Member Info for Bismarck

Sorry, S & P supposed to be M & G!

@Ronald
While I agree with much of what you've said, and we're certainly batting for the same side, the SP plummeted from around 10p to 6.5p at the time Russia invaded Ukraine and coal price rocketed in response. I'm not sure when S & P started their sell off or what would have happened to SP had M & G not exited?

These are selling like hot cakes. 10p next week please!

Wish I'd bought more in the 6's (or lower) but it's always the way. If you go too overweight on a share it can and often does come back and bite you. Got to remember that some companies do become insolvent and collapse. Incredible how well OPG have weathered this storm IMO.

When that point is reached I think further exploration/mining expansion will be next on the list. The mine is unlikely to be in the best spot, it's just been built where gold was found at the time. With spare cash they can do some serious exploration. Divi's likely to be some years off I think.

Not sure about zero debt by year end. My stocko page shows 2022 debt at $AU23.3M (about £13.7M sterling) and we're not likely to see a profit for some months yet. Current cash is little more than what's just been raised, much of which will be needed to see us through to decent production levels.

If I was not optimistic about the company's long term prospects I wouldn't be here, but I think it will take longer than you think.

I'm overweight in these so I'll probably unload my new 40p shares at 60p to get down to my previous holding. If we reach £1 I'll probably then take profits, selling half the remainder. Beyond that I'll wait and see.

@BBB
It's my understanding that we will be accessing two veins simultaneously for the first time later this year and we have the tailings thickener available to de-bottleneck the processing plant when required. The ramp up to this point has certainly been painfully slow, I'm sure much slower than anyone could have imagined. I've only been involved as an investor for a little over a year so have suffered a lot less pain than many here, but to me it now looks like there might finally be light at the end of the tunnel !

If the promised production numbers are achieved, and achieved for the long term this really has potential to be a multibagger from this level.

The problem is that it's taken so long to get to where we are, with so many false dawns. People will have to actually see it before they believe it can be done. This, combined with the effect of the raise/retail offer is why this company has such a crazy low market cap right now.

Last February's trading update was for the 9 months ending 31 December 21, so I don't think the next update, to 31 Dec 22 will reflect much reduction in coal price which averaged $85 for ICI4 last year an has only very recently dropped below that.

I hope so, but I'm not counting on any serious increase in SP before stoping and increased production numbers

I got 100% from my ii account and will presumably get 100% from AJ Bell too once it's processed

That does make me a bit overweight in SGZ but has also brought my average down from 62p to 54p which is nice. I'm fairly confident is will be back up to 60's or hopefully more by late spring or early summer when stoping is well underway so may offload my new shares then to get back down to my previous holding level.

I think it will be heavily over subscribed too and was very greedy in the amount I requested. I only expect to be allocated a fraction of what I applied for. Not long to wait to find out, tomorrow is "D Day"

Nice to see the SP on the up. There has been resistance at around the 7p to 7.2p range since last spring so let's see if we can finally break through that. I've now averaged down to 8p so will be very happy once that milestone is crossed.

You spoke too soon, down to $1847 now!

There was almost £1m traded on Friday alone at low 40's and I'd be very surprised if the amount applied for in the retail offer was less than that. If heavily over subscribed I'd guess the following might occur, based purely on my previous experience of over subscribed retail offers -

Close early
Give 100% of shares applied for up to a certain level
Give a % above that, possibly with a cut off point beyond which no further shares are allocated. We'll soon see....

With raises In the past (not with SGZ) I've seen a sell off at around or very fractionally above the offer price straight afterwards. This occurs when investors unload the shares they just bought on offer, some having bought not for profit, but simply because they just wanted the raise to be successful. I don't think that will apply here as the discount (IMO) is so large and the offer will be well over subscribed anyway. My guess is that the SP may stay in the 40's for a while before gradually moving back up to 60+ after stoping starts and there are some decent production figures

Now this really IS significant.....ICI4 now @ $73 (and if they really do get a 4% discount that's $70) https://www.jwcindonesia.com/price-index
@ <$60 it's party time!

Short term the SP normally drops to a level just above a capital raise price. Perhaps the raise price had been agreed prior to the recent media coverage which gave the SP a boost, so the discount was significantly greater than the more usual circa 10% you expect to see. Who knows? Whatever the reason for the large discount the short term effect on SP has been brutal.

I actually sold some on Thursday at 60p a few hours before the raise RNS as I expected the SP to settle down post media interest, with the intention to buy them back at a lower price in April before stoping. For once the stars were aligned and my timing perfect. I normally see a jump in SP straight after selling!

I've now placed an order for a very significant top up at 40p and I'll be satisfied if I get half of them. What I don't get at 40p I'm sure I'll be able to buy on the market at low to mid 40's on Friday or Monday before they start creeping up again.

Of the £25M market cap, 2/3rd is held by the BOD who are non-sellers so only 1/3 or £8M in shares available for trade. Almost £1M was traded on Friday which seems incredible.

Scoping returns?

I'll be surprised if this is not over subscribed. Will be interesting to see how shares are allocated if it is.