George Frangeskides, Exec-Chair at Alba Mineral Resources, discusses grades at the Clogau Gold Mine. Watch the full video here.
That'll sort out a lot of overhang!
No company will fund a mine without dilution.....but say max $70m versus $225m is somewhat easier achieved when the first 3 year risk is significantly less.
Both those capexs are for ONLY stage 1.
It was orderly....
Market for raising funds is in a poor place right now...the city wants their pound of flesh.
Well no one saw a raise coming for this. A raise possibly would have been needed towards year end but by then hopefully some drill results would have put upward pressure on the price and raised at a decent level. However, the timing of the swedes leaving means that you either a: let them leave and let the market find the price they get out at....but this could take allll year and when you want to raise you are at 0.75p..... or b:you bite the bullet and arrange for people looking to be invested here on board and get swedes out quickly (with warrants being a penalty of sorts) Remember the stock is cancelled when bought back so reduces your dilution again. So £2m odd is cancelled shares circ. If you raise now you cannot come back in 6 months to end of year, the money machine does not work like that, you have to tag on this one the extra money you will need in not too distant future. Sadly this was not at a price fuelled by possible AA work.
The deal is almost struck but appears to be slightly lower then 1.8p due to the continued selling in large lumps. You are going to keep selling down to the strike price until deal over the line because better to get another 10 mill shares away at 1.75 then say 1.5p. Swedes know if they sell into this market they will be selling at less than a penny before long so taking 1.5p say is good business. Now the RNS states if deal fails they can just buy in open market to counter the swede sells, which again keeps price more stable. Though you'd let them rot down towards 1p before buying up stock if they failed to complete deal. Now is question when the swedes conclude and stop selling.....money doesn't clear until 25th Mar. Will they sell above strike price until that time or conclude that raise has been completed bar money in account? It certainly not higher than this price...you don't get a premium! I doubt any news will come out until end of month so no factors improve price.
You can moan an biaaatch about the raise but I think the points above are balanced in why it has happened and their hands are tied somewhat in the raising the extra above the cancelled portion. Swedes selling is a little black swan in the timing of this shares progression.
Repeat infinitum Tom..... Not sure everyone has read it yet.
There has been someone selling the hell out of this for 2 years now and it is unending, today is no different.
Always going to be dirty traders with that nod to the presentation knowing there was a release today.
what were you expecting a Jorc resource, PFS and offtake in one RNS? literally the first holes they have plugged in Botswana of exploratory nature.
Tanz were and introduced the mining law.....they will get their pound of flesh out of it!...
More and more African countries are looking to get a bigger piece of the pie of their natural resources. However, they can't realise the monetary benefit from it and basically want you to hand over wads of cash without doing anything themselves. It is people like us that make it happen for them.
It is unusual to have a 25 year mining licence before proper financial studies and mine plans have taken place. May wonder under what circumstances it was obtained at the time, different Gov/council etc. Really the last 4 years mining licences and especially EIAs have become very hard to get. A lot more accountability required.
It could mean almost anything?..... Looks like someone will say almost anything, no matter how ridiculous it is....
Oh no, Amtech had determined after 2 months that imminent was over and then spent 559 days in profit from that point without acting on their determination that imminent was not happening.
Yeah Greg the 'accountant' .... Haha knows nothing of building mines.... Graphite mines... More sarcasm....
1. ACP has 3 extra exploration licences applied for. Maru are nuts giving a time for getting them, given three are many applications running from the start of 2022 are yet to be given. Prepare to be disappointed.
2.ACP has done all the exploring, testing, reporting, etc that comes with constant company market commentary.
It is is clear now progress will be after BKT finance confirmation of upgraded infrastructure and Tanz Gov start agreeing the next deals for companies operating out of Mahenge area. You cannot update the DFS if you don't know what infrastructure you will have to build, whether you can use hydro power electricity or diesel gens
Tardis - companies hire teams with experience when project requires it. Secondly they will likely use a company to actually build the mine. Either as contract build or EPC contract.
Rover - They can build alongside BKT, what they have left to do once ball starts rolling again is not very much. 10p after dilution is different to SP at full production.
1. An investment company but with a Geologist that defined the resource and got it through testing and economic studies....
2. Building out the team to do the tasks they are fit for was always the plan.....Remind me again whom they toook on as a constultant recently?...An accountant?....note that is sarcasm....
3. When you build for 18-24months ahead, you plan on demand that far ahead, you do not start to build after the fact. The plan should be to finish not long after BKT build is complete, not wait until everything (infrastructure) is built, the fact they would be financed is all you need as confirmation. In fact the Gov are completely onside on getting the infrastructure built, they are planning on a graphite district. Just go and look at the Cadastre and the number of new licence areas all around the original areas. BKT build is longer than ACP, ACP can catch up to an extent.
4. Dilution is based on value of company at the time but should be deemed small compared to multiple other projects because the actual capex for this project is peanuts compared with many projects. Dilution equity for capex is a given in what 99% of all projects. I'd rather be looking at $60m capex than $225m.....
5. In regards to your point 1. seriously verging on libel here Dan! Until the slow down of Covid/wars and sensible decision to move the project fwd post improved infrastructure plus improved market, the project was taken from patch of earth to drilled out to DFS stage, think that is called work and has been paid peanuts compared to not only his holding but other AIM directors.
6. in regards to your point 3. isn't that how all companies get to mining?
7. The docs were passed over, but given the slowness of Tanz getting their first deals sorted I doubt they have the capacity (given this is all new for them) to take on endless agreements without any progress on the first ones. In Mahenge region they are 100% focused on getting BKT over the line and are competely supportive of the infrastructure build out. Only this year Ecograf got their deal and they were negotiating long before BKT were but not seen as the lead project in the area. I expect further deals to take place once BKT is financed and starting to build, because Tanz Gov will then want the next companies in line to get going behind them. There is no other resource proved up in the region other than ACP.
How many companies do you know that don't go through dilution to get into production?
In just a few years batteries will be obsolete......
Rigggghhhhttttoooo. Run along now.
Thing is EVERY trade is actually a buy and a sell! Depends which side of the market you are what is a buy or sell to you. What you look at is the 'retail' side. When you sell a MM is buying and when you buy a market maker its selling. Hence they make money on the spread even if prices don't move. This only applies mainly to AIM shares like this one. On SETs traded shares if you pay for DMA access you can be on the other side too. You could buy from a seller and sell to a buyer..... Hence why trades are not given a buy/sell note.
Aske = all
They get marked as buy or sell at time of reporting which often mis categorises them as spread could have moved since they actually took place, however in this case market had closed and no stipulation is given. Also recently I've seen large delayed trades not be assigned a direction.
do not forget the assignment of buy/sell is by the reporting site like this one and is based purely on the spread.
The exchange does NOT assign a buy or sell, just a transaction price and time. If transactions occur inside spread but happen to occur all one side of the mid point, they can aske be buys or sells reported here which is not the case.
Truth hurts.....