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RSI is near 20, ie oversold territory. Metcoal forecasts in India seem to be up. BC is operating at 2 HWMs ramping towards double shifts on both with the underground rigs. It should be at the stage where it is very cash generative, and it is trading barely above the IPO of 10p / share. I guess this is partially because the delays and breakdown killed investor confidence, and there was a big inflection where it was recovering but came back down beginning of October when there was a delay with the accounts. It doesn't seem warranted though. I have already taken more, perhaps unwisely. Anyone know of other reasons why the share price is at rock bottom?
I also think it’s interesting that the percentage they bought is just below what it would take for them to have to make an offer?
In the RNS released in May - ‘Avani now owns 29.86 per cent. of the existing Ordinary Shares in the Company (the "Ordinary Shares"). The transaction was undertaken on 10 May 2023 at a price of 18p per share (the "Transaction"). The Transaction was conducted off-market and will settle on 12 May 2023’.
18p is a lot higher than my average so I’m still holding on to my shares as Avani would have more insight into the company than I have.
Remember - a large portion of these are issued to ACAM (/JCAM) - 21,082,257 to be precise - at 28p! =£5.9m for the company - "IF" and "When" they are exercised.
The pre-emption rights only allow the company to issue enough shares to fulfil their CURRENT obligations under options ALREADY granted. A large portion of these options are JCAM - who have conversion rights at 28p (which i would really welcome !!). These were awarded as part of their debt restructure. Adam also has conversion right from his original deal (from day 1) - and these have always been declared from the initial day 1 subscription agreement. Nothing in the 12% issuance / pre-emptions rights is new ! And like i said - the JCAM ones have a 28p strike price.
Anyone selling on the back of this - is not getting their facts straight.
I don't like it when someone admits to a mistake and they get attacked even more so. Unpleasant behaviour that only makes people less likely to do so, and increases bickering. You can just graciously accept that there was a bit of a goof and that they weren't doing it out of ill intention or they would have ignored it and kept going.
FWIW @fromage, not that I was aware of this until this piqued my interest and I looked it up, in the "notice of AGM" 27th Sept on the corporate documents section of the BC website, they do explicitly say that the shares are of nominal value and "an amount equal to approximately 12% of the total issued share capital ". That feels pretty crazy but I would guess that this isn't an indication that they are looking to do that, it just gives them governance flexibility to do so if they need to. Just prudent financial management that they can issue shares, and they chose a large amount because it gives them more control. If they are in profit and/or have a loan facility they would have no reason to.
Admittedly this is AIM and as Myles McNulty said a while ago this share is being priced as if it were fraudulent, given the cash they should be shrugging off every month even with a depressed metcoal price. The financing back end appears pretty dodgy also with MBU, Bluestar and Avani having not fingers, but whole fists in the pie. Feels a bit odd that Adam isn't shouting from the rooftops now that the two HWMs are working (double shifts?). All seems a bit quiet on the western front.
@picax : that's not what I did, but thank you, I did make an error. The resolution passed is for a "nominal amount of £47,949". How many shares is that? They did not give that figure. To alternatively give it as a "value" it has to be expressed in "nominal value" rather than real value, because the real value is variable. One share has a nominal value of a tenth of a penny, and is fixed. One thousand shares have a nominal value of £1. So that £48K nominal equates to 48M actual shares, or at 12p a share, say £6M or $7M.
I did indeed goof (in a different way), and I don't know where my figures came from. I humbly apologise to all readers.
I don't know what this refers to but shouldn't you should be dividing by 100 to get from p to £ @fromage
No rhyme or reason for this sp. The troglodytes still in charge.
The buy sell spread is insane nearly 9%
Fromage has got to go through the "I don't want them to rise as I've sold" stage yet.
Will likely disappear around 30p (or buy back in).
You've gone fromage so go. There are no additional shares.
I said I was dropping out, but feel I should counter this optimism on profit of $2m per month, with the fact that the authorized share exemption of 124,675 * 100 (=shares) * 12p/share / .81 (£/$) = $184m, so those new shares alone at this morning's price account for 92 months of profit. Maybe your toes say different, rpg7?
I do firmly believe the company will be well profitable, but I have grave doubts that much if any of the proceeds will find its way to PIs.
The inmates are in charge of the market at the moment ,any increase is immediately sold into with trivial sales having a magnified effect on the stock price .People should be able to count to more than ten without taking their socks and shoes off before they are able to buy shares.
By the way, that 80k tons stockpile will bring in around $2.5m profit. 70kt regular monthly production will generate in excess of $2m profit every month, more if met coal price strengthens and / or BEN achieves further efficiencies. There aren't many (any?) AIM miners achieving this.
The share price movement is insane. BEN is now at the point it's been aiming for since IPO and demand for our product is strengthening, with profitable production at current prices. Thanks to contributor on unofficial bens creek Facebook page for this:
Apparently port delays, following the Panama Canal backup of ships waiting to transit during low waters, has caused NS to reduce traffic to port. No problems with Bens' operations, >80Kt coal stockpile all sold just waiting for all 12 trains that were booked to take it and current production volume away by Christmas. Full production of some 73Kt/month can commence once the port issue has been sorted and the stockpile reduced which should be soon.
Its not half "my value" wiped out in the stroke of a pen its 12% if its utilized throughout the year and its bogstandard practice for LSE companies.
Only surprise to me is you really don't appear to know this stuff?
I am concerned (from pens gm report) that they may have issues at port that's hampering production/sales and would like them to have RNS'd if its so but standard requests from gm's don't scare me at all.
Padd1 - I have indeed made the sales you can still see in this morning's trades, and have none left. I will in future not be buying any shares that do not have a public majority ownership.
Fromage- are you selling up then?
Panman, it is normal in concept, but doesn't the magnitude scare you? A dilution of 12% of the total issued shares, or in other words, probably around the same number as the total in PI hands. Half "your" value wiped out in the stroke of a pen? Of course they have "no current intention to utilize" them, but that was last week. Might not worry you, but it scares me.
I was naive, I thought AIM had some minority shareholder protection. To me it seems like yet another nail in the coffin, and they can do it again as often as they like impunity.
No, I am nobody's alter ego, I am just me, but you will not see me here again, I am out. Good luck to those who hang in.
Isn't That normal fromage? Why should BEN be any different to the rest of the co's on the market?
Misinformation like that makes me wonder if you one of pen's reported alter ego's?
They even removed an e from under my nose, what chance have my shares got?
This is going from bad to worse. I see that the agm has now ruled that when new shares are created (at any time the company desires), they don't have to offer any to existing shareholders, just give new shares to anyone they fancy at any price whatsoever. Is this honest business?
It is a disgrace. Sell tomorrow, you get relative peanuts (12p) for your long term holdings, but at least you get something now before it is too late.
Calling Pen for his research notes
Where are your pages and pages of notes ?
Just saying
Not much movement from the AGM or any messages thereafter.
Good to know production levels are high... just need official revenue numbers to start the move upwards. 👍
Hoping for more and better news next week. GLA.