Firering Strategic Minerals: From explorer to producer. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
I see the person who manipulates the stock price has started their holiday early š
Interviewer: "Why are you planning to take it into production versus selling the assets?"
SC: "Well we'll continue to de-risk it, that's a very good question, and by de-risk it I mean getting environmental permits, right of ways etc. We'll continue to de-risk it. And if a strategic initiative comes along as we continue to de-risk the project, a fully permitted and ready to construct project is of much higher value than one that doesn't have the permits. As we continue to de-risk it, I think people will be interested in this project as an opportunity, whether as a joint venture or some other transaction to get involved in this project."
That is not the answer of a man who intends on taking this asset to production!
SC: "In the short term we're working on some non-dilutive financing. When I say non-diluting that is not an equity offering. At Cascabel, we're looking to derisk the project to make it more attractive via low cost initiatives, such as getting permits. We do not need to do anymore drilling at Alpala. We don't need anymore ore, we know we have more tonnage, but we have a generational mine now. It's really derisking and strengthening the balance sheet that's number one. We need to get some cash into the treasury, we have some ideas. Non equity. Over the next few weeks or months we'll have some proposals we'll have worked through. "
SC: "The big capital number, we believe you could finance this through various pieces.... - we need 1.5bn - that's a lot of money for a company of our size. So I think you're going to get a strategic to take this through to production. Whether we're involved on a royalty basis, or we own a part of it, that's what the future is going to tell us."
Interesting on the royalty piece. What a dream that would be.
He also said that they're not currently looking to raise the 'big number'.
"I'm in a closed period".
Bottom line is this - we are conserving cash, de-risking the project through permitting, land purchases, and waiting for someone to come to us with an offer than works for management with skin in the game. The strategic review is just a way of buying time. Personally I don't think we will ever seen a formal output from this workstream.
"We believe we'll obtain all the permits to BEGIN CONSTRUCTION in 2 years from now"
Asked if he would accept USD 0.30c (23p) a share for a full takeover, SC claims he would take that. Some realism.
He'd accept 30 cents. I wouldn't.
I'm actually shocked he said that add. A damp end to an otherwise promising interview.
I can only hope an attempt to force an initial bid, to start a bidding war.
Every auction starts with a bottom bid 23p starter sounds fine by me
Caldwell and solgold are NOT in a closed period
SM, yes, I was pretty surprised as well, particularly as he was bigging the thing up so comprehensively. It's not April 1st is it?
Smart move him saying that.
'84. He said he was. Is he wrong?
If he said that, yes he is
Which part does he say it?
Towards the end. He was asked if he's buying more and replied that he can't because he's in a closed period.
Yeah he corrected himself immediately
āWere I not in a closed periodāā¦.āor a blackout period Iād buy moreā
So heās in a blackout period owing to market abuse regulations for insider trading, in other words market sensitive information
He tells us heās buying long when it ends
He was very clear that they're estimating it will take two years to get all of the permits. This is not news, in as much as it appeared a while back in one of the documents.
The question is will interested parties wait that long, or will they take the risk and make their move beforehand? Indeed, can we wait that long? Do we really want to go through the annual cycle of fundraising again, particularly as there's always a risk we won't be successful and every fund raise comes at a cost.
He didn't need to answer that question and why was 23p pitched to him in the first place. Talk about being 'staged' lol!
So looks like Bob's plan has been to drum shareholders into the ground with moth balling the company... the get the sp to 6p and then hope enough new shareholders .. old and new get stocked up at these levels so that a 23p offer (when it lands) sounds credible.
Of course... the plan doesn't end there. It ends with what BHP and NMM are willing to accept or counter offer. So 23p as a starters is fine. Noront starting offer was 55cents. The end offer was 110cents.
So looks like the stage has been set.
Like I said before... I do hope Maxit and their buddies do not place those 157m CGP shares at 10p or something pony like that knowing full well that it effectively makes a 23p offer feel like a 46p offer to them.
That would be very naughty. Bob would not be looking very good at all.
'84, the effect is the same. He can't buy. Mind you, blackout period has far more interesting implications.