Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Free fall
There will likely be a broker option so people can buy at the placing price.
Most placings are now structured that way to allow retail participation
agreed. just wait. worst case is you pay a 20% premium on a climb
There's no point buying at the moment IMHO until the company confirms whether it has been successful in raising sufficient capital and on what terms. Until then the share price is likely to continue to slide and people are just burning their money
Even the DJ seems to think the music has stopped here.
I just wanted to draw everyone's attention to the statement in the RNS "While July and August have each produced in excess of 600 tonnes of payable copper, underground mining in September has been challenged with a change in mining sequence where the root cause was a working capital issue."
The June production figures were announced on the 12th July, and at the same time, TB said they would move to quarterly reporting which was more appropriate.... we all knew that to hit the 7,000 target, we needed a run-rate of over 700 tonnes for every month left in the year. Only now we find out that July and August didn't hit those numbers... "in excess of 600 tonnes??? That sounds remarkable like "nowhere near 700 tonnes", and its difficult to believe they didn't know that at the time they said they were moving to quarterly reporting. I am in a state of disbelief that the BoD and TB didn't hedge when Cu was USD10,500 per tonne or do a capital raise in early July... except of course that was when TB was boasting that new capital would only be needed for development projects.
Thinking of the BoD and the CEO, when Mark Twain said that "A gold mine is a hole in the ground with a liar on top", he was really thinking of the Ming Mine in Canada.
It’s getting to 3p that I need it to be
Correction: You simply can *not* determine the possible price per share without knowing the likely shares in issue
Does anyone know where the bottom is? I thought 8p was as low as it could possibly go? Now into 4p territory, this is a disaster!!
To me the case to hold a position in rambler, is different to the case to invest or add more in rambler today. So discussion on these are slightly different points.
The case to hold an existing position is now more about if you think the material going concern risk will be mitigated, resolved and sufficient for the needs of the company during any recovery. It's a business case and ongoing concern decision.
While the above is still a fundamental decision someone would need to determine before investing or adding, the case to buy or add today is different. I say this as once someone finds an investment that looks good, the next stage is to time entry.
So personally I wouldn't add or start an investment in rambler today, even if I felt their is an investment case. The fact an equity element will be part of financing is likely to mean, but doesn't definitely mean, lower opportunities in the short term.
No one knows how much is needed is true but it will have to be significant. Ideally it would have been sufficient for capex to implement more efficiencies at the mine but this, sadly, doesn't to appear to be the plan.
It will however involve equity and the nature of the equity is critical IMO. Most probable is a discount to prevailing price, to hopefully avoid a sweetner of warrants being attached. Especially given RMM aren't in a position of strength.
Convertible debt to equity is possible and that would be dreadful for anyone already invested, or investing today.
In short, assuming RMM navigate the situation the upside is unknown until the equity arrangements are clearer. You simply can determine the possible price per share without knowing the likely shares in issue.
The equity arrangement is likely to reduce the price so waiting would maximise an entry, or at worst could undermine the investment case entirely. Depending on the terms.
By waiting, even if rambler manage this very well and waiting means you buy slightly higher, the information will enable a substantially better ability to determine the potential return on any investment and be lower risk of losing all the capital.
Atb
I know they can green box you but it still has a negative effect on the board. I’ve green boxed moon but he still impacts on my experience. Your posts have a lot more rational content but still. Anyone, enough from me also. I’m also in the category of watchers who will not consider investing until after the funding is announced, so I’ll take my own advice and pipe down :-)
I do agree that the first one was a pointless RNS, and I will be honest I am not sure why it could not have waited until this RNS! I do see a lot of positives from this RNS and when they get funding this will fly! This is a will be profitable mine and has the potential of 20,000 tons! With a life span of 15 Years!
At a huge loss, something back is better than nothing.
Anyone putting their hard earned cash into RMM needs to give their head a wobble.
Good luck to anyone still here... Cos you are gonna need a miracle
Yes AJ, all speculation
And bloody well shouldn’t be speculation
Especially after those two bloody car crash RNS
One thing I noted for myself was that at no point in the RNS do they re-assure that any potential solution will not negatively impact PIs. They treat PIs as cannon fodder.
Perhaps you’ll listen to someone who agrees with you more or less completely on the substance. You need to stop. You’re posting too much. It’s wrecking the board. It’s not the content of what you’re saying that’s the problem, it’s the volume. It’s not fair to shareholders who are desperately hoping things improve, or even who just want to use the board for measured and varied discussion
Yes me too - bought in at 35p and just sold at 4.8 pence - lost £4000 recovered £500.
Boo Hoo.
Thanks Blue
Taken from the RNS:
Based upon the board's discussions with the Company's brokers and debt funders, the Board reasonably believes that it will be successful in securing the necessary required fundings.
Again, taken from Toby Bradbury’s statement at the end of the RNS:
The need to bring capital into the business is to ensure that long-standing legacy commitments are met and not to support on-going operations. The current drop in copper price is one which we believe to be temporary, but we also recognise the volatility in the market.
We are in discussions with all relevant parties about the need to restructure our liabilities and believe that practical solutions will be found all round…
I am not sure how people know what exactly is needed. £10 Million, £20 Million, £50 Million and even £290 Million. Noone actually knows exactly what is needed and how much! You can all guess, but it is all speculation until we hear something from the BoD it's all speculation! The refinance could go a number of ways and not a single person on here knows what will happen!
Morning dj, what on earth has happened here!? I was invested a while back when the SP pre consolidation and it was back on my radar at this level of mcap given the assets. Even at this level it is an almighty gamble and in today's (unforgiving) markets for small cap mining companies I'm going to sit tight and watch how things develop. Hope your other investments are making some money.....
For someone said they wont be posting here again until the next RNS .... you're posting an awful lot!
The company will need to raise more than a few million.
One of the main problems is the very large negative working capital with current liabilities of $28.5m and current assets of $8.5m. The company has said that this needs to be dealt with by raising fresh funds so I would have thought $10 to $20m is required.
The company is experiencing problems paying it's drilling and mining contractors at the moment which has resulted in a falling production (see guidance). There is a risk that the contractors will stop operations which would lead to a suspension of trading
TGrus, that’s the idea my friend, always buy at the bottom. Good luck :-)
Well, I'm now 30p a share down here. I must be the world's worst investor! I just hope that the BoD have had fun with my money! Will be glad to get out of my other investments with something left, and learn my lessons about AIM! (Please don't tell me "You have only lost if you sell" etc, this isn't coming back! GLA, I hope you have better luck than I've had recently! (Surely one of mine has to come good eventually!!).