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Freaky, You may have found your vocation in life - a mining-valuation consultant - I’m sure many making companies would be delighted to offer you a role.
If it was worth so much a) why is it not reflected in the SP b) why do we not have a queue of larger mining companies desperate to snap it up? Given SML's history of calculating value (LCCM), it is more than sensible to attribute 0 value to something that you have no way of selling.
Freaky, I must remind myself to defer to your mining-valuation expertise in pricing Redmoor at zilch when I read in professional mining documentation Redmoor’s NPV of tens of millions of pounds.
For clarity, I would rather they not raise - but at least it’s to purchase full ownership of a potential world-class mining resource, the strategic future of which now rests entirely in our hands - benefitting us all.
Let’s hope that an interview is broadcasted later in the day.
Buying 100% of nothing is not increasing value. What have we bought? 100% of something that was already discovered. There is no value on it as it is stuck in the gournd and requires around a massive amount of funding to even consider getting it out. To SML it is worthless paper, much like the shares.
Raising funds is never popular, and BoDs hate doing as much as the shareholders.
Let's not forget that the BoD have substantial shareholdings themselves and would not do it lightly.
I for one have worked with Peter and know him to be extremely capable and always has the best interests of shareholders at heart, as well as his own.
In the longer term I am sure that this will prove to be the right decision.
GLA
Listen to their previous interviews - they have always caveated that raises would never be ruled out for increasing value - people only listen to what they want to hear.
Yes it is a surprise, when they are telling us dilution isnt an option and there are other things that can be done with NAE and Redmoor. Again smoke and mirrors to hide the true intention of the Board. We have a complex mess of relationships between board and NAE and it is clear we did not need to purchase Redmoor. Given that JP paints himself as a master of deals, it is quite clear he is definitely not!
It’s to purchase Redmoor - not keep the lights on - the BoD has already collectively reduced its salary by 25%.
And, Is the raising a surprise? It should not be: the BoD has never discounted it (pun, intended) for value-accretive acquisitions.
Now with the irksomely worrying uncertainty of funding for Redmoor removed, the company can progress it, particularly to increase its value by diligently funding it from Cobre. And, as for LC, we all know that, notwithstanding any monies received from the arbitration win, a joint venture seems the most likely outcome to commence a second revenue stream.
its is cheap, that's the problem....
Welcome onboard,
Have bought in today, looks a great entry point, the placing should soon wash through.
With 1.7b shares in issue SML is currently valued at only £7.5m compared to January's circa £14m market cap and June 2019 £26m valuation.
Looks cheap.
I totally get why people feel they have lost some trust in the BoDs.
It really doesn't bode well for their credibility, I just wish they wouldn't harp on about avoiding dilution, especially when they know they need to a pay a bill. It does nothing for the importance of trust that we as investors MUST have.
To me it doesn't cut it that offering the placing to us makes it better, but I suppose he did listen.
This will hopefully be the end of this sorry state of affairs, Redmoor is soon to be fully owned.
Fira, I would like to apologise, whilst you were not fully right, you also were not fully wrong, if I could I would delete that post...
Heads up people there will be sunnier days....
I guess it was an impossible position we had to settle on Redmoor and cash from Cobre client just kept being kicked down the road: $4m letter of intent, arbitration (no settlement), now client receivership. Leigh Creek tsunami hasn't materialised yet.
JP talks up our assets and operations (as he should) but was, in retrospect, too optimistic about revenue from Cobre covering all our other operations. If everything had gone according to plan we wouldn't be diluting now we'd be surfing JPs tsunami of cash (bet he regrets that comment).
As you say there are positives here for the future . The issue for me is more around credibility of the leadership of this company . Always seem very genuine but again came out with a statement on dilution which proved to be untrue just a short while later . I'd like JP to come out and respond to what changed and why he stated that previously . I so desperately want to stay with this share but losing faith .