Hainan are definitely in the driving seat, after all they are the largest shareholder in Kod with 17%. My argument is that KOD should be able to sell the spod to the highest bidder not solely to Hainan as Kod shareholders have effectively stumped up 49% of the $14m for Hainan's benefit. There was no mention of the off-take agreement before being a problem as Suay Chin had rights of first refusal. Why would that have been a problem if they were going to pay the market rate? I was under the assumption that Hainan invested in Kod for developing Bougouni. Where is the information that they were going to take all of the spod. This is what we were originally told, 'Funds from the KMUK Funding Transaction will be available to KMUK to, amongst other things, undertake further exploration activities to seek to further extend the Bougouni mine resource, develop other lithium pegmatite veins within the project area and assess opportunities for additional projects.'. Nothing about using $14m for buying back the off-take agreement.
So I take it that most holders here are happy that there has been virtually no progress with respect to the gold portfolio!! Did you forget this, ' the US$17.75 million raised from the Subscription will be used to advance the Company's portfolio of gold exploration assets in Mali and Cote d'Ivoire, as well as the assessment of new exploration and development opportunities in West Africa.'. Gold is at an all time high now...
Surely if you are a KOD shareholder you want us to be in the best negotiating position, personally I feel our hand has been weakened.
In all reality though Kod are being controlled by Hainan after all its in their interest to secure 100% of the off-take. Surely it's in Kod's interest to sell to the highest bidder and that may not necessarily mean Hainan yet Kod shareholders have stumped up 49% of the $14m for the privilege.
Although it was great to hear Bougouni progressing well and scheduled to be on time and budget but it was disappointing to see no major inroads with regards to the gold projects. Clearly Hainan are focussed on Bougouni and it's not in their interest at this moment in time. Personally with gold at circa $2200 I think they should have been drilling and proving up resources as I was under the impression that the $17m raised from the share placement was intended for this purpose.
I have been saying it for ages that Hainan will buy out Kod and its just a matter of time. I think it could happen before the licence transfer and if not no doubt before production. How much is the question. I would like to think 1.5p as a starting offer especially as Bernard thinks that paying $14m was a cheap price for the off-take agreement and his assumption that spod will be averaging around $2000 when production commences. It's a game of chess at the end of the day and we are just waiting for Hainan to get all of their duck lined up. They have just got one of the biggest by securing 100% of the off-take but what will they want to secure next, the licence agreement or 100% of the mine, well 80% if you include the Malian government stake.
It's just a matter of time to wait for the recommended offer RNS.
It's quite plausible that Gem could unearth a diamond with greater value than the current mkt cap. It can't be too far off until they get a biggie.
There is so much more info to come in the next few months especially regarding the resource increase. It can't be too long with regards to some news on the gold front as the drill results can't be too far off, perhaps Bernard will give us an indication tomorrow on the timescale.
The RNS was focused on the development which is all going to plan and budget. They really do seem to be determined to start producing this year. The sell off since has been perplexing just like it was after the 15th November RNS. If Bernard mentions the resource size tomorrow those that sold will regret it.
It seems as though the Hainan and Kodal team have integrated really well. Construction timeline and budget is still on track. Bernard keeps on ticking the boxes in a steady and professional way. Completion doesn't seem far away as we are nearly in April.
I don't think anybody was really expecting fireworks but it seems like the ship is turning in time for an improving economy with reduced interest rates etc. Asos warrants a much higher mkt cap of £400m that's for sure.
That would be great if they have proven up another 15m tonnes already Lav. If Bernard came out with news like that this week then I would be disappointed if we didn't break previous highs.
I think the same will happen here as in another of my holdings, Rolls Royce. They had the likes of JPM slating the company and giving ridiculous share price targets of 60 just over a year ago. They currently advise buying with a 475 target. I'm sure things will come good here but it's just a matter of being patient.
I wonder if the appointment has anything to do with the transfer being fully signed off after all it's taken a while to appoint him since it was part of the agreement which was finalised in mid November. Anyway, if my suspicions are correct I don't know why we shouldn't be reaching previous highs and even surpass them considering a rising spod price and more importantly a much large resource. That's not to mention the future gold prospects... Come on Bernard, issue a blinder.
The short position will be a lot higher than 6% as you are only including Hedge funds with positions over 0.5%. There will be many more under that amount. Remember what happened to VW and Porsche. I wonder if similar tactics will be applied here, if so then this could really rocket.
That's sad to see. I think the whole fiasco with Kelvin started the decline and it never was the same after that. I bet he was glad he got out with at least something. I see he has taken a 25% stake in sealskin. It will be fascinating to see how that comes along.
It's just ridiculous that a few thousand shares traded can knock 1.5% off the share price. No wonder many companies are wanting to leave the LSE. It seems the manipulating algos's have control for the time being.
I think they probably have had more bids. Perhaps though some predators wouldn't be particularly interested in the brands like Top Shop but want the technology, logistics, customer base etc. We know who would be at the top of the list for wanting the brands though don't we!!