The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen 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.
Pembridge Raises £400,000 to advance evaluation of new projects
and
Release of new corporate presentation
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 AS AMENDED BY REGULATION 11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310. UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA REGULATORY INFORMATION SERVICE, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
London, United Kingdom - Pembridge Resources plc (LSE: PERE) ("Pembridge" or the "Company") is pleased to announce that it has raised a total of £400,000 through a subscription of £320,000 ("Subscription") and issue of a convertible loan for £80,000 ("CL").
The Subscription
The Company has raised £320,000 at a subscription price of 5p through the issue of 6,400,000 new ordinary shares of 1p in the Company ("Subscription Shares"). The Company anticipates that admission of the New Ordinary Shares will occur in two separate tranches according to available headroom.
An application has been made for 3,200,000 New Ordinary Shares to be admitted to trading on the official list and the London Stock Exchange with effect from 8.00 a.m. on 23 December 2021 ("Admission").
The Company anticipates that the admission of the balance of the Subscription Shares will be at or around 14 January 2022. A further announcement will be made with regard to the admission of the balance of 3,200,000 Subscription Shares.
Convertible Loan
The Company has raised £80,000 through the issue of a CL to Gati Al-Jebouri, the Company's Chief Executive Officer and Chairman. This loan carries no interest and is to be converted to new ordinary shares of the Company at an exercise price of 5p on or shortly after 17 May 2022.
Use of Proceeds
The proceeds of the Subscription and the CL will be used to evaluate new projects and for general working capital. The Company set out its strategy in 2019 as follows:
1. Strengthen Pembridge so that it can meet its financial obligations until cash inflows commence from the Minto mine ("Minto");
2. Bring Minto into operation, establish its management team and confirm in a in a new 43-101 technical report that the life of the mine can be extended to 8 years;
3. Provide Minto with the capital needed to implement improvements, expand exploration and increase production; and
4. Identify new projects that the Company could invest in.
Following the recent Minto Metals Corp listing on the TSXV and capital raise for that transaction, the Company now believes that Minto is in a robust position and that the first three phases of the strategy outlined above have been fulfilled.
Accordingly, the Company has begun to identify new projects that can deliver further value to its shareholders. Also, the Company expects to receive C$4,000,000 from Minto during 2022, with first payment of
One thing that might play out here, which I mentioned many months ago is that a certain person will buy the entire company for peanuts and then sell the Minto shares on the open market.
As I have explained 100 times. Funds can trade at a discount or premium to their NAV. That happens all the time. What matters for PERE is:
- how much debt they have - it's substantial
- how they'll pay a return to investors; unless Minto pays a dividend, the PERE revenue will be zero and hence ROI will be zero
- how much corporate governance there is - that is now close to zero.
Those factors all influence the share price of PERE, not just the Minto share price.
Why is somebody that makes true statements about a company a troll?
In contrast, somebody who offers no genuine fundamentals about PERE whatsoever, but who keeps screeming the virtues of the company - they are definitely a ramper.
@CAR3Y: Firstly: I have no idea who that other individual is. I've never heard of him before.
Secondly: @Rower is obsessed that I previously used another avatar. He posts on a single company for 10+ years, while I'm a genuine investor in 50+ companies. Yes, I used to use a different LSE avatar. I had to cease using that name after a lunatic tried to expose my identity after he became obsessed that I was a german individual called Thomas and posted it on twitter. Actually, I'm Australian.
Earlier in the year I had a large holding in PERE, but I've only traded it in tiny size ever since.
I think you'll find that 100% of what I've said is true. What has happened is precisely what I told you many months ago. There is something very strange playing out here. That is incredibly obvious, when the Minto Metals video only gives a passing remark about a company in England called Pembridge.
K3VMC
At over a 60 percent discount for 11 percent of Minto it surely must be worth considering
TOAD AKA FIREANT.
CAR3Y
I’m looking at my bank accounts this afternoon. I may have enough to buy it myself.
Will get bought out at this price ??
I think with most of the boards, you get your rampers ramp it up sale, it drops rinse and repeat is what they say I think they share is a prime case of that. The market decides the value.
Carrying on.
With all the debt pere needs to pay, it could be another 2 yrs before there a return here.
I'm looking to top up below 5p, to average down.
Quite a lot of boards on this web-site are plagued by one resident troll with multiple accounts. I wouldn't be surprised if this pair of toad accounts isn't just the machinations of a single delightful individual.
Where are all the rampers now, saying 14 or 15p.
The biggest problem here is pere only got 11% of the mine not a b!@#$y 100%.
With all the
Nice bit of tag team trolling from the Toads …..
PERE looked very attractive while it controlled Minto. For unknown reasons, it lost that and is now a heavily indebted fund with a relatively minor (non-controlling) stake in a single company. Maybe Gati will pull something out of the hat, but most will want to see how MNTO develops and how the debt is reduced before investing significantly in PERE.
The problem is that cashflows coming from MNTO will go staight to Gati and it's not clear when MNTO would be able to start paying dividends; until then, PERE has no income. That's not an attractive situation. If you want the upsdie of MNTO, you just buy shares in them directly. With PERE, you're buying into a company with a lot of debt and a very concentrated ownership (Gati). If copper rallies and MNTO makes piles of cash, maybe PERE will start to look attractive as a punt on mean-reversion back to NAV. While I think that it's likely, a more careful investor will look at why Minto was mothballed by Capstone in the first place. Bottom line - MNTO will do very nicely if copper stays elevated or else there'll be a big problem for PERE.
Market also knows that the true NAV of PERE is a lot lower than the value of the investment once you deduct the debt which I estimate at $9.2mm by 31st Dec. With MNTO at $17mm, that’s $8mm NAV vs Mcap $7mm. Plus add on perhaps $0.5mm dilution for options, and it’s trading at NAV.
I think the market knows that Gati is not going to sell PERE'S Minto stake as he is so committed to Minto and gets double bubble being director of both companies. That said, when more is known about the new listed entity, and if all goes well without dilution, the share price will recover IMO.
why has the arse fallen out of this
RNS 19/09/2019
Gati Al-Jebouri, Chief Executive Officer and Chairman of the Board of Pembridge stated:
"I believe in the potential of Pembridge and look forward to working with our partners Copper Holdings, Cedro Holdings and the Selkirk First Nations, as well as the team at the Minto mine and my Board to make a success of the Minto operations and grow this company into a significant investor within the mining sector.
Taken from the RNS
The capital raise and listing of Minto Metals provides a transparent third party valuation of our investment. I trust that the market will now recognise the value of Pembridge's investment and reflect this in the Company's market valuation. We are proud to have been involved in re-starting the mine and pleased that it is now able to move into a new phase of development with the upcoming listing and new capital and look forward to seeing the value of our investment increase as Minto Metals delivers on its long term objectives. With the expected cash inflows from Minto Metals and higher valuation of our company, I believe that we will be ready to execute on the fourth stage of Pembridge development, which I outlined in 2019 when I took over the leadership of the company. This stage is the identification of new projects to invest in and grow our business."
Thank you for the reply, apologies my comment was so short.
I've been holding PERE since the CAF days, took part in a couple of raises and averaged down a lot since.
My hopes were that Minto would be a cornerstone asset used as a step one and then on and towards new ventures, it's ultimately now been sold for stock and I'm hoping we get some idea of what is to come next over the next month of so. Mainly as in my eyes we are now a shell who hold stock, so some form of road path for what the future brings would be nice. The reason I said divi and close doors is that MNTO is now Minto, we have just stock, and it's a lot which is great, but I don't see how we would be rerated on just that alone, yes trading significantly under the paper value, but unless we see someone coming to buy the whole lot for 12-14p I don't see us reaching them until the market sees what is next in store.
I'm not anti Pere, I am a supporter and have recently added to my holdings, I just think perhaps the next couple of months need clarity.
Gati has done wonders, helped out with the fundings (be it he will be rewarded at a nice rate). But he has still put his money where his mouth is, I look forward to what happens next and I'm comfortable.
Just was pondering as thwt is the fastest way to reach the double digits.
Who knows, see what Gati has to say.
Atb.
A special dividend to Pembridge share-holders corresponding to the sale of the asset/ Minto share-holding (eg near to 13p to 14p divi per Pembridge share currently) is indeed a plausible option. It might well be the outcome here. It is what several companies in a similar position have done and would likely be acceptable to the majority of share-holders here, including our major share-holder / Managing Director - especially if the SP here otherwise continues to sit at this discounted level. Before we reach that point, however, it would be good to hear what Gati's current plans for the businesses are and to see if we can feasibly get to the 14p SP level here reasonably soon without divesting the Minto share-holding.
Sell up, divi 14ishp.
Imo.