Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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Can't blame the markets muted response can you? They have heard it all before
They said on the signing RNS that they have enough capital to initially get the ball rolling. But the market has ignored that (due, I assume, to history). We now need them to come out and announce the funding (hopefully debt) and that will let the market price in some of the contract.
I guess there’s no major need to rush though, does it really matter if the sp drifts? As long as you’re not leveraged or after a short term trade then a bit of patience should do you good.
I think the mm's are just playing the fear card and it works, there was no sales showing until they drop the price then people sold and the mm's bought stock at 2.55p. I cannot get a bean at 2.6p currently so if it was a placing I should be able to buy size, they certainly are frightening people out of this game atm, selling everywhere, people have just given up
Several people have already quoted Pete as saying he won't dilute for this contract so looks likely to be debt. Then its just a question of the terms.
Misty not a peep for a week after the contract landed as he had bought in.
A huge win for wsg and zero comment for 8 day from him. . As Soon as he sold his trade hes back plying his negativity.
A Predator stalking the naive holders. Playing them like a fiddle.
I make no bones about trading this Ian. Share price was always going to drift given the expected news void.
My negativity has been a constant for 10 years.
For the record the company has never said they won't dilute for this contract, neither have they said they will. Their preferred funding route is debt finance as per the RNS. Let's be clear on this. I would say however the best time to place if they wanted to would've been immediately after the news as they did when the original DRC contract came through in 2021. There has been no PR following the news and Pete has said that there are a number of funding options on the table which they will take their time to consider. They will take up what is best for the company.
Jim; These are some of the Docs posts. Apparently from Pete-
17th April - “They've not placed in 3 years and Fowler has continually said they won't and specifically they won't for this deal.”
11th April “Fowler has stated many times they will not use equity for this contract and there is no reason to doubt him now after 3 years without a placement, when that is confirmed with UKEF funding etc it is an additional green light for SP rise.”
9th April “There will be no equity raise until at least double digits and only then for a little bit of grease to make some bigger moves.
Misty: I’d concur with Jim. Peter is never categorical, there is always a caveat. I got the distinct impression that an equity raise was simply off the table, but that’s different to saying there won’t be one. He’s not going to tie his hands when there is so much uncertainty in this game.
I feel very confident that a debt funding solution will be found and announced fairly shortly. But as I said, if they’re not diluting then I don’t really care if it’s back at 1p.
Thats good to hear AIM, we wouldn't want any one mislead now would we Ian?
Hats doffed to your trading methods misty. A skilled predatory stalker preying on naive pi,s.
A silence as you feast then growl loud and long as you stalk the next kill. Awesome work.
AIM is such a brutal market these days.. scaring so many more again buy and hold participants away in 2023...and 2024 so far to an extent too , sadly.. and for this s/p to be 2.5-p ish as I type is a text book eg of the brutality imho..
This s/p was a tad under 1.5p ahead of this major DRC contract announcement .. it's now 1p more only.... that's currently valuing this seemingly very good long - term contract at less than 3.5 m gbp market cap to WSG.
I get people are waiting on up front funding methodology announcement including the quantum required .. but if/when there's an announced of debt for a few million quid - by a company with no debt as I type - even this extremely cynical market will rally this share meaningfully up I expect....
In the meantime this is a strong buy/hold imho.. (hold for me as I'm easily long and strong here now )
While I can never rule out a placing in any stock. I still believe the mm's have "bored" the life of many people forcing it down and then winning when people sell up. What would happen if the price went blue, would a lot of people who sold out scramble to buy back in ?
There are those who have sold out hoping for a cheaper buy back and those who are still selling anticipating a deeply discounted placing. The market is tentative now as volumes have dried up but watch them pile back in as the tide turns. We need the company to announce a funding package on good terms, I hope soon. By the time first revenues are received in early H2 I don't think the share price will be trading anywhere near to current price.
I think its as simple as a large sell order driving it down. The Mms will take their stock but they want it cheap. I would expect a bounce when they are out.
A Lowly £8mil mcap now which is about what the companies worth with out the DRC 5 airports contract signed.
The new contract is not priced in at all now imo. Quite Amazing really but a reflection on wsg history of let downs.
I suspect a lot on the sidelines waiting for some news on financing.
I think the share was worth v approx 1.5p ahead of the DRC contract announcement Ian B.. so v approx 5 m gbp Market cap then .. and in the 8.5m to 9 m gbp Market Cap range as I type now..
The SP was nearly 6p 3 years ago on the first DRC news before the wait for ratification. Only the loss of Tema but cost cutting etc so i think better EBITDA.
Crazy its now less than half that now on finalised deal
The board have said they value this deal alone at 10p per share on current data. This is based on the CFOs internal calculations. As revenues begin and with the transition to profitability we will be able forecast, the valuation gap will start to close. Only a matter of time now
Heading back to penny lane 😂😂😂
Jim- remember the Ferry contract headline?
300 million over 25 years! How much did WSG actually make?
Like I say market has heard it all before
DRC and ferry are not comparable contracts. This has been ratified at $10m per annum. SL is a successful contract and a better model to judge against
The headline is $10m ratified contract with a government led by a UK trade delegation. You seem to stuck in a time warp. The ferry contract was internal miscalculation, they messed that up. This is not a comparable contract in any way. Why don't you provide a valuation of the company based on this. You have numbers available to you now, is 2.6p a share a fair valuation?
Lol "The ferry contract was internal miscalculation"
Exactly! and you want the market to take this seriously?
Misty, I will repeat the question for your attention, Please provide a fair valuation of what you think the DRC contract is worth in terms of SP. Is 2.6p an accurate representation in your view, if not what is?