Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Another possibility is that they were approached by investors who offered to put money into the company.
"Why didn’t Angus wait a bit, get the SP to a higher level (from the SF finance) ... then place. WHY?"
Yanis - the answer is obvious - their discussions with possible lenders are not going well - or at least not in the timeframe previously announced. Might be that whoever it is wants to do SERIOUS due diligence and crawl all over the reservoir model, the forecast production and (especially) the implementation plan. Given that any finalisation has moved well to the right they need money NOW to pay the bills, and to drip feed cash to keep SFB inching forward - without the £ 12mm they can't finish it but they can continue to show a modicum of "progress" to the long suffering LTH's who have been diluted (by up to 30%) again.
Galifreyan, I understand all that and I agree with you.
The SF deal (£12 mil financing, etc) WILL DRIVE THE SP UP.
Why didn’t Angus wait a bit, get the SP to a higher level (from the SF finance) ... then place. WHY?
I don't like placing either Yanis.
That said there is a great distinction between equity and debt (loan financing).
A debt holder doesn't have the equity upside potential (they receive a fixed coupon) and so they will be specific as to what the cash can be used for (much like a mortgage can only be used to buy a house). The SFB loan funder isn't just going to provide Angus cash for general purposes (e.g. to pay SFB expenses pre production) as if SFB fails they have little as security for recourse on their investment (ie. they can't ask employees for their wages back). So I suspect you will find the funder says you can only specifically use the cash for x, y, z and in each case you need to provide a drawn down notice specifying what you are going to use the cash for. In otherwords they won't pay Angus' expenses prior to those items x, y, z - they will say you are a listed company, go to your shareholders for cash for those expenses. Hope that makes sense
Showing such understanding for these placings, I cannot make it out. When placings occur the only way for shareholders to keep up is to keep buying more.
Keep buying more cannot go on indefinitely. So every shareholder, if they are shareholders for the purpose of making money, should be concerned, period.
This placing today at 1.0p, when the SP yesterday closed at circa 1.40p, and today was hovering near 1.60p ... is of concern.
If more money is what they wanted (for what ever non-prudent reason, £12 million is coming for SF) why not wait another week or so and place higher?
Hard to digest.
... as it (Angus) continues its evolution into a more broadly grounded Energy Transition company. We will be following with a comprehensive presentation to shareholders on the strategy, prospects and opportunities of the Company during the course of February and an investor call in the days following."
Wonder if the opportunities for an Energy Transition company are not becoming increasingly apparent.
Think the warrants form an integral part of the equity raise, which should be seen as a whole: placing at 1.00p, warrants at 1.20p, 1.35p and 1.50p, the total being nearly £3.5m.
Think the company is ambitious and in quite a hurry now and is scaling up in size, both in terms of debt and of equity.
Await figures for the geothermal project(s) with interest.
Ocelot, no need to apologise. This placing does not make sense. Closing SP yesterday circa 1.40p, today the SP was close to 1.60p - Why place at 1.0p ... and place now?
Also the warrants! It is the norm to have them exercised at double the placing price ... 1.2p .. 1.35p ... 1.5p for crying out loud. What is going on?
Not again!
Yes, the warrants are all close to the current share price, so the raise is, in fact, nearer £3.5m than £1.5m (although not all warrant holders will exercise at the first opportunity, some will remain long-term holders).
There is a very good chance that the warrants will be exercised net month.
Apologies for all my posts:
it's a big raise if one includes all the warrants, 300m shares by comparison to the existing number of 766.5m is 39.1%.
My impression is that they are very keen to get things moving forward as quickly as possible.
PPPS: if all warrants are exercised, I make the average price of the total raise to be 1.15625p
PPS: the share price is very close to 1.20p, so the placing is very close to being one of £2.4m.
PS: if all the warrants at 1.20p are exercised, they would bring in £900k.
Mirasol, they've raised £1.5m today and will raise almost another £2m via warrants exercisable between 1.20p and 1.50p.
Ocelot - they've diluted from 1.3 p to 1.0 p
How can that make sense?????
Jamesthesecond,
The £12m debt facility only concerns Saltfleetby, it does not concern Balcombe and Brockham etc.
Yanis- The urgency of the placing may due to the urgency of Geothermal stuff. How will the market react if £20 million is secured in the next few days taking care of all future funding. The £12 million is meant to sort out SF,Balcombe and brockham etc. The only asset left is the potential new project and for that he lender may have asked to bring equity to the table. After swallowing my anger with the placing and reviewing all recent updates I am expecting some BIG news are imminent. Just my 2 cents worth.
It was looking so good that they could raise the funding needed that they diluted shareholders at a discount? And that is a good thing?
That just does not make sense.
Seized the opportunity in that the share price was rising on the back of favourable news.
Ocelot, what do you mean by “seized the opportunity”? - What opportunity? The SP finally re-rating? Yesterday we closed at circa 1.4p and today we were close to 1.60p before the placing at 1p was announced. Why now? Where is the opportunity?
If they waited one more week, they could have raised much higher.
The debt facility concerns Saltfleetby, but ANGS's "current assets" include more than Saltfleetby.
My reading (as so often) is the opposite of Mirasol's, ie. it is precisely because all is looking good for the debt facility that ANGS seized the opportunity to raise some equity.
The Placing monies will be used by the Company to advance the Company's current assets and for general working capital purposes.
We can all read into that sentence what we want to read in it!
"If anything had changed since Monday's RNS,"
True - on Monday morning they were talking to people about raising £12mm - they're probably still talking to them - but things are clearly not going to happen soon - otherwise why do a £ 1.5 mm raise? Why pay a second set of fees???
This is not good