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Can somebody please advise a newbie....The more shares that get purchased the less the share is worth?Averaged down from .10p to .09p and still it keeps going South....Only months ago this was at .15p it seems to me only positive news since then so why mystery.....What is general consensus buy,sell or do nothing......
Not sure what your question is about SP movement.
There is little positive news, there is no laid out timetable to advance the mine, the cash balance is running out and to do anything a great deal of finance will be needed. If a cash raise through equity is attempted that will need to be at a discount to the then current SP which at best will be 8p or probably less. At that price many millions of shares will need to be added all of which will be identical to those already circulating meaning big dilution to existing shareholders.
This is fundamental information for investors. If you are going to seriously invest you should do some reading round, either by book or on the internet.
I dont see any negative news... .. as yet ... anyways ....
I agree with all that johnphw has written. Onr must also remember that the value of the asset will only appear as cash years in the future, not only years in the future, but an unknown number of years (either for present shareholders or for any buyer in the event of a sale). As interest rates rise, the rate at which it is rational to discount future values rises also and so the present value of the asset falls as therefore must the share price. An additional uncertainty is how far interest rates will rise, when they will peak and how fast they will fall. It is possible to make a good case either way. All things being equal, uncertainty will reduce the present value of an asset (for most normal utility functions).
I should not be writing this - I shall end up selling if I am not careful.
Agree with this also and still think a hostile buyout may happen here with such a depressed SP and dire need for finance.
Here's hoping Mr C! I am worried about this becoming another Sirrius (which I dodged thankfully), cash raise after cash raise, eventually unable to raise any more with equity holders wiped out.
At 20p any cheeky bid would succeed in my opinion, possibly at 5p less than that. I'll be honest , I'd accept either because this project is going absolutely nowhere at present. As I have expressed before, from what I can see the BoD are just sitting round on their arses drawing fat salaries, drinking tea. eating biscuits and hoping for a miracle. In the meantime the rest if us shareholders get poorer every week. Or should that be every day?
Been watching/investing/trading AIM for about 12 years now and yes Sirius was a very sad chapter and an indication of how little the govt care about the country really. UK is paying through the nose for fertiliser and for a modest sum (in the scheme of things) we could have secured a major source with surplus. I was a BCN invest as I've said before and saw how this panned out. Ok I mad a modest profit on BCN but it was set up for a disposal at a song, and guess what Peter Secker who was the architect of this is involved here too !
Indeed Mr C we had a few chats over on that board. I made more on BCN than I have lost on ZNWD. The irony is that if they hadn't have sweetened the BCN bid with free shares I would never have got involved with ZNWD, an involvement led me to buying further shares at about 15p to make a worthwhile holding - in other words the free shares which should have been a nice little earner turned indirectly into a some what larger loss!
Same for me roughly...
Read an article by Musk who said the real investment opportunity was in the high tech field of lithium processing rather than the more basic function of digging stuff out of the ground. From what I can ascertain the idea here is to both mine and process, to sell Lithium Hydroxide as the product. Wonder if I will be in a home for the confused and bewildered by the time that happens.
Well junior Lithium miners havent exactly lit up the sky !
Please someone, make an offer for this zombie company over and develop the asset. Honestly, most of us will say yes.
Vw buying stakes in Canadian mines for direct access to raw materials…don’t worry about the mines next door then the ceo of those is asleep at the wheel.
That is odd Foz. VW is of course the same as Audi/ Seat/ Skoda (and some low production stuff) but also in Germany we have Merc and BMW/ Mini. Surely..... Shall we write to them and ask them to take Zinnwald over? After all in a green economy isn't it greener to sort your lithium from a few miles down the road? What do they know about this moribund company or are they expecting to buy it from the liquidators after the tea & biscuits are all used up and the Board give up?
Morning John, iv tried re-reading the rns for anything even remotely positive to think about. It took till July to start drilling & We have a huge reliance on the feasibility study ….for the end of 2023.
I mean since Oct 20 I don’t actually understand what the board has achieved here? They are clearly getting paid to sit and do nothing, are they even focused here or minds elsewhere?
I hope I’m wrong but why would anyone bid for the company here, maybe the drill results yield a positive picture in the coming months which will boost the sp but then what? They hardly seem competent of getting a package and investment together that doesn’t involve leaning and hammering us pis.
We feel the same way Foz, I've never known such a black hole of a company. I've known companies that make successions of bad decisions, gone up blind alleys, cooked accounts, suffered various types of misfortune etc etc. But one that had an MC well in excess of £50m in the last year (no longer of course, 50% of that) that just sits there inert, funding its Boards lifestyles periodically by successions of placings at ever decreasing SPs.....well you get my drift. I am convinced that this BoD is doing nothing but wait for a bid for some big player to take over the asset, on the assumption that a viable asset really exists, or alternatively for the EU to throw their endless money into developing local lithium deposits. If not in 5 years we will still be sitting around waiting while the majority of cars going past our front doors are EVs from EU based companies - well, unless us Pis have been wiped out by then which is probably more likely. All we can do is sell or stay and vote against the re-appointment of any of the directors as come up for re-election.
I lost money in BCN but still having faith in lithium invested in ZNWD.
I was alarmed when I found that Secker was involved with ZNWD but the story looked good.
Lithium mine in Germany near to Tesla, VW etc.
Maxey has put a lot of money into ZNWD so clearly has some confidence.
So why did I sell my 20p shares yesterday for 8.6p and take the hit?
Because I now believe nothing significant is going to happen with this company for many years, if ever.
The product is zinnwaldite. Some Internet sources, DYOR, state that this will need a special processing plant. As far as I am aware there is no such plant in Europe, or anywhere.
EMH are talking about building such a plant for their zinnwaldite mine, across the border.
ZNWD do not have the money, or the likelihood to get the money, for such a plant IMO.
So ZNWD cannot have any offtake agreements without the possibility of processing the ore.
If and when EMH build their processing plant then maybe ZNWD will be able to send their ore there, but that is years away and meanwhile the directors burn through the money with nothing to show.
The possibility of a BCN style buyout may be what the directors are hoping for and might offer some kind of bonus for some shareholders.
IMO Germany is unlikely to let a Chinese company take over a national resource.
EMH would be a logical buyer, but they have a lot on their plate at the moment developing their own mine and processing plant, with no pressing or compelling need to spend cash on ZNWD. In any case I think EMH need to prove that zinnwaldite can be economically mined and processed at scale before they consider buying the German half of the deposit.
But perhaps some deep pocketed party like Tesla or Centerbridge or VW will take ownership of the mine and party up to build a processing plant.
Personally I think the lithium story is still compelling but the ZNWD story is not.
Maybe I am wrong DYOR. Best of luck.
Couple of extra thoughts.
Maxey is probably smarter than me and maybe has access to information that can make a great ZNWD investment case, or maybe not.
Disclosure; I have £10K invested in EMH and had about £25K invested in ZNWD.
Thank you jim for an interesting and thought provoking post
Looking for a positive spin.
When I bought at 20p the price was supported by little more than sentiment.
Nothing much has changed, indeed the company has successfully raised further funds.
And yet the price has dropped to below 9p.
I cannot see any significant, material change for the worse in ZNWD in the last few months.
Obviously the macro picture has changed for the worse.
Also lithium shares were hit by Goldman and other doomsters.
Joe Lowry thinks these doomsters are wrong and lithium has a great future over the next 5 years or more. I agree, lithium prices are only going up.
So it seems entirely possible that sentiment alone could lift the share price back to 20p or more. Maybe the management might be able to make a substantive announcement in the next few months.
In the longer term the EU might try to galvanise the mining of strategic minerals in the way the USA did a few days ago.
So there is a case to not sell at such a low point and hope for a recovery, or a partner, or a buyout offer. It seems quite possible that in such a case the share price could bounce up.
Unless you have somewhere better to put the money then maybe not a good idea to sell at the lowest prices since December 2020. Mining is a long game and patience can be rewarded.
I considered all this but personally I have lost trust in the ZNWD management due to their seeming lack of any dynamism, maybe further patience would have been rewarded but the key thing is that I have other places that I feel the money can be better invested, hence the decision to bail.
But maybe Maxey is right and ZNWD will make him rich(er).
Thanks to everyone on this board. I have found the postings to be informative and the questions raised made me do further research on ZNWD and rethink my position. Hence my desire to post my thoughts for the board. Everyone’s investment position is different so each has to make the decisions that are best for them at that time.
Jim
Hi Jim/John,
It’s very hard to disagree with any points you both make. The hardest thing is ever selling at a loss as normally I would add if I had actual faith in a company.
The issue is 20p was reached by speculation and hope of where this is situated. We were also at peak qe so current levels are actually prob more accurate.
I won’t be selling because the drill results are around the corner. But I look at likes of cusn and if you asked me where I get 50% return from here in a shorter term..that’s where I’d point to. However I find it very hard to sell something I feel has bottomed.
I feel you are both right, emh needs to prove it’s own side but at least if it can the chances of a tie up
Increase dramatically. That’s right now the only thing alongside drill results I can sit back and wait on.
If I ever see secker involved in anything going forward I will not touch. Whilst I’m not saying he’s the driving influence here he’s just deeply unimpressive with way he runs a company.
Being boring here, but the way I look at selling (or not) is simple. I pretend I haven't got any then ignoring CGT etc I look at the share and ask myself 'Would I want to buy it?' rather than 'I've lost so much shall I get out?'.
With ZNWD I probably would take a small gamble given its potential product and the low valuation. Just not what I have now!
If I ever see secker involved in anything going forward I will not touch. Whilst I’m not saying he’s the driving influence here he’s just deeply unimpressive with way he runs a company." I actually think Secker is probably very smart but cant prove this theory. Look at the facts, takes and AIM CEO salary for years in BCN and then does a rather suspicious deal with the Chinese where we could never figure out what his seemingly extreme motivation was. He is now taking a director salary and expenses here and possibly elsewhere and may be looking to 'introduce' a suitor for ZNWD when a SP plus 50% deal would seem very attractive !
Mr C think you are just reiterating my point - he might be “smart” for his benefit but reality is if you want an underperforming company, underperforming stock and to face capital raises and bad negotiated deals? - then yep reckon his involvement is your go to!
Otherwise avoid.
Are you a shareholder Foz? Ignore me of you don't want to answer