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Wish I'd never heard of this one .......
'Shezer'.…. you're correct... 'oh yes'....300+% dilution... within the next few weeks.... ;)
ATB
should always check your locations, could find your flight to Paris landing in India, Pakistan
Texas or somewhere even more remote.
Quite a few London, Madrid and Lisbon's around the world also, throw back to the days when
their 4 Naval forces invaded the world :)) lol
Thanks Carribean. I thought it was odd calling the business Lake Victoria Gold given Lake Victoria was in East Africa, but the penny never dropped LOL. Your essay will be quite useful in helping people understand the investment case here so it was not a wasted effort. Anyhow, time for some beauty sleep before I make any more gaffes.
Phoebus
May I be the first to congratulate you on your ‘Rodney, you plonker’ award.
FairPlay for ‘fessing up. We all make plonkers occasionally. No drama. Thanks for making me write an essay..... ;-()
I watched a segment from Rick Stein's Australia the other night where he visited Tasmania. For some reason I saw the word Tanzania but read the word Tasmania! Sorry about that. Think I need a bit more sleep.
Caribbean, you make some very valid points and I agree with a lot of what you say. I do however prefer it when companies have a clearer investment focus as I think that helps create a stronger image in the minds of investors and drive the re-rate.
Phoebus. Lake Victoria Gold is just based in Australia but the project is in Tanzania
Morning Phoebus,
I'll try and be succinct.
1. The LVG, whilst on the face of it, is a large transaction from an mcap perspective, the amount of gold in the ground at LVG is not anything the size of the GR complex. The project is in Tanzania, so it's not really Australia at all. MNRG is a business listed in the UK on the main market here. Thus, it makes little sense to focus as an Australian business.
2. The company investing policy is to invest in and/or acquire companies and/or projects within the natural resources sector, with potential for growth or value creation. The O&G falls into this strategy, when considered with "how" the company intends to conduct itself, notably - For those projects that offer substantial growth opportunity the Company will seek a controlling interest and maintain a medium to long term investment view, while those that offer value creation opportunities, we will seek to list on an appropriate exchange and crystallize value in the short term. Hence the SPV for BritNRG. The world is changing in terms of how it manages resources out of the ground. The economy is de-carbonising. The O&G sector and BRITNRG offers opportunities for short term value creation. Businesses must adapt and become intelligent in the manner in which natural resources are managed. The journey is a change in direction, but does not constitute a diversion from the strategic aims of the business.
3. Right now.....yes the world wants gold right now, but it isn't a straight line NE to any destination. Non-correlating assets, with the right people, processes and intelligence, allows the BOD to have one eye on the "NOW" and one eye on the future. It would be folly of any business to not considered the implications of having a one-legged stool to sit on.
4. Lake Victoria Gold as a brand? Nope. It's a small mine, which will, over the longer term, form a minor part of the business. I said in an earlier post that the shareholders of LVG will most likely not retain most of their MNRG holdings - at the point of transaction, new II's will likely come on board to take those shares from many of the current LVG holders. It represents an exit for them which they have most likely been looking for.
5. LVG mine and BritNRG are knowledge curves, an income story, a consolidation in this market to demonstrate MNRG as a natural resource player with vision on the changing environment. The "real" long term play is much bigger than these two projects and that is why to see either of them in isolation is to miss the bigger picture. The Aggregation of Marginal Gains......to quote Sir D. Brailsford
Thanks for the response Carribean. Any chance you could flesh out your perspective a bit?
I completely disagree, wholeheartedly. But I respect your thoughts.
The Lake Victoria Gold transaction announced yesterday certainly looks interesting, but I don't understand how this fits with the company's other assets. Given that this transaction is so large this is effectively an RTO. Surely it would make more sense to refocus the company as an emerging Australian precious metals producer around this asset, with its interest in Cobra and the Arizona gold project as complimentary secondary projects. The uranium asset is OK for now as its a mining asset and clearly has some value, which can either be monetized or pursued at a later date. The UK oil asset though make absolutely no sense to me given both the scale of the gold interests being injected and the fact that oil and mining assets just don't make sense within the same junior resource company. Right now the market wants gold stocks and Aussie ones in particular, not sub scale oil interests and certainly not a hotch potch of ill matched assets from different sectors in one company. I know they just acquired the oil assets, but if they want to create real shareholder interest and value I think they should dump the oil assets ASAP and drop the gimmicky MetalNRG name in favor of Lake Victoria Gold. Investors will be able to clearly grasp the concept and appeal of the business, buy the shares and propel the company forwards. What do you all think?