Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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I'm in Majorca atm and have no passwords etc to get in to my trading account so have been unable to buy or sell.
In this position I decided i couldn't bear to see the carnage that I thought would ensue after my last log in to the BBs on Monday morning so this is my first log back in. I'm greatly surprised to see the SP at this level but I would greatly appreciate an update about what has happened since Monday. I've seen the RNSs but someone was talking about a presentation.
My take on the circular, for what it is worth, is that PI's probably won't take it up if the SP remains sub-2p but IIs probably will. The reason being is that these guys have 10s of millions of shares and couldn't possible sell them on the open market so they have a choice of bunging a few more quid in to RED's pot to allow them to retrieve the situation or let RED go under making all those millions of shares worthless. If I was a fund manager I'd go for the first option as RED were, and still might be, on the cusp of a breakthrough in sales. RED is not in the R&D stage now so they wouldn't be paying for that which would be more problematical so I think a small further investment could be justified.
From our point of view if the fund raise is successful my opinion is that the SP will go above 2p and who knows what the BOD will come up with in the next few months. Don't take any of this as advice. It's only my opinion.
The circular and presentation were on the RedT website - under Downloads in the Investors section. The slides only really say the same as the circular, but with fewer words!
I agree with your comments Mikemine. The tough stuff, R&D and seeding unit costs are what has caused the damage. I think there was an element of poor management being too ambitious increasing the overhead staff costs too quickly, but hindsight is always easy, things must be looked at in the context at that time. I agree the big investors can easily buy-in further they are not big £ to their wallets. I also see venture capitalists waiting in the wings these guys are expert and moving in at the right time. They would cause an instant rapid increase in SP
You could also speculate that someone is building a position in Red on the cheap. 115 million shares were traded since the RNS and prior to yesterdays live. IF it is one buyer mopping them up that represents 7% of the company and with the OO giving them the chance to buy 1 in 7 that is another 1% as I'm sure Red won't mind it being oversubscribed. That is quite a large chunk of the company for peanuts.
I personally feel the SP will rise to 2p and the OO a sucess (for Red, not us). However I have been wrong before and will be again no doubt. I have not sold and I continue to hold but I want out, I HOPE to be able to sell at less of a loss based on the 3 big orders mentioned in that dire RNS.
Hope you do get your money back, however looks like ii’s selling and private traders trying to make some money by trading it.
Hope you do get your money back, however looks like ii’s selling and private traders trying to make some money by trading it.And known shorters shorting which you forgot to add.
16.53 yesterday
Im not invested here but just wanted to express genuine best wishes, I can see the type redt, s woes have attracted.
These people are just weird, I completely fail to understand their motivation.