Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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They drew down more. It was in one of the rns.
Even if you take $2m figure, what is 15% of that in 6 months? Aleph is making free money, they screwed us shareholders by rejecting deal.
We need the deal wrapped up asap. Who is the buyer...
Btw loan rate is 15% not "close to 20%".
As far as we know it has not been drawn apart from te initial 2 million back in July.
Why would SDX need the loan if they're about to get ~5-7m?
Legache
50p and 100m mkt cap? Even im not that optimistic.
Aleph will convert the convertible loan of $3.25m. That is 25% of the company. So company has been diluted by 25%.
They can trigger a buyout anyone who says they cant need head examined. Dont forget the generous interest rates aleph are getting for convertible loan close to 20%.
Aleph rejected the deal and beneffitted more and got more control of the company.
I voted against the deal, so lets not just make out it was Aelph. It was a crap deal relative to NAV. I still maintain that. I know at least one other large PI who also voted against and shares my view. So lets not pretend that there is some Orwellian deal going on where Aelph take us private. There is not.
Vis-a-vis a year ago, many would argue, assuming the Egypt deal fully tranacts, then we are in a better deal. Expect the SD deal to add circa 7p per share alone. Why would any holder be looking for a 6p takeout.
Management is incentivized all the way up to 50p and 100 million cap. Why would they sell for 6p!
You're simply stirring I am afraid.
1. Aleph blocked the sale for their own interests. The sale should obviously have been agreed.
2. The business isn't what it was. This business burns money. It's simply worth less than it was.
3. I think the business is currently worth more than 6p, but that won't be the case for long without dramatic changes.
Well I’m not sure why the major holders would sell now for 6p when they turned down 11p a year or so ago especially now with the solid progress on the Egypt sales news on which is overdue but I think the IMF deal will unlock a lot now
Well said 34ad. Legache I think shareholders would take 6p now under existing circumstances. Aleph would achieve what it originally planned. Let’s see what the next rns brings as this could be the game changer or the final straw
Shareholders rejected 11p, so 6p hardly going to wash.
I'm not a shareholder atm, but at this point, I'd consider 6p a good outcome for shareholders. The longer this goes on without the co being sold/wound down or a dramatic new investment program with a clear path to FCF, the more likely it is that things will end really badly.
Egypt seems to be making some progress with the IMF so that's a positive.
Barhut,Aleph dont have enough shares even after the conversion of the loan to force anything.If your worse scenario is a 6p takeover why arent you filling your boots
Legache. Some dogs just never come good, can be said half of aim market is full of dogs. These guys just have not got a clue. They give you timelines which they have no idea if they can keep , communication is terrible and when they do it’s vague. Aleph will bleed this dry and buy it for 6p. (Maybe not even that).
We know that production will decline, but certainly not by massive amounts. It's not something that's particularly worrying me. If we are spending less on cap ex, at this point, that's preferable.
I have no answer to the time lag but have asked BOD to comment.They say that nothing material has changed so no need to issue an RNS.As for production you are forgetting the new well and I suspect you have no real facts about existing production
Littlened
Production is declining, resource is declinig and no meaningful investment being made for more production. In 6 months from jan 23 to end june 23 the cash balance declined by $3m.
5 months to dispose the asset is ridiculous, why taking so long. They need to tell it why its taking so long, the company was a large international producer. It must be loose change for them.
6 grand is still better than not having 6 grand!
What do you think cash will look like June 2024, not that far off. Probably more than 6 million!
Nice one Legache ! Millions of course
They had 6 thousand dollars?
SDX had cash of $6722 at end of June 2023
Come on Maestro, they are also receiving income ! Net for 2023 say $16m ?
What do you mean,'running the asset down ' ? The well is still being operated
The thing is its been 5 months and the company is running the asset down. If the buyer pulls out sdx are doomed.
WG disposal price is $6.9m, sdx spent alot drilling every year.
The longer they take on SD the more run down it becomes.
Of course, when its been received, IF it gets received.
When it’s all been received?
More cash than cap? I think you have the wrong board!