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Lets publish an RNS mid day without any real details so we can cut the SP 67%.
Brilliant.
Exploration companies spend 5 x the current market cap trying to find a mine half as good as this!
It is entirely PI led. Mob mentality at its finest, rationality is thrown out the window. The beauty of fear.
The RNS was a stupidity and insanely badly written, but the market reaction is pur and plain insanity. Even if we went for a fire sale the company is worth more than the ridiculous 11.5 mcap we currently sit at.
@Metalhead25 - According to the yearend they have assets of £114 million minus the debt of £20 million so your figures are not too far off to be honest!
Its certainly unusual to see this size of drop without further news.
Either a significant shareholder is offloading, or news is going to land.
I don't think this drop is PI led.
Of course it's not right.
well, of course 'something is happening'. the question is what! 100k trades are sells... anything smnaller look like pi's averaging down.
I agree with you Metalhead. I think the only downside of Newgen having securtity over the assets means they control the sale process, but I'm guessing. I just cant imagine we'd get less than $50m for the mine. And probably nearer $100m.
Hippo, my understanding is that Newgen has security over all assets including the mine; however, I don’t believe it follows that they can take everything and keep it for themselves. What they would do is take control of the assets, sell them, and out of the proceeds pay their costs and then their full debt. However, any remaining proceeds would go back to the company, whereupon they would go to other creditors and then any residue to the shareholders. So, if you imagine that Newgen would be able to sell the mine for £100m, and that their costs and debt plus other creditor debts are £25m, then in this scenario the shareholders get £75m. Now, I’m not at all saying that this example is realistic. But you seemed to be equating security over all assets with being able to take and keep all assets, which in my understanding is not right. DYOR of course (and full disclosure I’m still not a current shareholder - just trying to be helpful :-))
Fair point Hippo, I guess it's old news then really, just a reiteration?
Keep telling u all once they get everything it’s best time in rmm they will get it
All those buy and sells show too many rounded numbers, I suspect something already happening.
Sorry should have made clear - May 2022. But audirtors were clear then the copmany would need more finance.
What date was this though?
Keep telling u it’s to get there friends in. It’s gonna happen. Only whn bradmill sell well that game up then
This is what the BoD and Auditors had to say. BoD seemed quite relaxed about being able to refinance
BoD
The Group continually reviews operational results,
expenditures and additional financing opportunities in
order to ensure adequate liquidity to support its growth
strategy while increasing production levels at the Ming
Mine. The consolidated financial statements have been
prepared on a going concern basis which assumes that
the Group will be able to realise its assets and settle its
obligations in the normal course of business. Management
believes that the Ming Mine will generate sufficient
operating cash flows to support the day-to-day activities
and future growth requirements of the business. If the
production is not ramping up in line with forecasts or
lower than forecast copper grade and commodity prices,
the Group would be able to obtain additional funding
through either equity or debt financing. For the year ended
31 December 2021, the Group successfully obtained debt
financing of $18.8 million and equity financing of $18.3
million. Also, the Group completed a gold stream financing
of $11.0 million in March 2022.
Auditors:
Material uncertainty relating to going concern
We draw attention to note 1 in the financial statements,
which indicates that there is a risk that lower than forecast
commodity prices or production issues will result in a
threat to the going concern status of the group.
For the Group to expand production levels to the threshold
at which funding of operations and growth can come
from the operating cash flows of the Ming mine the Group
requires additional financing, as well as commodity
prices, primarily copper ore, to consistently remain above
breakeven prices. We do note that the Covid-19 pandemic,
which began in the previous financial year, has now largely
subsided, which has resulted in improved commodity
prices over the course of the year and since the year end.
Keep saying look few month ago i said it be 8p but not always right. We are down trend at moment getting ready for placing
I kwn 8p yes and if we don’t touch 13pnarea said we go down now it’s less then 8p chart showing lower
either the market just wasn't interested at the then current sp, considering the number of raises done so far and all of them at a falling rate, or... actually, no other reason, unless there's a takeover in the offing!
will be surprised if the placing's lower the 7p but see if there's a spike in the price as it'll usually mean the shares are being forward sold.
@Moon You make this up as you go along! Did your super chart show you this? As well as the RNS drop?
This is moment but am disappointed with bod
Not panicking moon and not selling as there is just no point now, I'm just angry and feel totally conned by management
It’s happening I keep saying u lot are panicking we be 5p lower soon
I wish they never released a pointless RNS! Without something to back it up!
I wish we were suspended at this rate!!!