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interesting thoughts... ..with dilution/placing looming (or at least distinct possibility), tempting to wait and see?
I have been watching this company for a while, yet never entered because of Dekel. The recent news is positive however the economics of its future is questionnable given the refractory ore. Many soviet/ex soviet countries have had problems economically processing refractory ore, and the method that Chaarat need to use suggest an increased likelyhood of further uncertainty. Has anyone queried this issue with the bod?
No argument with any of this. Good observations guys. My only doubt is about the timeline of events next year, esp with sleepy Dekel still at the helm. That said, with MA now driving governance we may see more urgency as, has been said, his interests are suitably aligned with shareholders. Can he push through such an ambitious timescale? We shall see. A surprise sale, out of the blue, may pop up but seems unlikely as, if Dekel is to be believed, the Chinese are seeking already productive assets.
Pablo Martin Andersson is a very successful Swedish business man worth several hundred million. He has several business Brunswick Real Eatate, Brunswick Rail and has very good connections in Russia. I think Martin taking a hands on approach is a good thing for us as his interests are aligned with ours. Yesterday's news on reflection was same old as we are now back to carrying out a feasibility study on a small scale mine - however the addition to Martin and Martin to the board is significant.
Think a lot is riding on this man and his sidekick from Goldman Sachs. Remember the last time he seriously put his hand in his pocket he took a big placement @ 15p when the sp was 11p. We obviously need money fast as that end of June figure of $2m must be virtually down to zero already. Soon they will be on the Board and have probably got a lot of power. Banksie was saying he felt they had other investors behind them too. Is it all amicable? I suppose it must be if they are to be voted in, but perhaps Dekel and Co have had their hands forced. Oli - maybe Dekel has put the value too high but have we actually had any concrete offers - NO, or he would have had to RNS them. We have made our plans for the next couple of years and that is to get the short-term production going in a way that would not impinge on future main-scale operations. The Krygyz wishes to keep a lot of the gold processing in the country so we might now be in the right place/ right time around 2018. I'm definitely going to hold my shares and can see the market gradually taking this baby back on board, especially with some funds.
A couple of delayed trades published on the stock exchange website. Hopefully today has shaken out the sellers. Christopher Palmer-Tomkinson holds a beneficial interest of 6,275,000 Ordinary Shares, representing 2.30% of the total - I wonder if he will hold or dump them now that he's out.
Its still hard to understand what the BoD think this company is currently worth. They say following the Feasibility study they say the benchmark for negotiations with Chinese acquirers was set at in excess of 20 times the market cap - say £20m cap = that's ALOT. Even if suitors were offering a fraction of this then I would have been happy to sell and get out. Instead we go back to small scale production - say we need to raise $100m for this - at the current share price a placing of sub 10p will wipe most holders out. I cannot understand why Chaarat would prefer this for holders over just selling the asset for a fair value. I firmly believe that the BoD are unrealistic with their valuation of the project as it currently stands. YES we have a world class resource however without funding its useless.
I think the company made a mistake not raising some funds prior to this announcement. It is a sitting duck now as it is obvious it needs cash so the price is likely to be taken lower and lower until funding is sorted. I've seen this play out countless times on AIM.
This is true. However, it is also something that could be applied to any explorer. Look at SOLG for example. A fantastic prospect but there is no way it is going to be producing any time soon. And yet the shares have quadrupled recently (and up 12x ytd). The company has value and at least there is now a plan to move this forwards. Yes, it will require capital. But what AIM explorer doesn't? The ideal would be for this to be bought, but in the absence of that at least this is a decent option. The share price reaction has been incredible, albeit on still relatively low volume (£50k transactions have wiped several million off the market capitalisation). I confess I hadn't realised quite how negative opinion had grown about the management team here. Probably for good reason. But without doubt there is more value than some other hated AIM companies (RRR springs to mind).
Forgetting about everything that has happened (or not happened) in the last 5 years, we look to have announced today a plan. Yesterday we didn't have a plan. It's very ambitious but with the money man Martin A. now 100% committed, this will presumably succeed. The RNS stated "Largest shareholder affirms his support for Chaarat by agreeing to join as non-executive Chairman" - this is Bod RNS speak. He probably was kicking the door down saying if he didn't get on the Board, he'd withdraw support for Dekel. So, quite possibly, they've been forced to take Martin A. He has probably also forced on to the Bod his associate Martin Wiwen-Nilsson ex-Goldman Sachs. These 2 probably mean business as Banksie kept saying on here, they were going to force the hand of Dekel and Co soon. The 'plan' looks a long-term one to us LT sufferers but in mining terms perhaps another 3 - 4 years isn't long-term - Dekel describes it as 'production in the near future' - lol. As I said, it's a plan and better than no plan and better to have Martin A. fully committed than him looking for the exit door at a loss.
IMHO and with the benefit of previous AIM experience looks HOPELESSLY ambitious. The idea that the BFS, funding and approvals will all be concluded within a few months span of next year?! Is. Not. Going. To. Happen. And even if it did no production until 2019? You can knock that date back to 2020 for starters. Why would you invest?
He at Labro was prevented from taking any further shares unless making a formal offer for the whole company when he went over 30%. Now when he gets appointed (v.shortly I presume when Dekel and Linda vote him in) what is his future position. Can he participate in a Placing? As the cash is down to $2.06m at the end of June, it must be nigh on exhausted. I was surprised to hear we have 27 staff and 70 temporaries. Thought we were down to 3 or 4 ! So we need 'lights on' funding a.s.a.p. This sp surely won't rise until this initial funding sorted. Given Martin A. and the other Martin are stepping up to the plate, presumably they are going to make some decent funding deals.
He seems like a competent successful business man - his interests are aligned with ours. He cannot do a worse job than Dekel. I hope he forgoes any salary for his chairmanship. From the point of view of fundraising surely it would be cheaper for Labro to buy the whole company rather than dilute their holding further - unless a cheap placing is the back door route to achieving this. The only option to raise meaningful funds is to find a partner who will take half the asset.
To be clear I think the appointment of a non exec chairman is a positive step for the company. The crucial question for me is the guy they've got the right one? .. Is Martin Andersson up to it? He is a PI and doesn't appear to have any previous board experience. If he can drive this up to now clueless board forward in a straight line, then great, happy days for shareholders... If not?
We are now waiting for a DFS once again.
All we need now is one of Dekels legendary proactive investors interviews to cement our 5p status. I only hope that with a new chairman / board memeber today's statement of intent is a negotiating tatic to sell the project. How can we raise meaningful money with our current market cap? As others have iluded this is one of the more positive RNS in the last 3 years.....scary
Looks like they will set the price for the directors' options after the next placing
And just to clarify the RNS for investors. That was a positive one! Most of them for the last few years have been negative so it may not be clear to people!
Given the share price reaction, is it any wonder that AIM miners stick to doing nothing other than paying themselves? I really think that AIM investors should look at themselves sometimes. Then look at the horrendous cesspit that it Twitter. On the whole we seem to have the company leaders that we deserve!
Fundraisings are inevitable for an explorer. They have to get the funds somehow. At least now there is a real chance that they can do something positive with it rather than just keep the lights on and pay the salaries!
Well that is definite, in the RNS, and may well happen this year but much more funds needed next 2 years to move this forwards. Always the chance of t/o though. Maybe 'Banksie' will have some insight into the Board comings and goings?
I think that this is extremely positive indeed. They have been sitting on their butts hoping that they would be taken over by a Chinese miner for so long that there has been precious little progress. It seems as though a light has suddenly turned on and they see the need to move forwards. The appointment of the Chairman is extremely good news as they will feel the need to get a return. Chaarat now needs to be seen as a potential miner with a world class resource and that should see a steady re-rating.
Yes Oli we've had to decide that is the only way forward but getting Martin Andersson fully committed surely will make this work. Seems a long way of 2019 production and a lot can happen between now and then (takeover?) but there IS a plan, perhaps a cunning plan. Loads to digest in today's RNS and reckon we could eventually see something for our investment. Whether many people buy in to this fairly long-term plan (3 years) yet is a bit doubtful though. IMO we'll be hunkering down for winter at this price level for the next 8 months unfortunately. But, we can have more confidence that something is brewing.
This is clearly a precursor to a fundraising ;)