Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
But to answer your questions about company sale or asset, then i will direct you to this part of a recent RNS -
"The Board has therefore decided to appoint UBS Investment Bank in London ("UBS") as its leading financial adviser to assist in a review of its strategic options including asset sales or a sale of the Company."
GLA
I have no beef with you either, but when i see things like risk brought up i will show you how the company has lowered it.
Where dividends are mentioned, i will present scenarios that could realistically play out which would lead to such dividends.
GLA
Anyway I have no beef with you Mac. I have no idea how telling MrSpeculator to shut up with absolutes that he cannot guarantee like "dividends will be offered" (because we don't know if, or when, a sale goes through, or when EUA turns to profit), got you into this.
I have defended the notion of a very plausible dividend scenario.
Let's start at the bank RNS shall we -
"If the Company was to dispose of both of its Assets, then AIM Rule 15 (Fundamental Changes of Business) would apply. Such a disposal would require shareholders' consent, an announcement which contains the information set out in Schedule Four to the AIM Rules; and be accompanied by a circular containing the details of the disposal and convening a general meeting to approve it."
See both, not all three, for example.
https://www.lse.co.uk/rns/EUA/statement-re-formal-sale-process-s2dz3bhew85fz5j.html
GLA
I've been in EUA long enough, Mac, since around 3p. Perhaps you need to stop thinking you're the only one here long enough.
But since you decide to go down the route of defending MrSpeculator, then which is it? Full sale of the company (a takeover), or sale of only MT leading to a special dividend?
Do you agree that CS, DS and the bunch would also not be offering a WK dividend if the company is still making a loss?
They may also sell MT and WK, but still be left with the small gold tailings project.
You can't ignore that possibility, the same special dividend situation would apply.
GLA
How long have you been here Alfe?. The BOD themselves have openly said that they are all up for dividends.
If you do some research and listen to interviews from BOD members then you will hear that yourself, they also talk of what sort of kg daily production they have managed to hit.
What happens if MT is only sold, WK is kept?. Answer is a special dividend Alfe.
GLA
Being in production doesn't mean that we will be getting a dividend. AFAIK, EUA is still not in profit - why would we be getting a dividend now? And why would we be getting a dividend for WK if the company were to be sold under the current FSP process? No one has claimed to the contrary that we wouldn't be getting a dividend years down the road, if EUA isn't sold.
What I don't get is - Mac, I have no idea why you're supporting MrSpectator's delusional ideas that we will be getting a dividend AND having a sale. But if you want to undermine your own credibility for him, sure.
WK is producing, the company is debt free, the potential for a dividend at some stage from the producing revenue stream is there. Why try to suggest that it isn't?
We, at this precise moment in time, are both 'for sale', and producing PGMs and gold.
GLA
Mac, I am aware about the Sinosteel EPC, and from a value perspective, that's actually better for LTHs in the long run.
In fact I don't even know what your point is (and whether it's for me) so I'm leaving there as that.
With all due respect, you can't say you aren't ramping the share in the first line and then claim "dividend will be coming" (in the definitive) in the other. I don't think anyone else on this BB has ever claimed that will actually happen in the short term.
So are we selling the company or are we producing enough to give a dividend?
Someone appears to not like the rock solid 'Take it to production ourselves' back up plan. Well it's there, your agenda is clear, sinosteel did a very long due diligence before coming on board here, so the decision to sign the EPC with a certain production output was indeed thoroughly assessed at the time.
No sale = MT to production ourselves on a virtually no risk basis, all the risk is in sinosteels court in the EPC respect.
But, there are NDAs in place for the potential aquisition of MT, we have been told that in RNS -
"All existing non-disclosure agreements interested parties have already signed with the Company in relation to the potential acquisition of the Monchetundra asset remain valid."
Note parties, more than one, again takes the risk factor down.
GLA
Not ramping the share. We are all aware of the risks.
I am purely repeating what is already out there....by the people who run the company....
-A strong competent board which owns 25% of the company
-Dividend will be coming
-No debt
-Producing rather than just being a junior
-Flanks news on the way
-Big banks involved in takeover talks on no retainer and only on success based fee
Any takeover talks has risks it could fall through sure. But if I wanted to go into any takeover talks it would be with a competent clued up board with skin in the game aka Eurasia.
Also given resource estimates have to be done conservatively, upgraded estimates can only push this SP higher.
Of course do your own analysis
Gl all
Thought we’d of picked up and be heading back up to 20p looks like mms haven’t finished shaking yet, I think 20p is going to be a massive resistance point to get through
Noisy on Deck today !
I am going back to my cabin for reflection and checkout the centre page of Mining Weekly !
Lol sure. I do hope the best for you, because that would be the best for me too. My average cost per share is less than half than yours so I don't have as much to worry about losses as you would, comparatively.
Just honestly stop ramping the share and claiming that there is absolutely NO risk for anyone for getting in at this price point, AND don't make assumptions of what this will be sold for. Because we don't know what it will be sold of (or if it will be sold), end of.
Alfe I rarely get into battles on here as it is not worth it.
But you are full of dribble lately lol.
My point is this. A loss is only a loss if it is realised.
This SP is only going to keep creeping up towards the anticipated takeover price over the next few weeks.
Each time the opening SP has been set conservatively and it has continued to rise.
Speak to me on Friday this week and then come and bleat to me about 15% loss? Why? Because the SP will be over 25p by then.
I am one of those who bought in lower than todays SP and at the SP high.
Not worried one iota by the fluctuations. why? because 500M is not what this company will be sold for....
It will be going for well over double this market cap.
No offence meant ok chap.
Gl all
Eh. Barrick's license rights are also enshrined in law. It might help you emotionally to discount Barrick's circumstances, but logically it's also a risk that one needs to take into account. I can't change if you can't acknowledge the possible (not saying it will definitively happen, because I think it's rather less likely for EUA) risks that any EUA investor should be cognizant of.
MrSpeculator, given that you are the kind who only buys in just after FSP is launched without even knowing what a "fair valuation" of EUA is, aren't you the kind of people who goes in short-term and takes a 15% loss? You don't even have the patience to wait if FSP falls through (which would cause the share price to drop) and if we mine MT alone in the next decade or so.
A bit rich of you to not realise the profile I was painting was someone like you, no?
Lol sitting on a 15% loss....you are only sitting on a loss if you bought into this share for a short term gain....
Why in the hell are you going to take a 15% loss no this stock...sure shares will go up and down but the overall trajectory of this shares is going to be upwards while we are in takeover talks and await flanks news.....
If you bought in after the previous upside then it makes sense to hold for the takeover offer and flanks and upgrades news.
The board have 25% ownership of the company. We are not talking about the odd 10k buy here or there to show strength. They were in front the start.
They are well aware a strong SP will strengthen negotiations. We have multiple interested parties not one....and the banks involved and their deals they do.....the banks are not on a retainer....success fee based. So it is in everyones interest to get a good deal.
We also have dividends to come.
Anyone who has bought in above 20p and sells pre-takeover at less than 30-40p needs their head reading.
I have bought in at 13-14p and topped up multiple times.
And will be further topping up into news.
I am not disagreeing the SP will swing - it will but to take any loss on this stock given the fundamentals is pure madness.
Do your own research.
This share is not going cheap. For me personally we will get an offer around 50-60p
If we get any significant resource upgrades before takeovers conclude this will go over £1.
Gl all
gfd, as said, I agree that the intrinsic value of EUA's assets are more than 20p, and I do hope for a return equivalent to that. But such valuations are irrelevant to the final one we get from the offerors/BOD. It is for this reason that I only have a price I wish I would get, but I don't fuss too much about it.
After all, Lonmin and Ophir Energy's assets were worth way more than what they were offered and bought for. We might get a way bigger premium that NAP for no reason as well. That final price is the only one that truly matters.
On return from suspension, it isn't my ideal but I'm glad the EUA employees who exercised their options are getting their shares.
The other part of risk, if a deal does not come is it all other?. No, it is not, we have EPC with Sinosteel in place to take the MT asset to production ourselves. We also have WK in production bringing revenue to the company all the time.
There is always a risk, granted, but certain things seek to remove the vast majority of that risk out of the equation.
GLA
Reference risk, something that always gets thrown about in these situations. The banks have signed engagement letters, they're financial EXPERTS, so the risk is therefore reduced, even more so since they're working on a success fee basis.
GLA
Left to Dmitry, correct, but he also stated that investors could bench mark against previous deals in the sector in interview.
So there you go, if you trust him in one respect, do you trust him to give you a direction to come to valuation figures yourself?.
I do, hence why i have done my own calculations here, and i encourage all and every investor to do the same before getting in.
Look at the asset data, look at previous deals in the sector, look at the experience of the BOD and then come to your own conclusion.
GLA
I'm not saying that it's "very risky", but there is still some risk involved at 20p or whatever the price is now. Not "no risk". However that has not been communicated in many of the rampy posts and I did see comments of the "is this a no brainer we gonna get rich" ilk, people selling entire stakes in GGP or whatsoever to put it here. I personally did top up a tiny bit at 12/13p so I do think there was some upside then. But perhaps a tiny bit of risk awareness would have been prudent?
I believe you do agree there still remain some risks - MT flanks (might go the way of Barrick's Fedorova Tundra), potential bidders (does NN have enough $ even after their expanded credit lines?), and sale options (only MT or all?), that might influence the price, and the length EUA shares would be held. We might be stuck in the same 5 month situation or worse for EUA to ramp up production for MT (if it decides to go it alone). Good for LTH who don't mind holding EUA for ages - however all these don't seem to be very much acknowledged with many newbies hoping to gain a quick gain + exit once EUA is sold.
One of my other concerns is that pre-suspension we were always a bit wary that the stock might and can retrace, but no one seems to be acknowledge shares might go up and as well as down, or sideways, as people who have been here since ages ago would now. And that's a bit of an issue - those who bought at 22p is now sitting at 15% loss. If anything I think it's in nobody's interest for this BB then to be infested with LancashireLads that has been moaning all days about losing his entire investment whilst we were suspended. People are free to take their own investments at whatever price range but I hope they're not just blinded by the belief of a 100% upside because like I said, we can't predict the future.