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It could be for any number of things. Public listing, Nomad, broker fees, lawyers/solicitors, tax consultant etc or something else. At this time, it makes sense to pay as many admin costs in shares as possible.

The actions of this BOD have so far been near as damn it 100% shareholder minded. It is not their fault that previous directors diluted shareholders to death and anger over that should left laid to rest. Since they have come on board they have kept dilution to a minimum but they couldn't avoid it entirely. Cash was required to further the assets and in order to deliver a better return for shareholders. In a crappy market, they have managed to get a second raise away at a 70% premium to the first. For a company with no established resource that is one heck of a result and sets a good pattern for future outcomes.

There's nothing wrong with feeling disappointed and angry over past failings but this BOD must be judged on what they have and will deliver. So far it has been very positive such that they deserve our support. If they mess up or change pattern then of course they should be brought to task on it. But in the meantime, if they keep getting such positive deals done then their efforts should be respected through positivity and belief.

Given there is a tax loss in play here and corporate transactions in the offing the above positive pattern is a strong tell as to what is likely coming here.

No, you are misinterpreting the wording.

The fees have nothing to do with paying a company to conserve cash. They are fees that would normally be paid in cash but have instead been paid in shares. Thus "conserving" the business £6,000 which can be used for better things like exploration. This happens in a lot of listed shares where money is tight.

I trust all investors appreciate that when ECR said this (see below) on 14th June they meant they had paid fees in shares rather than cash to conserve cash resources. It does not mean that they were paying someone to help them conserve cash.

"At the same time, the Company has agreed to issue and allot 2,307,692 new ordinary shares in lieu of £6,000 of fees owed by the Company in order to assist the Company in conserving its cash resources."

There is always room for criticism daramuda but I think you are being overly critical.

As you will know the business world isn't a charity. These guys aren't here to work for free and could easily have given themselves far greater pay packets from the off. £102k is not a big wage for a typical AIM company director. But to then take c. 90% of it in shares spread over the year from the off without any proof that their efforts will pay off demonstrates a full commitment to shareholders and an alignment that says they will do all they can to ensure this is a success for them and me too. How many AIM directors out there can we say that about? Not many at all.

There are plenty of businesses out there with great tech, assets or ideas that constantly let themselves down with the way they raise money and reward themselves. Yet investors still flock to them. Here we have a BOD that has taken limited pay from day one and aligned themselves fully with those who would back them. That is very rare. What we now need to complement that is the assets to perform so that the combined offering of trustworthy and effective management plus great assets can shine through. If they can do that then their approach should be rewarded with a higher valuation than many of their peers.

Before they came in ECR was going nowhere and bleeding shares and cash. It takes time to plug all the holes and set up a new approach and strategy. 9 months is nothing for a mining exploration business that has to work around wet seasons. Slowly but surely progress is being made and the efforts of cash preservation and taking shares have set them up for what are 3 meaningful and dare I say exciting exploration programmes over the remainder of the year.

In addition, they are clearly looking to improve the business through corporate activity. Again I see this as a positive for the company when I know the BOD is fully aligned with me and cash conscious. It means the deals are likely to be positive-

A willingness to hear criticism about our investments is always important but I just can't see the justification for it with ECR. and I trust that the market will start to see what I clearly can as the year further unfolds.

From the outlook section of today's results,

"Over the remainder of this year, the Company's work programme will include:

· Inaugural exploration campaign at Blue Mountain where work conducted by the previous operator is reported to include an alluvial resource which could potentially yield over 100,000 ounces

· Trenching at Flaggy Creek and Reedy Creek in Lolworth, Queensland - trench across various outcrops followed up with Reverse Circulation drilling

· Reconnaissance for Niobium, REE and Gold in streams over eastern tenements in Lolworth where geological mapping suggests the presence of pegmatite intrusion that covers approximately 45km2

· Reverse Circulation drilling at Tambo, Victoria, where the Company has recorded 51.5g/t gold in rock chips

Through a combination of the placing announced in March 2024, the Board's focus on cost management and salary sacrifice and last year's assets sale, these activities are fully funded."

3 very solid and fully funded exploration targets with some niobium and REE investigations thrown in.

We have the property sale, tax losses and possible JV discussions all running in the background. With the tax losses being the blue sky item if/when it lands.

They will be returning to Tambo to drill. There was no mention of a return to Creswick during this exploration campaign.

Following the rock chips results at the old Duke of Cornwall mine Tambo represents a valid drilling target.

By the end of the year, ECR should know which assets are worth focusing on.

Morning all,

Someone asked my opinion on valuation yesterday which I answered this morning with a fairly long thread.

Thought it would be worthwhile copying it here also.

https://x.com/BigBiteNow/status/1803311870322880683

That was my feeling also Richard08.

I have spent a little time looking up the rules around placements without success but my gut says they have access to too much inside info to be allowed to participate. but others may know otherwise.

Bringing up the progress made under previous management and projecting it onto the new management team, has zero worth.

Criticising small-scale CAPEX light progress on available projects whilst the ECR exploration teams wait to access their best projects post-rainy season is also misguided.

ECR management cannot help the weather. Nor can they simply send their teams away and call them back when they wish. What they have done is put them to work on available projects to see if they can't make meaningful enough progress to present the BOD with a future headache on where they apply the bulk of their available CAPEX.

To be fair even with limited time and funds applied the teams have identified some solid prospects which will no doubt be considered once the full 2024 exploration programme has been completed. But it is clear that the most important part of their 2024 exploration campaign is now just getting started in Queensland starting at Blue Mountain.

A new BOD has every right to push as many angles as it can on what is a very large land package before assessing where best to focus its future attention. After all, they have only been in the job c. 8 months. This takes time and requires patience from shareholders which for some of the longer-serving ones may be difficult to offer.

But the new BOD cannot help with that. All they can do is examine each option as best they can (be it land or mineral-based) whilst seeking alternative ways to fund the opportunities that they find. Hence why they have sacrificed their salaries and are seeking to sell non-core assets and tax losses.

I wish other BODs I've invested in were as committed as this BOD has been. Such efforts deserve reward.

For those that perhaps don't visit Twitter so much here is a thread I have put together on signposted news over the next 6-9 months.

Significant contract wins. Supply chain and market development. Mistral launch. Lots coming our way as Invinity moves into the next phase of its corporate development.

https://x.com/BigBiteNow/status/1803051971647017025

I too am a long-term holder of IES be it at a fairly low average compared to many. I have now chosen to add to that position due to the opportunity this sell-off has created.

There is nothing rose-tinted about the launch of Mistral and what it means for Invinity's future workload. Nor is it rose-tinted to realised that the funding gives IES the working capital and production expansion it needs to deliver Mistral sized projects.

In doing so it has given them the opportunity to deliver UK-based projects that can demonstrate the IRR of VRFBs for future customers. That also secures them a solid revenue-producing asset for the balance sheet which can be sold later likely at a profit.

It is clear there have been problems with the UK regulatory system which favours small-duration batteries. UKIB involvement is a big message that the UK wishes to solve this.

On top of all of this is Gamesa and the Mistral launch which I struggle to conclude can come without projects attached. IES is down to provide their IP retained elements of these projects.

It is also clear that the 432MWh of advanced pipeline projects includes large projects with longer gestation periods that have perhaps been waiting on this funding to be moved forwards.

96MWh of UK projects are near-term announcements but it'll take one large deal in say the 100MWh bracket to completely transform the market's opinion of where this is all heading. Then let's see where the SP is then.

@NicetoMichu,

The MC may still be £80m but the enterprise value is now running at £22m with significant projects set to close in H2 2024 and the launch of the lowest cost long duration battery on the market that is best suited for the rigours of wind power. Hence why Gamesa commissioned it and helped execute its content.

People complain where are the projects but forget that IES is now entering the +100MWh world where working capital and production capacity are key. Prior to the fund raise they couldn't answer the questions on how these elements would be funded. They can now and just in time for Mistral.

I would suggest properly digest the funding document and the VSA Capital 2nd May broker note. VSA being their inside capital support. I have no idea why the price has dropped so low but I have filled my boots at 18.4p and below because it is clear what this company can now do post their funding blockage.

https://x.com/BigBiteNow/status/1801561230424846386

Indeed HarChris but I do appreciate the caution and fear that exists. Junior pharma is toxic for many right now because of the fears over funding. But logic says this team isn't signposting a raise. If they are then they aren't as good as their CVs say they are.

The other thing is that the wording in that statement ties back into what was said in the FY results update.

Hence why it starts with "As announced in our Full Year Results, the Company and Board have been focused on seeking support to advance the XF-73 Nasal programme through Phase 3 clinical trials."

There they announced "commencement of review of strategic options."

So as is typical investors believe they are reading something new when in fact it's merely a continuation of what was presented before. That's why what was said in the actual AGM is most important.

Hence also why they say "Our review of these options has continued since the Full Year Results." A continuation of what was presented at that time. So not a new set of options post new feedback but a continuation of the previous process. A holding statement if you will which is not uncommon at AGMs where it is assumed not many people are paying attention.

I'll leave it there but right now it looks like an overreaction. The only thing we do know is that an update has been signalled and I will stick with my logic that this experienced BOD wouldn't signpost a fundraise before they had closed it out. But with a big caveat that nothing can ever be ruled out.

"While licencing activities continue, given our current cash runway, feedback from potential partners has led us to evaluate a range of strategic options. Our review of these options has continued since the Full Year Results and we intend to provide an update to the market in the coming weeks."

These are dangerous times to bet against a young pharma requiring a fundraise but the above wording certainly doesn't smack of one yet and certainly not immediately after the AGM.

Would this highly experienced management team really stand up in an AGM and signpost strategic options to be announced in a few weeks (so guided) that are just a fundraising campaign? Knowing that said path immediately damages their ability to raise at higher prices.

Surely if said options were only about a fundraise then they would simply get on with the fund raise and then explain why it was required after the event. This smacks of something else being in the mix which in turn may come with new equity. But then WTFDIK.

Well, I am reminded of the improvements made to the phase 3 programmes. The significant cost savings and market data were all supposed to answer the potential partner questions and DEST management were very confident. Poorer programmes than this have achieved partial sales for equity. But let's see. The market certainly seems to be pointing to a placement but like I said it would be quite an error from what is a very experienced lead team.

I missed the AGM but am struggling to believe that they would indicate a placing was coming in their AGM prior to it being agreed over the "coming weeks."

For someone of Mr Tovey's experience that would be as big a shot in your own foot as it gets. Would ölike to watch the playback when it is available.

Hi Bridgedogg1,

I missed the AGM and would like to see the playback. From the wording of the AGM statement, it looks like other options are on the table. In this environment, they can't get a raise away to cover phase 3 so to me it looks more like a partial asset sale.

What the CEO said was that when dredged the port would be 8m in depth which is big enough for the "handy vessels in there that can do 10,000 tons. Which is fine they are economic, to go to China or wherever."

There is the risk of the wave action (swell) over time filling up the port once more which means repeated dredging which would dent the overall economics. Hence why they have 2 logistic companies looking at other options in-country. But again I repeat it is really interesting that a minister is holding a press conference where he is talking up getting this port back into operation and the key party to achieving that is the CMET JV.

That is a really interesting development xel123 given what the CMET CEO said in the interview with Crux Investors.

There are graded mineral sands in the port and we know it needs to be dredged in order to become operational. "Ships can't get in and out." Such that the port is not currently being used.

"We're going to reduce that tenement down to about 6 blocks that just gives us control of the port and a linkage to the top of the resource."

"The port is sitting there it is not occupied. I think they would love us to dredge it and so it is working again."

None of what the Fisheries Minister is quoted as saying is possible without the dredging and as far as we know the only entity out there who would be willing to do that is the CMET project and its CAPEX.

Unless the Sri Lankan government has decided to fund it but that doesn't make sense to me. If a government has a possibility of a private enterprise carrying out these works on its behalf then it would surely wait for the opportunity to take it. Especially when their own funding is tight.

So the timing of this announcement is very interesting particularly when we know that the CEO was in Sri Lanka when Zak Mir interviewed him on 29th May.

A really interesting find thank you for sharing.