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Already have sold my cheapest BCN shares but am not going to lose any more cash just for your benefit Degsie...
Mr C . Stop the pain , sell and go away.
Degsie - I do theoretically see the value in BCN and whilst not in profit (any more) it no a big loss, but given the situation ie 'most of the way to being sorted' I cant see why its such a painful share to own.
If you are in profit you must have been either very skillful/clinical in your purchasing strategy or in at a very early stage. This has been well over a quid way before Ganfeng came along and its now just getting worse...
Whilst I appreciate that EM hypothesis can probably be used to justify the drop in the share price down to the level which Gangfeng secured their deal, I do struggle to apply this to small caps with fewer market makers, limited liquidity and volume. Sentiment and momentum can shift the valuation of small caps without any new information in the public domain so I prefer to reserve my self-justification of EMH to liquid large caps. I remain here as I am locked into a high average and despite a very average and vastly overpaid CEO who is lacking in some basic skills, I want to believe that there are better times ahead. Lithium prices, funding mistakes and investors taking cash out of the market and AIM generally are all negatives which have dragged us down and not just the pricing of the Gangfeng deal. The cash on the sidelines will come back at some point, hopefully some of this after the election and a Tory majority and funding will, I am sure, be secured with a level of dilution which we can’t be certain about today. I don’t see many who are enjoying these markets but with the prospect of low interest rates for many years to come, investors will continue to seek out returns above the average FTSE div yield so there is still hope for us who invest in AIM in 2020/21.
I realise what AIM is. There are winners and losers . I bought ASOS at 10p but did not keep until the price reached £77. I think BCN is great value - I am in profit- and I do not understand all the moaning about Peter Secker. His presentations are a little wooden and , unfortunately, because of all rules and regs he has to be careful about what he says. Financing of small mines has become difficult and the lithium market has had a recession but demand in future will ensure rising prices-I MO. The deal with Ganfeng insures future and although there will almost certainly be some dilution the is a lot of value for all shareholders. The NPV of $1.25B is after discounting the gross NPV of $3.4b by 8% for 12 years so the passing of time will see substantial growth. Have a look of at page 221 of report at link below.
https://www.bacanoralithium.com/pdfs/Bacanora-FS-Technical-Report-25-01-2018.pdf
And don't forget Zinnwald.
And of course UBER is not safe .
Oh and for the record I would not put UBER in the safe category !
I do buy saafer no crappy shares, but unfortunately I am still 'stuck' with a lot of AIM shares -- do you love AIM then Degsie ?
Mr C. You bewilder me. You constantly complain about BCN and KDNC and AIM shares generally. You'd be happier if you sold them and bought UBER, Spotify or other safer shares.
You wont be saying that when the shares you supposedly bought are diluted further... I have learnt a lot about junior miners in the last 5 years most notably they almost all stumble on the lack of finance, I have seen this in at least 3 AIM junior miners I have been in or watching. And the second thing is the enormous timescales to ROI unlike say the technology or Biotech sectors.
Seriously guys, vote Secker out, his ineptitude has cost me a fortune... Maybe he would be better as COO or something, he's a disaster as CEO and not the person to get this fundraise over the line imho
Yes, Degsie, a poorly worded RNS as per usual from PS, but at least it allowed some of us to get some shares cheaper than Ganfeng.
At the 2018 AGM there was resolution giving authority to issue 500m shares . That expires at this AGM so it isjust a replacement of that authority. I do not think anywhere that number will have to be issued to bridge funding gap. The NPV of Sonora is $1.25b and Zinnwald is Euros 428m .
Yes, Zinnwald;)
Yeah it definitely states that its shares... but sounds like a bucket load to me.
Even at 20p per share thats £100m - i know theres a lot of uncertainty regarding what funding is left but surely not that much is needed on Bacanora's side? Especially if Ganfeng take up their further 22.5%.
Am i missing something?
I spotted this too and suspect it may be a mistake...500M shares ???
Thank you, Mik, you have confirmed my suspicion that your defensiveness with regard to analysts is because you are one. Keep up the valuable work.
My little outbursts? What was it you said earlier - some people can't face facts I think it was!? I My only real personal jibe was the naivety you've shown re financial markets in claiming that a share being walked down into oblivion on no volume, with huge Institutional support, is somehow validated, and markets on AIM are efficient. Any market operator would tell you at this end of the market is perceived as the complete opposite of inefficiency, hence the serious moves and re-rates we see that lures the punters in.
You're choosing to make it personal, now insinuating I'm young (flattered btw at my age) to discredit it me and trying claiming I'm at a vast loss here. Whereas of course your 5 years here and being the first to reach for a bulletin board at any semblance of news, whilst not even invested, suggests emotional detachment and that this has been highly lucrative for you ;) I'd suspect as your well aware (or probably not) that this year has heralded all time lows so I'd suspect I'm in a far better position with my entry this year than you've been, given the VWAP over the past 5 years has been multiples of today's price!
I tried to draw a line under it in the last message because as fun as rising to your patronizing and condescending demanour is, I suspect it will detract from the otherwise quality contributions by people not being embroiled by our bickering nonsense on the board. And I have a job to do (in equity research, not corporate financial advisory), so if you want to compare financial market accreditations, then I'll happily do so on a platform where we can be less disruptive.
Must admit Addicknt has it pretty Bob on.... BCN had so much potential and a very valuable asset... must have been challenging to destroy shareholder value this much...
MikG, yes, you're right, I have no understanding of financial markets...apart from having spent a considerable part of my career acting as a corporate finance advisor in the City. I rather suspect I did my first public offering whilst you were still at school.
I also suspect you're sitting on a considerable loss at the moment, which would explain your angry little outbursts. But don't worry, I'm sure it'll come good. In the meantime, as is demonstrated by the price currently being shown, the value is 25p...regardless of what you may wish for.
Addicknt,
You refute everything in front of you, and claim that prevailing price suppression is some sort of validation of your two bit analysis of the situation. You seem to have zero grasp of financial markets and have said in the past something along the lines of "analysts are clueless" which about sums up your investing capacity. If prevailing price is efficient and an accurate depiction of fair value, why does anyone bother buying shares? You buy because markets, especially at this end of the market, can be inefficient and miscalculate fair value, and that I believe is happening here. Not even 0.10% of the share capital has traded today, yet its been marked down 7%, so you think that's a fair representation of the market. Ganfeng have about the lowest average on the II book and paid 25.. yet in exchange for that have to do considerable donkey work to get this project up and running, so of course that price (discount) was warranted. Not one Institutional investor is walking away or selling down.
You disagree and are uninvested, yet choose to keep a close eye here, all the best to you. I have no gripes with that, and don't want you to go away. If you want to try and make out I only want to hear a bull case, again another misguided comment. Any sort of my perusal of my history will see I use this platform to argue the bear case more than the bull of my investments, and I've even said this morning that this board have made another hash of raising money for the umpteenth time.
You wear you "five years involvement" like some badge of honor, as if it makes you a better authority on this company than anyone else. Whereas in reality it just makes you a stale bull, and you seem so set in your ways that my mere challenge of your view, is a big problem to you. Lets just agree to disagree. You can continue to write about companies your not invested in, I 'll continue to focus on ones I am invested in, and I'll buy undervalued stock, and you can sit on the sidelines since the market is always right and there is no price inefficiency on the Alternative Investment Market. ATB.
Tivman, what I was trying to say that during their negotiations they mutually agreed that 25p was the right price.
PS believes the company is worth more (and so do I, just not yet) and I have no doubt whatsoever that Ganfeng think they got a bloody good deal...they did. But the fact remains that 25p WAS the value placed upon the business by the two parties with more information than anyone else.
This being the case, the market has reacted accordingly.
I fully understand the frustration. As I said earlier, I'm an investor in SOLG, which is quite simply one of the most exciting prospects in the mining world. It already has one Tier 1 prospect in it's portfolio and more will follow. But the market currently only values it about 350m; a fraction of it's eventual worth. However, it has, just like BCN and SXX, many hurdles to climb before value outs and as such, I understand the current value and don't spend my time wailing about how it should be more. Hopefully, it will happen; but just like here, not yet.
Sure, but you've also got to add into the mix that the US (and West) is making sure it has exclusive access to prime lithium resources, meaning Chile and Bolivia, and to a lesser extent Argentina and Mexico. And Mexico is in the USA's backyard...
The western 'grand chessboard' for resources, which I thought was on the wane, is also at play here.
jarthur219 - that is not how it works, it all depends on placing price and future prospects after placing
please forgive my ignorance, but if they are looking to raise a max of £50,000,000 why do they need to issue 500,000,000 shares?
we currently have a mc of £50m with 190m shares in issue, so (as it stands and assuming they get interest) wouldnt they only need to issue 190m more shares to raise an additional £50m?
Add
I understand that but you said the company and ganfeng disagree that we are undervalued?
Do I have this wrong ?
Thanks