Member Info for Candid

Been looking at this a while ago and I think the technology has great potential.
What puts me off is the valuation (currently £25m) which for a loss making company is quite high, especially where profitability is likely to be a couple of years away. At current cash burn of approx £4m a year they will likely be raising more funding in H1 2020. (end June 19 cash was £4m but likely down to £2m at year-end).
The directors mention ‘long-term growth’ which implies that meaningful revenue is still a while away.

another trader’s attempt at p&d or a sustained rise? A close above 1.50 is a good technical signal

When financing comes, what are people’s thoughts on the equity part of the financing package?
It will be mainly debt financing, as mentioned before, but there will probably be an equity raise. The question is what volume and at what share price?

There is still a chance of a JV with a major to provide all or some of the financing, perhaps Teck, Glencore or another, but I think in the long term shareholders will be better off retaining 100% the project/s and a debt financing package is better..

Glad this is out of the way now with no nasty surprises.

Looks like a decent recovery play now:

* £2.74m cash at period end
* no debts
* cash-burn massively reduced (London and NY offices have been closed)
* Airsight making very good progress, ahead of expectations (apparently directors can’t buy shares currently as they are progressing a number of significant deals in addition to the one recently announced)
* sme banking platform will be restarted once sme accounting digitalisation uptake is greater

I didn’t even realise the drone subsidiary was part of the acquisition so this is very welcome news. Government agencies spend big, especially on environmental work and there is plenty of scope for similar mining decommissioning work at other mines around Australia and perhaps globally.

Also, I still think the train infrastructure monitoring solution will bring in the really major contract wins as it results in huge cost savings for train companies doing regular condition monitoring.

So it’s finally being sold, not a great return on investment but at least we’re moving on from DRC which will probably be stuck in conflict for years.
This is likely the current market rate for ARCM’s (73% interest) in this gold resource. Do you really think the Chinese would have let this one go if they thought it’s worth getting?
If the Chinese think it’s worth more they may still come in with a counter-offer, if they don’t then it’s obvious that it’s not worth more.

My guess is that someone has bought the remaining shares that Canaccord have been offloading.

Canaccord had 3,763,333 shares remaining and we have seen 763,333 & 1,000,000 bought last week and 2,000,000 today, that makes 3,763,333. Hopefully overhang cleared and interesting to find out who the buyer is...

1. Has GLR submitted the application for small-scale mining permit for Star Zinc?
2. how long will this licence take to be granted and are we on track for Q2/2020 mining?
3. when will Ka****u exploration drilling begin?
4. Why is the Glenover mining rights application taking so long? (around 2 years already)
5. What are the plans for Glenover once the mining right has been granted?
6. any potential for a JV deal for the Ferber property in Nevada?

Price of gold down to $1485 today
terrorist attack in Mali

Should recover from this, the Mali army is more than adequate to deal with militants.
Price of gold is still going up as central banks debase currencies keep interest rates low

I think you’re wrong there, the number of votes mentioned in the poll was for Resolution 2 only, which was the ‘waiver for mergers and takeover rule’ and this is only for independent shareholders only.

Resolution 1 (the acquisition) would need to have passed with a much higher vote.

LME stock levels at record low
Indonesia banning nickel exports 31 Dec 2109, and already restricting before this date
Stockpiling accelerating
Rumours of traders cornering the market

Deal closing expected tomorrow for Airsight.
Seems to be up 8% today on no volume
Large spread, indicates that MMs are not keen to trade and prefer holding shares

Will be great if zinc prices keep rising into next year.

Premium for cash over 3-month zinc contract elevated (Updates prices) By Pratima Desai LONDON, Oct 28 (Reuters) - Zinc prices climbed towards 4-month peaks on Monday as slumping stocks fuelled fears of shortages, while copper hovered near five-week highs on hopes of progress in trade talks between the United States and China. Benchmark zinc on the London Metal Exchange was untraded in the closing rings, but was bid up 1.3% to $2,542 a tonne. Prices of the metal used to galvanise steel earlier touched $2,549, moving back towards last week's peak of $2,567.35, which was the highest since June 14. "Visible zinc stocks are minimal, I can't remember the last time they were so low," a metal trader said.

I thought there might be a seller in the background keeping the shareprice down.
So now we know it’s Cannacord, who sold around half of their holding.
This is part of their strategy of selling off all their AIM companies in funds they acquired after their takeover of Hargreave Hale.
They still have approx 4.7% stake and this is likely to be sold too and the overhand will be gone.

Looks like traders are attempting to bump this higher, but ultimately the real winners will be the ones who buy and hold.

BUY indicators:
* market cap (approx £1m) is well below current cash levels (£2.5m)
* severely oversold territory, down from 15p IPO price last year to 1p
* business has been re-engineered to target the growing transportation asset monitoring market
* in-house developed artificial intelligence capability will put it ahead of competitors
* customers and partnerships to be announced over the coming months
* patented banking platform on hold, but this value may be realised via a sale or a future relaunch
* current funding runway will last into 2021
* shareholders include a number of institutions, funds and VCT’s (approx 80% holders)
* very small free float willcontribute to a strong price recovery when it comes

Cheers for the update aandi and djryan, that’s quite a lot of meaningful drilling to report.
Just looking back a Newcrest’s Denver presentation, slide 25 for Havieron does indeed mention +27 Moz Au regional endowment, I reckon 7Moz are Telfer’s resources/reserves and rest must be mainly Havieron as the other deposits are predominantly Copper and not Gold.

Have Newcrest or GGP mentioned what holes are being drilled as part of this current programme?
The last reported results were for 3,366m of drilling results from HAD012, HAD013, HAD014.
I know they stated that the drill rigs will increase and they will be looking to find the limits of the known mineralisation.
So will they be going deeper in the holes already drilled or drilling new holes or doing both?
Considering the last update was around 6 weeks ago, what are we expecting in this week’s update?

The presentation issued with the Circular is interesting, page 5 lists at least 10 existing customers of Airsight, mainly Australian railway companies and also engineering companies.
Also it can be deduced from the profit/loss accounts current funding levels of MNO, which I estimate to be around £2.45m at end of FY19.
Likewise I’ve been assured by the company that there is sufficient funding until 2021 and that cash-burn has been dramatically reduced since the banking platform was put on hold. I still feel that the BOD should also be scaled down.
The enlarged company will have a market cap of around £1.5m once this deal closes and will be trading well below cash.
As mentioned before, news-flow of contract wins is key now

Interesting range of businesses here in a growing industry, early days but one to watch.
The current £20m+ market cap does not look that cheap and needs to be justified by newsflow of solid orders and very fast revenue growth

Not too much new in the Circular, I was hoping for a bit more in terms of Customers and Partnerships. I still think the new Corridor product for railways has good potential, especially with the huge cost saving it can offer. If partnerships are established with major Engineering Consultancies who will be able to sell the product as part of their service, this will make an ideal business model.

News of contract wins and/or partnerships is needed to get the share price moving back up, while any downside should be fairly limited at these levels. We know the banking product has been stopped and this is priced-in already.

In the meantime any decent buying can easily move this back up-to the 2p levels as seen in early Sept so this will be traded for sure, but the real recovery will depend on winning those contracts.