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So it's there in black & white, from November 2022 and written by or on the behalf of PKF:
'these events or conditions, along with the other matters as set forth in note 2, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern.'
Looks like the company has already maxed out the additional prospectus shares and they'll require another shareholder vote to issue more.
The mine has a small mortgage through a debenture.
Upto 50% of free cash flow is currently being used to repay another separate loan.
The audited results is holding up the potential for further funding due to the lenders ability to complete due diligence.
The Company admits the working capital is very tight and production is intermittent.
They're in negotiations with stakeholders for potential funding solutions and the Company is also looking into an asset sale.
All of the above provides the writing on the wall for a very precarious situation, it's upto you whether you chose to accept this or just burry your head in the sand and live in hope.
So far RM has delivered nothing material to escape the above situation and only prolonged it. IMO
From the audit 8th November 2022,
Bearing in mind that since then the company has raised over £3m and the production has also significantly declined further.
We draw your attention to note 2 in the financial statements, which indicates that the Group's assets are not currently generating substantial revenues and therefore an operating loss has been reported. Additional funding is required to bring the mine into profitable production and as the date of this report, whilst management are confident that these will occur and are in active discussions to secure such fundings, there is no guarantee that they will happen within the required timelines. As stated above in note 2, these events or conditions, along with the other matters as set forth in note 2, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern.
Legslwolf- it is taking an exasperating amount of time and it’s natural to jump to conclusions and it’s also natural to assume the worst given Caracals history.
You have have raised the question about the independent mining report on the independent mining plan. My understanding is that PKF ask for independent reports as a matter of policy. They are accountants not mining engineers. We know that there have been delays in PKF obtaining this report.
I hear that PKF have taken on too much work and are struggling to meet usual timelines in all cases. DYOR if you have any city contacts.
People keep comparing this audit to a standard none listed company audit. The FCA requirements for a standard listing are very strenuous and all these requirements need to be fulfilled even though Caracal are smaller than many private limited companies.
Read the last RNS which had to be signed off by their advisors- that’s the situation and we continue to wait for the audit completion.
Frustrating as hell but if there was something fundamentally wrong with this company as a going concern then PKF would have blown the whistle months ago. Also bear in mind that the FCA would have stepped in and taken action if they were not engaged and tolerant of the delays.
Yes, it doesn't take a genius to work out they have raised £3m in just over a year and are dependent on further funding just to continue operations...
RM has painted himself into a corner, well he talked a good job and delivered Sweet FA.
Yes, no way an audit should take this long, especially as there was a full audit done for the previous accounts. I do wonder whether PKF are not happy with the evidence they have been provided, rather than dragging their heels as such. We also have a clue about this from PKF asking for an independent review of the mine plan. Maybe there are other things they are not happy with.
A real 50/50 whether this will relist. I really hope it does for holders, and that this represents a line in the sand, after which the company won't end up with these issues again. But it needs some proper governance and maybe RM to take a different role, as its clearly imho not his strong point.
Surprised not many people complaining about the suspension.
I'm not buying it takes more 7 calendar months to get an audit over the line, this all suggests there's deeper problems. IMO
We'll know a lot more about the future direction within the next 6 weeks.
Due to the prolonged suspension of a main market listed company, the authorities are most likely to be duty bound to have a close look at the Company.
We should know how the discussions with stakeholders are going because to issue more shares, it's most likely a general meeting will have to be called.
Substantial funding would most likely require a non binding terms agreement signed.
The publishing of the audited and non audited financials will most likely needed to be completed, in order to maintain the Company's listing.
Hum de dum.
That’s progress Greg - you have moved from it’s all lost to you think it’s all lost. From a statement of fact to opinion. We are all entitled to our opinions.
Aye my monies in here and I think it's all lost Dead Duck
Make up your mind please Greg - I thought that all your money had been lost here - although I see that post has been deleted by Admin.
Come on Greg - if you are going to bash this company, can you please be consistent when doing so?
RM's tardiness meets PKF's tardiness.
Perhaps RM would have been better suited to asking the questions they could answer, unless he's otherwise engaged.
They absolutely should have been given a timescale by PKF - the auditors have a lot to answer for! They (PFK) seem to have dropped the ball and playing catchup now.
" As per the announcement of the 9 May we await the final timeline for the audit from PKF."
That was two weeks ago, should they not have a timescale by now from PKF, especially considering the circumstances they find themselves in?
Aye he's doing a grand job of losing all my monies
Greg25, I hope RM has some protection in the event that this goes bust. Cheaper to hire a hitman than some investor losses herein !!
Is that a fact Greg? Back up your post.
RM has raised £3m over the last 15 months and the Company said in it's latest update
' The Company is dependent on receipt of further funding to continue operations'
This suggests critical financial challenges are maintained within the Company.
People think with the publishing of the financials the Company will automatically complete further funding, the Company said in its latest update
'The delay in completing the Company's audit for the period ending June 2023 (as announced 9 May 2024) has affected the Company's ability to complete the financing'
This does suggest any funding agreements can only progress so far without the published financials and therfore they will be unable to close a deal without them.
The Company also stated
' We have continued to engage with possible JV partners for or on a sale of our assets in Tanzania'
This suggests that the current funding path could take considerably more time than expected and or the funding being offered is much less than previously agreed/asked.
PKF will do there thorough audit and entities like the FCA (due to the prolonged suspension) will make sure the Company's processes are followed correctly.
Unlikely this will return anytime soon.
Were Goldstone waiting on PKF to get their act together as well??
Goldstone back trading tomorrow so surely GCAT can get their house in order....?
I think its 90/10 Mickey in favour of coming out good
If you check out my posting history join me on another board for a different chat
I think its 50/50 JC
Keep checking in here SW
All good thanks, just getting on with other things whilst we await a meaningful update at some stage
Nice to see you back SW - hope all is good.