Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
Posts: 11
The FDI Take-over offer this week by PRRT II is miserly at 0.01p a share... so 300,000 shares would give you only £30; 3 million shares only £300.
This reflects a mine (Liqhobong) under care and maintenance plus outstanding debt giving a NPV of nothing despite there being a 30 mine year life with diamond prices strengthening.
Nevertheless there are undertakings from two major shareholders willing to exit and let Pacific Road & PRRF II have a c.77% controlling interest with a realist plan to get the mine up and running again in October'22 and resolve other outstanding issues.
There is, in my view, potential upside over the next 5+ years worth well above 0.01p a share to those who don't take up the offer.
Certainly, I am not willing to crystalise a significant 98% loss whilst a descent recovery is possible, by parties with vested interests in such recovery.
Obviously, all FDI shareholders will need to make their own decisions, but I will not certainly NOT be taking up the current Offer and hope that shareholders who own at least 10% of the shares will also do the same, like Keith Johnson who is staying on as a non-Executive Director. Key holders here include Edwards Family Holdings, with c. 9% of the issued shares.
The 90% level is critical here as if more than 90% of the shares are gained in this bid, PRRF II say they will compulsory purchase the balance of FDI shares, effectively taking the mine away from those of us who have invested in its development for more than 10 years if you include predecessor companies like European Diamonds, for next to nothing.
Posts: 11
Now unconditionally accepted by those pre-committed; thus giving them 67% in total - so they will proceed as planned.
Those of us who have not accepted the negligible offer will collectively hold c. 27% for the future it would seem, returns dependent on diamond recoveries and prices attained - which ought to be better than in the early mining years with diamond quality likely to improve as they go down the Liqhobong kimberlite from past analysis and with fewer supplies, especially Russian for quite a while yet.
The next year will be interesting, one of recovery I sincerely hope...