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The board has massively messed up here. Clearly the prized asset of Mahenge with great economics is no longer viable. The reality it hasn't been for years and the board did nothing about it. Following SP decimation they just issued a significant amount of dilution with ridiculous warrants to shaft long term investors. Kabunga escaped through the back door as he knew what was going on whilst the board continued to RNS imminent finance which never came. New asset requires more cash and a lot of it for a non generative operation like this. Shareholders will be paying for it. This will now become a dilution pit like VAST and PREM. MB credibility is shot and there is no way to dress it up otherwise.
They’ve only got an option to invest at the moment, they have until 31/12/24 to make a decision.
Dumb decision to invest. Shareholders need to bring Matt to account and organise a vote off. He will either proceed with this investment which will involve larger cash investments to complete acquisition, money which he will raise via subsequent placements or he will pull out before option period expires citing an excuse and pocket the cash for working capital. The company's cash resources are finite and this raise gives them money to go for longer and pay his salary. He needed an excuse to raise and the asset was just that to placate investors.
Thought it but didn’t post it
PIs need to stop being gullible. It's black and white in the RNSs, they were saying finance is imminent when it wasn't all the while insiders like Kabunga were selling. He created an escape route for him and then shafted the rest. We just witnessed a fundraise of $650k at 0.7p yes 0.7p WITH 1 for 1 warrants, this is madness. The biggest dilutory placing they've had in years. Overhang of shares to churn is going to be huge here as warrant holders will want to diminish their risk as much as possible.
What do you think Dee, you’ve put your money into this?
Amtech - Great find on the other thread. I'll have a look at it, too.
RHT99 - Very pessimistic, which is fine.. But quite incorrect.
You're saying he created an exit for Kabunga? How? By being silent? He could have ramped for the past 2 years to create exit liquidity.
You're saying there's a fundraise: First one in how many years? Remind me the last time they went out to market?
You're saying MB's trying to keep his salary going: So he's paying in £100,000 to then pay himself £100,000. Factor in taxes etc, he's losing money with this argument.
If Kabunga is so smart, why did Volt Resources (Kabunga's Graphite Company) just announce Death Spiral Finance last night? That's what you'd prefer?
Clearly discussions with Tanzanian Government are taking time. Clearly from the progress update, it's holding things up.
I'll wait to see the ins and outs of this Silver project before jumping to conclusions.
if you're concerned over your loss here - Sell out, and put in all in BKT. I mean, that's heavily down too, so you should see parity in gains.
One Final point RHT99:
Do you know Jim Price?
You both seem to comment on the exact same shares. Him on Twitter. You on here:
ACP
MXO
STAR
AST
WSG
This is the one thing I hate about some of these forums. Anyone with any agenda can say what they want under a pseudonym.
Dee, you are emotionally invested. That post is flawed on so many counts. Kabunga left the party years ago. Check the sequence of RNSs and the SP as he sold down. Matt even called in his CLN and issued him millions of additional shares to further sell down. Perhaps you weren't invested then going by your posting history. Matt has been investing in Kabunga's companies with ACP funds, bet you didn't know that or are you being duplicitous. You're clutching at straws. The dilution is unpalatable and you know it but can't bring yourself to say it.
He's another ramper I've called out. And for the record I'm not invested here but I know people who are who have been burnt badly. Don't resort to ad hominem,
I think it's ok but you can call them out. RHT99 arrives for the first time on lse forums on the ACP board despite being a member since 2019, arrives, in fact at Today 11:46.
To tell us it's all a big lie. Why? So he has a mate that has a mate that lost money in ACP? But we al have mates of mates who lost money on every share going. Even Amtech agrees AIM is a giant ponzi! But thanks for the advice anyway :)
Just love it when people spend their times on boards on shares they have no interest in, have never owned, warning others not to do the same. Knights in shining armour, robin hoods as they are. Except robin hoods don't exist in real life of course. So what's their motive? The current crop just don't like MB is my gist, I don't think they're talking the share down because they are short or want cheaper entry. At least, that's not how it looks.
Would you like to address the points rather than adopt diversion tactics. We all have reasons and motives for why we do things, well done for identifying - and yes so do I. You don't need to know them but feel free to address my points like a grown up. I promise I won't engage you like a child.
You're already engaging like a child.
Hmmm. This wasn't my idea of engagement on this forum. I have posted plenty of times on Armadale over the years before my twitter account was shut down. Too many people don't like me bringing up red flags but had they listened they wouldn't have lost so much money. If you can convince me that this share is investable under the current management I will submit. However, facts are facts this is an investment company jumping from project to project, remember the gold one, then Mahenge and now this one. Each project has cost shareholders a packet, how is this one any different? Hence, the market isn't buying it and i assume those talking it up here will be placees and warrant holders looking for an exit. As wasarunner has pointed out, people have their own selfish interest and motives at heart.
I hold just under 5% of the company pre dilution my position is declared, and clear. I want an ROI whether through Mahenge or Silver Canyon (preferably both). I'm still invested in a company with cash in the bank progressing now two projects (albeit one slower than we would like). Lets wait for the prospectus on Silver Canyon and then jump to conclusions.
It is undeniable that Blackrock have not proceeded at the lofty expectations of progress they set (their shareholders) and it is pretty clear they have engaged some serious infrastructure improvements to get their graphite out of Mahenge. If we wanted the capex hit - what is it, $30? $40? $50m? to make those improvements then of course, we could jump ahead of them in the queue and get it all going. Lets do a whip around for the $30m I'm sure raising it on AIM right now will be easy! or, lets see them do the hard yards and piggyback on their deal, it's what I would do.
If Blackrock don't progress in Tanzania nobody will, which is why personally, I think a project in the US is a great idea and I backed the raise (while we wait for an outcome on the former). GLA
How do you envisage financing this second project is going to work. It's not a producing asset and is going to cost which is evident from the RNS. If the company acquires 100% of the project it will cost them $2.78m, no small sum by any means. How is this going to be financed? How much work will be required to bring it to production, what are the time frames, what is the economics of the asset? So many unknowns currently. Why did the company not fund the initial acquisition through a sale of their investments which were valued at £1.593m in their last update. Instead they opted to dilute their float by over 16% adding over 92m new shares at 0.7p and an additional 92m warrants at 1.2p. This smacks of terrible mismanagement and disregard of shareholders and I'm not sure how you can quite read it otherwise.
The quality of the decision made would all come down to the quality of the asset - Something I envisage we will shortly find out about.
If we start seeing grades of 20 g/t, I'd be 100% agreeing with you.
I'm expecting to see some grades that make it worthwhile pushing the boat out to buy, possibility for near term revenue, and easy access trucking and milling/tolling.
Show me that? It makes perfect sense. But I'd imagine we'd need to wait for that RNS to make that determination. That being said, the market doesn't seem to be reacting too poorly.
You keep speaking about warrant flippers etc, but I can't imagine the likes of Wasa (or myself) looking at this for quick flips - We've been invested for a while. There wasn't much forward selling - Look at the recent volume.
It's been mentioned here on so many occasions. Mahenge is waiting for infrastructure projects, and it's been mentioned by the company on several occasions that they're still in discussions with the Tanzanian government. I don't know why you're dismissing these things.
As you say, you don't like dilutions, yet you want to see the company exposed to $30 million of infrastructure projects?
Which is it? What would you prefer? Sit quiet in perpetuity? Continue to progress and dilute the entire Market Cap to build roads and power? Try and find a project that can get them cashflow positive?
Your posts aren't making arguments - It's just ranting. That's all.
You rant about Kabunga being given exit liquidity - Show me where and how.
You rant about a 16% dilution - 16% in How many years? every year? or just this one year in the past 3?
Oh, what was the name of your Twitter handle RHT99?
It's not difficult to search for tweets from deleted accounts.
Yes that's the one mate. You may launch your investigation 😀
Wrt to grades yes there are many unknowns currently. We will need more flesh around the bones in subsequent announcements.
Read between the lines with Mahenge. It's certainly not imminent, would be stupid for a poor company on AIM to take on another capital intensive project if that was happening. It's just cost you 184m new shares (32%) of existing float to finance 25% interest in non producer. Good luck with that. If Mahenge was a goer, then 100% good to sit on hands and wait for it to come good. The £1.5m investment portfolio going well so why take this move. You will be paying a lot more with your shares to come I can assure you. Directors should have suspended their salaries long ago and waited for mahenge especially since BlackRock are now on the cusp. Wrong time to make this move.
So tell me Dee what's happening with the £1.59m investment PF, why not finance acquisition through that.
As far as flippers are concerned, how much of the 650k did you and wasa take? If it was over 75% of it then good on you but I bet you couldn't cough up £200k between yourselves. So who are the others and to think they won't flip with warrants at 1.2p you must be naive. Welcome to the small cap space son. Wish you well.
They’ve parked the FEED studies though Dee. Plus who actually believes that the BOD are in financial and free carry discussions after all this time. Does a quick phone call count as still been in discussions bi annually ‘hi, how you getting on with the finance/free carry’. Also some drilling was planned for 2023 dry season, what happened? Never been spoke about again. So we can all see why the market is dragging its heels here. Now Silver on top of Fines(yes it’s still there) Gold (apparently that’s still there as a royalty), Grahite and ‘other investments’ ie Lindian Resouces through Tanz sub, Celsius Resources, Forum Energy Metals Corp. non of these ‘investments’ are on their website as an investment company. They are not helping themselves or LTSH’s
But if you're trapped in your trade you'd be bigging up the new project to get your exit! Not going no progress blah blah blah. Which means you just don't like the guy. I get it, there are people I don't like in this world (Braverman is quite near top.of that list) judt don't drone on about them all the time.
I would like to exit my trapped profit trade in profit so the best way of doing that is post daily on the acp board that its all doom and gloom. Yeah. I get it. And Jim well no idea what went wrong mate but get over it. No Dee and I didn't take 75% of the placing but this company is doing a lot better than most in my pf so thanks for the warnings but we'll just let it rill and swe what plays?
Also if people don't like the characters involved you can always invest in 'too big to fail' companies for 0-10% returns. I can think of 2 in particular (I was invested in both) BP before the deepwater horizon debarcle and Lloyds before 2008. So if opu don't like which director doesn't get on with which other director shenanigans on AIM those are really safe bets, until they aren't. All imho
Just saying it how I see it wasa, simple as that. MB is responsible for this company and shareholder funds. He needs to pull his head out his a rse.