focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
One to watch if you have mining stock in the region.
https://www.reuters.com/world/africa/south-africas-anc-likely-lose-parliamentary-majority-may-vote-survey-shows-2024-03-11/
Credit to nom for alerting me to the situation.
Tro,
CPX, need cash by the end of the month to avoid administration.
CPX "should the Company fail to achieve a solution in the short term, the Board would have no option but to place the Company into administration. In this eventuality, it is not known how much, if any, value would be returned to shareholder"
BLU, their stake in Dynasty downgraded in value from £5.4 million to £450,000.
Hi Grile10,
Thanks for taking the time to reply.
I dont fundamentally disagree with anything in your response, in fact im in broad agreement with you.
Whilst the points you raise are all quite valid and reassuring, they dont absolve management of the responsibility to deliver on its assurances to shareholders.
Perspective needn't be binary, optimism and concern routinely co-exist.
Grilse10,
Re your posts under both this, and another header:
"So all you lot whining on about poor board and comms, have no excuse for cluttering up this board"
The concerns being expressed are quite legitimate imo.
The placing to test, almost 8 months ago, was paid for by PIs. The "over subscription" you later mention is not supportive of your wider argument.
The uptake of a placing at this end of the market is not usually based on the strength of the investment case, but rather the depth of the discount, and the ability to offload at pace.
The facilitating broker collaborates with the placees to enable forward selling or leverage via CFD. In our case the discount was colossal and the forward selling self-evident.
Thus, by the time the placed share are admitted to market, the placees have already made a significant return, and the placed shares can be summarily dumped, at or below issue price if necessary.
And who buys those shares? PIs.
We are one the ones who ultimately buy the newly issued stock to fund the managements objectives.
It is our existing holdings that are diluted, the SP we have been buying that gets hit, and the upward momentum it, and we rely on that is quashed.
We buy that stock on the promise of delivery on the ground.
We pore over managements plans, their projected timelines, and the aspirations they offer as justification for the raise.
If management do not then deliver on their promises, then imo, PIs have every right to feel demoralised.
Tro,
Yeah its a volatile one, could rocket any minute, its what keeps us hooked lol.
Did you see that report that it beat TESLA in terms of trades or interest or something the other week.
I dont read the BB over there. By the time ive read one post another 4 have arrived lol.
Have been expecting a move from CHAR for ages now.
They are fully funded to drill the first couple of wells, targeting something like 40bcf base case, nothing huge, but not insignificant either, they expect around 4 million per bcf.
Further upside with stacked targets, and the potential to strike into a 300m thick reservoir and with proven gas down-dip from the drill site.
However, price has been welded to the floor for a few weeks now. BB reckons there is a background seller, though i havent paid enough attention to the trades to say so myself.
Morning Tro.
Yeah, once it goes its often a bad sign, as you know.
Best to remain mobile with these sort of stocks, no use dropping anchor in a storm.
Sold at 1.7 and looking to catch a dip now.
With support going, and reflecting on what Trek said, i figured more likely down than up.
Have you got any gems in your headlights?
Im keen on DELT in due course, and have been buying some DEC. Picked up some CHAR thinking the presentation might give it a boost, but it didnt budge so out again lol.
Trek,
Peter House not on your Christmas card list i gather :)
Do you see a motive behind todays RNS, it certainly didnt feel necessary to me.
Am cognisant of the need for cash, but would have expected some kind of pump in advance.
The drop below support at around 1.85 is troubling me.
Thanks for sharing your thoughts in detail.
10ml of liquid presently cost £1 at various high street outlets.
10ml containing in excess of 11mg of nicotine per ml is going to have £3 duty added!
Gov creating its own mini cost of living crisis.
Expect black market to boom!
An extra £5000 allowance for UK assets, on top of usual allowances. Designed to combat the decline of the London market.
A spokesperson for Interactive investor notes:
"UK stock markets have underperformed their rivals in the US, Europe and elsewhere since Brexit. International investors have shunned the FTSE 100 amid concerns about increased perceived risk and weaker prospects for the UK economy.
The Treasury’s goal with this announcement is to try and drum up support for UK markets which are in the doldrums. Along with Brexit, the so-called Jurassic Park FTSE 100 has suffered from a heavy lack of exciting new tech success stories, in stark contrast to US markets where tech giants from Silicon Valley have largely been responsible for the major outperformance stateside."
Yeah,
When met was on a high, it was obviously looking great, but a global slump would likely see met drop below $205. So its risky until the global economic picture looks more rosy.
If met prices increase they can truck it out in addition to the trains, but this hits margins so the price needs to be sustainably higher to make this viable.
When the trains have to be serviced, or there are issues with the line, BC just have to suck it up and wait.
Former CEO Adam Wilson has stepped aside, which is likely why the price has tanked recently.
Tro,
Sorry about the late reply.
They can't increase production as they are limited by the size of the wash plant and the storage capacity of the site.
The other option would be to ship more to Integrity, their off-take partner, rather than store.
However, they are limited by the number of trains Norfolk Southern provide each month. NS is entirely independent of BC, services multiple mines, and has no interest in increasing the number of trains it provides. Ideally NS send 7 or so trains per month allowing BC to ship up to 70,000/80,000 tons per month. Frequently they dont send as many, and BC have to limit production accordingly.
The whole operation is perfectly viable as long as met-coal prices remain above around $205, but they can't make further savings by scaling up due to storage constraints and ability to ship. Effectively, they are now at peak production, margins only now increase with the price of met.
If met goes below $205 for a sustained period, its likely BC would go bust, so it's a straight play on met coal prices.
Yeah, good deal for CEG.
Expect a long wait though, AIM hates waiting.
ECO also with a deal today:
Eco will also receive a full carry of its 6.25% retained share of all JV costs, up to a cap, repayable to TotalEnergies and QatarEnergy from production, which is expected to be adequate to fund the Company's share of drilling for up to two wells on the licence.