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KDNC markewt cap £5m . investment in EMH £4m, Deposit Amapa $2.5m.
Unfortunately we do have a large CLN outstanding with monthly payment
commitments for 50% of it and balance due to be repaid in full in Sept.
This clearly reduces NAV and is weighing heavily on current sp.
The RNS issued on July 15th states CLN was $2.24m; at June 30th per interim accounts ahareholders funds were £17m.
Just under $4M per 01 Aug 19 RNS being currently repaid at circa $200k per month .... how do you think they're funding that?
.....................................................................................
In addition, and to, in part, fund the working capital requirements of the Amapá Project, Cadence has drawn down a further US$ 0.5 million of the Convertible Loan Note under the same terms. After this draw down the outstanding balance on the Convertible Loan Note is US$3.98 million. Which is comprised of US$2.29 million of the restructured Amortising Loan notes plus a total of US$1.75 million of additional drawdowns. The note is secured over the Company's assets.
@Bannor Thank you for the clarification of the Loan figures.
Further drop is sp making cap raise to fund payments/admin more difficult.
Which assets will we sell first?
Bannor. I'd missed the update of August 1st about CLN. Shareholders need an update from company about CLN, Amapa and any change in investments. I have emailed asking for this and I suggest other shareholders do the same.
@degsie, do you really think it's wise to announce to the world which assets we are selling? You saw what we did to BCN's share price in respect to this? It's not hard to see what we are selling if you look. Oh go on then. EMH now likely below 16.7%.
If KDNC had been sold an RNS would have to be issued as KDNC is major shareholder and KM is a director. There have been a suggestion that Auroch has been sold and MMS and REE( was Clancy)
could be sold.
@FrankieH I mention the loan because this is fundamental to the future of the company.
Substantial regular monthly payments have to be made and the income to make such payments
is not available. I addressed this by suggesting over two months ago [sp 6.625p] that a cap raise should be
carried out to tide us over the next 6 months or so until the Amapa funding could be properly assessed.
Were that to have been carried out I would suggest that with cash in hand to fund current outgoings our sp
would not be at the present level. It is imv quite possible for kdnc to survive but with the BOD prevarication
and lack of information on this matter I am not surprised by continued selling from shareholders.
Macarthur.
Obs, EMH issued shares in January
MMS is the parent company which we have the investment in
@degsie. I can only help you so much without spelling it out, and then it's me that's doing the "announcing" LoL! ;-) Forget the percentages, look at the number of shares.
Scary " If KDNC had been sold an RNS would have to be issued " and I bloody would hope so.
Ivybush. KM emailed " The US$3.5 million is not payable until the Stage 2 preconditions are met this would be after many deliverables that will hopefully drive a positive move in our share price.",
I am not sure but I think that AS and AF were positive about raising funds.
Why don';t you ask company?
@Obs....You can only take the horse to water ;-)
Indeed @Dallas. My current fave theory is that we are likely repaying the loan in off book trades, perhaps at a pre-agreed price. Presumably the recipients will have to declare once they reach 3% which might happen next month if we continue down this path without news. The way I see it the die is cast: we won't be placing before Amapa news (good or bad), meaning the share price is of little consequence to the bigger picture at the moment: the lower the better for those who intend to pile in on good news. This is the time when fortunes are made - or lost. We shall see! :-)
Oh, and in addition to Amapa news EMH, Yangibana, Sonora or MMS news could land any day...
@Frankie. Take a look at the latest corporate presentation:
https://www.cadenceminerals.com/wp-content/uploads/2020/02/Corporate-Presentation-KDNC-Jan2020-PPT-PUBLIC.pdf
What else is it you want to know? Short questions are more likely to receive answers.
@observer842 I hope you are right, but if there had been forward selling then surely an RNS
confirming this should be made and would have a remarkable effect on the sp.
To appease Frankie I am not unduly pessimistic, simply attempting to explain the
fall in sp. As soon as funding [from whatever source] for our requirements, until
Amapa deal firmed up, is apparent, I will be buying .
@Ivybush. I don't believe we need to declare to the markets a change of holdings in the 15-20% range. I'm not talking about forward selling. Just transferring our shares to the loan holders. Share price will very likely be much higher than today's on news we have reached 20% ownership and even higher on news we have reached 27% ownership. And then we may raise on market, or perhaps sell an asset or two which may have blossomed by then. It might even go up on news we've got our $2.5m back. AIM is strange. Lol. From an ASX point of view the change of ownership is declared as I pointed out earlier.
To clarify... I believe we may raise a little once we have reached 20% ownership. And then when news of all preconditions are met, after the subsequent share price rise we may raise a lot to enable us to reach 27% - assuming we haven't sold an asset or two.
@observer842 The penny has dropped now! Let us hope that this is indeed the answer.
Maybe there cannot be an RNS as this would be more of an informal arrangement.
Still gives rise to uncertainty in the market which does not help sentiment.
I agree @Ivybush. Sentiment is destroying the share price. Although this is painful to watch and on my portfolio, it's actually OK from my point of view as I'm intending to pile in on good news, and possibly before...
@Frankie. "What do you need to know?" Is that your short question? Nice! I'd ask how much Sonora might be worth to us if BCN/Ganfeng decided to increase, perhaps double their production rates. Starting at 25-35ktpa and ramping up to 50-70ktpa?
What's the etymology of chook?