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I suspect there is a bit of misunderstanding around this RNS but the drop probably has more to do with the change in culture following 023D completion. If after one drilling RNS (023) you have media including visuals of mineralisation and excitable interviews then at the very next stage a subtle change in tone and wider media silence it's hardly surprising that the market has become jittery. I guess the company knows that the SP has nothing to do with our value if the plan is to sell, but if as LR stated they want a more stable SP then frankly they've been very naive. I did say immediately after reading the 023D RNS that I thought the Nomad might have reined them in a touch and perhaps they had a rap on the knuckles for communicating price sensitive information like visual mineralisation via social media. It just depresses me when you invest in an AIM company only for them to play into the traders hands time and time again.
I think you're being a bit unfair there, LR can't win when he's quiet he gets knocked when he's enthusiastic he gets knock.
I remember SOLG showing visuals and drill managers saying these grades are once in a lifetime, it didn't harm their sp and they weren't rapped.
I don't mind them taking a more serious approach - the values in the ground and between now and end of Sept - Oct we're going to see a much stronger sp.
People see red and panic it's normal, L2 looking stronger now.
Listen, I'm truly not being flippant, and you raise good points but there's a far simpler explanation.
This is AIM. Huge rises and good news are mostly followed by drops. That's the pattern with AIM, until good sentiment and more good news returns. That's why even though it was intended as an 'investors' market to help up and coming companies, it's purely a trader's wheel. Many companies with great news or on an upward curve are expected to continue to do so, but often what happens is the mms peddle it backwards. This scares people but it's an age-old tactic on here. What's going on is no different to what they'll no doubt do to RRL. Give it a mega rise and then spend weeks drip dropping it back to the low levels. AIM is pathetic tbh.
I didn't knock him for being enthusiastic, it was a welcome change from some of those early lethargic interviews. There was a joint one he did with MC shortly after JT left where they looked like they might fall asleep! Anyway I'm still a believer and welcome good natured discussions - GLA investors this could be an absolute gem.
I know mate, these seller probably wished they'd sold last week and see an opportunity to make a few bob. Makes no odds to me, I've got monies available to take advantage. They'll be T trades closing and forced sellers, they'll also be shrewd buyers.
We're now further down the line and less than half of the discounted TP valuation. Just got to ride it out if you can GLA
Man, we are about as far now from the original intent of AIM as we are from the Moon. Especially after the last big financial crash, which seemed to wipe out the culture of positivity. Mms, brokers, traders have erred towards the negative or cautious approach more and maybe there's some way of making more money that way idk?
I see it (at this stage) as nothing to worry about in terms of this sp dropping after this news. This often happens in a news vacuum after a euphoric event has subsided. Mms just reshuffling the deck of cards for the next potential run up. I've seen it so many times after news I've become immune to it. The people panicking must be new. But if they stick around on AIM they'll get used to it. The good news is that now and then the mms do let an sp really fly, as we've seen.
Do you think we’ve hit the bottom now
I haven't the faintest idea (apart from theories). Depends on newsflow but we don't know what their strategy will be on releasing results. The only nugget of info is that they seem to have chosen not to release 022 assay results. It's been discussed before but does anyone have any firm evidence of the likely turnaround on assays. I've tried going back through RNS's but am just going round in circles!
Don't forget the wonky hole that was terminated somehwen before the 11th June - nearly three months ago. The upper part was sent for assay but not met testing
Is that how it would actually work? if it sold for 40 times higher than the current mkt cap would that actually mean the price per share would be 40 times higher than now? I haven't clue how these things work.
I'm really green to this and have only put have a very small amount of cash in shares that i can live without if the worst happens. I am learning as I go...so it's a genuine (albeit naive) question
that much i have learned - i am taking everything with a pinch of salt and learning about the company rather than what people say on here - but i do find a lot of information on here very informative.
There are too many WUMs on these forums these days so every post should be viewed as suspicious including mine.
In any case think of it simply as sale value divided by shares in issue for a price. If it's for the asset and not the company then EUZ may wish to hold some cash back for another project so the value shareholders will receive will reduce accordingly.
We all have to start somewhere and the more I learn the more I learn that I don't know ;)
The best advice I have is don't dream about future values and focus on what you'll do when x happens. So I have a plan for my holding based on a revised jorc etc. A sale is a real possibility and an outcome i like alot. But dreaming of spending profits can cause emotion to get in the way and we've all been guilty of that I suspect.
Thank you for answering my question.
I don't know what a WUM is but i appreciate your response
Me too but I'm guessing 'with ulterior motives'. I think a complete sale for a number of reasons (assuming a buyer is lined up).
Spoilsport remind me not to become a codebreaker! On the complete company sale I have heard on other boards that there are tax advantages over a special dividend, though it makes no odds if you're in an ISA. We also rescinded the other Spanish licence (couldn't find the RNS though) so it would have to be an entirely new project to move onto. LR and MC have plenty of irons in other fires anyway so would there be a motive for keeping EUZ alive? All points to a complete sale to me, finally with the pound on its knees just imagine all those juicy €'s or $'s - don't spend it yet though!!
I agree. There are a few options possible with varying shades of grey:
1) Europa Acquistion
2) 100% sale of Toral and Europa remains a going concern, or, could be a potential RTO option for another company
3) JV - partial sale of Toral allowing Europa to reinvest the cash into mine development. Might be an option for longer term investors
Option 1 for me please - it's cleaner and will probably be easier to quantify once the results are in and we understand the updated JORC
I also like option 1...
Let's hope that happens :)
Logic says they sell the bulk of the project and hold, say, 15% for long-term dividend flow. They then move on to other projects. I certainly don't want them to even think of developing the mine. They're geologists, not miners, and I wouldn't put the current management in charge of a fish and chip shop, to be honest