George Frangeskides, Exec-Chair at Alba Mineral Resources, discusses grades at the Clogau Gold Mine. Watch the full video here.
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It was James Menzies who attracted me initially to follow this story and COROs attempt to acquire Ophir is when I really took note. After some research I believe there are interesting opportunities out there now in South East Asia where majors are looking to exit. Some of the characters you mentioned I'm not sure how much say or input they have in the direction CORO is taking, hopefully in time they will be asked to move on. Look at the recent appointment of Dr Nick Cooper and his past experience. This tells me the direction the company is taking. The previous funding arranged can be seen as expensive but it wasn't dilution at 2p level and it's what they do with the cash that matters. If they can increase resources, get sales contracts over the line and borrow dept again the assets for development then it will be seen as a decent arrangement.
I have a feeling it's the next deal that will be the real company maker. Petronas have no interest in developing small or even medium sized fields, smaller players are ideal to extract value from these or even marginal production fields.
Having got burned here I agree caution is required. Remember Echo with all the investor evenings/roadshows etc when they first started sucking in pi's? I notice they have given all that stuff up now having plunged from 15p to 3p on poor drill results from what were supposed to be great assets. Coro is still doing all the promotion stuff etc but conveniently never ever seem to mention how they will fund all these developments. After they finalize the Bulu 42% farm in at $8m, they will have very little cash left from the Bond Issue. How are they going to finance their share of Mako/Bulu etc? First gas seems years away at present!
The warning is for any new investors who might happen upon the shares not seasoned investors like yourself. You probably knew the implications of the bond issue and that there would be a need for further cash in a few months. And for that matter you also probably know of the 473,000,000 new shares should the Coro share price ever hit 4p again. That's well over 50% over the current number of shares in issue. Sorry I can't be as glib or succinct in my posts.
Just don’t invest then.....
What does the RNS inform the investor?
Well the company issued 22,500,000 in Euro bonds. These were split into two tranches, A and B (11,250,000 Euro each). The former earns interest at 5% payable each year. That's 562,500 Euro each year or 1,687,500 Euro over the 3 year lifetime of the bonds. The latter tranche receives the same amount at the end of the 3 year period, 1,687,500 euro.
The 22,500,000 Euro bonds have been issued at 85% of par value. So only 19,125,000 Euro is actually given to the company, or 9,562,5000 Euro per tranche. (The interest is still paid on 11,250,000 Euro figure).
A 7% origination fee, calculated on the subscription price, is paid to the subscribers. That is 1,575,000 Euro or 787,500 Euro per tranche.
In total, 22,500,000 euro is raised. But the actual figure is : 22,500,000 x 85% = 19,125,000 - 1,575,000 = 17,550,000 euro. If the interest earned over the three year period removed that figure falls to 17,550,000 - 3,375,000 = 14,125,000 Euro or 7,062,500 Euro per tranche. Of course the 22,500,000 Euro or 11,500,000 Euro per tranche is repaid in full. That's a 37% interest rate or the same as credit card interest without the safeguards. Crazy!. And are the warrants and hundreds of millions of new shares to be ignored? Shameful. And the sad part is that the company expects further cash to be raised in September 2020, that's this year. Can't wait.
https://www.investegate.co.uk/coro-energy-plc--coro-/rns/issue-of-eurobonds-and-warrants/201904121622260926W/
Best to sell on any bounce, I wonder how many of the original bow tie diners at the Coro presentation are still invested in Coro ?.
I had an invite to steak dinner and was sat at the back as had no bow tie with another couple, Sarah Dees came over as more space to sit and feed, had an off duty non business chat, different to the tight lipped person at the Sound energy AGM last year.
She could write a best seller book and film if whistle blower.
Never been interested in Coro. I know James Parsons and Marco Fumagalli are here. Two directors of C4Energy. Along with Mr Dennan, the CEO here, and also a shareholder in C4Energy. Cross reference him with Nuog and C4Energy and RGM and C4Energy and Parsons. If you want to understand why the share price has not performed here and never will, read this Coro RNS:
https://www.investegate.co.uk/coro-energy-plc--coro-/rns/issue-of-eurobonds-and-warrants/201904121622260926W/
All you need to know why you should steer clear of this share and the people involved here. Your money has a been earmarked. Do you understand the RNS? Do you understand how C4Energy makes its money? You should do because it will make its money from you and shares like Coro and Nuog.