Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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And we were called heretic's
Deep joy
Market cap = no of shares x price per share, so is decided by market.
Book value is agreed between auditors and board, in accordance with accounting standards.
In this case, the directors had been previously arguing the project was worth $8.898mm. The auditors will have argued that because the project had gone nowhere and had not attracted funding (without which it could go nowhere) then it was currently worth nothing. Of course if tomorrow the board secures funding, it will be written back in at at least $8.898mm, and probably more than that.
So really it’s a paper entry on the balance sheet that doesn’t really change much in the real world.
As to your last question about penalties, it has been announced that the AGM is in just over 3 weeks, at which point you and any other unhappy shareholders can vote against the re-election of the retiring board member, which is presumably our Chairman (the rest of the board being executive directors do not have to retire)
Can somone with better accounting knowledge than me please explain how LCCM can have had a book value of $8.898m when the total company market value is $3.8m? Is this another way of saying we have spent and lost $8.898m on LCCM to date? Can the BoD please explain how they have got it so wrong with LCCM and what penalties will be involved with those making such company destructive decisions?
I dont think it has been posted on SML website yet (despite the RNS saying it would be on the website today), so i guess that brokers also wont have been notified yet. Companies Act 2006 says they must give 21 days notice , and it must be displayed on website throughout the notice period from date of notification until conclusion of meeting... so it should be posted on website today , and at the same time sent out electronically to all brokers / custodians etc ....Lets see if they manage to do this correctly !
Has anyone had any broker contact on AGM voting?
We are told that it would NOT be fair for the shareholder? Really.
I suggest they did not take shares when they did as they knew full well the share price would be where it is now an they would struggle to sell their shares. If they had taken shares then sold the shareholder would see these people have no confidence in the company.
If the company had any value there would be no need to go around an be kissing frogs. Then they would also not have trouble promoting their assets.
There is little to no value left in the company. Shortly it will have to call in the administrators. It will never see 2025. I suggest the penny will drop and the management will call it a day as it cannot get another placing away and cash has run out. RIP AVOID this company. Shares will be zero soon.
Damned either way tbh
Interesting that the BOD decided not to take shares i lieu of salaries. suggestion being that it would not be fair on shareholders to do so at the then market price, i.e. because it would have diluted shareholder's value.
What would have been wrong with valuing the shares at a higher price then and taking less shares?
Also if the share price was so unreasonably low, did the BoD buy shares in the market to show the market the BoD thought the shares were undervalued?
Clearly convenient arguments have been put forward, but they don't hold water on closer inspection.
The (useless) BoD ought to have been foregoing salaries not just a deferment for cashflow purposes. JP just can't get his snout out of the trough....
Lupidog
I suggest voting that way at the AGM.
i.e. Vote against re-appointment of certain directors, against ratification of salaries/option schemes etc and also vote against disapplication of pre-emption rights and having meetings after 14 days rather than the normal period.
Have been caught with their pants down, huge drop in ask and many buys.
I dont care for the impairment of LCCM, but i do morn the loss of CARE assets a few years back.
But in mining form.....john peters....https://www.youtube.com/watch?v=ZgeJ7FDDB4c
...............
kat....another tick up
“The Receiver for CV Investments made no distribution to claimants in 2023. However, in light of SMG agreeing to reduce its claim in line with costs incurred, any payment in 2024 is expected to be small.”
All you do is run around different share telling people how they are going to lose everything, what is your purpose?
Its blindingly clear that SML is struggling to get funding. It will never see 2025. It will be gone in months. Too much talking…please no more kissing of frogs. Pull the plug now.
The management refused to take shares
Exchange for salaries for a reason. Its not for shareholders. It’s because they knew they could never raise funds for LCCM and no company is going to support a placing.
LCCM asset is worthless as no one is wanting to put in $7,000,000. Don't believe this man.
Admin is days away.
It was for another company UKOG...hes an idiot on many levels
Ridiculous comment , even for someone like me who is negative! they didnt run out of money without the main client at Cobre ... now that they have him back and are making sales of $3.5mm per year they clearly wont run out of money , and JP specifically ruled out fund raise at current price in his video today ...
Wrong company bud....
I smell a shorter....
From Feb RNS ‘At present, we anticipate an active period of news flow across all projects during Q1 2024 and beyond."’
Tbf it doesn’t say positive new flow……
It had to be done re LCCM but those responsible for the acquisition in the first place should be put against a wall
The company is finished but in order to keep the gravy train running the company must be be as I type arranging some sort of convertible issue with the above, wiling out any value remaining. If that falls through the company os literally days away from calling in the administrators. If your in this, you investment is going down the drain and will soon be gone.
Just to raise a small amount a huge number of shares need to be issues. Administration is the best option for all concerned.
CMR is a worthless investment. The company itself now on the precipice. Investors to lose the lot. RIP