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And if the raise is to buy a new asset it is not dilutive, and will have the objective of being accretive. That;'s the whole point of the deal.
@Terry: If only the directors had a crystal ball 1y back to see the copper/zinc price trajectory and the direction of the world economy. It's easy to comment from the sideline. I don't see that any mistake has been made. They're in a solid position, waiting in the wings for asset prices to drop and scoop one up. Yes, they would have (potentially) had to raise less as a percent of mkt cap, but the asset would have cost more.
I am not sure about dilution, we have had 3 director buys through April and May
1 @ 1.975 x 10,119
1 @ 2.01 x 5000
1 @ 2.16 x 5000
I am leaning more towards cash and debt for a producing or near producing asset.
Some nonsense talked on here. Basic error ; placing is not "dilutive" if it is buying productive assets.
dilution only occurs when funds are raised to progress existing assets, working cap, etc.
Cuirrent sp looks more and moore a bargain to me
"Central Asian metals needs another asset!"
There's no hurry. They're debt-free and Kounrad will continue to be profitable down to very low prices; it's one of the cheapest operators on the planet. At the point at which they switch to being unprofitable, most (90%) of other operators will have already ceased and gone bust. They also now have a stronger positino with the banks, having quickly paid off their last loan. They're now in a much stronger position than they were before buying Sasa.
I have no exposure here... I always look at technicals + fundamentals before buying.
Peel Hunt sees sales and profits falling back slightly in 2023, before a rebound in 2024. early-stage project I believe is on cards which would possible be paid 4 by placing
Tel, not sure if people take your advice. You posting history is way to obvious...haha
Get some more....fillyerboots time. Cheaper than chips
@TerryMC1 - let's stick to what we know. That's your view, which is fair enough, but it's not fact...and it's not a disaster even if it is.
('margin of safety').
That margin of safety is around the 150p for me.
Issuing more shares in order to buy a good, accretive asset at the low of a cycle is not a bad thing. Some here are confusing it with emergency raises that (most) AIM companies do for working capital. CAML is not in that position. That said, I'm not holding or buying yet - I need a bigger safety of margin.
I don't think they'll want to dilute to any extent, they haven't spent all these years to then destroy value hopefully. in this period there might be some bargains out there
Current interest rates not that important for new acquisitions as will be reflected in the buy price.
Anything else going on we don’t know about? These 2% drops every day getting tiring.
Debt at current interest rates is actually not high, higher than the recent historic low rates, but average rates are still higher than todays, so in effect still cheap :-)
Someone posted below on 21.06.23 ''Company has confirmed no dilution. Plus they are looking at exploration/ development assets which can be bought outright ..'
I have absolutely no problem if they do a raise to buy an accretive asset at the appropriate time, but I suspect they'll primarily (or wholly) use debt instead.
The price is dropping because of the collapse in Zinc prices. This has had it’s first casualty, with an Irish mine being put on care and maintenance.
There was a ~$50million goodwill writedown on the latest annual report in relation to the effect lower metal prices will have on Sassa, so further balance sheet losses will be contained. At the same time lead prices are stable and copper is strong, so the continued drop is unjustified.
Lol, we will have more cash than Mcap soon, filling my boots
Company has confirmed no dilution. Plus they are looking at exploration/ development assets which can be bought outright when the company currently has a circa $80m cash position!!
Making stuff up again Terry or you need glasses. where am I ramping?
Users like Terry want to spread doubt and fear, he will say anything for his agenda.
Terry is making it up, he just has an agenda to spout negatively constantly.
Have they said they would do that? Seems unlikely the market would like that or that it’s needed given net cash position.
It's hard to move away from daily movements and look ahead to the energy transition. Copper, Zinc and Lead appear to have bounced off the lows now.
What's with these trades at 10p over the ask?
Also need to remember there's no debt to service and pay down this year in comparison to 2022 accounts....
This company is as cheap as you'll find in the mining sector and they have an excellent operational record. Then there's the mobilisation of the growing cash position. Some low hanging fruit available pre metals move on Green Revolution so I'm looking forward to then growing their reserves/resource base.
Mr fibles, true but even at the current prices and taking the lowest end of the production guidance for 2023, we'd still turn over $200 million. Margins will still be very high, considering also the lower energy cost compared to 2022. FCF still huge and a significant chunk will be returned to shareholders. I am happy to wait, accumulate if it stays below £2 and pocket my fat dividends