Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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I agree XTR look the best placed. Trouble is that is down 82% whereas AFP is down 34% and GLR a lowly 10% in my account. Equally AIM as a whole no better. If Rick is right and most of these companies will go to the wall then it makes sense for the majors to just let the explorers bankrupt themselves and pick up the pieces in a couple of years time. AA can just drag things out and are under no pressure to do us any favours.
Agree on the ‘reduced dilution’ Ben, and let’s not get lulled into a false sense by thinking there will ‘not’ be any further raises. Maybe, maybe not, but if there is, we can be relatively confident it will be used for sole purpose of advancing projects and not to pay debtors and keep the lights on. There are two types of raise, one is the latter, the other is where there is a genuine growth opportunity. So should not be frowned upon if need be.
The balance is wether you either raise money from the market or give away some of your projects NPV to bring in a partner, which can be kinder on the treasury short term but can see a far worse financial hit than a raise in the long term.
CB is keener on an equal partnership JV, it’s going in with a major with a far more controlling interest that he would less likely want with being at the mercy of their timescales and potential to be diluted out which can often happen.
It’s the positioning of the company when we come out the other side of the resource sector 5hit storm that should be more seriously considered than any shorter term outlook now.
Really interesting debate inspired by RR's interview. I would agree there are many lifestyle companies out there. I would probably put TYM in there along with Bezant who seem permanently on tenterhooks about their Philippines asset. GLR shows slightly more promise and AFP have possibly the best hand (of Colin's others) with the deals they have with majors, Sandfire etc.
Xtract definitely the best placed though with the money coming in. Reduces dilution and improves our negotiating hand when it comes to JVs. I do appreciate CB's dislike of JVs as you simply lose control of progress. Bezant were forced to go down that route in Cyprus and that fell through terribly. Oriole (ORR) had to do that in Senegal and although they have good assets, they're waiting around for updates like someone waiting on a rural bus service.
On the flip side, if you don't go down the JV route, you have to actually get things done yourself and make your assets appealing (for purchase). CB has been incredibly slow with BR (18 months since drilling stopped there now?) and quite frankly it will be years before anyone wants to take anything in Zambia off our hands.
The frustration with CB is there is no inkling of shareholder value at the moment. No dividend from Manica, no publicly available strategy RE Bushranger and certainly no short to mid term option of selling Zambian assets.
The 1200 to 200 did catch my attention. Quite brutal. Given I own a few of Collins companies/exploration companies it is a bit concerning. AFP now taking a battering. I agree XTR should be fine. I have always been a fan of Manica and the NW Zambia licenses look interesting. BR I bottom drawered a long time ago. But thanks for posting the podcast link. He made a few interesting observations.
Hi flipper, overall I think his interview had some positive reassurances, I don’t think there’s any denying the long term outlook, with his point on the recessionary culling of many parasitic lifestyles companies like you say, interesting. I’ve prattled on before about it being an ideal time ahead to go after projects that fall within xtracts criteria, that their owners have or will face an almost impossible task of progressing assets on their own without significant dilution with xtract in prime position to negotiate with a really strong hand where feasible. That hand could be even stronger.
Many consider Colin bird companies to be lifestyle, but I would consider xtract is somewhat different now with the ability to easily cover its operational costs with surplus to progress its assets in whatever limiting capacities, but opinions will continue to vary until we can see results and forward spending can be aligned. Besides, spending £10m on an exploration phase is pretty fudging serious!
Think it will get worse in China as major property developers have massive debts and I read somewhere recently it could cause financial contagion for key resource buyers in Asia. Inventories risen sharply up 50% too.
Agree joeman 👍
At the front of this interview RR suggested a further capital starvation of the junior sector would reduce the +1200 companies down to a healthier 200 companies.
If he is right (and not withstanding the massive destruction in some peoples portfolios if it happened) XTR would be one of the 200.
We have significant income for the next few years and if we (with the mining contractor) invest some of that in a plant expansion then our income will extend 6 ... 7 or more years. So on the basis of that part of Rick's advice we should be happy to be here.
Whether the income gets turned into actual value added for us depends on Bushranger and the Zambian targets and how the money we put in the ground equates to success.
HZ , what was your view on Rick's interview. More positive or less ?. His point about recession I thought was interesting. Kind of my opinion as well (but copper demand is holding up well in China). Are Colins companies life style companies or serious exploration companies ?. Wonder what Rick would say.
Most of us were here for this. Time to sell or carry on drilling. Just holding it should not be an option.
Not surprised Andy, are a well run outfit, he invests in management that have history in what he knows. Wonder if he is aware of Xtr in any capacity through Manica, certainly Colin Bird.
Please let Colin know he isn't the only one let down by others timescales.
Did you know Rick Rule has a decent stake in Empress?
Any takers on the Rick rule interview? Few relevant segments on resource classification, funding, optimisation and touched on ore sorting.
Makes interesting point if we suffer a year or two of recession and subsequent capital discipline it could see many many lifestyle resource stocks wiped out with no way of raising money or any take up if they could no doubt. Leaving the select few to progress that have that ability to raise or an income stream.
Optimisation is quite normal and not a dirty word.
Ok with ore sorting if whoever was applying it had done so before successfully on the same type of ore body.
Early days so far in what will still be conceptual but Optimal had found a ‘similar’ project that has successfully incorporated the tech with good 50% waste rejection while retaining 80% of the copper. Same ball park with BR’s lower grade ore, to be seen if they will need to further ‘optimise’ with increasing the resource to NW at RC and or looking into other ore sorting companies that could maybe improve the economics of the high grade if it were necessary.
Darn study is due but Colin did say don’t hold him to it as he has been let down by consultants timescales before 😂
Warrants have no bearing on the Directors investment in this company, they are merely an incentive that costs them nothing if not achieved and free money if it does. Free money they award themselves in the event they actually succeed, something I can understand but means if they fail it costs them nothing if they succeed they get a handsome reward.
Anybody, directors or otherwise, who believes the sp will reach 10p, would already have started filling their boots.
Maybe the directors are such noble minded people that they would rather leave this opportunity to the likes of us.
They are a performance related incentivised bonus, awarded immediately when the share price hits 10p they are not exercised at a discounted rate beforehand.
If the directors were confident they will one day exercise the warrants at 10p, they would already have bought zillions of these.
They have bought nothing.
They have as much confidence in Bird as I have but are quite happy to sit back and collect their directors fees.
Ntm the directors have been awarded 24,800,000 warrants between them exercisable at 10p as performance related bonus.
Employees get a further 8,800,000.
https://www.lse.co.uk/rns/XTR/award-of-share-options-m86nqgci5sa5gs0.html
Trust in the Board & CB!
Silberstein hands in pockets both here and GLR (FD in both)!
Ford hands in pockets!
Thygesen hands in pockets, non ex elsewhere in other CB companies!
Wonder why they have not "invested" in XTR? Lack of trust or just poorly paid by CB or they know something we don't?
You're a very funny guy imho OSV
Happy to stand corrected on this but Ford and Thygesen hold no shares in this company and Silberstein a very small holding. I'd trust the XTR board an awful lot more if those three of its four members bought a chunk of shares here!
If you'd like to make your first worthwhile contribution on this BB OSV, how about - please - asking your board member mates this question from me and feeding back their answers here:
Given this s/p is totally, utterly and completely flat on its face currently, if Board members - bar Mr Bird- won't buy shares in the open market here around now when will they ever? (And if not, WHY NOT?)
Thank you backtothesoil, you saved me a job putting the idiot in his place.
He's just got buyers remorse on the £50's worth he bought at 7p
I'm amazed that somebody is unable to understand why there might be a lack of trust in anything Bird says but then I don't think OSV understands much at all.
Despite the downward sentiment across the sector the board have been working under difficult circumstances to build real value which does not yet reflect in the SP. Trust the board and Colin Bird's experience. it seems that a few smaller holders have over stretched but they need to show some resilience if they are to benefit from the inevitable upturn. It was very much appreciated that Colin Bird found valuable time to address the concerns of those mainly small shareholders. Perhaps now is the time to support the board. The lack of trust (from some) in people that know how this works is quite baffling if they are indeed shareholders.
I kinda hear you Jezzoo..
(Flat is one thing .. but the classic trickle on down if news that could be reasonably expected - eg q2 Manica - but is slow to be delivered has a punchy cumulative downward s/p effect ....... so, towards giving some impression of professionalism by you and your staff, stop your messing Mr Colin Bird and get out the Manica q2 numbers asap.... )
Andrew, the reason you can sell a large amount, will be because someone has a buy order in at a set price. Probably a trader.
I think most LTH and anyone who was a buyer TBH have bought just about all they are going to buy.
I haven't bought any more since the end of November last year when I had my final top up of 233800 shares.
I might buy another 1/4 million if it drops below 0.75p just to make my holding a round figure but that will be it.
I should imagine there will be many in the same position.
There won't be much buying until some good news comes here and yesterday, whilst it wasn't bad news, wasn't good news either.
It will be flat until Manica results are finally released and then will go one way or the other depending on the figures.
PS: the 'unknown' trade just printed here for 75,000 shares is a buy .. my latest buy..
(I continue to do my bit here.. and, including all circumstances, I'm genuinely surprised more buying is not occurring around these s/p levels around now)