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Hi LJS. According to the recent accounts, the company had, as at 31 Dec 2022:
- £72k cash
- £395k shares, of which £329k was Sandfire
Loss for the year was £671k.
If the loss rate has remained the same since 31 Dec, that seems to me to suggest that the company must by now have burnt through the cash and the majority of the Sandfire shares.
Personally, I’m happy to admit this leaves me in a major quandary. I think the company’s projects and partnerships are brilliant, but I fear what a standard broker placing would look like in the current market and with AFP’s public profile so low. I guess the hope is that Colin has something better up his sleeve than a standard broker placing and/or that the broker does a particularly good job. But for me the risk is prohibitive at the moment. I am currently out.
I have some of these and have been thinking of adding. But I have been wondering about the cash situation and can see that you guys are thinking the same. Do AFP own any sandfire shares, if so, shame we cannot sell those rather than the usual dilution route.
If Colin is reading, why not do a Primary Bid raise that shareholders can participate in as well as ii's. PREM did one or two of these and they were quite easy to do, transferred mine easily over to my HL account. 15-20% to market price and I would definitely take part and take maybe £10K or so. If not, I may wait
DVH & Cyb: You might be right but if any good financial news arrives in the near future the placing could well end up being above the current price. I'm nibbling to try and play both sides but I think this could soon fly and 2.5p may not be an option.
I'm agreeing with DVH. I don't think they have to raise a huge amount of money, maybe £750-£1million?
Ongombo should be a contractor finance deal, kalahari and zambia are in the hands of 3rd parties so its more for corporate overheads and a little bit of kalahari development.
If the FQ results are near what's predicted (and as indicated by FQ data and reports) then there could be some very interesting action over the next 6 -9 months as FQ gain confidence in what they have.
CB has a pretty good record of regular Placings and normally at a pretty hefty discount too. Happy to bide my time and buy in around 2.5p. Expect to see the fund raise announced before the end of summer..
The lack of buying here is due to the belief that a fund raise is about to take place. That may be so but when it happens the price may move so quickly that most punters cannot get in at a price lower than it is currently. That being the case (in my opinion), I have been adding modestly, including todays only purchase (up until 2pm).
Agreed PP. The relentless downtrend on AIM exploration stocks has been frustrating. Admittedly l don't think Colin has helped by over hyping everything.
In the recent deal between AA and ARC (same location), the ARC ceo said they would be updating the market in a timely fashion as significant drilling results come in. Whereas for Anglo American a good drill result wouldn't move the market, for an exploration minnow it is obviously price sensitive and has to be disclosed. If the same is applied here then wouldn't significant FQ and Sandfire results have to be announced as they arrive ?.
The one thing CB said in the interview that I found myself nodding my head thinking..
'He is right on that one'..
was when he said that AIM needs a new discovery/resource play to really get excited about.
If another AIM micro cap can hit a new big discovery in a major way and go on a multi month sustained breakout rally with a succession of follow up hits and deliver a GGP style multibagger then this would seriously help to wake up the resource sector of AIM and provide a much needed liquidity spill over into other junior resource plays.
At this point they need to rip the plaster off and do the placing. They’ve published accounts showing they have F all money, we all therefore know it’s coming. The share price will be constrained until it’s done in my view (barring something spectacular, but it’s now 3 more months until the next FQ update)
Thanks for posting and to Colin and Co for the update. I admit l expected a better response yesterday. Shame they didn't raise the cash situation in the interview.
I'm waiting for the details of the forthcoming Placing and the level of discount before buying. Looks a decent investment opportunity if the Placing is around 2.5p. We'll soon see.....
Certainly they will be trying to do a placing. But how do you place shares in a company which normally has either zero, one or two proper trades per day?? Broker will be earning their keep!
Looks like Colin is trying to pump up the share price before a placing. We know one is coming after the annual report was released:
"An operating loss is expected in the year subsequent to the date of these accounts and as a result the Company will need to raise funding to provide additional working capital to finance its ongoing activities. The management team has successfully raised funding for exploration projects in the past, but there is no guarantee that adequate funds will be available when needed in the future."
Colin seems excited. Just hope it doesn't turn out like his XTR exploits. But to me reads well and l look forward to the drilling.
As some on here suggested, it seems like relatively little has happened in the last three months - most of the info in today’s RNS is from the quarter before. However, it looks like FQ will kick into gear again during the next period
The FQ quarterly update is is quite overdue now. You would think if rain stopped play for most of the quarter then it would be quite straightforward to say that.
If you look at the copper grades at FQ Sentinel the average is down to .36% in 2022 so i'm sure they wouldn't mind a bit of our zambian open pit at maybe 1% plus to feed their plant.
Take everything he says with a punch of salt
He's gone a bit quiet with GLR, XTR and one or two others but seems confident with AFP and at this price if anything really does break, surely this could be an easy 10 bagger
https://www.youtube.com/watch?v=pqZtL5jVKQE
Check out Colins latest midweek takeaway, episode 54. He is still buzzing, especially over the FQ exploration project. Expect good news from there going forward.
All you do is moan pinocchio, the difference between success and failure of AFP won't be a 6 hour difference on the release of an RNS or spending a lot more money on PR - its about actual progress as evidenced with this RNS and the proximity of starting to get it monetised over the next few quarters which looks very likely now :)
It’s a fair point, pinnochio. I used to be in xtract and he was always putting out RNS updates at random times there as well
Very substantial upgrade of the resource - look at the gold in the inferred resource as well. Who cares what time it came out this is a humdinger. Ready to get on mining it as well.
CB is not averse to regular placings with his companies.....