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LND at a stage where it needs significant continued investment to achieve only modest increase in the value of the property. FCM has multiple assets, each at a stage where a carefully targeted spending programme can add significantly, leaving someone else to develop the next stage - picking it up off FCM at a value that reflects the work done.
The other contrast I didn't give is the communication. From Landore it's been pretty thin lately to say the least. For First Class Metals, it's clear they respect shareholders and use every means possible to communicate clearly and regularly. A refreshing change for this kind of market cap.
Don't get me wrong, I don't think it's a competition where I want Landore to fail so First Class succeeds. In fact, I hold both. But I see many more near-term opportunities for things to turn around really quite drastically with FCM. Landore is in the bottom drawer, and with gold soaring will one day come good. The assets are too good not to. But FCM is firmly in the top drawer. Certainly, to note a few casual similarities, and to conclude FCM will struggle in the same ways and because LND has struggled, is to miss what's been happening with the FCM projects.
And pretty much the same MKT Cap.
Exactly with LND assets more advanced.
Completely different company, with different number of projects, at different stage of the Lassonde Curve, etc., etc., etc.
If LND are struggling to raise equity what hope FCM
Make short selling shares illegal in the UK - petition
Https://petition.parliament.uk/petitions/657294
"kind of implied it would be equity"
Nope.
They've said repeatedly that their preference would be for project-level investment, allowing the progress in a project to raise capital for the Plc to enable them to develop the next project.
The plain fact is FCM shares have fallen from 18p to a miserable 2.8p in 15 months, a lot of folks are sitting on huge losses as a result, unfortunately this type of performance is typical of companies that raise via equity, once you set the ball rolling placing stock your shares become a rolling short, this has happened here.
I attend many investor events and most BOD's have no understanding of market shenanigans, this includes forward selling of placings, the rolling short scenario, Spread-bets and CFD's where individuals can profit from downside, market maker antics who often are 'naked short' - the list goes on. I have spoken to a number of directors in the junior resource sector who truly believe the market, in particular the company broker/advisors, are totally aligned to company aims and are working for shareholders, not so!
The moment any company speaks to 'The City' over funding the stock price will start its decline, it can take a 4-6 weeks to arrange a placing, forward selling occurs almost immediately, for example with FCM if MS was touting for funds around January these insiders would be selling FCM stock at 6p/5p/4p/3p and may offer him cash at 2.5p as an example.
I listened to the last podcast and was hugely disappointed that MS ended a quite upbeat session by saying 'the elephant in the room', funding, will be needed and kind of implied it would be equity - a big mistake. To me that statement explains the SP fall, he has been doing the rounds trying to secure funding.
So we will see, unfortunately the market will drop a price at will but getting the price back up is a Mount Everest event, I fear anyone in above 10p may not see their money back for a very long time, if ever, time will tell.
Cont….
We must start monetising them”.
How on earth does anyone respond to that one?
Great posting all👌
Johnnieboy,
Good for you in replying to S470; I no longer have the patience with these contributors. The fact that he ‘wants to align himself’ with Hawaiifive0 is also no surprise! Birds of a feather perhaps. The EGS CEO is Bruce MacLachlan by the way…not Maclaughlin.
You told S470 that what he said were ‘all good comments’. Was that politeness or an honest appraisal? I trust it was the former?
“Making a geologist, and I'm the first say that Marc is an outstanding Geologist, a CEO is a risk, they fall in love with projects and looses sight of the fundamentals of business. That is the position in which we now find ourselves.”
On what basis did he make that statement? MS is actively involved is setting strategy for the company within the confines of the degrees of flexibility incumbent on CEO’s of early stage exploration companies. He seems a perfect fit with the meetings, networking, communication, First Nation liaison, and direction he is responsible for. He is moving projects along within tight budgetary constraints, whilst bringing in new ground. How on earth does the idiot you responded to conclude that we “have lost sight of fundamentals?”
“We have never had much cash, and that is now running perilously thin. Some are saying that a raise is coming, I'd like to know from where. With our current market cap, and some history of raising and then spending the money on projects other than what the raise was for, (last June we raised to drill North Hemlo/West Pickle, and we're still waiting as far as I know). If we can raise at all, it will be an appalling deal.”
We are an early stage exploration company. We will always raise on ‘go it alone’ projects. That is the nature of the beast. What Fcm have done is to add value to certain assets. As you say Jonnie, one of these actually up to the point of a sale potentially, and another two that, for all we know, may now be on the radar of a major looking for JV potential. When a junior explorer raises cash for a defined purpose or purposes, things nearly always change as the campaign progresses. Good CEO’s have to respond to how things pan out be they good, bad or indifferent. MS did just that this last season.
Another point is the manner in which Fcm have conducted the raises. Has he heard of raise ‘at a premium’? Or raises (plural) in our case! Is he aware of the funding we have managed to get through the arduous process of our successful project grant application? Sorry, I suspect those don’t fit his narrative.
“Marc, I know you read this, and I'm sorry if this sounds harsh, it's not personal, but this is our money and FCM needs to get back non track…” MS. If you DO read this, let me assure you that these comments do NOT reflect the views of the majority of FCM shareholders.
And finally, “We have some excellent assets, but we are not Rio, we don't have the resources to see all prospects through to the end. We must start monetising t
They have clearly stated the objective is to monetise the projects, you have to find something first though, only thing they have found that is advanced or mature enough to sell is Zigzag and you are saying they should have focussed on North hemlo.
Well if they had done that they wouldn't have anything to sell now, you would not sell North hemlo now at this stage of its development so the only truly salable asset is zigzag.
Great this hindsight game is it not, concentrate on that, do this, should have done that, why did they not do that. All perfect after the event but in all fairness they have delivered in adding value to just about every property they have touched and before you say they have too many to touch there is I believe rationale to this.
balancing act of permitting and if there was anything actually there over the government costs of keeping the assets in good standing, read the prospectus, each asset needs so much per annum. Think Zigzag/Sunbeam are fine for decades but the rest need spend, think the prospectus says $500 per cell per annum.
All good comments and a point well made I should add, however in all fairness Marc is not the 'Geologist' he's never positioned himself to be that individual. the geologists are Emerald Geological Services run by Bruce Maclaughlin.
I don't think he's in love with the projects at all, he's just taken a 'ragbag' collection of very early stage greenfield assets and managed their progression forward.
All good saying concentrate on North Hemlo, the permits didn't arrive till late in the year and until that point of them arriving it is never given these things are forthcoming. So North Hemlo with the undoubted promise would have been unable to have worked.
The company made a decision to drill Zigzag, got a grant for that work and produced excellent results. Its a results business and results have been good. Naysayers like yourself who are blaming individuals over market conditions and also not understanding that exploration takes time then selling assets also takes time should be looking at Premium Bonds and other investments,.
I'd like to align myself with Hawaii's comment of yesterday.
Making a geologist, and I'm the first say that Marc is an outstanding Geologist, a CEO is a risk, they fall in love with projects and looses sight of the fundamentals of business. That is the position in which we now find ourselves.
We have never had much cash, and that is now running perilously thin. Some are saying that a raise is coming, I'd like to know from where. With our current market cap, and some history of raising and then spending the money on projects other than what the raise was for, (last June we raised to drill North Hemlo/West Pickle, and we're still waiting as far as I know). If we can raise at all, it will be an appalling deal. To my mind, we have to sell Zigzag, now. We may end up with a "fire sale" price for it, which of course would be disappointing, but without cash soon I seriously fear for the future of FCM.
We should have stayed with the original focus of the company, ie greater Hemlo, instead we have been chasing rainbows, but we are where we are.
Marc, I know you read this, and I'm sorry if this sounds harsh, it's not personal, but this is our money and FCM needs to get back non track, we have some excellent assets, but we are not Rio, we don't have the resources to see all prospects through to the end. We must start monetising them.
Yes but to finish a presentation with that comment isnt exactly going to get buyers coming to the table. All it will do is encourage a few who may have not realised that they should get out until the next raise has happened, which looks to have been the scenario that has occured.
He did not actually say that, he said junior resource company's need to raise money due to the nature of their model or words to that effect. Hardly a trade secret.....
Going on a podcast and ending with the comment " I would like to remind everyone that we need to raise funds", crazy thing to do, best not to go on the podcast at all asnow the dillution will be that much worse. Its no wonder the price has collapsed. Maybe First Class is now against trade descriptions and it should be renamed Third Class Metals!
Close period is presumably the run up to year end results. Could be announced tomorrow.
From the horses mouth “Currently all Directors / management are in a ‘closed’ period”.
He has intimated he will be involved in the next fund raise. I think I’ll next top up when he does.
There are two possibilities to this relentless decline in the share price, one is there is a background seller or they have been doing the rounds for funding, in current markets that means a heavy discount.
Have checked online limits with each drop and you can buy 500k of shares at offer price, that is not normal in a usually illiquid stock like this.
Management have done a number of promotes and interviews over recent weeks yet have never ever mentioned the woeful share price performance, it is all well and good acquiring new licences but how about monetising some along the way.
I am always nervous when geologists are 'in power' like MS is here for example, has anyone noticed he only holds 400,000 shares, that is rather pathetic for a CEO don't you think.
Goodness knows where the SP is heading, market cap now around £2.5m yet have all these brilliant licences according to the BOD, sounds like Panther Metals all over again.
Good point re the CEO of POW but doing it and saying it are two different things, they raised a small amount at 1p recently and have seen the share price fall back hard with no support so that model is hardly a shining example.
The whole system is failing, the markets are not working like markets should. FCMs progression should be rewarded with a share price increase not constant pull back on success.
Not sure what the answer is here.
Just to add, the CEO of POW, who are one of FCM's largest shareholders, in the same podcast (link in earlier post) made a vicious attack on the antics of AIM brokers/market makers/insiders by suggesting they are happy to destroy value, not add it when deserved, want heavy discounts on equity raises and the latest trend being demanding warrants so they can flip the shares and sit on free warrants. In other words the whole system is failing he implied.
He more or less said unless this changes he will go elsewhere for finance, hopefully the BOD of FCM will take his advice.
What a dog of a share this is, £170k private placing at 4.5p only a few weeks ago and now the bid is 2.8p, fallen from 18p, what he heck is going on, who is selling at these prices.
In the last few weeks they have raised £250k so the cash situation is OK, they need to secure project level funding as opposed to dealing with bucket shop brokers in London.
Talk is cheap, get a deal done and prove the value they suggest they have in their project portfolio.
Genty
he's right,3.00p should be the downtrend low..imo
Maybe the best buy call where the SP is at at the moment, check out the chart on X
https://x.com/Justsharesonaim/status/1772545259601371585?s=20