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Anyone who is selling today because of the fund-raise is making a silly mistake, in my view. Other companies have been forced to offer a discount of 10% to 25% (e.g. Orosur last month); we weren't.
Absolutely typical of AIM rubbish at the moment: company does a placing - albeit a small one - at a premium to the current sp and...the market sees it as a negative and the sells take it down. Think I'm in this investing lark at the worst possible time. Nothing positive released by any company ends up with a lasting rise.
I think the new investor must be pretty certain the Grant will arrive soon to get in at a premium knowing the sp will rise well above this level when the grant money boosts GMET’s NAV. A very positive start to the week and no doubt Ollie will soon be beating the drum on the interview circuit.
@roger - it's a good point it's not a huge amount of money at the end of the day. The grant, if it comes, is unlikely to be doled out in one lumpsum (see BRES they receive their $5m in $1m instalments as milestones are met). So OF needs to take maximum advantage of these funds as inevitably (and possibly within 6-8months we're looking at another raise) to add value to the SP.
The good news on the drilling side is they pretty much know where they want to drill on both Pilot Mountain and Garfleld (bullseye identified).
Don't forget we'll also get a small cash injection from Warrant exercise shortly. In the interim yes I can also see a share price drift but hopefully not below 10p.
Sounds like a private placing from a US investor. No discount. this will help keep the lights on for another few months until they receive a Grant. OF's hands are a bit tied now financially. Not enough money to get on with any serious drilling campaigns and can't now do another placing without diluting and pi55ing off the recent US investors. I hope he has a strong plan for the next few months or this could drift back down to 12p. Hopefully things will start to fall into place soon.
Its from the USA so is roughly $1m which is a nice round number.
Great thing was they didn't raise at a discount, wouldn't get overly excited by the small premium. Both POW & BRES have raised recently 'at a premium' and both their share prices are down since then...
A fund-raise at a premium to the existing share price is very unusual, and a tribute to the CEO and the assets of the company.
And l as I speak so shall it be - there you go...
£750k strange amount though. Hopefully OF will have earmarked it for some progression.
So far I can't fault OF's approach. So I'm very excited to see how the year unfolds.
OF says he wants to minimise dilution and I think anyone who invests in companies like GMET knows that dilution will happen from time to time. I have listened to the chat with Charles Archer and raising money from US investors. I feel sure he would prefer to do this after the US grant money is received as he could raise at a higher price if he still needed to depending upon how much money the US Government give to GMET. It’s a capital injection with no need to issue equity which would boost the nav of each share and hopefully that would be reflected in a higher share price.
I agree he should press POW and the other 2 large shareholders to exercise the warrants if he needs cash now as that is their purpose. My impression is that OF is expecting news about the US Grant at anytime and would use that to pull in some US investors at a higher sp. I hold POW and GMET. I bought GMET after getting into POW because I am very impressed with OF and think the Tungsten asset has great potential.
@ICB every CEO under the sun is on record as not wanting to dilute, doesn't seem to have stopped any of them.
If you listen to the recent podcast interview OF had with Charles Archer he made it pretty clear that if he could execute a private raise with US investors he would. I'm not saying this is a bad thing, it would immediately provide GMET with funds to proceed on the many drilling projects they've identified.
Also would like to see the major holders execute their warrants now to provide further funds so we can get on with things rather than this endless wait on some bureaucratic Gov grant-giving dept.
Potential here is great BUT we need to continue drilling, we have some very exciting identified targets.
I considered investing in POW but the correlation of mcaps seems to lag, with POW always behind the curve. So best way to have exposure to GMET without the historic disappointment of POW is to buy GMET.
So buy/topup now or after we get the USA private placing out of the way? Is the question for me.
It may be the case that US investors have taken exposure to GMET by investing in POW influenced by Rick Rule’s investment in POW. It should be noted that OF is on record as wanting to minimise dilution as he is a shareholder. Further the recent POW raising of money from strategic shareholders was conducted at a small premium to the share price prior t o the raise.
If OF is still in the USA after the PDAC conference I expect he's now delivering private investor presentations to potentially interested US parties - could we see a private placement soon? OF indicated as much in his recent chat with Archer.
At least then we're not eternally waiting for some US Gov Grant with strings attached and OF can start putting the funds to good use - downside we're going to see dilution just a matter of how much, on what terms, and what discount.
Thanks for that. Really puts GMET in a good light and makes you realise what potential there is for OF to put GMET on the map. I see though that the US still hasn't taken to this company. When they do it will be fun here.
I believe the warrant holders are POW and 2 other large existing shareholders so the warrant exercise should take place providing funds and those shares are not likely to be sold, nor will they sell existing shares to fund the exercise of the warrants. This will give some leeway to get through to the funding decision. Oliver makes it clear he is very keen as a shareholder himself to minimise dilution.
Wouldn't count on gov grant igniting the SP - didn't for BRES - and it's likely to be in progressive tranches not one big lump sum. But as you say it would allow GMET to progress things and we could finally see some actual activity rather than analysis on historical surveys.
They are getting funds dripping in from warrant exercises but what we need are the large equity holders to exercise their warrants to make that cash injection meaningful - also because these are the holders that are unlikely to sell equity to finance the exercise.
Until then I think the SP is likely to drift as smaller holders may be selling to finance warrants -and ya'know the usual limited concentration span of retail.
Wish a grant from US Govt would land now. It’s like watching and waiting for a firework to go off.
I would top up more here but OF is going to have to raise some money very soon if that US Grant doesn’t appear, so I’m holding off until one or the other happens. I may lose out on a nice bonus but just as likely I’ll avoid more dilution on my next tranche of shares.
Another interview with OF: https://www.youtube.com/watch?v=fKpc_R43NgA
Interesting to hear what he says about Fusion, given the article below, and the correlated demand for Tungsten. Of course OF is also very clear this demand could be 5-10yrs off, in the meantime test builds might slowly push up global demand.
ALL that said you just never know the Chinese might look at these fusion developments and decide to just go for it - they are pouring billions into green energy, even more reason for them to potentially cut off the supply of their Tungsten sooner rather than later...
Lots of IFs as usual, but...
GMET mentioned 29:14 in. Nothing new that we don't already know. Archer pushing the grant funding newsflow again, mentioning numbers like $10m, but I have no idea where he's plucking that number from.
https://ukinvestormagazine.co.uk/premier-african-minerals-avacta-tekcapital-and-a-small-cap-round-up-with-charles-archer/
As the US starts the week there have been 2 trades at full offer 17p. Perhaps we will see this tick up again to build on the 6.45% rise we have seen so far on volume of just 116000.
Silly spread killing interest until concrete news. Shame as I’d like to top up but just not worth it until mms come to their senses.
Could a development in nuclear fusion actually drive rapid demand for Tungsten?
"The latest success means another significant obstacle has been passed, with the AI capable of recognising plasma instabilities 300 milliseconds before they happen – enough time to make modifications to keep the plasma under control.
The new understanding could lead to grid-scale adoption of nuclear fusion energy, according to the researchers."
https://www.independent.co.uk/tech/nuclear-fusion-ai-clean-energy-b2500756.html
I don't think we'll see any serious US buying prior to a US gov grant approval. That'll signpost to investors that the gov has recognised the strategic importance of PM. And we don't appear to be moving forward to add value on the other assets in the portfolio at the moment - as money floods in from warrants and permits are granted then I can see more interest as OF puts boots on the ground with the drilling rigs - all looks good, but we do need movement forward, which I'm sure is coming.