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Well Sloppy you call the raise spot on, good call.
Its disappointing having to raise at this level, but at least most shares go into sticky II hands.
GC mentions in today's interview that the new application will go in very soon, lets hope so. Its then according to a CRUI flow sheet either a 90day wait or 30day wait if they treat it as a review.
https://www.youtube.com/watch?v=viTNBglFGJ8
I agree with Franalex. I worked for an engineering company on projects for OCP in Morocco. The company holds a lot of sway in there and if they have any sort of anti with Eml they could make life difficult for them. I believe this is what's causing the current delays.
Couldn’t agree more. GC is not CEO material. He’s an operations guy. I’m confident he’ll be able to build and operate the mine, but he shouldn’t be CEO, he lacks charisma and doesn’t inspire confidence.
You label EML as it is now, with high risk, and I agree. However, this wasn’t regarded as High Risk 5 or 6 years ago and you can’t convolute EML with ‘all mining stocks’. The potash was confirmed and the size and scale was all Jorc compliant, Morocco is a political and socially stable country, the locals WERE on board with the project, financing wasn’t an issue, it was a low capex/high return investment.
The board of directors, led by Graham Clarke have slowly eroded the confidence of investors through mismanagement. So much so that they’ve now had to give up 20% of the company for the price of a bag of crisps. He should be gone.
This was supposed to be a really good investment. Not a get rich overnight but a reasonable LT punt . It’s ended up shocking . . Wouldn’t want to be in elderly waiting on this …..2020 this was being spoken of as a good reasonably sound share . It’s 2024 and flying through the year and it’s possibly more vulnerable than it was 4 yrs ago .
Can someone please explain
Sorry disagree. Any project involving mining carries risk and any venture in this part of the world carries risk, added together this has always been in the very high risk part of my portfolio.
@Franalax….this hasn’t ’always been high risk’. Before Graham Clarke took over, this was one of the surest bets on AIM. His incompetence has got us to this point and he should no longer be the CEO. He’s a clown.
Seems there are still some interested parties...
https://lnkd.in/emm5MRpp
‘All seems good’ …… except the share price?
Likewise and fear I may just have poured another couple of hundred down a black hole, but it has always been very high risk and a tiny part of my portfolio. Followed closely, but was not invested in Sirius which shows just how long these projects can take and how much cash they can consume, even with the new large experienced owner. Whilst in theory this is technically easier there is much more political risk.
On the 26th September 2022, when we had already lost a year.
The RNS stated the Company is pleased to announce that it has entered into a subscription agreement (the "Subscription Agreement") with GSM whereby GSM will make an immediate equity investment of US$6.0 million at a price of 6.0 pence per new ordinary share.
It added that 'The Company is now funded to complete basic engineering work, remaining permitting and project financing processes through to a construction decision'.
Over 18 months on, they have done the same thing at 1.75p and raised only £2 million, after repeatedly being confident that they would get the ESIA approval.
I am clinging on to fact that these investors must still be confident that the permit will come or else they wouldn't have bought the new shares but yet again the RNS is thin on timelines, as other posters have stated coming days could easily be the end of the month, and lets be honest it's absolutely imperative now that the EIA (now renamed) is absolutely robust and water tight as whatever GC may state today that it met the criteria required before, clearly it didn't in the eyes of the people who matter the issuing authorities.
I remain hopeful, but very frustrated.
I bought in 3 years to soon. The share that keeps on disappointing. I'm not prepared to bale out now though having been here this long. Just got to try and switch off to the weekly/monthly fluctuations and think positive that the ESIA will be granted within 90 days from the revised submission and this will eventually grow wings.
Really pi**ed off. Bought in too soon. Never thought there would be a fund raise before EISA. Poster who thought A/cs would not be 'signed off' because of lack of cash, got it spot on. Has also now given much more time for Company to dilly dally inputting forward new proposal including KMA. And it will dilly dally. 'A few weeks time' lol. Another imminent and another 'rod for his back'. I can't add shares to reduce average in Rex offer since I am not a UK resident. And Gremlins are now saying 'don't throw good money after bad.'
Hopefully, new Investors will use 1;1 Warrant Issue, meaning SP above 3p, so EISA awarded, tarnished by massive dilution again, which **cks up all previous posted material on 'payback times', final sp etc. What's to like.
Thank Heavens I bought RR. at 77p. Will stick to watch that rise and forget EML for a few months.
All seems a bit deja vue - almost like we are going backwards - just need a bit more confidence that eml will get the esia so that we can move forwards. Surely, local jobs will be created if anyone can get this project moving forward instead of stuck in the sand. Every time there is an rns - it's just more of the same - more disappointment. Where is the drive to get this project off the ground?
He can now ‘ask the host’ too, so he has an extra lifeline. Might get more sense asking Jeremy Clarkson than Graham Clark.
FWIW - To me this all seems good. If the Auditors required a fund raise to allow a Going Concern, then that reduces our risk as investors. As all the new shares go only to existing shareholders, there will not be the usual overhang (due "flippers" buying shares for the discount and selling quickly afterwards).
Graham is still in the game with three 'Who Wants to be a Millionaire' used:
- Phone a friend (Singapore)
- Ask the audience ((private investors) for money)
- 50:50 (chances of ESIA approval)
After the permit, we only have to fund, build and operate the mine. Phew! 🤣
Yes, looks like Graham has decided not to look a gift horse in the mouth.
With the challenge of arranging finance from someone new and little demand from private investors, it may be a good thing we already had the relationship and what was needed to sign off the annual report, as SloppyG said in advance.
May also be good to have an investor with interests like ours on the Board.
GSM has 13% of the company now, will get a further 7% now and 7% option in December at a blended price of 2.4p a share - very good value (were they going to pay 8p or so?). Looks like they might get nearly all of their investment done.
With the Board seat to propose shareholder resolutions and a 25%+ shareholding between them and Gold Quay Capital Pte Ltd, they'll have a lot of influence. If they are pushy enough, it could fill in for any absent-commerciality now.
However bad it seems, if he hadn't done this, he could have been calling the administrators in September. Must have calculated that he couldn't rely on the decision and fund raising in time, especially with an annual report saying they couldn't pay their costs for the next 12 months.
If we take 'within days' as saying the new application will go in this month and 'weeks' as meaning 12 wks / 3 months, then he'll be hoping to have the ESIA by 1 August and then raise to raise funding before the warrants trigger in December so the he can dilute those away. Sailing close to the wind!
Perhaps GSM said that if you're so confident the permit will be 'imminent', you'll have good time to fund raise and we'll need a big equity % to account for solution on main funding.
Pretty much as I called in that they were forced into an April raise to satisfy the auditors that they are a going concern and to also provide some cash runway beyond the next few months: as they clearly have no idea how long CRUI will take to make a decision. Also those large sells in recent weeks smack of some insiders forward selling ahead of this raise.
2 x key takeaways for me:
Firstly a positive in that they were able to raise some funds from our SI even without the EIA in the back pocket. Clearly this removes a major risk and provides us with 12 months cash minimum. However the cynic in me thinks GSM had no option other than to support Emmerson or else risk losing out on their entire investment to date.
The other point to note is KMP is clearly in its infancy and requires a lot more cash to determine commercial viability. Instincts are scoping study results were rushed out as the company sensed National would outright reject the EIA in its current guise; hence this provided a stay of execution with the all too convenient timing of its release. The challenge now is what will CRUI require to satisfy themselves that this is a game changer and how long will this take. Yes they could issue the permit with a shed load of conditions but that makes a mockery of the process so I suspect they will want to see some fairly robust evidence as to KMP's viability - could be months therefore.
Frustrating as it is I still think this has a long way to play out yet and we could see the SP drift back to circa 1.5p if the days become weeks become months as is typical here. At that point it becomes a very interesting level for a top up/buy in.
Those warrants are very very generous, 1 to 1 at 3p...
Well yeah, as with what happens with most placings the Shareprice will tumble to the or below the placing price soon enough. (probably at 12:30).
I did say earlier that the ESIA will likely be many many months away. Judging off past performance that is. Which is all we have to go off really.
Unless the dckheads running the company know something we dont.
If it really was only ‘weeks’, we would’ve/could’ve waited and raised at a higher price. Nope, the ESIA will be months, and the board knows it.
Thats $2.175 million.
chisler
GSM and GQC are getting $2,175 worth of cheap shares thats what i think Matador.
If one was to put a positive spin on it one could say our " strategic investers " are getting first bight at cherry before the ESIA lands in the " coming weeks ."
chisler