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Yeah someone I chat to on twitter did a research note on it does some good research but not his area of expertise. I've been caught up researching other things & hadn't had time to do any further digging but again from twitter someone telling me John who owns 5% of the shares is the distressed seller as covering a leverage & other aim shares John is invested in are also facing similar selling pressure. Again I personally can't confirm this. I'm reading through the rns's again looked at the company presentation again & so on, anything that would confirm something. As I said earlier don't think much has changed with CGO just there might be continued selling pressure into price appreciation. Still remaining optimistic on the 15-20p target I had when I first invested just being a little more realistic on the time frame now. I didn't take your reply personally you asked a valid question & that's perfectly fine. Now I don't know how some know about John circumstances (if true) but hopefully what ever happens we see double digits soon
If CGO gave the company they bought the mine off shares in CGO as payment & they have sold 25% of that holding already then I'd say they want out due to the fact we know we have a seller on the verge of price appreciation. Or one could look at it like they are cashing in to recieve payment however if they still hold 40% as I'm being told all I am saying is watch out for continued selling pressure into a period of price appreciation news. All it means is this may continue for a while. The end result if CGO get the off take agreement is you just need to wait longer for those profits. Hopefully the gold rns at end of month gives this a bounce but I'm fully expecting any bounce to be met with sells from largest holder now. The overall plan from CGO I don't think changes at all.
The company that CGO bought the mine off where paid in CGO shares. Appears they want out. I find it rather baffling myself as CGO on verge of price appreciation. With divs next year if that's still the company plan then once the seller cleared profits still to be made.
A post from my twitter timeline (not my tweet)
Spent a few hours yesterday looking at #CGO & can see why the SP hasn't gone up more, since June 2020 the largest shareholder has sold 25% of their shares.
Unfortunately they still hold 40% of the shares, so this is likely to continue for a while.
You have billions of tonnes of coking coal a key ingredient in steel making, you have the world's largest steel maker wanting that coking coal in the way of off take agreement, you have news term production starting as an open pit low cost capex & to top it all off you have a lot of gold at good grades next to some of the world's their 1 gold miners the likes of Warren Buffett invested in & what happens the SP drifts. Only on aim could you expect such nonsense. Very frustrating. No wonder people are moving to the likes of crypto from aim. With the recent SP action you would think the Chinese consortium rejected the coking coal & the deal fell through. Market needs to wake up to CGO & what it has resource wise & it's near term production. I hear talk of the SP is down as maybe the market expects a placing which personally I think it's a red herring because if CGO announced a placing this would not stay at the same SP levels aka placing placed into the SP it would drop.
Let's just hope the locals don't mass protest from the link David Law sent. However I remember Doc Holiday saying he had researched alot & came across an interview with a local official or government official who alluded to "be daft not to approve this project". From what I have heard from Doc & BOD comments on interview & what I have red I would be suprised if the EIA was not granted.
For me it's all about the locals & if they get onboard.
Doc Holiday always said at 7,8,9p this would be 15-20p. Today's another step in the in the right direction for that target zone. At 15 million market cap & the money per month Lubu will bring in this should start the re rate if not the re rate itself.
I emailed yesterday to ask if there was a timescale on a decision by the consortium acting on behalf of the Chinese company with regards to the off take samples or if it was a case of we just need to wait & see. No response yet. If things continue as are, exercise of warrants then sold pushing SP down & they don't respond to email & there is no news then I will consider selling. I get the coking coal test need to be precise as they can damage blast furnaces but surely a month is long enough to conduct such tests?
Once EIA is rsn'd this could spike & therefore you'd be paying a premium. I think anything sub 15p is worth am opening position even a small one if that's your concern.
Reading the RNS which is good in my opinion the only Q is the $35 funding. How are they raising $35m, will it be a placing or will it be done by other means?
The SP could do with some stimulus. Frustrating people are selling what looks like a winner. When EIA lands expecting 30-40p. No idea when it lands so happy to hold as don't want to miss the opportunity. Short term going to have on a loss. Zoom out is what I say & wait for value to be unlocked. We know the value is there we just don't know when the markets will give us it.
Ever heard of the expression HODL
Would someone who got in early at bitcoin sell up because the road to $10k plus was too Long? No they HODL. When it dropped all the way back to $13k did people panic & sell? No
Now the boast at $60k or just under rockets & lamb's
CMET have some of if not the best grades globally of rare earth resources which are in demand & used in ceramics so bathrooms, kitchens & in paints. I see no reason to sell CMET just because you won't bag next week nor do I see any reason to sell because people want to guess if it will hit 300%+ within 12-18months.
Bitcoin early adopters would have bit your hand off for 60k & said back then I would sell the lot, yet people still HODL btc.
Need to let the story unfold & act accordingly a long the way.
With CMET best grades in world almost, Nothing has changed fundamentally for me & China operate in Sri Lanka where they buy up rare earth minerals & resources.
Connecting dots but minerals that are superior grade some twice the % of high grade & rank as some of the world's best will have caught the eye of the Chinese & their consortium's & subsidiary we have seen that at CGO with the coking coal.
This can 40p & even then with only 6% of licence area explored go on a push even higher. Starting off a ground level low capex. I am looking to top up but want to see how much this drops before doing so. It may not drop further & that's fine but will top up should it go below 12p because that is too good an offer to refuse. But I am still convinced this will be 40p this year.
I wouldn't rule out the Chinese consortium buying the whole of the coking coal side of the business if they are really intent on building that $1bn plant in the area. The rns's have been positive & if you connect the dots there is plenty of reason to be bullish on CGO this year.
No it is not you're imagination I have seen that also.
Given more buys than sells one can only assume gold or coking coal prices have went down or something in the wider market perhaps currency.
That said CGO looking good for 16-20p on recent news some of which clearly can not be priced in.
We need news fairly soon on Lubu we have had no rns or tweet to say the area was on lockdown for x amount of time. Even news that area was on lockdown opens back up on x date, without that people will think bad news inbound or something a miss.