Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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Next Friday.
RNS de-listed from ASX, which will have cost us circa £100K. That is £100K the company should have spent in October 2018, and avoided this mess we now find ourselves in. We must now be almost out of cash after the last accounts showing just 190K.
My big worry is that when the SS is re published showing NPV, that the share price will not reflect it due to the state of the companies finances. (As previously posted by Quindell).
Listening back to Pod casts done by LR he has always stated that he is open to offers for the mine, the big question now is how much money do we need to raise to move on and complete the PFS and FS?
Maybe they can raise £1M giving away equity FI agreement, but a placing would be the end for most holders here as we would struggle to get our money back, even years down the line. It would be 50% dilution at todays prices!!
I note the board have been very quiet recently so lets hope they have been working hard in the back ground to get us forward quickly, but I sense we are going to need something special to even realise a break even point for most LTHs, with funding uncertainty looming in the back ground.
Personally not happy sat on a huge paper loss, that was totally avoidable by delisting from ASX last year. We would probably have all 10 bagged if this situation had been handled correctly. Sorry but the BOD have to accept resposibility for the failings and some how need to rectify this before we will see any SP that reflects what the mine is worth.
0.2p would be very welcome, but I doubt even that is achievable with the finance situation.
I sincerly hope I am wrong for everyones sake, including my own. Anyway another 8 to 11 days and we should know more.
Hindsight is an exact science....
NPV should theoretically be used to determine the current value of the SP with or without money in the bank IMO.
However I hear you :-)
On the cash side...the way I read it is the estimated spend for 1st Quarter 2019 was 490K They had a credit at end of Q4 last year of 362K.....so come end of March we will have a negative 128k balance in bank....
Not a huge deficit if you consider the NPV will be known by then....my guess is about $180M .....I am relaxed :-)
The possibility also exists to raise finance without additional dilution IMO based on the NPV alone and EUZ's stated intention of taking it to full mine. They certainly have the skills on board in Jesus :-)
BricksSA, I along with many others hope you are right but i have my concerns
ATB
I also trust my own research....hence owner of 1.5% of EUZ.
Thinking positively, there will have been 5 weeks planning ahead of next Friday. I fully expect interviews, podcasts, tweets and rns wordings to have been VERY carefully considered, in order to maximise the opportunity. We will finally receive the full ss details, and hopefully updates as well. The institutions that have been made aware of this information are able once more to trade. LR can then proceed as he wanted to in what feels like an age ago.
Numpty
Sorry Guys if my last couple of posts have been a little negative but rightly or wrongly I do have concerns.
Numptypi, I think you are probably 100% correct with your last post but lets hope the market reacts accordingly.
BricksSA, I am also a large holder at just over 0.52%, so I obviously researched thoroughly before investing such large sums.
I have been here since FCR days so I am an investor not a trader. Lets hope next week we get aa good rise into news.
The assett remains the same I know, the question is how do we bring it to realisation. Just lets hope LR and CO have the answers we need.
Hi Nige, Numpty & Bricks like you I have been in since the JT FCR days with circa 18M shares at an average of about 0.18, so am sitting on some pretty big losses as it stands. I only hope that the delisting from ASX is positive and we have potential partners sniffing around with deep pockets. Raising funds at this price in the current market would be terrible . Fingers crossed on this one and my other AIM holding srsp. GLA Verbs
oiltap, again very true but will the market react knowing the state of the finances or is that a part of plan A B C? or was it a last throw of the dice?
We will see shorlty
GLA
There are some very healthy commitments between us, and concerns are justified, but the asset hasn’t gone anywhere. Delisting was always going to be expensive, and unfortunately became necessary when the money could have been spent elsewhere in far more imaginative ways. I still feel that we are involved in an exciting project that has a huge potential. From the outset I decided that this was most probably going to be a particularly rocky road, but one with outstanding opportunities..so far that seems to be a fairly accurate assessment....gla
Numpty