Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Evening all,
Anybody follow Doc Holliday on Twitter ?
If so, check out his tweet this evening on PAL.
As said previously, sit back, enjoy the ride and keep hold of them Willy Wonka Golden Tickets !
ATB
All am saying is your have to be a real idiot to sell this share on opening! Especially If it drops! KLK need to make there money back at least! They have waited long enough for this asset! This will climb and is a hold till production in 2022
Much fairer post by Atom72. I don’t think those shares which are freed up will every see PI hands again - they’ll be taken off by KLK or an agent on behalf of. Having read the Sri Lankan budget speech, and it’s now been voted through, all the major hurdles will melt away I’m sure for KLK (who already had favourable public affairs / governmental relations).
Far too negative post that JustHere.
If the SP does drop to the pre-consolidation price of 0.6 then that leaves KLK needing an 8 bagger to break even. They’ll know what they are doing and the G.M. of KLK is still on board.
PI’s are aware that these mining sector companies take time to reach full fruition but there will be many exit points on the way for PI’s to take profit depending on their own strategy.
If PI’s decide the waiting game is not for them and run for the doors as soon as the suspension is lifted then I’m confident that their shares will be hoovered up by the more patient investors who can see the long term rewards.
Further raising could well be required later down the line to fund further exploration but the SP could be alot higher by that time.
Negotiations are currently ongoing with source off-takers. CMET have the source in abundance so that could start a bidding war for all you know. There will also be a major or two keeping an eye on this one to see how it develops. Sooner or later these majors want a piece of the pie and will make a move. Seen it play out like this before when I was in SOLG with Newcrest and BHP.
Granted, it wont happen overnight but sit back and watch it play out. For every PI who bails and moves on there will be another who steps in and sits back.
Interesting first quarter coming up and remember KLK’s average is most probably far higher than yours. They will have done their due diligence and will know the full potential in this project.
ATB
Fair play I couldn’t agree more , uncanny ! But many here cannot see the light at all. As I have said if I’m lucky enough I will sell as soon as back online , otherwise I will allow a 20% drop to sell with a loss otherwise I have no choice to stay in.
So let me get this right, post consolation with the acquisition complete the SP is expected to DROP to 12p per share after 20:1 consolation which means it should have been 15p? Ok good start..... then we have the EIA Report which has to be submitted for a 30 day public consultation period and a 30 day technical review period.
Once any identi?ed matters, if any, are resolved, the CCD can approve the EIA which is required to approve the First IML Application which is required for the DEL License...
Along side this the group intends to obtain land access agreements for the initial mining area at the Project. To this end, discussions with relevant land owners continue............ Yea this always goes well and quickly
Then they state the Enlarged Group intends to complete an updated scoping and development study to enhance their technical understanding prior to full commercial development of the Project..... Really... So they plan to do a development study later, good luck shareholders :P
The Directors estimate that this study will take up to 6 months to complete.
Following approval of the First IML Application, the Enlarged Group will seek ancillary permits for construction of mining and processing facilities for the Project. Such ancillary permits relate to, but are not limited to, power and water, transport, port access and usage (including dredging approval), and waste disposal.
Sorry but come on, anyone ACTUALLY believe there will be anything but delays, un foreseen complications or the requirement to raise funds in 2021?
IMO day this is re-admitted to trading SOME people will be lucky enough to be able to trade and will dump and come back in 6mths to a year when they will probably buy in as part of a placing. But lets face it MOST brokers will take time to apply the changes to your accounts and wont be able to trade this stock when it does reopen until the SP has crashed and the traders become "Commited long term holders" who will sign praises of the company until they reach break even price at which point they sell and crash any raise that does happen.
Well I count myself as very lucky and I shall tell you why: KLK own every share except mine and yours. They even issued a Placing and took the lot themselves. That says it all for their confidence in this venture and they are massive and have a long and distinguished history. It therefore follows that they will put on the market on Jan 13th the minimum they are required to by the AIM rules and we would be insane to flog ours cheaply on day one. The mine will not be producing at full pelt until the licence is granted and we should follow KLK's example (they have much more knowledge than us) and STARVE THE MARKET. This will be the best way to pr5essurise the SP in the early weeks. I can see these at 50p and more once the sand is producing and it looks like divis are on the agenda. HOW OFTEN ARE WE GOING TO FIND A SITUATION LIKE THIS?
The finishing sp for PAL, and what we individually paid as PIs, was based massively on speculation. I would have preferred to have an opening price set above my PAL average, but there was never an obligation for the BOD to do that.
The question now is whether the market views CML plc as being worth over 12p/share - initially and then longer-term. Based on having valuable assets in the ground, looking relatively easy to extract, and confidence about licenses etc, I suspect it will be viewed as attractive by new investors, especially in the current market. It's only a small part of my portfolio. I may even top up a bit. Each to their own. GL.
My point was to open closely to where last traded would very much be the obvious choice and need , where we get to from there I don’t think is a certainty by any means.
From my time in here the BOD hasn’t performed very well or been vocal as much as needed so for that reason I will opt out. That doesn’t mean in any shape or form they won’t perform well from here on in, I hope they do :)
This will rerate quickly imo based on forthcoming news. JORC, Potential, tax benefits and licences. What’s not to like?
I t hink you have answered your own question
25p on first week ? Would you care to enlighten us all how you have come to such a figure ? I’m not sure you have read the RNS and where the sp was before suspension ?? Your working out is equivalent to roughly 1.2p a share previously as we now have a dilution of shares of a 20th , if we find this the case on opening then my investment has stayed exactly the same. Hopefully it can push on from then but I don’t think it will have much legs for now, will give a week and will happily sell out to recoup my initial money
25p with the 1st week i reckon...if you have 1m shares you will be down to 50 k ..great investment in a hot sector
Correcting myself. Ltd change to Plc of course. They were already listed as metals rather than minerals. Merry Christmas.
Good news today. I won't be giving my shares away cheaply either.
Second RNS with post-admission share holdings. They can add me to the list - Pondering: 0.01% ish.
It's a good move imo to change the company name to "metals" - sexier than "minerals", especially in the current market.
None of my shares will be going cheaply.
Excited to be in at an AIM-birth.
Happy with this. Snippets:
"Based on detailed interaction with the relevant Sri Lankan authorities, the Company believes the EIA is likely to be granted in Q1 2021, with an industrial mining license subsequently issued soon thereafter".
"... that the name of the Company be changed to Capital Metals plc"
"it is expected that Admission will become effective and dealings in the Enlarged Issued Share Capital will commence on AIM on or around 13 January 2021."
Yes it is! Out now
It ain’t coming this year is it ??!!?!
Seems RNS is an obligation as part of the process to list everything that could (underlined) go wrong. Plus that there is a some time & cash available. It may well be all be going swimmingly in the background. Nothing we can do but wait, hoping all goes through sometime in Jan-March. I'm ok with most outcomes, short of delisting.
My Inital thoughts is that we probably wont hear much until March 2021, most companies would normally want to have a year worth of a cashflow plan. Also be interesting who owns the other 48.6% of Capital Metals Limited, assume its the orginal holders and their families, a bit of skin in the game is always good.
The Directors have prepared a cash flow forecast for the period ending 31 March 2022, which considers the cash held by the Group at the year end, less future administrative and planned expenditure.
The forecasts do not assume that additional cash will be raised by the Company or that the CML transaction will complete. These forecasts show that the Company currently has sufficient cash to pay the overheads of a cash shell throughout the forecast period.
On 21 October 2020, the Company announced that it has reached conditional agreement with parties holding a majority of the shares (51.4 per cent.) ("CML Majority") of Capital Metals Limited ("CML"), a company developing a high grade mineral sands project in Sri Lanka, to acquire their shares in CML ("CML Shares") in exchange for ordinary shares in the Company ("Ordinary Shares").
What choice de we have?
RNS out, views?
I heard news will probably be released January/February! I hope it is worth the wait!
When you reflect on what Michael Frayne was saying on YouTube three years ago, this has got to be oven-ready to get going. The port is cleared now so export is going to be quick to run. I’d be intrigued what kit it needs for mining - it sounds like a soft sediment and therefore simple plant to mine (quick to find and utilise) and so exports will run fairly quickly. Licenses may have been a sticking point but I imagine KLK are all over that (I think that’ll be the catalyst news).