Member Info for bluegrass

Have they updated the list of major shareholders and shouldn't we have more notification RNS's of major share dealings? Would be interesting to look at who purchased in latest placing and other major share dealings.

John
I don't know why you are arguing with me about this, we seem to agree. What you said in effect repeats what I said originally.

"Impossible to tell if the issue of these shares will effect share price. They won't be traded and the effect could already be built into current share price. Some people look on it as a positive that Garfeng want to invest more."

Maybe I should not have said the piece at the end of my statement about preferring not to be completely happy about the further dilution since it seems to have muddied my point.

More importantly with the pervious drift in the share price and the share price rise today I am expecting some people to post various potential hiccups and problems in an attempt to create doubt and keep the share price bouncing around to make it a good trading environment. If you had bought a few days ago and sold out again today, then you may be more than happy for the share price to drop again in order to rinse and repeat. I maybe a cynic but I am expecting this tomorrow and it needs to be called out. That is if you believe posting on these boards makes any difference anyway.

Well aware that their was no choice. Merely responding to issue raised by others. I am aware that some people maybe trying to raise issues like this to increase volatility for trading purposes. Was trying to say clumsily say that it did not matter.

Impossible to tell if the issue of these shares will effect share price. They won't be traded and the effect could already be built into current share price. Some people look on it as a positive that Garfeng want to invest more. I personally would have preferred not to have the further dilution because the company is on paper fully funded without the further investment.

Read RNS 5thFeb.

Totally agree. Think a lot of people selling now are probably thinking that they don't want their money sitting idle for 2 years. All this talk about having to wait 2 years to see any kind of recovery is nonsense. I believe this will very quickly get back to pre placing levels.

Meant to say 'share price drift'

Personally I don't think share price has any impact on the company operationally at all. BCN is fully funded to production. Just a bit of patience needed.

Worth bearing in mind that project is now fully funded with or without further share purchase by Garfeng. Maybe there was some sense in Garfeng not being included in the placement when they need approval from Chinese government, could have left BCN in an awkward position. Now it is their choice and does not matter either way. Expect some people would prefer if they did not dilute existing shareholders more.

It is hard not to keep an eye on share price even though I completely agree with putting it in the bottom drawer. Can't see any reasons at all in selling at moment unless you need money for something else or think you can make a quick killing elsewhere, but that's a dangerous game. Share price does not make any sense, SP less than it was in January before raise, but we now have more than $60 million extra in the bank account and big reduction in risk. I can understand the drop to the placing level, but this really makes no sense. Also noted from recent RNS that Garfeng's extra shares will be taken at placing price of 45p, so there is no advantage in price being brought down for them.

No point in worrying about that now. Seems to be a fair amount on account for contingencies.

Sorry johnwh think we were talking at cross purposes. I thought you were including the money from Garfeng to take them to 28.88% of BCN, money that will go into BCN's bank account, not the money from Gargeng for the 50% of SSL that as you rightly said stayed with SSL.

Good thing I am not an accountant. Confusing that some figures are in dollars and some in pounds. Anyway it is a lot of cash and my point was if you deduct the cash from the market cap you are left with quite a low value for the companies assets, considering those assets are for a proposed lithium mine with finance in place to take it through to production. In fact I think quite remarkably low when you compare it to some of BCN's peers.

Think you forgot about the £31 million for Garfeng extra shares. So that would be £107m + £31m giving £138m less what ever burnt since last June. So total 384m shares at 46p/share gives MC of approx. £176m v's £138m cash. Valuing BCN's 50% of Sonara at £38m. Is that right? Seems very low when project now has finance fully in place. Could you compare that with the market cap of EMH for instance that have very little cash?

Interestingly the market cap is similar to the highs of January now that the extra shares are live. The difference now though is the company must have over £100 million in the bank.

Appreciate that Garfeng held an option. Have not weight up benefits of placing versus RK finance.

Must admit I would take a couple of quid per share.

I worked through the maths of the new placings and it appears that Gargeng did not participate in the original placing. Garfeng have acquired all their new shares in the subsequent separate placing. Have no idea why they did it that way or why BCN need the extra money. It would have made more sense to me if Garfeng had taken an allocation of the original placing since it would have led to less dilution at this low share price. Avoiding dilution of private investors shares does not appear to be a priority to the company. I hope there is a good reason for needing the extra money. Anyway this does appear to be the end of the placings and money raising for construction. Don't really expect any institutions to start selling their shares now and at this price. Still think outlook is good.

Also going to be very interesting to see who has bought into placement.

After any initial hesitancy I am also hoping this will start to pick up. I think the SP was manipulated down to get to an 'agreed' placement price last week. As that was the final money raise before construction and the major share holders are where they want to be then there is no reason to hold price down any more. The same mechanisms used to bring the SP down could be used to take it up again. Also wondering what the extra money will be used for, could it be used for an expansion of mine proposals?