote down dilution and face the bigger problem of liquidation and losing everything) neither was great but the lesser of two evils was to have the shares hit the market
so I am looking at this again. It seems that we are back to where we were prior to the sheikh, although with a bigger mcap. Dan - I recall that you were always cautious about the long term. Are you holding/looking to buy more?
In the point of Peel Hunt, they are big enough to sit on a Shareholding of this size, £500k is less than a weeks profit (£36m last year) so i doubt there in any panic - there current stratergy seems to be pick up shares under 6p and offload over 6p (judging by Holdings statement last few weeks
One of the Market Makers would have to taken the Sheikh's shares on, its their job, its they set the price of where they feel comfortable, hence peel agreeing 10p when the SP was over 16p (literally a 40% discount)
We will see what the investments are, any update on AJE if that happens.
The problem is that there is nothing concrete (except small stake in AJE) and investments they are reviewing
Gilo how can you possibly be still holding when almost every post of yours contains such negative content and expletives along with claims of "fraud" and "con" and now we have you discussing PEEL's exit strategy ffs??!!!
Perhaps you should be considering your own exit strategy if that's what you really think?!!
I get that you are pee'd off having a much higher average than some of us but surely if you still hold you'd be glad of any positivity here and potential for this to still succeed? Or perhaps investing in higher risk plays with potentially high rewards just isn't for you?
Thing is, I don’t believe Peel have a big problem, they took 13m shares at 10p and flogged over 6m at between 12p and 16p,
So they spent 1.3m, and probably sold that infamous day 850k worth and still held circa 7m shares at c450k, they were the ones buying at 4-5p and bought c2m, say 90k in price, they have done some selling and buying inbetween but they have over 9m shares at probably no more than 550k and that’s working on averages, day sheikh sold there was a lot more trades at over 14p than below
I'm also nursing a big paper loss. However I can see a huge potential with the new oil investments when they come. I hope the company will change the name so we can all forget about the dodgy Sheikh))
It's been quite interesting the read on here today.
For me I'm just going to hold and average down a little. But also I think I'll be investing in a different type of oil now.
Warren Buffet's long time favourite: Coca cola.
The surge in price since the credit crash has been phenomenal.
Slowlyslowly - happy to be holding here along with PEEL and Zark capital to see this head back up for the real returns unlike deluded gilogilo who obviously has a very high average if they are still even holding.
Then, for me, I've nothing further to say.
There are all kinds of misbehaviour I'm prepared to believe goes on - shady and unethical practice. Sure.
But once you believe that the people involved here are so criminal that they ignore even the most rudimentary rules of the London Stock Exchange, you end up in a position where the company is a black hole. No light can escape. You have no access to information. For all you know, the sheikh still holds, and his departure was also a lie. Maybe he never bought in the first place. And so on. Once you believe that's how the system works, you will not believe any information released by the company, its brokers, its nomad, or the exchange itself.
Without data on which to base your research, or on which to base this conversation, there isn't even a debate to be had. You're left with nihilism.
I'm truly sorry that this is the point you're in. Truly. But rational debate about the merits or demerits of any company becomes impossible if there are no axioms, rules or input data to discuss.
{/thread}
That's what he would have done if he'd been in to con us from the outset, yes.
So you believe he did that. Even though the law required him to tell the company if he sold more than 442k shares, and he didn't. Even though the notification when he sold said he still held all his shares to the last. Your view is that he broke the law by failing to declare his sales, and lied in his later public TR1 document.
You still haven't explained how him doing what you believe him to have done removed the £534k from the company's books.
I'd still like you to explain your "removed via dilution". The sheikh selling his shares wouldn't remove his equity from the company unless the company bought his shares back. That would be a share buyback and would have to be announced.
I'm sorry, thought but this is incorrect. On the day his withdrawal was announced, we were told that "the Company has today been informed that His Highness has, or shortly will have, disposed of all of his shareholding in the Company, comprising 13,350,000 ordinary shares, through the market." That suggests he still held the full 13,350,000 he originally purchased.
Furthermore, those 13.35m shares represented 26.89% of the company. If he'd dropped below 26% at any point he'd have had to issue a TR1 to say so. That's 12,908,144 shares. This means that, if he sold more than 441,856 shares, he'd have had to tell the company who'd have had to tell the market. So we know for two reasons that he held the whole lot until the end.
He did make a profit. He bought at 4p and sold at 10p. But no money left the company as he did so.
If his motives had been to make a quick profit and move on (if it had been a scam from the outset, in other words), then he'd have sold some when it was 30p+ or at least 20p+. The fact he ended up selling when it had already dropped to 12p says that this was not his aim. Something went wrong between him and the board. We'll never know what.
OK - I now see the 4.5p at 8am on Friday 23rd. Thanks for the link.
What do you mean by "removed via dilution". How would Peel Hunt buying the Sheikh's shares at 10p actually remove funds from the company's balance sheet. The only way to do that, surely, would be by paying dividends or a share buyback. I understand the concept of dilution when new shares are placed at a discount. But there was no placing on 23rd August. So what kind of "dilution" is this that actually transfers the £534k that the sheikh invested from the company to another entity?
The thing on PEEL is , they bought the shares at 8.07am at 10p, they had a full day in which from the TR1 they offloaded 6m shares at between 12p & 16p - they never informed the market straight away - this for me is the real suspect about the transactions with Peel
They likely were the ones who bought at the 4p on the bell increasing the number of shares by circa 2m in the last month
On the day we learnt of the sheikh's sale, it fell to about 6.5p, not 4p. Peel Hunt announced they were holding a chunk a few days later, acquired that day, so we conclude they were on the other end of the sheikh's sale - they bought the lot off him for 10p, and were still left holding about half by the end of the day, which was a Thursday. Most people, myself included, assumed that they'd only managed to sell on part of his disposal, and that they'd have dumped the rest by the end of Friday. They'd have made a loss on those, but the loss would be more than covered by the profits they sold for on a Thursday. Instead, when the subsequent TR1 came out, far from selling the rest they'd bought more. They then topped up again, by a much smaller amount, a week later.
So I can't tell you why 4p is significant, because it doesn't appear to be. It was the price the sheikh bought at, but it's not come into play since.
Run out of cash by the end of October? Not likely, having just raised £1.3m
As for ADVFN - Spikey's left us here and gone to depress everyone over there. Say no more.
Peel Hunt have increased, then decreased and increased again
still for me seems they are the ones doing the trading, looks like they are picking anything up under 6p but offloading anything over 6.5p (last week) there strategy i very much doubt is for long term hold but we will see
don't understand that one trade at 5.3p (650 shares)
Dilution more like diarear lution lol , fake news real news is over due , we need a lift maybe 50p by Christmas, brexit boriss we need some good old fashioned strong news the bod knows !!
And don't forget the Chinese still have a c30% holding
None of the 3 large shareholders (counting the Chinese as 1) seems keen to tell us why they're here. The Chinese are, i think, sitting on large losses and Peel Hunt are still accumulating, which must be good news
Strange that the Sheik should invest here, become honorary Chairman, change the name of the Company, give an interview declaring his intention to make this a one billion company and then disappear
Will we ever know?
Well said slowlyslowly - from another REAL investor lol
[removes plum]
I'm still actually invested, yes. Average was 24p.
Yes, I'm fed up that the sheikh stormed off and the price crashed.
However, I'm actually of the view that things are not so bad around here. Cut out, for the moment, the chunk of time when the sheikh invested and the price had a little season well above its current level. If that never happened, how do things now compare to how they were before the sheikh put his chunk in? Well, the price is similar, but we have the money that the sheikh invested still in the business. We have a new CEO, who tells us he's working on some deals to expand ADME's operation. We're still here, and with one more lifting will have paid off our investment in Aje. Meanwhile, we have two new investors (PH and ZC), one of whom is willing to put new money in at a premium to what they could get on the open market. So we're not doing as well as we might have if the sentiment attached to the sheikh had worked out, but we're a lot better off than we were before that sorry episode. And, I dare to say, Zark and Peel may prove to be better sources of funding than the sheikh, depending on what strings might have been attached to the sheikh's financial help (we'll never know).
[reinserts plum]
They seem to have based their latest TR1 off the number of shares in issue before today. We may get another TR1 from them in a couple of days time because their percentage will drop now that Zark's placed shares are in the market, even if the number of shares they hold doesn't change.