The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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ChesterMikeb - the following line in the RNS that gives you hope.... "If necessary, the Company has the flexibility to reduce costs while waiting on key events to occur. "... is the Company trying to reassure investors that if it is unable to raise further funds, then it has options to lower capital expenditure (presumably by mothballing certain strands of the project) and keep afloat for longer. Unfortunately, this should be of little reassurance to investors since its just an admission that cash levels are becoming strained, and without further funding, the company may have to partially shut down (they report it as a positive that they can flexibility do this, but its not positive that they are in that situation at all, you want growing Revenue, and solid project progress). I also expect that salaries will continue to be drawn, but project work will be delayed, so milestones will be pushed even further back.
What's interesting is the information prior to this in the RNS where they basically say that local private funding is unlikely to want to invest (paraphrasing, but that's how I read it), preferring Financial and Real-estate investment. Its a shocking admission, not that local money prefers this, but that TLOU find themselves having to warn the market via an RNS that further funding could be a struggle. Whichever way you look at it, TLOU will realistically need to raise funds in the next couple of months and that never comes for free - allocate additional shares, sell assets, give up future royalties etc.. nobody invests for nothing. And then there is the other side of the argument, how will TLOU entice somebody to invest significant money - a serious discount to the market price, a large future royalty (risky as only payable if they go on to make Revenue..)? I wouldn't like to be a shareholder or TLOU BoD as the macro environment is not great generally, and TLOU finds itself needing to raise funds fairly imminently, with a poor track record of producing any positive ROI from capital raises.
Mike more than chester?
"no blockages" ..... #3 looks to be problematic - reducing the dewatering rate was possibly directed at it rather than #4? Coal fines are likely to vary between the two so perhaps there is a lot more debris from #3 to block the channels, and it has to some extent?
I'd also suggest that Mamba has been on hold because the board have feared they were heading towards today's RNS for an extended time! They have been stalling in hope that dewatering was nearing completion , still the case no doubt! And please god, it could unexpectedly happen sooner than we fear it will/won't. How many couples have their own baby as soon as they give up hope and start the adoption process for someone else's?
I see we are contemplating selling water to the Moralane Community too - we need to find some aluminium ore and we'll be able to provide the whole boil an egg programme.
Been a LTH for years now and totally agree with Chester.
Imagine if you were buying in today or if there was a raise, on that day, risks of course, but a 10 or 20 bagger a real possibility and I don't say that without conviction. Tony Gilby has made me good money via his earlier CBM companies so I still have faith in the man to deliver, but the timeframes have been excruciating!!
You are right of course, Chester, but I would add 'empty the money-box for all those penny shares likely to be offered us fairly shortly!
Olda, yeah I know. I am (and have been) kicking myself for weeks about not selling some of my holding during the fall in share price. This latest drop has me hovering over the sell button...
Looking at this from an investment perspective technically nothing has changed, in fact I'd say the news in the latest RNS was really positive. Flow rates are higher and more stable, no blockages or blowouts. Higher dewatering time could mean much higher flows once achieved. Government are on board and appear to be kicking BPC into gear to get a move on. We already have a huge local investment from the Botswana pension fund and we're looking to get more buy-in from local companies and investors etc. Plus other plus points like solar, local community projects etc.
But the time involved is just mental.
If you are able to just ignore all the ups and downs then I still am sure it will pay off....but after 3+ years I am starting to lose sight of that now. Just gott switch off from it all...
No sign of the Intelligent one who called all posters thick for not believing what the BOD had told us on the podcasts.
Chester, As one who has held from the heady days of 18p, I think should have those famous words emblazoned on it:
'Abandon Hope, all ye who enter here' (over the gateway to Hell.
Just 'hope' we all have the lifespan to see this through, one way or the other!
This line in the RNS gives me hope....
"If necessary, the Company has the flexibility to reduce costs while waiting on key events to occur. "
But what that means in practice, I'm not sure.
When the likelihood is a Placing and the longer they leave it, the cheaper that will have to be!