Member Info for Bebeto

Someone please ask about any future dilution, there's no point in staying invested if they're building a £100m MCAP company with the SP at 0.25p, through continual dilution.

I'm not buying they're aligned with us shareholders at this moment, perhaps if they held 50% of the company between them .

Mickey yes , companies only go bankrupt when they can't pay their creditors.

They need funds, they'll will do this through debt and pay back through production but if there was to be any reason they can't produce anything then the fall back option is a placing.

The suspension is just a minor technical rule break that can be cleared up relatively easily.

The real problem is the company has run out of money, they can't dilute to raise funds so their only option is to do it through debt.

They have next to no debt at the moment so they are unlikely to become insolvent anytime soon.

They have just run out of working capital.

Trek, they've made a lot of promises and just like the audited results, they need delivering upon.

JC, Perhaps you're right and I'm completely wrong but how I see things, right now, then a temporary suspension is only a good thing!

Pred, I don't think it's dodgy just tactical.

They'll come out of suspension and we'll be fully funded and everything else either before or shortly afterwards. IMO

JC Nairobi will be as per April 6th RNS.

I like to have my eyes wide open, the auditors are independent and they independently verify the accounts.

There's obviously some information they want before they'll sign it off and we know it's an insignificant number.

What's really questionable is what make RM certain he can find this information in a short time period, when he's had possibly months to find it.

I suspect he knew where to find it all the time and it's a delay tactic.

The thing is these audits take months to complete and now they can't find an insignificant number from the transfer to GCAT.

Now they're going to find this insignificant number really quickly.

JC what you're saying is we're suspended over an insignificant number LOL aka no impact

I think the company will come out of suspension worth considerably more than when it went in.

There's nothing anyone can do we just have to sit it out. Knowing the technical suspension isn't something that will actually impact the financial statements. :)

JC it was a trick question because non material means no impact on the financial statements.

It's something that points towards someone could use as a delaying tactic.

JC - yes I just meant suspended here.

I'm expecting the funding and this issue resolved at the same time and we'll all call it a coincidence!

There's far more to this than meets the eye. I said just last week they won't list in Kenya without audited results and now they can't list here. This issue has been going on for a long time (probably resolved) therefore, I think it's nothing more than a delaying tactic.

Goldplat sells are unrelated, it's money towards tailings storage facility.

The company is out of funds and clearly there's a delay in receiving them but they can't say that (as it will affect the SP) so they have come up with something vague.

"technical audit issue on a non material number in the balances transferred from the previous owner to GCAT."

Which financial statement would that effect?
,,"

I wouldn't read too much into it Goldplat are paying for a tailings storage facility which is costing £300k more than budgeted so they got £150k worth from selling some of their GCAT holding.

Both of Goldplat's sells in GCAT:

https://www.lse.co.uk/rns/GDP/sale-of-a-portion-of-shares-in-caracal-gold-plc-yyj7q0e7v4cynys.html

https://www.lse.co.uk/rns/GDP/sale-of-portion-of-share-in-caracal-gold-plc-4fgkyk68ndbwkrv.html

They also sold over 30m shares in February.

They also have a sense of humour check out today's date :)

Prepayment is good for quickly bringing cashflow into the company and increasing shareholder value as long as the company has manageable debt.

GCAT has the advantage of already being in production giving the scope for a larger prepayment funding. It's about finding the right balance of funding/production to service this debt going forward.

Hope he's asked about future dilution.

We could well see the other half of that trade being reported next week.

There's blue sky news coming between now and the new year so the majority of those on the sidelines have probably missed out now getting in on buying cheaper shares.

Even though I am convinced the SP will re-rate to a higher level over the next few months, I'm not convinced (at this moment in time) the management will move away from their dilutive policy.

No one will know for definite until 2023ar the earliest.