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This has been a disaster over the last few years.
I think Claudes problem was that he didn't understand the market LND was listed in. AIM is all about news and some of that needs to be good....He continually talked about raising...and here we are. You would have thought someone would be advising him in the background, clearly not
People saying 'management have to participate in the raise or nobody will'.
Bill isn't management. He's still coming in for tens of thousands of pounds more. A very odd thing to do if this isn't going to get mined. Properly dumb in fact.
Only those two know what interest they actually had back in 2022. Not 'LAG' or anybody else.
Rumours of some sort of fallout/Bill wanting too much and therefore rubbing suitors up the wrong way were kicking about. Expectations would have been tempered had they known where they'd end up a year later perhaps?
There's no doubt the strategic review was the wrong strategy. They should have raised again in summer 2022 with the sp north of 20p and kept drilling until suitors approached organically.
Claud's contribution? Changed the branding from blue and red to green and yellow.
Low grade, lowest confidence intervals as inferred and indicated. Low cut off meaning some of that wouldn't even be viable to recover.
I had the same thoughts tbh, the 1.5m MRE certainly even at the time felt at least a little massaged to get that higher number. It was way ahead of expectations. It's fair to be able to question the rest.
My main hope here is said before is Glenn. He's ponied up on this and has the say on the future direction. Hard to see what that is though, because Claude's strategy was credible and he couldn't execute.
1.5Moz is not much gold? Upen Pit?
WTF are you doing here
i don't think they have anything we have been b_****ted by the old management . if they were some solid reports, then they would have been able to raise money . i don't think they have much gold there to do anything .
Bum deal in Canada was around $40 an ounce on low grade projects generally speaking, good deal 2x that
Thanks for the reply.
Must say I wasn't aware of any deals being mentioned - bum ones or otherwise - and I've held here for my sins since Day 1 back in 2006. And followed this BB thread in the process.
I always thought the attraction here could be what the BAM project potential was (to any prospective buyer of the Co).
It was a said quite a few times last year that a bum deal would be better than no deal, and plenty of estimates of what a possible bum deal was were something around $40-50m which would be for the 900k Oz in the PFS. That point is more true now than it's ever been, a raise has to be the last last resort.
All the good points are the same still. It tier 1 resource jurisdiction, open pit, supposedly fairly short-term payback, supposedly easy to get the gold out of the dirt, it would be a short drilling program to bump up the confidence intervals of the resource. If multiple companies can be tempted to be interested in it even the bum deal is eight times a current share price. From what we've learnt since the strategy review, from what the company have had to say and what the LAG have said, is that there weren't even offers of the bum deal available. That isn't going to have changed, Claude couldn't even raise £3m at a paltry valuation.
I still think it's not viable right now, some posters here seem to be thinking that the project can go ahead in this current macro environment, but we're about to be in a position where for the first time since 2008 real interest rates in the bank are going to be positive. Investment is going to dry up and only the projects that promise massive returns we'll go ahead. It doesn't matter if you can pick up Landore on the cheap if it still cost you a boatload to get the pit going.
AM90, some great posts by you recently and over the years. They should have give you the CEO job!
Got an educated view on what would be a realistic sale valuation?
Rightly or wrongly, I always got the impression there was lots of interest 2-3 years back but BH was always asking WAY too much.
Yep, I would go with that, management have to participate in placings or nobody else would! But Glenn has put in over £100k since July including 60-70k in the open market. He clearly still has immense confidence in BAM, you don't put that amount of money in otherwise. It's more than a token amount. I don't know his salary, but it would have much less than Bills over the years.
Claude the SP destroyer, was going to put in 250k Canadian at 6.5 p, again you dont pledge to buy this much stock if you are not confident in the asset. It would have been much more than the minimum he would have gotten away with. Obviously the placing never happened because he screwed up, but the confidence in the asset was there.
The projected mining costs at BAM (2019 PEA and 2021 PEA) have basically tracked close to the average mining costs of producers as costs have increased. It's not an economically marginal deposit, but still needs work done to form up size.
It's just been repeated abysmally poor management decisions, coupled with pretty poor market conditions. They must have spent something like £5million since the last hole in BAM was drilled on salaries, TSX listing, wasted battery metal drilling etc, astonishing waste especially considering every drill campaign on BAM has been very successful.
I can't see how they can get back drilling now, would be 100% dilution even if they got the money.
Would now certainly take a heavily discounted sale.
God knows what the actual politics is shujja.
It did appear around this time last year that when there was no offer after the strategic review that Bill and Glenn might have had a bit of a fallout. Bill aggravated suitors/wanted too much, Glenn was perhaps more pragmatic seemed to be the theory. There was mention of 'still talking with people' in the podcast as that was winding up.
Noted this in the RNS yesterday;
"exploring potential strategic investor, merger or sale opportunities"
Maybe Glenn will be back at the table this year, granted in a dreadful position now but with a more realistic aim?
All is happened because of some idiots being clever on the telegram group? changing management feeling important . sending Reps in AGM feeling they had control trying to turn thing they way . egg on they face, lol
At the end of the day if they sell the assets they’ll get back their money that happen, RMM so really, they don’t lose anything. And where are the ones left with the crap.. we were so close to having it up and running now look where we are.
Ooooooo I know. Management both massively increased their equity here and they still get their wages as a result of the company not going under. Win win.
The answer to that (as always with fundraising) is simple. They HAVE to participate otherwise why would anyone else?
Clearly this fundraise is essential. Otherwise why do it?
This Goingtomoonufo gimp? Keeps pumping going bankrupt and going down to 1p.....
Someone is still buying chunks of LND today and you have to ask, why have management bought into the Placing?
I had begun to wonder if Claude was deliberately running it into the ground in order to arrange a 'take under'.
His tenure panned out to be absolutely dreadful.
Wouldn't be surprised if Bill was biding his time to bid for the company if it gets cheap enough. Cant imagine he was happy being kicked out.
Some people here suggesting that the project isn't viable in 'an inflationary environment'.
We aren't in one. It's disinflation now and possible deflation scare. Has been for some time.
Unfortunately Peter Schiff 'death of the dollar/hyperinflation' type parrots are popular with gold bugs and have gotten inside a lot of heads. It's an easy to promote message, just not a true one.
See Gary Tanashian's work (notes from the rabbit hole) for a less popular and more accurate view.
Big open pit mines will still pay in the future as gold goes up and costs come down. If Bill hadn't started clowning around two years ago trying to sell and had raised to keep expanding BAM with buyers approaching when ready the mess wouldn't be half this big.
Well the way to look at this is about to go tits up or we could try to survive the last bit
The lag group have proved disastrous they wanted bill out got their way and now look where we are.
If the alternative is administration, then the bandwidth for additional share issuance will be approved at the AGM imho...
I'm with Hillpark's post of 8.50 am.. there is probably, even in these latest awful circumstances, some sell on value here.. if even to another small cap explorer.. but Glenn and Bill and other shareholders taking say for eg 10m gbp to sell up in coming few months probably wouldn't happen around now, even still imho..
My guess is the first thing they'll do is run this co. on fumes in the short term and sit and hope market/sector sentiment changes thru 2024.. I'm ok with this.. and absolutely don't want a new ceo in in the short term..
PS: In picking Claude they bought into his strategy/vision.. so in my mind this was just one more very bad call from Bill and Glenn.. and, as ever in life, there are consequences to bad calls..
I assume the £600k will keep the company solvent & legal (for a period of time). If £600k not raised then the alternative is curtains.
Can see a fire sale being sought.
For sure - they are not going to be able at attract a new CEO.
Bit confused what they think £600K will achieve. Do they have a cunning plan?
Will it be approved at GM considering the previous active shareholder group?