News this am that the administrator of this fund recommend that it does not re-open but close will not help BUR today. Very irritating that another pice of bad news will impact the price in the short term. Long term will be no issue but short traders will jump on this today.
Newboy - my simple point which of course you missed was that for a relatively modest amount Secker could improve his skillset and an important one at that when you are a CEO of a public company. Promoting ( not overselling as Island girl also confuses) the company is crucial to ensure that maximum value is delivered. If you are in a for a trade or two that should not concern you, if you are in for multiples of current price, it should.
Shows that Secker is not media trained to end on that question-mark. Sums up my concerns in a nutshell. A little story - a decade or so ago I was running a subsidiary of a FTSE-30 company which was non-core so the BOD decided to IPO the business. The parent insisted that my management team and I were media trained by slick actors for weeks for the beauty parade and subsequent media duties. Why does this not apply to CEO’s of all listed companies, however small with private investors to engage with?
I especially did not like that bit and shows perhaps why he does not make many public presentations. Of course, he may be able to convince the existing strategic investors to put their hands in their pockets for more but leaving this hanging at the end of the enthralling interview is from someone who is not media trained.
Bingo1975 - £30k/£40k of larger trades this pm? For goodness sake what difference does it make if someone sells a few shares to pay for their next holiday in Barbados or buys a new car for their wife? As many have said before there are also some who trade this share constantly which is at their risk and others who appear concerned about every trade over £10k as if it makes a difference to anything. As with all shares, the silent majority of PI’s hold the lions share and just sit quietly waiting for the pieces of the puzzle to fall into place. No panic, no moaning - just have some patience please as the really big prize IMO is not this week or next but in 2020 or 2021 but that is far too far away for some I am sure.
Sjb777- thanks, well I missed that late in the market day better late than never! Perhaps it is the nervous cough at the start of every sentence which makes me nervous about what’s coming next. So, anyone clearer about the finances going forward following that electrifying interview? I used to work for a Chairman who would only allow polished presenters to represent the company as he was certain that poor presenters could actually damage the brand. I tend to agree.
For those that do not understand why this has dropped today just look at the volume and share price action. Low volume and no sign of a major seller so time to chill and ignore the usual shenanigans on here. A real traders dream this share with wild swings both ways and I agree that the only thing which will change this volatility is positive phase 3 results and clarity on funding. Everything else is noise IMO.
So, a relief rally today as expected but now I expect that the next move will very much depend on what sort of deal Moreno has reached with the indigenous people which will have to appease the IMF number crunchers. I agree that a clear statement on future mining policy addressing illegal mining and clarity on sacred land and future permitting policy would assuage deep rooted investor concerns but how long will this take and is is realistic/feasible?
MrC - yes of course you want a balanced CEO and one who believes that all shareholders deserve to be updated on a regular basis on the company’s plan and not just II’s or strategic investors who talk to the CEO regularly and actually know what is going on. Over-promising is just as bad and I am sure we don’t have the time to list all CEO’s who have done that over the years most of whom have long gone but Andrew Bell of Red Red Resources fame would be high on my list .
Any number of shareholders on here sitting in Seckers position knowing how much of a mess he made of the 3-stage sign-off would have thought, I will release the news 7am and visit a number of the investor media outlets to explain what happens next enthusing about what this means for BCN pretty much derisking the whole project at Sonora and now, with a partner with the muscle, gravitas and incentive, having bought-in cheaply, to develop a huge, low-cost mine in a decent location close to US etc. etc.
This is a great example of a company which has so much to offer but leaves so much on the table leaving some shareholders, like me, deeply frustrated at the missed opportunity. Where is our faceless Chairman in all of this? Enough said.
It is astonishing to read on this board how little understanding there is on the maschinations of the stock market. Yes I am happy at times to educate folks along the way but why would you invest in shares if you have little understanding of the basics of fund raising and the dilutive effects taking into consideration the asset and strategic positioning as a consequence of that fund raise. We are not raising for working capital which often disappears as salary and bonus, we are introducing a powerful strategic investor who will acquire new shares issued on 18th October and the market has priced in these new shares already which is what the market does in a nanosecond. What folks need to focus on is the ability of Secker to use these funds to help to monetise the assets along with any final tranche required to plug any funding gaps which we have yet to conclude. The absence of PR is standard as Secker is probably still reading through old geology reports and forgets that the main part of a CEO’s role is to promote and update the company and its strategic plans to the market. Our CEO does not have the skill set to do this which irritates me in case you have not noticed. There are a few AIM CEO’s that do this well which explains why AIM often gets such a bad name. This share has the potential to rise well above the 150p it reached almost 2 years ago but not sure I have the patience to see it through given the weaknesses I see in Secker.
Tudorjohn - 1) possibly 2) possibly 3) no - market priced in doesn’t have to wait until the day that shares are issued. 4) not huge volume so probably not. I will add 5) market conditions and associated political mess means that cash sitting on sidelines 6) Secker not accomplished communicator or leader and expects investors to seek him out rather than the other way around. I have been here for almost 2 years grinding my teeth and will sit here for longer believing that despite a less than stellar CEO IMO we can benefit from the quality of the assets and new bedfellow.
Well, at last we have it. Thankfully, no last minute banana skins which are always possible when doing business with China. Secker needs to raise his game now and either prove that he has the correct qualities of a CEO with a great asset, a powerful strategic investor, fully aligned with deep pockets and connections. We need to avoid the tail wagging the dog here especially with Zinnwald negotiations to ensure we get biggest bang for our buck. Let’s see what the market thinks of this today.
Expect a relief rally today then expect a period of stagnation until such time as more detail has been provided by the indigenous groups and the government. There is now a big hole in the government finances so they will have to confirm to IMF and country how they plan to plug this hole. For me I am keen to understand if the mining sector and the potential claims by indigenous people over tenements owned by foreign miners is still a very live issue. I would prefer clarity here before I invest further and I expect the market and strategic investors will be seeking some government assurances although this may take time and will be subject to change just like the fuel subsidy issue so still a lot of red flags IMO.
Yes you are correct Italian in so much that SOLG, as an explorer which has identified rich assets in a politically unstable environment, has to accept the cards which it has been dealt. Whether you are correct to say that they are making the correct decisions with the deck they have in front of them is something to be determined in the future. Would I decide to fold based on current events - possibly but not quite yet, but would I want to raise or go all in , certainly not at the moment. I still want a seat in the game however as fortunes can change at any time.
I agree that communication is relatively poor here particularly of late. Having a decent PR who answers shareholders emails is much better than some explorers but that is not enough when the company is facing a challenge like this which could be a storm in a teacup or could be a seminal moment. As a small shareholder I have always wanted to know the facts with a detailed analysis of the risks as they evolve and a statements from the CEO which contextualises the issue relative to the companies assets ie. are they impacted specifically or not, to what extent and what if anything the company can do in terms of influencing key people, bodies, industry groups or barring any details are they simply at the mercy of events? So, with little other than a ‘forced’ announcement which refers obliquely to media ‘reports’ when as others have highlighted the actual events have been broadcast around the globe, is amateur PR in my book. Treat shareholders as mature, intelligent, well researched people and you may find a measured rather than a knee jerk reaction in terms of share price. I only have a relatively small position and have been waiting on the sidelines but still feel that I need greater clarity of the evolving country and sector specific threat to invest more.
In Newcrest’s annual report issued last week p63 they reference Ecuador’s large scale mining jurisdiction as “ evolving amid a broader debate on the benefits and impact of mining. Current and potential future legal challenges seeking to restrict mining activities in Ecuador present a risk to the mining industry.” Now, I accept that this maybe considered as standard risk management parlance but Newcrest, with other sizeable investments in Ecuador will want to be more comfortable with the political situation there before investing more shareholder funds IMO. Not sure they will be jumping in and buying more when the restriction is lifted, even at this price. It would be a brave CEO to recommend this to the BOD at this time when there are many other irons in the fire. Not scaremongering, just presenting comments from published material from respected sources with my opinion which is what these boards are all about.
Reports that the president of the indigenous federation Jaime Vargas in an interview stated that the demonstrations are not simply about cuts in fuel subsidies but “ Our fight is about the defence of our territories, and that measures to appease the IMF have led to increased oil and mining development on indigenous land.... and that he will not speak to government unless it agrees to reverse austerity and stop selling concessions to oil and mining companies on their land”. Unable to post link but demonstrations seems to be connected to regional mining referendum which battle the indigenous people lost. Of course deals may be done in due course but I am a little miffed that Mather would issue an RNS issuing options before a somewhat ‘forced’ RNS about the troubles which have been running now for 8 days. Read into that what you may but it even the boldest PR person would say that is smart shareholder comms.
Punit - like it or not politics are THE issue here as they are for commercial entities anywhere in the world. What do politicians do - they create policies and turn these policies into law. I am sure that you know that just look at what the Marxists plan to do in the U.K. if they ever get into power again. As a starter for 10 they plan to re nationalize the Post Office and some of the Utilities. Who knows what price they will pay for the shares - hope we never get to that point god forbid! We have no idea as yet if there will be a change in government in Ecuador or indeed if there was it would be adverse for FDI but that is why the price is going south. Mather can do nothing to stop it but needs to work hard on funding as this could drag on for some time.
Baking - I am sure that political risks were front and centre of the analysis undertaken by IMF, BHP and Newcrest and even some PI’s. Trouble is these days with extremely big mining projects they take a long time from exploration to extraction as you know, require a heck of a lot of cash at various stages of development and when economic cycles or political risks take a turn for the worse as is almost inevitable on projects of this scale, there will always be pain along the way. Usually PI’s will be hit hardest and unless you have been here since the early days you will be feeling it.
I have been in for a year or so and sold down a big chunk after the regional mining referendum debacle which highlighted the country and political risks to me in a heartbeat so feel fortunate to have done so. I have been waiting to reinvest but watching the mess at SXX with much less country and political risk ( there is certainly some with Brexit and failed parliament) has reminded me of the fragility of these companies. With will not blow over in a few days IMO so will keep close to see if there is merit in investing more here. Can’t call it until the dust settles.