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The NDA with B2 is still in place so progress must be being made there, if I'm not mistaken MC has stated previously that he has had quotes from other companies to ship and process ore so to continue with the NDA and B2 must imply that something bigger than shipping ore is possibly on the cards..... the extension may be as a result of the discussions with B2, if they are seriously looking at purchasing the mine the build timeframe may not suit them as they are now in profit processing their low grade ore based on the price of gold today, it may be that MC doesn't want to build the mine and was hoping a sale would have been concluded by now, now that would be the 'game changing year' promised, altogether now...........'always look on the bright side of life da da, da da, da da da da da da'.
Interesting to see that the share price held up whilst the mms disposed of their overhang of the key investors sell-off last week and early this week whilst making a tidy profit only to drop the price over 8% on 100k worth of sales yesterday. I take it that the mms have cleared their books now before sweeping up more at rock bottom prices before going through the same process again.
Nice to see no late posting of high sales volumes today, looks like we're steadied the ship again. Interesting to note that at the end of December 2018 just prior to the start of the institutional sell-offs we stood at approx 31p so, based on things looking better now that they were back then with potential toll agreement, finance until the end of the year and things looking a little better on the political scene (still not perfect), hopefully we can recover to that level in the near future with any future bullish news taking us beyond that figure. Here's hoping.
If they don't sort a deal out soon to get the gold out I'll be taking my bucket and spade to Nicaragua and start digging my own, wonder how much they'll let me bring through duty free. Nice to see some blue today.
Following on from my rant yesterday the mm's increased the ask by 0.5p first thing, I'm sure it wasn't as a result of my rant, and 250k worth of buys have come off the fence. It's the mm's job to make a market in the share not stagnate it at a price where there are no sells or no purchases. Drip feeding an increase in the ask will force more off the fence in my opinion, but then again what do I know.
Stupid question you may think but my understanding has always been that any rise or fall in the share price is based on supply and demand. Over recent months the price has steadily been dragged down, firstly on sales due to the situation in Nicaragua then with the off loading of a major holder, on each occasion the shares have been soaked up by others, pi's included. What I've observed is that a day of sales will push the share price down farther than a day of majority purchases pulls it up, or am I wrong. Are there purchasers sitting on the fence waiting to see which way price goes and if so why don't the mm's try pushing the 'ask' higher, look at today, as soon as there is a hint of a rise in the price buyers moved in, today 85k of purchase against 3.5k of sales resulting in 0.25p rise in the share price or just under 200k in the value of the company. If we look at pre-consolidation comparisons, 20:1 consolidation for those who have forgotten or didn't know, today's figures would equate to 1.7m shares bought, 70k sales and share price increase of 0.0125p. Now from memory of the heady days of 5p-10p pre-consolidation the figures for today, and other days, would have seen the price move north more than this. It seems we are being held here against our will, or is it just me having a bad day.
Let's not forget that we will more than likely require B2's equipment to extract and transport the ore which means B2 will need to not require the equipment for that period so there will be quite a few ducks that need to be aligned before an agreement can be reached.
I remember an interview made by Johnson from about 7 yrs ago when he made the same comments, I would think that is the period he is referring to in this interview, he was adamant then that he wouldn't pay ridiculous prices to purchase assets as he has restated in this interview. The thing is it hasn't stopped B2 from purchasing companies and doing JV's over the years paying a fair price for an asset, that's all we would ask isn't it. Either way, we are still in negotiations with them over tolling and who knows what, time will tell.
As stated, I expect the world bank to be a major financing source for the mine build, I would guess a large percentage of the cost would be via debt, MC has previously stated that increasing our annual output will help repay our debt quicker implying we would go down the debt route rather than selling the company silver with a huge share placing handing a large part of the company to a third party.
As MC stated in the presentation they have 'serious support' from the IFC, he has previously stated that they could be the source of the money for the mine build, let's not forget we have enough cash to last this year as stated by MC in the presentation, if we manage the toll agreement and nothing else then we will be self sufficient until mine build and will see a re-rating of the share price as a result, and as a ex- financial trader I'm sure MC will deliver the best financing and outcome for all shareholders.
I'm hoping that if we get the toll agreement sorted then any prospects of a JV for 10% - 20% of the company will be removed and the subsequent dilution of our shares, even though in the short term this would likely increase the share price. Any toll agreement will see us through to plant construction and allow us to continue proving up the oz's, I'm sure MC has already got irons in the fire to deliver the required capital. With regards to B2's due diligence it's likely to take up to 60 days to complete, all we need to know is when we entered the NDA, .......are we there yet?....are we there yet?
MC did make comment in one of his presentations recently that the relationship between Condor and B2 had improved enormously recently following previous fall-outs and court cases, this implies that conversations have been on going for sometime now.