Member Info for addicknt

Probably best we try to forget all about this :)

the most reliable source for reading any RNS is the London Stock Exchange web site.

accounts published.
Taken in isolation, the accounts are about as horrible as you can imagine and specifically KPMG's comments and qualification relating to the ability of the company to survive, which a number of us said would happen.
However, the (retiring) Chairman's statement is interesting without being overly hyped-up, particularly as he states there is likely to be a 'liquidity event' with Circum in Q1 2019.
More cash is required, which is not a surprise and failure to raise the cash will spell the demise of this company.
This is not what some people would describe as a 'de-ramp', it's all spelt out in the accounts. This could either way and let's hope the money can be found to take us forward.

Interesting comment from Secker re bankers.
They have a long and glorious history of mis-reading cycles. They always wait for markets to peak before lending. This is particularly true in commodities, shipping and commercial property.
They are normally so far behind the curve that it's almost a given that if you see banks suddenly increasing their exposure to a sector, you should take this as a signal to sell. Time after time they get it wrong and by the time they do decide to lend, the astute players have left the market.
They hate being seen as contrarian and, just like sheep, their credit committees wait until they see all the other banks jumping in.
Let's face it, bankers are a useless bunch of over-paid losers, with a massively over-inflated view of their own importance.
And yes, I do have an axe to grind!

I've just received some very interesting correspondence from a source who was involved indirectly in the placing process.
I'm not going to reveal the full details, but the failure was put down to Cannacord's inability to enthuse their US and Asian sales team. There was plenty of interest from the UK investors, who were onboard for $35m.
The view is that the company will get a strategic investor and the UK investors will take up the balance.
I've also seen a note from Cannacord explaining that BCN is trading at less than half the NAV of peers, including those who are yet to raise finance.
The people concerned remain very bullish and are ranking this as a very strong buy.

this has been a cracking buy and have just 'bagged', which in this market is very pleasing.
What are people's thoughts for the future?

Is this our Blucher moment?

Fukur, not me!

Ha! You should be thankful that this has happened. From being a bombed-out pile of crap, this is now a very exciting opportunity that has already produced a great return for shareholders with a great deal more to come.
Good luck.

iceberg, absolutely right!

torchy, I'm not sure it's a question of spinning it, it's more a matter of trying to make sense of it all.
Sure, this will not be what the company was hoping for, and I don't believe the "turbulence in the commodity market" line. This was about pricing and dilution and the by virtue of the fact the company walked away tells you that the BoD have alternatives. There will be different ways to skin the cat.
This is very far from being over.

TC, I guess you mean large strategic investor?

oopps indeed, Barksy!
In my opinion this means the company is now firmly in play. I'm convinced we'll see various takeover approaches in the coming months. In a sense, there's no alternative.

bandit, I have no doubt you are correct.
The board were not prepared to give this away. They know what value we have here and they obviously believe there are better ways to deliver shareholder value. I also suspect our existing iis had something to say about it.

plug pulled on placing. Not good news from the perspective of us continuing as an independent business.
This firmly raises the "For Sale" sign over the company. Time to sit tight.

jayblu, so we should have an announcement today or tomorrow.
One thing's for sure, we'll have way more liquidity once the new shares hit the market. My guess would be an immediate uplift in the price, based upon he removal of doubt, and then we'll see some of the new placees start selling...unless we've managed to secure long funds only, which seems unlikely. I'd like to think we could negotiate a lock-in period, but again, I fear market conditions may preclude this.

The issue is not about the impairment charge of itself, that is easily and quickly adjusted in the accounts, this is all about the 'Going Concern' statement.
An auditor needs to be able to state that the company has sufficient cash for the next 12 months. It is absolutely clear that we don't. Therefore, the accounts cannot be signed-off without qualification.
Failure to submit accounts will ultimately lead to the company being de-listed, but of more significance is the fact that the business will go bust before that happens.
As I said in my original post, the impairment is, in my opinion, a smokescreen. Behind the scenes there will be a frantic battle going on to raise more cash to allow the accounts to be signed-off.
This is the reality, whether we like it or not.

no point avoiding the issue, the nature of the proposed funding package, including the bonds, has demonstrated that financing is not easy for new lithium projects (just imagine how difficult it will be for some of the less professional micro-companies in the sector). It is also clear that Morgan Stanley have done their best to rain on the parade, no matter how much the industry and we, disagree.
Equally, it's clear that our guys have done a great deal better than some people anticipated, albeit there's still a way to go.
However, I do wonder if the market reaction has laid us open to an opportunistic bid. In fact, I wouldn't be at all surprised if Secker has received a number of approaches during this phase. We are at our most vulnerable and the company would need balls of steel to turn down an offer from someone with deep pockets.
In my view, until the whole package is in place, we are undoubtedly a target.

There was also a "code 1" trade earlier this afternoon. Which obviously means an announcement tomorrow telling us the placing has been successful, was over-subscribed 50 times and is priced at £1.00. Now that really would make me smile.
Back in the real world, I don't imagine for one moment the company is happy about this reaction as it will be making their life much harder.

Ihavenoclue, thanks for the advice, notwithstanding which, I seem to have done pretty well over the past 35 years. But I' ll bear it in mind. Perhaps you could explain why my post was wrong?