The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen 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.
Gixxer - Good question re getting out from under the foot of AA. That surely has to be the decision to mine but I've just re-listened to the podcast because CB said we couldn't formally declare a decision to mine because AA would want to them to "Show us the figures, show that you've got a feasibility study, show that you're moving towards financing etc, etc". If all of that is required before even triggering the buyback clause/process (and we are back to guessing because none of us have seen the terms of the contract) then we have a way to go yet before we could get this onto the open market.
CB needs to set out the steps for triggering the buy-back clause and provide a timeline that can be reported against. People simple don't trust them to just get on with it now and that means we need more visibility of what is happening.
Steve
I think its CB's baby and he wont let anyone else take the lead. They maybe too honest :)
Many years ago the much maligned Alistair Fiord did his one and only interview for Xtract. We all, including me, were amazed at the lack of promise and hope he had in the interview. We were all addicted to CBs BS. AF was not very complementary about the alluvial Gold income and said we hope to start doing some "proper" mining.
On reflection he was just being honest, factual and no spin. CB never let him do another interview for Xtract again
We need someone in between the likes of AF and CB. Someone who promotes the company, who has CB's enthusiasm but doesn't go over the line and make unrealistic comments bordering on BS.
I just can't help wondering where the sp would be now if CB had given forward guidance of 1mt to 1,5mt and we had delivered the same good result of 1.1 mt from racecourse.
The crazy thing is, we have now got a very big copper resource with a great 0.6mt near surface Cu.
Rightly or wrongly, I'm tempted to say, years of CB's BS has just caught up with him...and he's paid for it with interests (well we have ).
Agreed Steve
It really is time CB just fecked off and retired, what ever he had in the past seems long gone, it's just hot air. Almost desperation, especially with talk of buying new assets, to revisit past achievements.
It needs to be put on the open market as we'd get a better price from companies nearby. The problem is how do we, cheaply and quickly get out from under the foot of AA??
Andrew - I roughly calculate that for every word spoken by CB in those interviews, it knocked £5k of the MC. Where's a dose of laryngitis when you need it?
In all seriousness though, this come back to a point made multiple times by multiple investors here... CB is too stretched to do the PR properly. And it isn't just CB that I've got the hump with... don't other board members have a voice? Why wasn't anyone advising him that putting out a lower than predicted resource estimate would be a disaster without having the modelling to at least prove it is commercially viable and a that a payday is not far away? Or telling him not to keep overstating the likely size of the resource and to focus more on making the case that it will be commercially viable whatever the size? It's a collective shambles.
Gixxer-600,
Totally agree with your comment re accountability. Zak and Roast do not and will not hold his feet to the fire, metaphorically speaking! Either self interest or just weak.
Be careful what you wish for re shareholder groups. In my experience you get what CB wants to tell you and very rarely answers questions. I honestly don't believe you would have heard any different should such a group have existed for XTR shareholders.
My question "would be what the heck are our non-executive directors doing", surely their role is corporate governance!
I really think we are at the stage where he needs to be held more accountable. Is there not a group of shareholders, invested in another company, that have monthly update meetings with him.
Something similar is sorely need here now....
I'm still gobsmacked that he brushed aside the talk of 2MT, and tied to accuse us SH of a lack of understanding, when he's on camera/audio for months stating we were there....
I agree Bushranger has been stated as having multiple targets identified by the scans.... but yesterday's mineral resource was Racecourse. And it is just a big pit.
I'm annoyed by how far off 2MT we ended up, but from here there is most likely many multiples of value to be added to the shareprice....of which we won't really know the details until the mining study is complete.
The copper isn't going anywhere and the large amount 0.5 to 0.6% at 100to 200m below ground will drive the NPV calculation.
I definitely don't see any sense in selling that news at a loss, which many people must be doing. At this price 2.5p I'm back down to break even but with the knowledge that Manica alone is worth 3.5p.....
I hope the sellers find something worthwhile to put the money into but I still think good profit will be nailed on here.
Good luck
I do have a channel or two so I will make it happen, please be in touch if appropriate
>>I'm going to be contacting our chairman directly to communicate that.
I'd be happy to jump in on that, but good luck getting a response!
It still looks better than evens that there is a commercial viable deposit at bushranger - but as the model currently shows 1.1m its going to be a slower process and with less potential upside
2.5p is pretty oversold with a c £20m market cap when the gold side should show net £6m profit or so for a good number of years
but credibility has been shot here after - "read my lips we have 2mt" around a year ago from Colin at the investor presentation - Zak was there in person for that - perhaps he could have mentioned it?
I AM TOTALLY OPPOSED TO ACQUIRING ANY NEW PROJECTS IN AFRICA OR ANYWHERE ELSE
I'm going to be contacting our chairman directly to communicate that.
Anyone else with any sort of significant shareholding please feel free to message me here and I would be happy join together to make this point very forcefully
clearly any excess funds should be used to maximise Manica or improve the resource estimate at Bushranger
Completely absurd to be doing anything else
That's because, apparently, the Roast boys get paid in shares by CB. They're not going to give him a hard time!
Agreed SteveM
A PR disaster is right.
Acquisition mode and "I feel your pain" comment ......misjudged !
After the last two days, one way to stop the SP fall would be for CB NOT to do an interview tomorrow:)
That should get the SP up :)
I stand by what I said. Better to get good or bad news at 7am rather than out of the blue in the middle of the day.
LW
Just for clarity, I wasnt recommending that they should sell, or even buy
Its up to SH to come to their own conclusion on what they should do but obviously if anyone thinks SP is going to keep going down then they know what to do.
BTW Since that big sell, the ASK has gone up :)
The Bushranger project does have 'scattered' resource targets but that isn't a bad thing.
Go a bit further along the Lachlan Belt and take a look at the 'scattered' resource at Cadia. The operation started there with an open pit at Cadia Hill and later two underground mines were added. And they are still exploring and still expanding after 30 years.
The announcement that Racecourse contains 1.1mt of copper is only a disappointment because we had been led to believe there was more. However, the open pit being proposed is a very similar size to the one at Cadia Hill and the resource estimates aren't that different either - Cadia Hill (more gold than copper) had an estimated 6.8m ounces of gold and 0.5mt of copper (at 0.16%) when they started digging.
I still think the Bushranger discovery/project can be commercialised but we obviously need the modelling to confirm that. Which is why I can't understand why CB would release this resource estimate without waiting for the modelling to prove it can be commercialised and is sellable? Knowing it is commercial and a sale likely, would have softened the blow of finding out we weren't going to get as much as we hoped) for it. Investors would have held tight and the SP would have gone up as others tried to get in on the action. Instead, we have a breakdown of trust, fleeing investors and a crashing SP. I think we can all agree, this has been a PR disaster... with the "acquisition mode" announcement today the icing on bloody cake.
A4444 that 14:21 trade marked as a buy was probably a sell going by the time and price so it looks as if your "sell now before you lose more money" was taken. Thats a big offload.
Later next year not this year
ZM
I believe a major will want to buy Bushranger and the 1.1 mt resource later in year esp after POC increases.
We have 0.6mt at 0.3% Cu near surface. I think that is worth £50M at least on ts own
As I say, I may be completely wrong but that's my judgment call. If others think this is going to keep going down and there is no chance of recovery (they may be right) then they should sell now before they lose anymore money.
A4444 good to know. But what could be the trigger for a 4 bag rerate?
Looking at where we are today I would suggest that it would have to be a complete curveball, out of the blue, new information.
Shareholders' interests have not been looked after here. That interview with Zak was a stuttering mess and the roast interview was preparing us for putting Bushranger on hold I think. It looks like the market has decided shareholders have been done here.
Having been critical of Colin in the past I have only myself to blame for this latest disappointment but honestly believed it would be different this time. I never thought though that hope could be shattered as badly as this. I was getting some stick for suggesting we would be lucky to see 10p... if only.
ZM
I don't know any info that has not been discussed publicly.
Like everyone else, my opinion is based on what I believe and research I've done.
I assume, that the 98% of holders who have not sold think the same way as me :)
A4444 ... do you know, or think you know, information that has not been discussed publicly?
Sorry I meant by end of next year!
Apologies
4 bag within about 5 weeks? Absolute nonsense.