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This company is a bag of Spanners I'll not invest a penny more. The sp only knows one direction I'm out!
gorsuch is correct (pretty basic stuff) Mwana needs currency.. not surprising when at current commodity prices it is a net cash burner. Question is what are they going to do with it.... "general working capital" is code for "paying our wages while we gradually go bust..."
I'm not after timing the market reaction, and I already posted on this site before ringing them for their point of view. There was nothing in Mwana's statement below which would have a positive impact on the market cap, basically it looks like they may!! have to make a one off payment to an ex director/s, they are also using it to do some restructuring and what's left they are throwing down a hole in South Africa. Just maybe!!! in the future what they are doing will increase the market cap, but there is nothing in that statement that would instantly add value to the market cap, so all we are left with is the same size pie to share out but cut into a lot more pieces, therefore each piece (share) will automatically be smaller hence the drop from 1.15 to 0.90, it's a fact of life that's how the market works. "The net proceeds of the Open Offer (after commission and expenses) will be used principally for the further development of the Klipspringer diamond mine in the Republic of South Africa (with the objective of re-commencing underground production), corporate restructuring and re-organisation costs (including satisfying non-recurring exceptional items arising from the June 2015 directorate changes), and for general working capital purposes"
Oh, and feel free to forward our exchange to Stuart. If he likes your maths we'll know he's in the wrong game.
You've used a market cap calculation which is shares in issue times price. You've then ignored the extra shares in your revised market cap which is plain wrong. Of course the market may choose to ignore the value of the £3.5m cash raised, which is what Stuart is implying and is what the market reaction suggests at this time, but your bogus calculation can't be used to prove that. All you're doing is after-timing the market reaction. By the way you dilute a shareholding, not a price, and your shareholding will not be diluted if you take up your entitlement. Unlike you I don't need a broker to hold my hand thanks all the same.
Well if you actually believe that you are in the wrong game, and it's not my maths that are wrong. You could always do what I did and ring Stuart Dickson at Cantor Fitzgerald Europe who are Mwana's broker, he will confirm exactly what I've stated, and that is that the 367 million offer shares will dilute the price, unless that is the market feels the cash will increase the companies value in the short term. When I spoke to him he said that an extra allocation of trading shares in a company will always dilute the price, but the fact that the main share holders and the directors are all supporting the offer, he thinks they must be confident that it will give them a good return in the future. Although he believes the discount offer is reasonable, he pointed out that they could not have offered them at a lower price anyway, because the shares are listed as a nominal 1p share, therefore they cannot be sold by the company at less than 1p. I also asked the question, why would I want to buy the shares at 1p when I can now get them from the market at 10% cheaper, his only advice was that if I was thinking of taking the offer (which I'm not) to wait a lot nearer the closing date, and just maybe they will have risen back above the 1.15p price the offer was based on.
If everyone takes their allocation no extra shares are added over and above the offer shares. Gorsuch has produced the worst piece of muddle headed maths I've ever seen.
No that's wrong. The company has based their deal on a price of 1.15p per share, we have got 1,397,780675 shares trading on the market which values the Company at approximately 16 million, so that's what the market thinks Mwana is worth. If you issue approximately another 367 million shares it doesn't increase the value of the company, so now you have 16 million divided by 1,765,424198 shares which equates to approximately 0.91p per share which is where the price is at this moment. I can't believe the BOD are so stupid as to think that anybody would pay 1p a share, I know, and they know that they are diluting the shares down to 0.91p, so this offer was never designed for the small private investor, it's got to be part of a bigger game plan that we are not part of.
If existing holders take up the full offer no extra shares added?? That right??
Not if you take up the offer. The advantage of taking them from the company, rather than from the market, is that the company gets the proceeds. Those buying from the market are shooting themselves in the foot if they plan to hold.
You will be diluted! The overall number of issued shares increases. 15% down today is part of correction for the anticipated issued shares
Going on today's price there is no real advantage in taking their discount offer.
At least it's an open offer, rather than a private placement, so you can choose not to be diluted.
Mugabe supporting Chinese interest, Chinese recently take control of prospectively could be a huge asset should all the licenses be developed. Mark WW departs, all following company update! What's next?!?
Mwana Africa PLC announces that Mark Wellesley-Wood, non-executive director of the Company, has today given notice that he will retire from his position on the Board of Directors with effect from the conclusion of the forthcoming annual general meeting on 29 September 2015. The Mwana Board has expressed its considerable gratitude to Mr Wellesley-Wood for all his work on behalf of the Company during what has been a challenging period of transition. Executive Chairman Yat Hoi Ning, announcing the resignation, commented: “It is with deep regret that we received the news of Mark’s intention to resign from the Board of Mwana. Mark has provided unstinting guidance and support to the Company during the transitional phase following the changes in the directorate arising from the Extraordinary General Meeting in June. Our Board of Directors values the input and guidance he provided on a wide range of governance and operational matters. On behalf of the Board of Directors and the entire Company, I should like to express our sincere gratitude to Mark for all his services in recent months, and to acknowledge his invaluable contribution to the Company during this time. Moving forward, Mark has generously agreed to continue to support the Company in a consultative capacity, and we will discuss the details of his continued support in the coming weeks.”
Mugabe launches charm offensive as Zimbabwe's economic woes mount In a 25-minute speech yesterday, Mugabe welcomed western re-engagement and urged a strengthening of ties with multilateral bodies like the International Monetary Fund (IMF) and the World Bank. He also cited China’s involvement in infrastructure, agriculture and energy projects. ----------------------more on line if you search using the the heading above------------------- Maybe our connections with the Chinese could be very favourable in the long run. I would very interested to know how good their/our contact is at government level compared to Mr Mpinga (who was a great charmer but did not deliver on his promises). A nice little tick up yesterday.
That was exactly my inference. The time - frames and personnel (Mark W-W) are too coincidental.
I Remember posting about this company back in January 2014 on the iii site, at the time it looked like a ghost company set up purely for holding Mwana shares, I could not find any executives or board members for this company, it seemed to have just appeared overnight. Which leads me to believe that the Chinese have been planning this coup d'état for some time, I don't really trust the Chinese in relation to Mwana, I've always thought they would try grab (steal) it all for next to nothing.
That RNS fills in some of the blanks from the last couple of years.
Costs will come down with all the upgrades and then hopefully it will be profit making
Spread is far too wide. Wait till it closes, then there maybe some action.
Excellent news on gold, dire nickel report so a game of two halves and shows the benefit of diversification. Can anyone explain what is happening with copper? Mpinga said in an interview in March that he was anticipating good drilling results and hoped to have them by April. Was that just the usual false promise from the lumbering oaf?
Maybe the new bosses are doing the trick. Looking better. gla.
A very weak pulse this morning or dying kick, but gold looking better.
No signs of life, but not quite dead yet. I don't think I've ever seen two consecutive days with absolutely no share activity.