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I agree with you both. I guess the low share price and dilution probably benefits the term sheet providers, because they end up with more shares for their investment. So they are probably not all that fussed? IF the term sheet is acting as a stranglehold on the share price, then the best thing for the share price would be to get it out of the way, as soon as the DFS is done. That way, there is then a clear and uninhibited pathway for the share price to rise and the brakes will come off. I hope that's what BM has in mind and he doesn't delay the Term Sheet. Imagine being in a situation as investors here where the capex is in the bank, construction plans are commencing, and growth drilling results are coming through, and no fundraise question marks. That's a share price moving scenario for sure.
So as AG has said, the strength of Sanankoro will prevail in the end in terms of the share price. There's just different potential paths to that point. GLA
Brown, I’m confident the strength of Sanankoro will prevail. And like LW states, it will be interesting to see how the term sheet plays out. But I’m hoping the company do keep a close eye on the share price
It has drifted on low volume, and if it continues, the dilution come term sheet time could be significant. I think, and hoping that the ongoing drilling campaign will
1) deliver some strong assays
2) grow the deposit closer to 1Moz
3) build up much needed interest in the company and bring some balance back to the price. Still confident it’s just a waiting game on numerous fronts. A good problem to have for me.
Surely cora want to grow the share price over the coming months so its as high as possible before the term sheet fundraise. Good assay results and anticipation of DFS will help with this. I'm hoping it will be 13p and higher not stagnating around 7p.
Yeah definitely LW. And one last note. I know I’ve mentioned these “quiet periods” before. However, something rings a bell late last year when this was over 10p. You made a comment about the possibility of Cora SP retracing back to where it is now, on low volume, and it’s subsequently happened
So when shareholders question the lack of share price movement here, with having witnessed what we have elsewhere, I’m really not surprised by the latest trend, from a personal perspective. I like to gauge a market cap, look at the fundamentals and generate my decision on future growth. Then I make the investment.
But this could well play out a number of ways. It could go on a run and really get going. Or it could stagnate here and possibly retrace a little come term sheet transitioning should I say. For what I allocated for Cora, I’m content with my allocation. But to this date, I’ve only used 60% of my available Cora money. The other 40% can be used to average down, (if that opportunity comes). I think that’s why I’m more relaxed than most. The danger is, using that 40% and it continues to drop but i guess that’s the risk we take.
AG - thanks for the responses as always. There is an important difference between the original Term Sheet and the September one. The former puts the fundraise at whatever the share price is at the time of the fundraise, and the second one ties it to the share price at the time of the DFS. Important difference (if I have understood them properly?).
I agree that the Term Sheet is a positive for the company in the long run, but it would be naïve to think that some of those involved in Cora's fund raise won't be looking for a quick buck. Some of these HNW/institutions always do (e.g. ECR last year, and CGAT in recent weeks) and create that pullback/overhang. It's usually how it plays out. I'm not worried about Lionhead so much, as suspect they will be here for the long term, but the other HNW that the brokers might bring to the table.
I'm only mentioning the Term Sheet because people keep questioning why the share price is not moving, I would not want them to think its to do with Cora and its fundamentals, or blaming the low volume on a total lack of interest in Cora. I'm just offering the possibility that it has nothing to do with Cora's long term fundamentals, but MIGHT be down to the Term Sheet, meaning a lot of big money is waiting on the side lines.
Anyway, there's not much else that I can usefully say about it either, and I don't want to come across as repeating the same point. And I do recognise your point that it might have nothing to do with the Term Sheet, and could be down simply to lack of newsflow/sector sentiment etc.
So I'll end it on a positive, which is that whatever happens, anyone buying in at these levels, or adding at these levels, should do well in the long run because Cora is going places.
Also, just to the north of this section, at depth they’re hitting some very high grade material which remains open. It’s one of the factors which has always excited me here. Exploration target of 1-2 Moz up to 100m. But some of the grades they were hitting below were fantastic. Plenty of upside to the initial 800,000 oz resource
https://mobile.twitter.com/cora_gold/status/1506187438175232005/photo/2
For anybody who missed this too, apologies if it has been reported
These 2 projected images of Selin. The one on the right is extremely interesting. From the middle of the deposit heading north, there’s a very rich patch of ground averaging >1g/t. These are the areas of focus I believe in the early stages of production, the numbers should look very attractive earlier on. Plus it remains open in many directions ;)
But I think we’ll just go around in circles and probably have the same discussion next week, or possibly the week after so this will probably be my last post on that matter. I’d rather focus on the strengths, which for me far outweigh any downside here. But that’s the difference of opinions and the beauty of these boards mate, they’re here for everyone. And maybe there are others watching this discussion that feel the same as you do so il let them talk about it.
I just think your convinced to a tee that the share price will automatically pull back to the fundraise price. Which is fair enough but fundraising’s done correctly, to support the company moving forward, can have an adverse affect
The term sheet on 8th September was an updated version, not the original. It was long known before that.
https://www.lse.co.uk/rns/CORA/us21m-termsheet-to-fund-construction-of-sanankoro-kbv8nswncmyr8i7.html
18th June 2020. This was the original date. The share price was 8.25p the day this was announced. By the start of august, it was up to 13p. It retraced before drilling commenced early 2021, and on solid results, went on another run. We’re in that cycle again right now where I believe this will run again soon, but now, we’re on the doors of production.
You won’t be on your own. There will be investors waiting for that term sheet to be signed to analyse share price performance, but for me, it won’t be a large percent. I’ve said over and over, the term sheet is such an endorsement to this project and a catalyst above anything. It’s not something to fear
AG - it's been pretty much downhill ever since the Term Sheet was announced on 8 September. Not sure too many of us paid much attention to it at the time, because back then it was all about the outstanding results. But I think the big money will have digested it better than maybe retail did? The important point is that the fundraise, whenever it happens, will be done at whatever the share price is when the DFS is issued in Q2, and NOT whatever the share price is at the time of the fundraise happens. That's the important distinction.
The problem it creates is that anyone buying before the fundraise, is risking having their legs chopped off when the fund raise happens, as the price will pullback to the fundraise price. That is why its important to know exactly when it will happen. Will it be straight after the DFS (Q2) or will Cora wait until later in the year to execute the Term Sheet. Probably one for BM to answer, as it will then better enable people to make decisions about when to buy.
On the other hand, it might not be anything to do with the above, and pure sector sentiment and lack of newsflow related.
I think as much as the term sheet provides favourability towards those involved at a set price, it happens all year around. Private fundraise after private fundraise, these millionaires get discounted prices for a large sum of investment. Its world I’ve accepted to be part of and issuing a set amout of shares at a discount to today’s price, is not automatic generation for the share price to hit that level, it isn’t, if you execute it in the right way. Like you said the other day, the minute that the term sheet is signed, that’s in itself is an enormous endorsement of $25m, to how encouraged our investors are with Sanankoro. The day that red dot comes out to say that the term sheet is triggered, and plant commencement and mine works can begin, the last thing I believe will happen, is the share price will retrace to term sheet price. It should drive convincingly in the opposite direction.
Those companies I’ve named above, they all remind me of Cora in the sense that right now there’s no interest, nor volume. But the stern difference being, that Cora has stronger fundamentals than those 4, you could argue with Orosur, and you can predict the company delivering on levels, others won’t reach in 2022. The market buys into the strength of a product /asset/project and barring a political and national demise in Mali, I can’t see those strengths disappearing anytime soon. I’m down to 5 investments now and each one has significant value. Value where if the markets shut down for 10 years, and reopened, these assets are life changing in a number of ways and will always add value. I feel very comfortable leaving my money to work for itself in every single one
I know you like the company and what it’s achieved this far, but you feel like the short term downside that the term sheet can do to the SP, outweighs the strengths to drive this forward. I just hope you don’t miss the boat, but if you can get involved under 7p and gain your entry, then I wish you the best of luck and well played.
LW, that could be right but the elephant in the room for me, is the lack of exploration and concrete news since the turn of the new year. That’s not having a dig at the company, because 40,000+ m drilled in 6 months last year is spectacular and trumps nearly everything in this sector. But this quiet period was always going to come
The term sheet has been around for a hefty period of time now and it didn’t stop the Cora moving very swiftly last year. But the AIM is full of traders. I’ve accepted that, people get bored and move on, it’s a fact. If last years assays were followed up immediately by a resource upgrade and the DFS completed in 2021, as originally scheduled, this would have set a base far higher up. There was always going to be a lengthy gap between last November’s resource upgrade, to where we are now/April.
I could reel off a long list of companies that have suffered similiar share price trading and set backs like Cora.
Empire metals
Ecr
Orosur mining
Wishbone
I mean, wow, that last one, according to shareholders there was no need to drill, they’d already find a second Havieron. A severe lack of news and the price falls off. You’ve seen it with your own eyes at ecr. Waiting and waiting and waiting for the Eye catching news to be delivered, and it didn’t come. And this goes beyond the sector downfall in 2021, without the abundance of asset accrediting news, these companies run sideways for a long time. The term sheet for me isn’t keeping this down at all, it’s the lack of interest chasing the next big things before the sector hits the cycle again and becomes popular.
A combination of strong assays, further upgrades towards the resource and a completed feasibility study, IMO will shift this before the term sheet comes into play. And I don’t mean it’ll shift 100%, but having watched it for over 12
Months now, I can no reason in the near future this can’t hit 8/9/10p again.
I could be wrong of course, but its just my own explanation/viewpoint for why we aren't seeing movement here. And therefore, why I'm not surprised by this (or expecting anything to massively change before get the Term Sheet out of the way).
I feel a bit like 'lone wolf' at times in pointing this out again, and almost apologetic! IMO, the lack of current share price movement might well be all down to the pending Term Sheet fundraise. It might be the big elephant in the room, but people do need to acknowledge it, understand it, and then base their expectations of share price movement accordingly.
Not de-ramping, but just continuously bemused at some of the postings and expectations on here. Which share goes up before a fund raise?
Therefore, I think the Term Sheet is the only sensible time to be adding or investing here, and why the big money is not coming in yet. More than happy to be corrected or challenged, but rather than just the usual 'de-ramper' response, it would be good if anyone disagreeing with the above could do so by reference to the Term Sheet provisions and why they see things playing out differently, so I can at least have something to engage with.
Going the wrong way......but from memory this was a usual move in the SP before new drill results were being published. Lets hope in the next couple of weeks we get a set of good drill results for the SP to start going in the positive direction.
Already had a number of investors who have executed a position for Cora this week, impressed but the figures from last year.
Share price likely to peak again when new exploration results come in. Next month they will begin to arrive.
Good go hear Paul.
We are both bullish on CORA with our analysis's :D
I take your point Greeneyed, that's the thing with TA, you can interpret it to fit whatever scenario you want.
For the record, as I said before, I do really like this company and the outlook.
It's in an uptrend from June 2019 as that was the ATL.
If you see a downtrend from sept 2019 I think your looking at it in a micro level.
As it stands its bottom of the trend line which I can understand you think is not trending higher. But look at it from a macro level its higher.
"BUT technical analysis is only really useful for highly-liquid, large cap, high-trade volume stocks, so I wouldn't place a lot of emphasis on it when it comes to minnow companies like CORA."
I do agree to some degree on your point. However I personally use a mixture of both. Technical analysis and Fundamentals. Such in the case with CORA.
-News due soon
-At major support levels which historically it has bounced from very hard.
So for me its great risk vs reward at this point.
DYOR of course but imo its a BUY
I actually put an emoji thumps up but it turned it into a bunch of ???? Lols
Really excited here and to be part of this ride
I think it’s heading a lot higher than it’s current £20m price tag, I really do
But once production starts, your in a whole different territory. It’s all about expanding for the future.
It’s about keeping the AISC down
Getting production numbers up and maintained
It’s about grade control of the material you pull from the ground
It’s about expanding those Resources, increasing mine life and potentially producing away from Sanankoro
We’re at the foot at a very exciting journey and curve up in the right direction and what the company have delivered in the past couple of years is outstanding.
AG - thanks for sharing really put things in perspective of where this is heading ????
Slowly coming together, just tweeted by the company. Just makes you visualise the reality a little more
https://mobile.twitter.com/cora_gold/status/1505091710942130176
-10 Accommodation units
- soccer field
- outdoor sitting area
-kitchen/canteen
-laundry
-office 1
-clinic
-recreational area
A home away from home and likely situation that Cora will be providing hundreds of local and regional workers a full time job at a multi million £ Gold mine
To be fair Stocktow, last year I think the company released 3 sets of good results before I got in, and I got a good entry price.
I’m expecting middle of April for the first set, and then 2-3 weeks after that we’ll recieve a second batch. They were reporting them in batches of around 3,000m last year but that could change in 2022.