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If you pick up on this evening what is your take on the late trades today? Pala shedding some stock? We know from the company that the placing was over subscribed; therefore some demand.
LOL I bought some more last week!. This has to break out soon.
Not me I am still in buying mode!
That is unfortunately part of the game. Take a look at the late trades. It has to make one smile.
There seems to be a lot of shuffling round of stock. Perhaps after all this time Gibraltar has sold some!!
Besides Legal & General who the company have disclosed as a new investor we do not know who else has joined in the placing save that Pala and Neon have increased their holdings. I can tell from the figures that Neon have added 1,794,400 shares. After theirs and Pala's we are left with 48,010,766 shares, if my maths is correct, the homes for which are unknown save for Legal & General and their amount has not been disclose save that we can assume that it is below 3%.
increasing their holdings and we have another major investor... 2 rns out
rate the stock a buy with a target of 31 pence up from 25 pence.
and an excellent infrastructure. It is a no brainer to me. Let's get Gangama open.
The Company has an established operating history spanning approximately 50 years and a resource mine life of another 50 years with one of largest natural rutile deposits in the world and a JORC-Compliant Mineral Resource for measured, indicated and inferred resources for the Sierra Rutile mine of over 866 million tonnes (as at 30 September 2015). Sierra Rutile expects to be the world's largest primary producer of natural rutile in 2016.
First disclosure of one of the additional investors in the company.
Given the contents of your 12.26 post, there would have been a placing document and prospective placees will have been seen by a promoter of the placing. If they have learned something to encourage them to invest, to which us lesser mortals are not privileged to be informed then there is an argument to say that there is a good reason to support the stock. I have accordingly added a few.
I am not considering any conspiracy theory. It may be part of the plan to enable Pala to exit (in whole or in part?) and if Sisay is being upfront in the video interview which I have watched it could also be the start of freeing up equity so that a move to the main market is possible.
And of course the other question that should be considered is why have II's and Pala invested to the point of over subscription in an under performing illiquid stock unless of course they have been provided with the missing part of the story that has not been presented to the remaining loyal shareholders. This move really stinks.
I am struggling with the announcement because the company, as Corbs has pointed out, has no need for the money. Costs are coming down, there was a hangover of unsold product at year end 31.12.15 which if hypothetically sold would have enabled the company to about break even, the final paragraph of the Sembehun announcement of 22.03.16 made it clear in the final paragraph that "Sierra rutile does not have a requirement to commence construction of the Sembehun Dry Mine...........over the next five years". It also appears on the face of it to run contrary to Pala's normal investment policy which from the detail on its own website implies invest, inject Pala expertise and the sell on to make a profit. I calculated some time ago that the average price paid by Pala over the past 5 years for SRL stock has been between 15 and 18 pence. Double that and add and one has a figure of say 45 pence upwards (jmo). What John Sisay stated on a recent videoed interview towards the end of the interview was that the company intended to move to the main market. That requires free liquidity of 25% of the issued capital. How does today's announcement provide for that? It does not imo. So is this no more than a part freebie for Pala and new iis or if they do not need the money is there another reason.
All I have to say is this is a proper stitch up for ordinary shareholders. It is clear that they have no desire to maintain any level of liquidity in the stock and it is further clear they have no respect for small shareholders notwithstanding that the likes of myself own 1% of the Co which has just been diluted by 11.8%!
http://www.sierra-rutile.com/aim-rule-26.aspx i think? mng is actually the prudential holdings? correct me if im wrong dara, gib etc? corbs
not forgetting there are some of us here holding in excess of 1-5million shares as small shareholders, in p[articular gib1. u there gib? u still got 5mill -thoughts of increasing your holding gib? :-) before ganagama comes on stream live in a few weeks? corbs
first placing seen with txr/now srx for a long time. would like to see with the oversubscription how much jp/ and the other 2 majors took as theyve been with us as far back as 2009 and sat tight. jp held same amount throught the years whereas m&g ? isnt that under another name? prudential? cant recall but they slowly increased their shareholder substantially since 2009 and if i recall all 3 stood firm during the pala takeover supporting sisays view as chair not to accept palas takeover back then hence the price offer went from 20p to 30p a share at the time. no mention of the future production model which i believe once gangama and the bolt ons at gangama and else where enable us to reach 250kt per annum production. looks like sisay and team srx will finally get production costs sub $500 per tonne as they have been working for years to bring production costs down. not worried about the price today, this is oversubscribed and the monies will be used well. corbs:-) imo jmo dyor etc
That may well be correct. However I feel that there is long awaited corporate action afoot as mentioned by John Sisay the ceo in a recent interview. Pala want to see a return on their capital and very valuable time injected; John Sisay would like the company to move to the main market as stated in the interview; Gangama is about to come on stream; overall costs of production are decreasing (more to come this financial year) and any increase in product sale prices will flow into the sales not already contracted and certainly into year 2017. Plenty to come imo.
Perhaps, the share price will rise even higher if more FORD FIESTA TITANIUM'S are sold.
if the price gets up to a decent level which can enable Pala to release some stock and there is a public offer with a move to the main market as the target.
and about time Numis began to properly and fully promote their charge. Sierra Rutile with its infrastructure and vast quality rutile is greatly undervalued. The share price should be well over double what it is at present.