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It has crossed my mind that those holding SO4 on the ASX will justifiably be a bit nipped if this goes under without them having the chance to sell. At least we have been able to do so on AIM. As things stand it’s starting to look if I might have to re-examine my (at the time flippant) statement that I might consider buying at a market cap of 10million (sterling),
Is it any way possible that a rights issue could happen above the current AIM sp? Who knows?. I won’t be betting large on it though!. Administration followed by low ball takeover to pay off some of the creditors and nothing for share holders is looming large in my mind now.
I agree leyedman with everything you say in your post. It is looking very grisly & if I was an Aussie holder I would be spitting tacks with frustration.
At least I had the choice to hold, not my best decision and now down over 92%. Ouch!
Can't you just deal with right broker and either move your shares between AU/UK registers to dump it on trading exchange or open equalizing hedge?
by the way initially project was optimistically valued at 380m AUD
(on NPV8 basis, which is gibberish from investing standpoint considering risks involved but is fine per accounting basis)
or 200m GBX, (projected ebitda was sitting below 50m GBX pa)
as having 20 years of useful life and planned debt level of 150m GBX (+50m for day-to-day opex during initial stages)
obviously risk-adjusted NPV should at least take 15% as discount factor therefore significantly grounding valuation to begin with
then this new materially higher debt at much heavier costs (interest rate, various reasons, covid, so4 failures, etc.)
and that's not even taking into account for some strange reasons higher capital raise I see on their balance sheet (well above any initial NPV valuation) and series of other unfortunate events leading to significant delays and capital write-offs
Even if project succeeds - NPV should clearly end-up well below 100m GBX but for some bizarre reasons mcap I can see is sitting at much higher level from what this project is capable of providing discounted cash flow for?
Why is it overvalued by so much? What's the catch here?
Cavendish
Go away. And don’t come back here
You done the same with. (EQT)
Cavendish
I bought at 2 p. I can sell now i Want But see the potential. How big. I know. High risk. But huge upside. Buy what you can afford to lose. And I think everyone knows that. New ceo. Coming in.
Cavendish.........! you clearly don't...... :() lol
"anyone remember Sirius Minerals...trading well above 20p for at least a year...then the BOD recommended a sell out to Rio Tinto for 2.4p a share.."
All the best (Begins with an A and a little higher on the offer price...... :()
Copy that Cav......!
didn't know him BTW.......
All the best (current owner beginning with an A then.......? :()