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Jezoo,
The thing you have missed is that the troll is trying to wind us up!
Truth is - most here are happily awaiting good news and looking to the future with a smile on our faces.
Why would we have to raise money if we have very little cash burn ? No drilling costs, income from gold and after the Bushranger sale when we will be awash with cash ?
Have I missed something ?
CB did not rule out buying new projects at the AGM, so the caveat of no raise assuming no new business is taken on is obviously a bit concerning, however, I suspect CB thinks the sp will start to substantially appreciate as more news comes re Bushranger and the model is confirmed.
So IF there is a raise I suspect it will be done at a substantially higher share price, maybe on a spike after bushranger news, so will not have that much effect on the sp? I'm assuming a raise well above 10p?
I just wonder if CB thinks the opportunity to raise in a higher and climbing sp (possibly spiking sp) will be too good to miss?
Personally I would not want him to do do this but just focus on execution of Bushranger sale and no more treasure hunts!
If the raise is done at a lower than 10p sp and not on the back of good news re Bushranger then that would be very worrying and damaging imho.
I don't expect that to happen though.
The only need to raise is if they want to take on a new opportunity or fund a phase 3 of Bushranger, while the latter could be done in stages using cash expected to come in from Manica. If its expected that the resource update will have a positive impact then it makes little sense to do any cash raise in advance of that.
My only mistake is that the raise will be at 2p.
Shoot me down as you wish .
Your leader has spoken .
I agree cash is a bit low and that was the situation as of 30th June 2022, but if the management say that they have enough then we can only take that as the state of play. Maybe the 23% of net profits after tax from Fair Bride is going to make the difference here as previous revenues from production have always been on the low side and barely covering day-to-day running costs let alone drilling and assaying.
Going concern
As at 30 June 2022 the Group held cash balances of £1,239K. A small operating loss has been reported for the Group, however, as at the date of the release of the consolidated financial information, the Group's assets have been and continue to generate revenues. The Group has continued with its exploration activities in Australia and recently completed the Phase Two drilling programme at the Racecourse Prospect.
The Directors have assessed the working capital requirements for the forthcoming twelve months and have undertaken the following assessment.
Management have reviewed the cash flow projections for the forthcoming twelve months, based on the current operations in Mozambique, Australia as well as the corporate overhead. The alluvial operations continue to generate modest revenues and as with alluvial operations the presence of gold in alluvial deposits is unpredictable and therefore operational results will vary month-to-month. The Group expects production at Fair Bride to increase during the coming months with the Group due to receive 23% share of net profit after tax.
Based on the assumption that Fair Bride operates within its targeted parameters and no new business is consummated, the Directors do not anticipate the need for funds to be raised in the twelve-month period from the date of authorising the consolidated information.
As is common with junior mining companies, the Company in the past has raised finance from shareholders for its activities, in discrete tranches to finance its activities for limited periods only and further funding would be required from time to time to finance those activities.
The Directors therefore continue to adopt the going concern basis of accounting in preparing the consolidated financial information and therefore the consolidated financial information does not include any adjustments relating to the recoverability and classification of assets and liabilities that may be necessary if the going concern basis of preparation of the consolidated financial information is not appropriate.
On this basis the Board believes that it is appropriate to prepare the consolidated financial information on the going concern basis.
It clearly says, as CB has said before: the Directors do not anticipate the need for funds to be raised in the twelve-month period from the date of authorising the consolidated information.
Please don't bother to elaborate.
The only cash raise that I am interested in involves the impending sale of a world class copper resource.
Can you elaborate on your claims please HOTTHICKO ?
Why? I know you troll but still a good troll learns to base their trolling on a foundation of reality
Next cash raise at 2.5p max
Mark my words .
Two fingers from Bird again .
When the SP (bid-ask) dropped, there had been 160k buys and 135k sells. Its quite common for this stock to drop when buying is greater than selling - MMs having fun :)
Cygnus
Very little volume and looks like buys and sells broadly same.
Just MMs playing their games imho
Don't know why the sp is dropping. The results were 'steady as she goes' and show firm continuing income.
Busy day for Colin. RNS for XTR BZT and AFP and have holdings in all . Of all the companies AFP looks the most undervalued with exciting prospects together with Colin holding a large stake and Sandf ire Resources holding 15% and potentially rewarding joint ventures
Ditto Andy.
Next qtr will be a bit lower as well re gold price.
Maybe the prices are not quite right as we get our cut on the price above 1400? From memory.
There is something odd with derived selling price of gold in oz
Revenue / oz sold
Q2 $642,115 / 465oz = $1,381 oz
Q1 $617,422 / 384oz = $1,607 oz
So the percentage decrease is likely explained by drop in gold spot price but the absolute $ price indicates some commission or fees to sell which I had not considered
Another error, talks about in the last quarter, when i think means 3rd quarter, the other skewed thing is POG, as the dollar/pound rate is 1.13 against ave 1.4 over seveal years now, I guess we can expect Q3 in a few weeks, and that should be much better, ref comments in the pod cast last week.
I'd view this the same way Andrew.
Pleased they've given helpful visibility of breakdown which of course raises more questions. First for me is what's happening at Boa?
Small admin error in early narrative where they mention total production Oz as 1344 which is alluvials only whereas 1740 is actual total
IMHO they are OK but not great. (Alluvial + small hard rock that is)
Good that they have taken on board the comments at AGM re breaking down figures.
The revenue figure is skewed as we have sold a lot of previously unsold Gold. Alluvials + small hard rock show best ever quarter of last 12 months, but only because of the previously unsold Gold now being sold.
Very disappointing small hard rock figures. That was supposed to keep increasing in production, not going down ! Guy Fawkes is increasing but overall down.
Q3 is usually a good quarter so may see broadly similar figures.
Its all about Fairbride and those figures next quarter should be substantially higher than alluvial + small hard rock in next quarter.
The conflict of interest would be on Xtracts part as they could potentially benefit financially from interference from any other interested party offer, outside the terms of the buy back agreement that is between xtract and AA
Knowing wether there are other interested parties is one thing, but is very unlikely any of those other parties could be in a position to place any value on BR without seeing all of the data. That will simply not happen, AA have first refusal so would want to have sole access to all data before any other interest parties get access to it as it would cause a type of conflict of interest.
Thanks all for your replies. An interesting discussion for sure. Guess we'll have to wait and see and hope it's all irrelevant when AA give us what we want :)
Little wing
I would have thought that before CB knocked back a final offer from AA that he would have already tester the market to assess interest from other parties. It would surely be foolish of him to reject AA's offer without knowing for certain that there would be other interested parties willing to offer more.
I would also agree that the 20% belonging to XTR would focus AA's minds.
Googled: AIM Rule 18 requires that AIM companies prepare half-yearly reports within three months of the period end.
I presume this means they are supposed to publish this report within the same time frame. We are not talking about BHP Billiton here. XTR has very few projects and revenue streams to report. It shouldn't be too hard to compile the data?!