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If that RNS had been released this am I think the reaction from traders would have been different, i e. more intense, perhaps that was the the reason for the late release before the long weekend.
Worth having a look at Fridays late rns if your a newbie.
https://www.investegate.co.uk/announcement/rns/shuka-minerals--ska/potential-acquisition-update-cln-and-board-change/8221476
This should climb to the 20p range in due course IMO, the circa £6m m/cap is too low.
seriously you need to do more research and understand the people behind this company, who they are and what they have achieved elsewhere.
dilution to shareholders only comes if the acquired assets don't meet up to expectation. this project is a company maker adding enormous value to the company - an independently verified project of almost £2 billion! you don't see an asset like that everyday!
c'mon the project will be acquired. and the £2m in cns will help pay part for the acquisition and getting the project restarted.
do some more work on the project and you will see the huge potential - lead and zinc as well as some nice by-products - silver, vanadium etc.
what a great opportunity that the project is not in production producing revenues otherwise it would cost a lot more!.
any mining project needs exploration, but i'd suggest this project could be in production within a year if you know the aspirations and mining prowess of *****on van de burgh. getting into production is the key driver.
I sense a number of entities have been well and truly caught on the wrong side of the trade (short) on the unexpected late RNS on Friday, oh dear, good luck trying to close positions, remember there will be no bucket shop placing to bail you all out.
This should open well ahead tomorrow, the tiny free float will see to that, the proposed acquisition is probably one of the largest ever announced historically, sector related, for a AIM listed junior.
Page of cups, I think you need tonresesrch Jaspn and Q u I n t o n's projects in a little more detail. They only invest in projects that will start earning profits and dividends in very short timeframes.
Take Marula's "Blesburg" lithium project - QGC involvement announced January 2023 and first production was January 2024.
They do all the mining studies and DD inhouse and start designing and installing production equipment from day 1. You are talking months not years to production and all going well, free cash flow in under a year as all projects they find always have IRR figures over 100%
Glad you mentioned that, as once fully disclosed the potential for plants to be recommissioned. Also Vanadium Pentoxide of around 45k tonnes to be added to the £1.
8 billion resource. So its potential £3 billion asset. We await full disclosure of asset. A lot more imo will be revealed once asset is closed.
"As expected, huge dilution to shareholders. "
That's desperate, proper desperate. It's a $1.8M independently verified resource, being bought by a company with a current market cap of £6M. Did you keep a straight face when typing that de-ramping nonsense?
Out come the shorters, right on cue.
As expected, huge dilution to shareholders. Needing £2m to keep the lights on and no guarantees the project will be acquired. Non compliant JORC resource is going to take further cash to prove up and get to production. The NPV of the project have been known about for a long time as it has been on the QGC website, so nothing new there. Disappointing the project is not in production producing revenues. Going to need a lot of cash and further dilution to get to production. A 3-phase exploration and development programme will not come cheap and will take another 3-5 years to production.
Interesting that Reddit investor on X has a target price of 67p (verses my 75p) but also talks about another deal may be in the offing also.
There is no doubt SKA will now come into life having been comatose for the best part of a year.
Agree 100%. This is a deal that you don't see in the market very often througout the year. Once purchased through cash and equity I can see there being very little dilution. This is the formula that QGC favours to ensure the value in the project is retained and not diluted. Financing would come via AUO.
It's hard not to see the shareprice trading at a multiple of where it closed on Friday. Shuka has a market cap of only £6m and probably flys under the radar of the investment community- that's about to change.
Here a brief overview of SKA and Fridays after hours RNS
https://x.com/redditdeluxe/status/1794660974278136035?s=46&t=IHEn1TE0c7FNFBktt6H8XQ
There is no solid information in that RNS to make any sort of judgement.
Except, they have paid out a non refundable 150k for an asset that will cost almost as much as the current MCAP.
Non JORC and trust-me-bro.
Absolutely MIND BLOWING!!!
This is truly massive, transformational and company making project.
QGC's commitment to this project is clear with AUO's investment.
Clues remain as to the project on QGC's website and corporate video.
Trying to put some perspective on the value of the proposed acquisition based on a heavily discounted scenario + fully diluted shares in issue and project NPV. I come up with 75p a share - where will the share price open at I have no idea but 10p will be history, the timing of the RNS will catch many out Tuesday so there could be opportunity to get in before others who may have missed the news.
Current m/cap here is circa £6m with only 60m shares in issue with management holding 50%, the free float is tiny.
The prospective deal has a NPV of $560m with resource in the ground valued at $2b (NB, numbers based on just 2 of 5 resources as per RNS)
Even if you allow for 75% risk discount for delays/inaccuracies/time etc on the NPV (at current FX rate £450m), would equate to £110m.
A simple translation £110m x fully diluted deal close 150m shares would equate to circa 75p a share and that is on only 2 of the 5 resources (if the full NPV was used it would be £3 a share)
Comments appreciated but the proposed deal is a mega one, possibly one of the largest in recent times for a AIM listed tiddler.
This has to open up circa 15p/20p and run on from there IMO.
“ A huge end to the week at #SKA with release of an after hours RNS detailing the potential acquisition of a “major brownfield site” in East Africa with an in-situ value of approx US$1.98bn based on current prices.
Also secondary listing on the JSE. @Shukaminerals_ @JB_MiningAfrica”
https://x.com/redditdeluxe/status/1794296720228241503?s=46&t=IHEn1TE0c7FNFBktt6H8XQ
I'm assuming that the results are due next month with presumably whatever coal production has been achieved.
The opening SP on Tuesday after this latest RNS will be interesting after the length of silence. The impact should kick start a rise in demand and accompanying rise in the SP.
Could neo or umr be next with news? Both Jason brewer companies.
The Company also notifies that is advancing discussions on a dual-listing of Shuka on the Johannesberg Stock Exchange, and looks forward to updating shareholders on progress in due course
The potential is now there for Shuka to trade above a pound/share particularly as there is absolutely no need for the traditional AIM bucket shops.
$2 billion value in the ground confirmed by respected and independent consultants.
Stay long chaps.
I suppose it gives chance for word to spread over the long weekend ready to start buying Tuesday, expecting a busy board these next few days.
Shareholders have waited nearly 1 year for this news, which is staggeringly good, but they release it after hours ahead of a Bank Holiday weekend - surely it could have waited until Tuesday.
The warrants got extended by another year.
That's the estimated value of the stuff in the ground. There's a long way to go before any of it is extracted and sold. It'll be interesting to see how the market reacts next week.