Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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Thanks for copying the RNS Bonkers and as someone who has no vested interest , your heart felt sympathies.
I've always said I wanted more comms and as such, am happy with us getting a new RNS.
It made for interesting reading tbh. Clearly, money is as tight as its ever been and it feels like if this audit hangs on to much longer the company might struggle. That is of course concerning, but tbh not something we didn't really know deep down anyway.
The plant feels like it really struggles to operate well, consistantly, which again, we kinda new. Old equipment and needs updating.
I'm not fully sold on some of the figures for the heap leach etc as they were worth the money and time put into them, but if they can sort everything else, a decent addition, just maybe with hindsight (a wonderful thing), some funds could have been used wiser, in terms of order.
Same goes for Tanza. If it does get sold, almost a given it will go for less, given the hard finance markets right now, and as such makes you question why we ever picked up in the first place, but I agree with bebeto here that its not going to add anything to the balance sheet for many years and viewing the bigger picture, maybe selling and sorting todays issues out and allowing the company to progress from there is smarter.
Certaintly better than going under.
Lastly, high grade (well higher than prssent) stuff has gone from the figures for sure. Again, we knew that would be the case.
Zan, considering Tanzania was gold in the ground purchased at a far lower gold price than today's, why do you consider it a given that we would sell it for less than we bought it?
Jerseycrew. Would youbhave prefered I lied and said I had millions locked in here.
I'm not invested, doesn't mean if I comment I must be a troll , its a public forum for posters yo post their opinion.
I ONLY saw this due to the hive telegram group , otherwise it wouldn't of made my radar
Good luck to you all
Bonkers0801, there's several posters here that totally fell for everything the CEO was saying and they over invested as well as encouraging their family & friends to do the same.
They don't like anyone saying anything negative, even when it's so plainly obvious, they specialise in discrediting other posters and try their very best to intimidate them from posting again.
Might work with some people but not me as I strongly believe in everyone is entitled to air their views and respect opposite views by others.
Swampy, because I don't believe its a sellers market right now.
Yes the price of Gold is up, but against that most gold explorers and producers have been struggling SP wise. In addition money markets have been a lot harder to obtain and again, if you look at deals across the sector, its favoured the buyer in large of late.
That leads me to expect a lower price. It doesn't mean it will be lower, but its what I would expect right now.
A earn in JV could work whereby we retain say 20% in exchange for a smaller amount upfront (circa 400k ish) and milestones attached for new JV partner to fund drills etc.
That takes time though, and money to do the legal work, neither of which we appear to have in abundance.
I would also because we are a bit of a destressed seller and any buyer will know that, thus again, it doesn't lend itself to favour our court.
Bebeto noted with thanks.
I take notice as and when of this share as I very very nearly invested a short time before the shares uspended.
However I noticed ahares had already suspended a year before and wanted to see what accounts looked like this time and if they would be done on time before investing. (I simply got lucky)
I'm no troll , i have my own history of some bad picks , I do however try and learn on the way and very much prefer the balanced outlook, far too many of these forums are filled with with nonsense. I choose tobspend a bit more of my time on telegram rather then lse now.
F.c.m another one recently suspended and I keep my eye on it via my investment with pow , icon while another I wasn't invested in I kept a eye on to see what happened to the s.p when it relisted , (all learning right).
Something for me and my limited knowledge isn't right here and I'm sure it's been talked about many times by regular posters that know a hell of a lot more then me.
8 months to do finances is a hell of a long time , even if the day they suspended and the reason they said were they forgot to do them , you would still expect them to have been done a long rime before now.
But to say in October 2023 there is just a "delay " to publish accounts after making good progress , and still suspended and waiting for same said report in May 2024 is incompetent at best.
Good luck all with luck you will be trading again imminently
Bonkers - you raise some legitimate questions which have been discussed at length here and there are a range of views as you would expect.
In terms of a finance deal - I believe that negotiations were at an advanced stage before the shares went into suspension in November last year but to the best of my knowledge we weren't told what the possible composition of that package was. It is only natural that any potential investor would be unwilling to invest when question marks remain over financial accounts and the long term viability of the company. It might also be the case that the funding was in part or in full reliant upon the prospectus being delivered to the market and of course that can not be produced until there is a straight line drawn under the accounts and the shares are out of suspension. So in short the suspension has brought funding to an abrupt halt.
So then we have 2 other questions of course - what lead up to the suspension and why has it taken so long to get out of suspension.
Its no secret that the company has been cash strapped since OCIM walked at the 11th hour of providing funding at the start of 2023. We have the resource in the ground but we have a lot of aged kit being worked hard and susceptible to break down through simple wear and tear. The company was focusing their limited resources on cash generation and obtaining a new independent mining plan that they could meet the needs of a potential investor. The cost constraints means that the company is operating on a skeleton management team and they had to concentrate on plate spinning and juggling at the same time to keep the lights on and in fact move the company forward in some of the activities such as a new access road and uncovering a new high grade zone. So they were certainly not sitting on their hands but obviously something had to give and it seems that being fully on top of the accounts was the Achilles heal - investors have to make their own decision on whether this was incompetence or just the harsh reality of trying (successfully) to keep the lights on.
So the next question and its a very good one - why has it taken so long to deliver the audit? You might want to scroll down the posts here and look for an email that the company sent an investor and then it was shared here. There is clearly issues with the auditor in my view - others might think that there are issues with the audit and it might of course be a combination of the 2. From what I can glean this is not a straight forward audit - cross jurisdictional, obviously internal financial accounts not being in the optimum state, the auditors wanting another independent mining report on the independent plan already there and subsequently inaction from the company commissioned to do that and for whatever reason a reluctance for the auditor to commit to firm delivery dates. The frustration is clear from the company in its communication to the investor and means that they can't plan forward in confidence (c
(cont) ...
So here we are - the key to unlocking the prospectus and funding is the audit - it's what the company are waiting for - then the share can come out of suspension - prospectus can be issued and funding finalised. The company get share the new mining / business plan and they can then undertake the expansion. The potential of this company will be unlocked by achieving the scale of production - the resource is there. The AISC was certainly relatively low and we have the unfolding POG story adding to future profitability.
So others will have a different view and there are certainly some posters that have written this off and even if it does come out of suspension (I strongly believe it will) then they will sell and move on as they have lost all trust. I understand their frustration and sentiment but personally for me it's about the future and having an understanding of how we have got here. OCIM have a lot to answer for but again that my personal view.
Keep watching Bonkers - you might be investing yet and there could be an opportunity to get in at a bargain price if there is an initial sell off.
I think you a very right there JC, however it's also worth pointing out that OCIM changed the deal at the last minute and that is why it fell apart - they wanted security of the Mine, which is not allowed under Kenyan law.
And the next funder that came along approached GCAT rather than the other way round.
Jersey crew
Thank you for taking the time to write that reply. Its genuinely appreciated and I take note of everything you have written.
ATB
Since OCIM walked? How rose tinted can your goggles get?
GCAT walked. They didn't meet the conditions of funding so funding wasn't given. A refusal to extend a long-stop date is not OCIM walking, it's OCIM saying "we did give you until the 31st December.... It's now January."
Sounds like one of those conditions was near on impossible / insane, but it's not OCIMs fault nobody bothered to read the paperwork.
Clearly the company is in a precarious position and the story regarding funding has chopped and changed so much that who knows if any of it is true and what is going on. If it does get relisted, which looks like a big IF, without a credible financing plan, it will be a bloodbath.
Don't one of the creditors have security over the mine?
Rose tinted DD - I wasn't invested when OCIM were about . But they couldn't go ahead with what OCIM presented - I did attribute to either party ... However OCIM wanted something they couldn't have by law so the deal could never complete , it's old news - very old news.
I agree. My point was more (as usual) JC suggesting it wasn't the great and mighty Robbies fault.
OCIM gave paperwork saying they wanted that commitment.
GCAT read it.
GCAT signed it.
GCAT announced the wonderful deal to investors.
We all bought shares off the back of it.
GCAT then (a couple of weeks after the event, nobody knows why....) announced it wasn't happening.
We all lost money off the back of it.
Rinse. Repeat. Every time they release an RNS. At least we're suspended now so the dry humping doesn't kick in.
Daniel - if you had been following this story closely then you will know that OCIM introduced a new and late condition precedent which was impossible to fulfil as the law doesn’t allow assignments over mining licenses in Kenya.
OCIM effectively walked away by asking for the impossible but not at the start of negotiations- it was an additional condition asked for late in the day.
That's if you believe it all. With all the smoke and mirrors and bs that has been told to investors here, who knows if or what is/was true. What happened to the other party that was going to put in £3 million and according to GCAT, remained super keen and an option. Did they also decide to walk or what? All imo and dyor
CSS Alpha Global Pte Ltd has a debenture which includes a legal mortgage over the assets & properties of Caracal Gold Plc.
Hi Legalwolf - historically you were one of the posters who would back up logical points with facts - I was a little surprised not by the question which I think is valid but the surrounding inference about things being true of false.
I don't think there has been reference to Philoro since May 2023 and so I think that we can assume that they are not part of the equation anymore, otherwise I would expected ongoing references - could be wrong. Others seem to have stepped into the breach though as evidenced by the various RNS announcements.
I find myself increasingly try to correct people here with facts or put things into context - as such I am now seen as a rose tinted glasses supporter of Robbie. Wrong - I am sure that Robbie will be the first to say that he would have done things differently in the past. But I also have a great deal of admiration for Robbie for keeping the ship afloat under horrendous cash flow constraints and in the face of a wave of suspicion from other potential investors because of OCIM walking. The natural tendency is to think there must be something wrong if OCIM walked - not necessarily true. There must be something wrong with the accounts to make the audit take so long etc. Personally I think the auditors have a case to answer if the file wasn't worked upon for a period of time. Robbie has been able to attract more money over recent months but the big money required for the expansion plan is tied up in the prospectus and ergo the audit.
I tend to agree that upon resisting it will be choppy here to say the least irrespective of what any plan or finance solution is communicated. So be it. Each to their own.
Relisting - not resisting
Not even relisting - coming out of suspension
50/50 RM pulls it off
Decent odds I thought
Have there been previous companies involving this BOD which have been left in bankrupt with a lot of debt? I seem to recall reading something about this last year when that online guy was raising his GCAT concerns with the FCA and its nomad and advisers?
Legalwolf - I am not aware but full marks for a post planting further seeds of doubt. Maybe do your research first and get all the facts straight before posts like this?
That was a low punch and not required!
Unbelievable.