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The tide will change soon enough. I think most have forgotten that it was only a few months ago that KOD received $117.75m. Considering the mkt cap today stands at £57m it makes a mockery out of the market and the extent to which a hedge fund/investment bank can manipulate the hell out of a company. It just stinks and I would love it if Bernard suspended KOD and then came out with one of his very long positive RNS's.
I think that would be a good idea as Kod is plainly viewed as a lithium explorer/miner.
All of the news flow has been about Bougouni, surely now that's fully funded etc they should be spending more time on the gold projects and making the market aware about the potential of them. Perhaps this would put a floor under the share price at the very least.
I'm concerned that the mkt cap has fallen below £60m.
Wace were also shorting Currys up until recently. This happens time and time again where hedge funds short for the vultures to pick up companies on the cheap. The FCA need to wake up to this practise. So many UK companies have been taken over cheaply mainly by US companies. The BOD of currys have done the right thing in rejecting the offer as it clearly undervalues the company. It will probably be trading over £1 in the next couple of years anyway so why sell now at this price.
It's a great twist but surely it would only be fair if you could do it with all assets. I don't think bankers, hedge fund managers and politicians would like the idea of you selling their houses and just flippantly saying it just makes a better market etc. If anybody thinks it's fine then ask them if you can borrow their house to sell. After all the UK house prices have appreciated way beyond the FTSE100 in the last 20 years so if it good enough for the goose it's good enough for the gander. Start selling their houses and see how they like it....
It equally wouldn't take much buying to get past 0.5p. As a number of us keep pointing out KOD has gold projects too. In fact 5, so in reality as a company it's more focussed on gold than lithium. Bougouni is fully financed etc and won't be producing until the end of the year and the lithium price could well be rising again by then. Even if lithium stayed at the current price Kod would still be profitable unlike others. Kod has no debt and is fully funded on Bougouni for production and has additional funds for drilling which will increase the resource significantly.
In my book Kod are in an enviable position. The deal on Bougouni has massively de risked the project and to boot has provided funds for extensive drilling so the gold resources can be proved up. Bernard has done a bl@@dy good job and should be rewarded by a much higher share price. It's best to back a winner rather than a dud and I will stick with it as I'm sure we will be in for another great year and beyond.
Sorry, the actual target price is 1.85. Let's hope it is revised to 2.85 when the gold drill results come through. Although the gold price has come off a bit today but it's still just below $2000. I know all the focus has been on Nielle and Fatou but I wonder if much work will be done on the others.
I would have thought the offer was for either Nielle or Fatou but with the increase in gold since then the value will be higher and this will only grow with positive results. You never know Hainan may want to have another partnership with Kod but now they are KOD's biggest shareholder could this be considered a conflict of interest?
Hello Speedy,
I agree with Laverda that 1p is too low as the gold could be another game changer. A broker valuation is currently on 2.85 this will no doubt increase when we get some gold drilling news as I don't believe much value is given if any to these projects. I think KOD has a bright future and it's just a matter of waiting for the RNS's which should be plentiful and positive this year.
Market cap now £64m. Considering the cash and the gold portfolio the market has a negative value on Bougouni. This nonsense has to stop at some point.
Is it Hainan hedging their position or Suay Chin selling? I think it has something to do do with one of these, surely though if it was Suay selling, Hainan would have taken them off their hands.
I don't think that hydrogen will be a threat to EV's in the car market but you never know, it may be why the Chinese have been stockholding platinum. China have circa 80% of above ground stocks of platinum and the rest of the world are running at six weeks of demand. That's a very precarious position to be in considering about 70% of production comes from SA (Eskom, political and threat of striking) and then 10% from Russia. I think platinum is a good bet for the next five years but not because of hydrogen cars.
Look at the infrastructure spending for EV's compared to Hydrogen. EV's are here to stay.
Well Elcobbledore, let's hope Lithium is close to bottoming out and then sentiment will change with it and hopefully we will see a rise in the price.
I think the market in general just sees KOD as a pure lithium play, so perhaps when we get news on the gold projects it will ignite a bit more interest as I don't see KOD as a one trick pony. I have high hopes for Nielle and Fatou going forward and now Bernard has got Bougouni to this stage he will be able to dedicate some time and what a good time with gold over $2000.
Hello Elcobbedore, I quite agree with most of what you have to say but why didn't these traders sell higher if they didn't want to wait for a year before production as they had plenty of time to do so at much higher prices. It seems to me as though the price is being reigned back. I appreciate the lithium/spodumene price has declined but the NPV figures were based on realistic spod prices.
Surely I'm not the only investor here perplexed by the drastic fall considering Bougouni is de risked and is fully funded into production. Some talked about dilution as an excuse but again we all knew that Hainan were investing $17m into Kod. It just seems rather odd that we are sitting at around the same price or lower than pre licence and funding.
If you truly believe that Wace have this well under lock and key then good luck to you. As you are going to need it...
The news coming out of THG is getting better. They are in two good sectors with beauty and nutrition and I'm sure ingenuity will prove it's investment in time. THG represents a great recovery play and its probable that a takeover isn't needed to get this to 170 plus.
The current share price does not reflect the true value of KOD. Considering Bougouni is fully funded into production and has cash to prove up the resource significantly, not to mention the £10m for proving up the gold reserves, yet the mkt cap is £66m. This is ridiculous as the mkt cap should be double this at least before production.
Hainan I'm sure would prefer to have 100% and let's face it they are in a precarious position if the Malian's delay the transfer. If they take over KOD they won't need a transfer, so KOD are in a different position to say many other explorers.
Someone has been keeping the price held in this range, why?
I doubt Bernard would like the share price to stay in that range. Do you not think that KOD would be a sitting duck for Hainan or the likes of Ganfeng to pick up on the cheap. I would be happier if the share price would be where it should be and thats over 0.7.
The problem is that THG need to get a positive return on the revenue and then perhaps we will get a proper valuation. If the current leadership can't achieve it then perhaps they could hand the reins to a more suitable pair of hands. It's a pity THG don't have somebody like Archie Norman at the tiller. He seems with his BOD to be turning things around at M&S.
It makes you wonder where all the money has gone over the years. Shareholders have been utterly shafted. I'm glad I sold the bulk in the 50's for a small profit. It's looking bleak having said that at these levels the major shareholders will probably take it private as it's not going to cost much.
The problems that have caused delays are out of Bernards hands. The Leo problem certainly hasn't helped especially by SP Angel's comments at the time which have proved to be wrong. Bernard seems to be ticking all the boxes in a methodical way, I would prefer him to be the tortoise rather than the hare. He hasn't let us down yet. Patience is a virtue and I'm sure we will all be rewarded.
I still wouldn't rule out a bid, let's face it the spodumene price must be bottoming out soon and the next drill results will increase the reserves. The price only has to rise another 400% to get to Cannacord's target. I wonder if that will be reached this year!!
If the spodumene price starts rising and Bernard can prove up the gold resources then I think it's a possibility.
I think it's very disappointing that the share price languishes in the low .30's after having such a monumental year last year. I am surprised it fell below .50 but I wouldn't want to be out as the market works in mysterious ways.