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When this comes back it will be between 40/60 p within a few weeks.....thats for a fifth of the shares you now own....The correct space...and tax loses to be accounted....whats not to like
November 23rd
I don’t think we’ve seen all the cards yet on this RTO. that $46m in deductible tax benefit has to be worth something to KLKI /EPO, they’re in this to make money abs so I fully expect another string to this bow. I personally expect us to reopen fairly quickly but with another juicy bit of info beforehand. Anyone for a sweepstake on when we’ll come off suspension?!
PS I will be 30% down on a 12p opening (and I guess some others maybe more), so I will be expecting an instant increase of at least 50%
;)
Thank you Dibs very helpful.
That would go with my initial feeling that this is a good thing to find inside the shell - medium term gain, rather than instant, but possibly large gains ultimately. Main advantage that we have got early entry, that may be more difficult for others if placing access is restricted/oversubscribed.
Will try to learn more about this company and the resource - we have at least 6 weeks to wait for more substantive news it seems.
Thank you Dibs very helpful.
That would go with my initial feeling that this is a good thing to find inside the shell - medium term gain, rather than instant, but possibly large gains ultimately. Main advantage that we have got early entry, that may be more difficult for others if placing access is restricted/oversubscribed.
Will try to learn more about this company and the resource - we have at least 6 weeks to wait for more substantive news it seems.
Pondering - whilst I would not describe my thoughts as ‘expert’ I do have my own methods to try to come to valuations (where possible). In this case I have been looking at other mineral sands companies. Image Resources is one such example I have found. In summary and very rough description, They have an operating open pit mine, profitable - decent margins, a larger resource than CML but definitely smaller grades. Current MC £113m.
My feeling is that at this stage of development for CML, with their resource and given its high grade - which is very positive - circa £20MC is fair value, certainly not expensive. We can assume the valuation will be accretive as they move along the development cycle. Also they are very likely to increase their resource through additional exploration - possibly substantially.
So I think CML looks likely to be a decent investment with say, a 1-2 year outlook. To add to the attraction we look to be entering a commodities bull market.
And from Alexios’s calculations initial £20.57M MCap. So the calculation is:
(Current total value of your shares at 0.6p) * X / 20.57,
where X is the MCap at which the market will really value this company. KLK assuming that X will be at least £172M ?earlier rather than later. I have no feel for the value of X. Interested in other more expert thoughts.
So, my simple reading/understanding (newby in RTOs).
CML have access to interesting/valuable resource - titanium & zirconium ores, garnet only 3m below the ground. They have not got to extraction & money-making status - 1M dollar loss on a turnover of nil in 2019/20. Been going a little while - interview with MF on Youtube from 2017. Listing and placing is of benefit to them.
KLK must view that this is a big "goer" to be worth at least £1 (= 5p now) in due course, without much effort...
Both issue and placing will be at 12p though (= 0.6p now).
Bits missing:
- what advantage do we have have over placing purchasers?
- will the placing shares be offered to existing shareholders specifically?
- some other simple mechanism where KLK/we benefit that I am missing?
Otherwise, it seems very interesting, but not instant champagne.
Old , yes you have very much hit the nail on the head ..... by Xmas this will make us all smile :)
...precisely why I bought, KLK must of course use the correct terminology but I will eat my hat if this is not a done deal.
Well done to us all who own shares. We are going to make a shed load of money. Now the only questions are: when to cash the winnings; how many to hold; what champers to buy for Xmas!