The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Actually IKY affirmat did do something to the MC. Had it fallen through the MC would have plummeted as a cash call would be on the horizon. It wasn't big enough in itself to do anything except fund more opex. The business model needs some shareholder return as in special dividend to show it is not just an exploration gambling device for CB's gratification. If Luansobe falls through it will be so bad from both funding and confidence point of view.
Agreed moneygilb. Even second hand car salesman know they need to earn trust. Ok it's a typical AIM outfit but Luansobe is a game changer as it is a sizeable asset, approved license, and allegedly ready to get going. Income stream or sale should provide cash flow and an otter term shareholder value. We move beyond seat of the pants, we need to beef up the management and communication. Hubristic podcasts and crocodile tears for shareholders don't cut the mustard. A comprehensive update on all assets is needed .
CB indicated an RNS would be issued on confirmation - as Analytical pointed out, the application which was approved, required a detailed plan. This could be released and further release on contractual implementation and expected timescales. You expect this to be in operation is a little over two months...another disingenuous snippet from a CB podcase.
So.... 5 weeks after the meeting to approve mining licenses we still have no RNS from the Co. Do people seriously believe this is held up because of lack of formal notice from the Cadastre? The is a 500 million dollar asset... a plan had to be supplied for the licence ..CB treats shareholders as idiots..spouting hot air, vague insinuations. Pictures of dumper trucks last year..what was that ..some sort of selfie opportunity? Give the shareholders an update.
The MLC document stated that the license offer must be collected BY the 20th May or it will expire. The onus seems on the Company and surely they would have collected this already. I do not see why this does not constitute a formal offer so why has the Co not RNS... something smells bad
The last set of accounts were dated 30th Sep. Obviously need to cover OPEX/CAPEX so expect significant more sales in the 6 months until the2.1 million was received. We really need/deserve detailed plans, timelines and cash flow forecast for Luansobe...
Who is waiting for what?
Co says they are waiting for official confirmation before releasing RNS?
79th MLC report states:-
SUCCESSFUL APPLICANTS MUST COLLECT OFFER LETTERS FROM OUR REGISTRY AND PAY THE APPLICABLE AREA CHARGES AND MEET ANY OTHER CONDITION(S) (AS THE CASE MIGHT BE) WITHIN THE STIPULATED WINDOW PERIOD AS ACKNOWLEDGMENT OF ACCEPTANCE OF THE OFFER;
The window expires on 20th May..has the Co picked up the offer letter?
Whilst we wait...what about all of those other assets...sale/JV of 3 by end of Q2?? Cat in hells chance.. but any news on exploration results or plans would be most welcome by all owners of this company. May even give the impression that we are not some seat of the pants outfit and attract more investors.
There would be no need for all this exhausting speculation if the management publish nte mining plan and cash flow forecasts. The Co was effusive about Sept/Oct production so they must have a plan in place unless this was just some utter BS "aspiration". If there is some delay we deserve some explanation and a firm project time table. It looks woeful that we have have a 500 million asset, an approval to mine it yet no published plan. We need a more capable Board imo.
Of course are much bigger, but profits are realised in the future. If they are just used to fund exploration there is significant risk attached, so let's see how the market responds. Had there been say a 20 million special dividend it's obvious we would see a factor 2-3 on the SP
Personally I am a bit disappointed that the much vaunted JV/sale of the open pit on granting of nte mining license looks like more hubris. If we mine there will unlikely be a return to shareholders for some considerable time, particularly if the income is just used to fund exploration of other prospects. Whilst the prospects are indeed promising the timescale for realisation is years imo and all we will get at e nebulous, hubristic podcasts. Consequently I don't expect an immediate big uplift in the SP if we mine the open pit. I would love to be proven wrong and see Chr5p 2p projection.