RE: Never argue10 Nov 2023 13:06
DL Possible reasons for low share price:
1. RKH is not alone in a relatively lowly market cap, I know of many others that are in a similar position. Take Pan African Resources it’s a gold producer its PE is 6 or less it’s got a 4.7% dividend that is to be paid out on the 30-11-23. It has new production in the pipeline for next year, but no one is that interested in it. In fact the whole mining sector in general is beaten up.
2. Not as many individual/private participants as there used to be 10/15 years ago and no IFA is going to recommend RKH as a candidate for investment or any individual stock: it’s all funds based.
3. I would say that perhaps many new market participants are probably more interested in the big teck stocks , crypto markets, short term trades. Commodities out of favour generally.
4. Far more passive investing these days in tracker fund, dumb money that just follows the trends regardless of valuations or anything for that matter.
5. As we all know it’s not yet a done deal, either in the collection of the award from Italy or the Sealion project FID. Why invest money now and have to wait for an unknown period to time tying up funds, better to wait and pay a little more on conformation. I think we have already seen this in the lack of warrants currently taken up. I do take it as a positive, that relatively few have been taken up as if a quick profit were the mission, then they would have exercised and sold already. I assume that most will exercise and hold, but keep the cash as long as possible i.e. December.
6. I think investing timeframes of old are out the window these days, holding for 3/5 years used to be the way now its 3/5 months at best for a lot of folk. Algorithms playing shares back and forth are the new norm. Not so much on the likes of RKH it’s to illiquid, but what I am saying is the interest is elsewhere.
Back to your question Decidedleaverage : is the current situation any different from the last 10 years? Well I’m afraid that no one really knows how it will play out is the short answer!
I do believe that Navitas are serious about this project and trying to push it over the line, I do not see them wasting all this effort just so Sam can get another few years of salaries under his belt. I am as frustrated as you are with the overall situation over the last 10 years, but no point in saying could have, would have, should have .. we are where we are and frankly its still a risk, hence for the big players why take it when you could get in for say 30p and still be on a multi bagger!
Risks as I see it, finance, finding a partner, political situation.
My insurance policy is The Award underpinning the current SP.
PS In hindsight I would have sold out years ago and bought back in at 30p on solid news.
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