Chris Heminway, Exec-Chair at Time To ACT, explains why now is the right time for the Group to IPO. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Get the resources confirmed and bag a for sale sign in the ground
Or off course
I think the reasons behind (have a look at news on dfr gold website) they recently restructured, plus they & us have a bigger slice of the pie in respective resources.
Kalaka is bordered by I think 8oz & 4 oz mines..our geologists are skilled guys.
Low grade, low cost mining in kalaka.
Either way bhukia claim pans out..we will have either instant funds, or decent uplift in sp to raise capital to invest & prosper from
Your point i suppose is excellent if we can hit an economic resource
I assumed because it is low grade we might need say 2 or 3moz or more to be found. And i assumed lots of drilling is needed, as we might have to hit multiple targets
Probably a great question for the CEO. To understand the cost benefit rational.
Maybe the geology points to a target resource that is easy to find. My gut is saying that the other side gave it up for unproven assets that it is unlikely.
The only benefit of diluting for exploration. Is to protect the downside, by making 7p now backed by assets. The cost is to sacrafice alot of upside.
You might also argue a long term benefit as we have a mine to develop if we win the case.
My personal view is that don't dilute. The money you save from diluting can then be spent later to pick and choose a lovely project. You could have 30m extra to pay.
Yes not a bad option.
I remember some time ago trying to do some research on the 20% jv.
Don't recall I found anything..I was looking for boots on the ground locally, equipment so on so forth.
Deffo think they need to drill that northern bit as a starter.
Good spot deck - have given them a follow.
Going back to Kalaka, your initial post and the strategy for it. Cash could be raised and invested in turning it into a lower/mid-tier mine. If they do nothing more than prove up the resource and sell it on cheaply - say, $15/oz in ground - the value to PAT is still double its current MCap. Either way, there's value to be had and money to be made on this asset.
@MinesMinIndia
Only just realised Indias ministry of Mines is on twitter ...maybe results will be announced there?
Spot on ejt..nailed it in one
I keep coming back to... we need that updated corporate presentation to know what the strategy is for each asset beyond Bhukia (which is outside of PAT'S control).
To be fair, what we don't really know is..our jv (20%) are a mining company.
We don't know ...yet..what tack (equipment) they can bring to the table.
There are counter arguments and i fully accept this is just my opinion.
We might drill and do really well.
But the rational.side tells me if we did get a massive windfall payment, our real power them is that we can choose to buy into the most exciting explorers or projects that are much less risky.
Bhukia is hitting gold already, no reason to dilute that to double up.
If we get the settlement we will be in a super strong position to choose which junior to work with
The point is about efficent capital allocation( notn
worry). If we fund say 4m usd for exploration via 20pct dilution. You just gave away 20pct of 800m g bp to dig some holes.
Will 4m usd give 160m gbp return? If it did is one of the most amazing drilling campaigns ever
Yes we can do this and make money, but we have to realise we make alot more if we do.not
Just a little confused Gallmat why you are worried...let's say we are awarded £800 million & by that time we had 250 million shares in circulation that's still worth £3.20 ...what's the concern?
I dont want to labour the point but our partner who had 40ct share in this and other assets cascades was trading at 8m.
I love the litigation here, and also would say i like the ceo. I am less keen on our other assets. All have potential to get to high value per oz. But you can see we might need to spend to do that and i am 100pct against it, unless we can split litigation and mining assets.
I think our bhukia asset would probably have had a good valuation, even back in the day. Because what they found had great quality and you could imagine it being very economic.
One thing, our CEO used to value mines and even lectured in the topic. So i have great faith he is selecting good assets.
Check out hummingbird resources. 80m gbp, working mines, millions of oz.
It is really about quality. Oz's in themselves do not imply alot.
If they are too spread out, low grade, in remote location...not valuable.
That is why bhukia was so great. Shallow pit, near infrastructure. Good grade
Vs PAT's existing MCap of £12.3M...
2 million oz even low grade would surely be worth $150 per oz after all costs?
80% of that is $240 million.
One left field idea
We give options to share in our court case.
They use this implied valuation upflift to raise equity to perform the drilling.
We have right to increase our share in project if they exercise options.
1. Cascades can raise money off the back ofnour court case.
2. Cascades can drill
3. If the court case wins we get out stake back at reasonable cost
Cascades can issue share for exploration, for us it is harder because we dilute the court case
Being a bit evil this am.i am kind of hoping dfr gold have a little miss on cascades drilling and can pick up our interest there cheaply
Dfr gold are sitting at circa 8m market cap
Their ceo has changed and he cut overheads to focus on exploration.
From all the events they might be struggling to access capital ( ceo just made 0.5m loan).
That said, if we do get underway and have a rerate maybe there is a chance to get some assets back on the cheap.
8.00 10.35% (0.75)
Track
Open / Last close
- / 7.25
Personally i think our partners are having cash issues. We are just getting the interests back on the cheap. Why not.
You can google price of cascades partners.
Reassuring RNS from my perpsective as it demonstrates that;
1. PAT is not a one trick pony - as well as the litigation we have multiple other developments underway.
2. As per above, the share price is arguably supported by many other assets that Bhukia - what element of the 7.25p is for this element?
3. Mark is a talented boss - his deal making appears to be very good indeed. I am happy to put my trust in him.