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Donald Trump to implement no new trade restrictions on uranium imports into the United States following the Section 232 investigation into the matter.
This might hit some US stocks in the short term, but we should see an increase in Uranium market activity now and hopefully the rise in price will resume longer term.
It looks like a smart move by BKY to relocate the HQ to Spain and recruiting a Spanish national with real experience of their political machinations to CEO seems eminently sensible as well.
PA has other interests in Pensana and a concentration of focus at board level can only be good for the company.
We're likely to know more when the drill results are produced by the end of the year. I would suggest that it's a longer term play here. Good drill results will see a big re-rate, especially if gold remains on an upward curve.
In short space of time I was invested here, the comment that really stuck in the craw was RP saying at the UKIS that the company would be in profit this current financial year, only to be followed by the infamous RNS stating that Honduras was not financially viable and margins were still negligible on the gold trading business.
A revaluation of fixed assets (Australian licences) would help the P&L look better, but surely would not produce a profit. Is it really a going concern? Over to you, auditors...
I'm sure we would all like to know where the revenue generation, or indeed net profit, is going to come from. The Align report looks like a complete piece of sh**t now; there's a connection there of course...
It would be reassuring for us all if this was taken up by professional financial investigative media to give us a clearer picture of what's happening here, would it not?
The move to remove pre-emption rights is an acknowledgement by the company that they can't raise money in the normal course of a placing, as the SP is below par value as you point out. A consolidation at present would not change this as the par value of the shares would rise in proportion as illustrated in my previous post.
This means that the company must find an alternative way of raising funds by passing a resolution to change the articles (rules) of the company which would remove this protection for shareholders (pre-emption rights).
If RP is looking to issue an extra 8bn shares, this will double the amount of shares in circulation. It could halve the value of the shares already in circulation.
The rule of law states that shareholders must be informed of the intention to disapply the P-E rights, which has been done in the RNS. What form the new capital raise will take will become apparent on 2nd July after the EGM.
It is really complex and my knowledge doesn't extend to second guessing what may happen, but:
- it smacks of desparation
- on the face of it, there may be a 50% reduction in the value of existing shares
- who's going to invest and what's in it for them?
The waiver of pre-emption rights removes shareholders' protection against inappropriate dilution of their investments.
This an attempt to issue more shares at a level below the current par value. The EGM will probably pass the resolution by amending its Articles – either removing an explicit provision in the articles themselves or stating that the statutory pre-emption rights are not to apply to the company’s shares.
I would recommend bearing this in mind if you fancy a punt here....
Very positive RNS; licenses for prospecting for battery metals have been granted.
It will be VERY interesting to see if there is continued opposiition to the mine at central government level if this can be progressed. You would think a local supply of battery metals would fit in well with the government's green energy policy, wouldn't you..
"The Company has also been awarded three new licenses covering an area of 266 km2, located 40 km from Retortillo.
Previous geochemical analysis using ionic leach methodology has shown the licence areas to be prospective for the battery and EV metals lithium, cobalt, tin, tungsten and rare earth elements. The company is accelerating plans to further define, and test drill these targets."
I found this during some idle browsing and thought I'd post to lighten the mood here. It made me lol anyway!
It's a list compiled by an obviously reputable website, pumpedordumped.com, which purports to uncover those dangerous types who's bulletin board posts are responsible for manipulating share prices.
"Groups of people try to control Twitter and Bulletin boards. They start ramping once they have bought in.
Watch out for these groups and individuals - they stand out over time but check the lists below if unsure"
Well done Baht, top of the charts! Easyp number two! NigWit no4 (!!), me no5, flundra sneaking into the top 10 too.
An honourable mention from the past must go to completelynew at no.11 - hope you're all good mate!
Of the more recent posters, Everlong, TBTT, Forsterite, Tomcorvid - you're marked too!
Anyway, it made me laugh and PAUL1DEANO, look forward to seeing you in the next list. And matnotan too ffs!
The company seem good at providing regular updates every month or so. We may have to wait until Q4 for results of the deeper drilling per the RNSs though.
Grades are low-ish so far, but it's early days in the drilling programme and higher grade discoveries could prove transformational. Quite happy to wait and watch for the medium term.
I agree with the risk/ reward vs HUM, though though that one will look very underpriced as well if they can produce decent results in the next couple of quarters.
Placings are out of the question at present as this is impossible to do below the par value of the shares, which is 0.1p. A consolidation does not alter this scenario as the example below illustrates as the par value of the shares will increase in proportion to the consolidation:
A company has 1,000,000 ordinary 1p shares and is valued at £1,000, giving each share a value of 0.1p. This may be seen as too low a price per share. The company therefore completes a 1,000 for 1 share consolidation which reduces the number of shares to 1,000 and increases the nominal value and share price to £10 and £1 per share respectively.
Each shareholder will, after the consolidation, have fewer shares but still own the same percentage of the shares. The shareholders’ rights, therefore, will not be changed as a result of the share consolidation.
Looking at the interim accounts to last June, cash burn could be estimated at around $800,000 per annum. There can't be enough cash left at present to sustain the company until Christmas despite the warrant sales and placings of c.$600,000 at the turn of last year.
The only sources of capital raising would be the sale of the Honduras operation (bought for $450k), sale of the Australian assets (maybe $250-350k) or a further injection of capital from RP.
As it stands, the company does not appear to be trading as a going concern and it will be interesting to see the auditor's report in the forthcoming accounts with regard to this.
Gold flying at the time of posting, there could be another nice rise tomorrow. It will be interesting to see if the short position declared by Millenium International is closed soon. I must say that I didn't really get their rationale behind this, aside from possible political risk.
Yes, I bought a couple of batches here last week (before and after the price drop). Like the potential and BOD; it seems very underpriced!
Just looking at the gold price at the time of posting; it's racing ahead which obviously bodes well here. Here's hoping for another nice rise tomorrow. Check out the graph further down the page.
I can't find any update on the CSN situation flundra, but the company did say it would inform us when a decision had been reached regarding their appeal.