Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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LW >>> "They said no-one would be interested in farming into Barryroe. Someone is. Too good to be true?"
We're a long way from a farm-in yet. We are in a lengthy discussion with an entity who we know does not have the money to farm in. They will have to raise it. Two previous suitors have stepped up to that plate. Each of them failed. We are in an unprecedentedly bad environment for oil -- economy on a downturn, oil demand curtailed, prices in the basement, negative political and popular sentiment. The very definition of a proven reserve is one that can be extracted with existing technology AND is economically viable. So far we have a contingent resource that has not even been appraised. Somebody somewhere will be taking a cold hard look at the risks involved -- someone who has to fork out tens of millions of their own cash proving up the reserve just to get to the starting point. I want to believe it will happen. But I'm not naive enough to believe it's any sort of slam dunk. Anyway, all will be revealed presently. Any with the cajones can take a punt on what could be a fifty-bagger from here. I've got all I want for now.
'But things that seem too good to be true have a habit of not being true.'
Looking back at what people posted here: they said PVR might succeed but only if TOR went, and that wasn't likely.
TOR went.
They said the company wouldn't be able to raise money to last beyond 2019.
It did.
They said they wouldn't be able to attract a highly-regarded replacement for TOR.
They did.
They said that they wouldn't be able to raise the cash to last into 2021.
They have.
They said no-one would be interested in farming into Barryroe.
Someone is.
Too good to be true?
What makes you think that only newcomers are pleased about the news?
I've massive losses too, but what's that got to do with one's assessment of prospects?
I've seen similar despondency on other shares, with posters confidently predicting that PMO would go bust just days ago, and then, when the price rallied strongly, that it will soon collapse again - but it has carried on rising.
I've seen posts predicting that HUR would be bust in September and JOG in July, too, all based on collapsed share prices.
Share prices do bottom out and if you convince yourself that a company's prospects are always accurately represented by its share price, then you will do things like buying shares in PVR at 800p and selling at 2p.
So would you be if you had lost a pile of wedge on this old dog. Look at the SP chart over 10 years and you'll see why people aren't exactly praising this from the rooftops. A serial disappointment.
Lest I appear to be griping, I agree with hereandnow that this is as good as could be hoped for PVR in the current climate. It's way better than I was expecting. But things that seem too good to be true have a habit of not being true.
Apologies. Posted twice and still got it wrong. It's 45k worth.
>>> "It is great to see the big boys participating."
Yep, a whopping twenty grand's worth between four directors and execs.
>>> "It is great to see the big boys participating."
Yep, a whopping twenty grand's worth between four directors and execs.
The money has now been raised, subject to approval by shareholders, which should be a formality.
That will mean that PVR will be fully funded for another year and, assuming a farm out deal is finalised this year, there should be no need for any more placings.
I recall a post recently predicting confidently that the company would be bust before spring.
The resignation of TOR and his replacement by Alan Linn were obviously not a preparation for winding up the company after a couple of months.
This as good as it could get for PVR. Considering the calamity of the failed APEC deal, the insane G&A costs of previous management, the clear need for cash, the collapse of the oil price coupled with the Corona virus. To raise the required cash in these markets fantastic.
Not only that, to get a new investor on board is brilliant. Norwegian not Chinese. It's a service company, they have skills and rigs not doing much. They are investing hard cash into the company, paying cash for the privilege of having a look and will put more money into the company in a few weeks time at the prevailing share price. It's a great endorsement .
It's been made perfectly clear that all existing licenses will be honoured.
This crisis has made it abundantly clear to all nations that independence of supply of the essentials of a modern economy are vital.....energy is one of them.
Fantastic opportunity here. This is a huge resource, the market cap is tiny, great opportunity.
A runway at last
Thanks for the positive post 'hereandnow'. Another positive perspective is that it seems likely today that the newly elected leader of the Labour party will probably change direction and consider joining the Government formation talks, giving the realistic option of a Fine Gael, Fianna Fail and Labour coalition with stable majority. This is the most favourable possible combination for the Barryroe opportunity. There is no way this mix will rescind an existing licence, at a time when the country is enduring an enormous downturn. They will not be subject to the abstract and impractical left and green ideology that has dominated the natural resources dialogue for the last 18 months. All good, and genuinely in the national interest . .