RE: Directors talk interview.7 Jun 2025 11:40
Morning Frog, I am out.
However, I have loads of questions, but they won't get answered in the near term. The market will tell us, if this deal goes through, by way of the pricing of the remaining assets and the risk they perceive.
Will the credit facilities remain in place or are they linked to the Chrome/PGM part of the business as Zambia appears to purchase through dilution?
I wouldn't be surprised if this suddenly went to 4p or 5p on the copper asset value & cash in the bank, with a forward looking market. My positive take.
My negative take. It could drop to 2p as people have stated that is what value the copper adds to the SP by the market value. Especially if the initial payment goes on repaying the debt, the other payments are months/years away. That could mean dilution at low levels & the board don't have enough 'skin in the game' imho.
If 2p did occur, I wouldn't be surprised to see the Board award themselves some more cheap Share Options. Prior to the gradual rise to the target being achieved in 2028 - The next cash cow!
My plan was to stay invested for at least 2 to 4 years as the risk was low, I won't risk £40k on the unproven process. It appears to be evolving, from low grade cheap waste to a higher grade ROM at a higher cost, but no improvement in production, possibly lower. It would have been good to see some numbers from the testing. People may say that they don't release them whilst they're in negotiation for two further mines, may be so.
Finishing on a positive note for holders, I sell at the worst time, Apr 2020, when the world shut down and JLP went on a run to 20p :-)
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