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Hi Bitcoin - in response to "May take a loan and a raise". issue with taking a loan (and tbh i very much doubt they will get one) is that if they can't get operations delivering a sustainable margin or commods head south they are in big trouble. When it comes to a placing, i don't see much alternative. It's a damn shame though because the more they place the upside just becomes less and less because of the number of shares in issue. A more sensible move could be to try and offload an asset to avoid new share issuance but then growth is compromised. Hard task right now for the management, they should have been more on the ball when the price was many pence !!
All about the assets here Nickel. Redmoor and LC are paId for no borrowings. Half the battle won.
Then as you say aim to get them income producing . LC first. May take a loan and a raise but if it brings in more money
than it costs good business . No let up in the demand. We also have the asset to borrow against.
I invest and develop property , banks are only interested in income to cover borrowings but if you can offer the asset as security and use the money to pay off the loan and earn your revenue then they will take a view. ( development)
We are developing a copper mine !
Now I would rather have these 2 projects paid for than $6m on the balance sheet so I look good for investors like you Nickel. No offence intended.
What the investment/ gamble/ business decision here is do you think they can make a go of it ?
When they prove this and you are invested you make a profit . If they don't you lose.
You tend to make big on such a gamble. If you want it all then as I said before the share price would be circa 2p
Consequently you would not make 5 times the current price.
This is AIM easier to access than a casino at the moment and I am betting they will and filling my boots circa .4 to .45.
We all have an opinion . I respect yours but believe in mine .
Bitcoin - yes but SML are not in a good place and that's the focus for investors. If you barely have cash to cover the income tax that's payable what's the investment case when they're going to need more cash very soon. Investors will wait for the fundraise
If it was plain sailing Nickel , they would be around 2p.
Your glass is always half empty .
I'm having some more today at this price !
At the moment SML are walking on Tightrope!
'typerope'?
Lupi - companies with asset value many multiples higher than their market cap have gone bust. The no1 thing is cashflow, nothing betters than. At the moment SML are walking on typerope as their current liabilities of $851k (those liabilities that have to be paid in less than 12 months) in the balance sheet are greater than their cash balances!!!
I am not doing a TWIS. The financial statements are available for anyone to read. Our current SP is well below (if I have calculated correctly) our asset Value.
I know, but if we sit below current asset value and take nothing else into consideration we are undervalued. Fundamentals take a few things into consideration including asset return, capital management, funding, etc. Fundamentals are about the state of the company. Assets have an inherent value, which can be realised if sold.
Lupi, Yes; however, the price bobs along between 0.375 and .045, with an occasional peek over the latter; and, as stated before, AIM values less on fundamentals and more on sentiments - any whiff of monetising LC and Redmoor over the next two months, this will probably rocket, overshoot, then descend to an investor-friendly price - much as it is, currently.
If anyone would care to check the published financials, on asset value alone (based on my unverified calculations) we should be sitting around 0.48. So @ current mid 0.375 IMO we appear to be around 28% below asset value. There is a difference between stagnating and undervaluing.
Which is why the BoD have to monetise LC and Redmoor - until then, the price stagnates.
Is that if you just about have enough cash to pay the income tax that you owe (see the current liabilities in the balance sheet), how do you re-invest for growth or avoid further placings? The market is bang on with this, that's why the price isn't doing anything.