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Very interesting. on ASX, KP2 up 3 days in row. today trade is on ok volume as well (1.46m) with no news obviously.
while on UK market, price down slightly.
For me, I like that unlike all previous years, this time we have a clear timeline from SEPCO which KP2 has to pay for so should be adhere to.
It is also very important to have OIA and SQM taken up the new shares. both would have a whole team going through the numbers and information. so if they are willing to inject new fund, I will join them as well.
Going by schedule, the next cashflow report will be released soon. we will know how much cash got used. and most importantly whether new cash got injected. and how much left.
and before the next cashflow report in Jan24, EPC will be provided. all focus would be on Finance then.
Could someone confirm? from the meeting minute, look like SQM and OIA join the share issue?
Resolution 3 - Approval of securities issue to SQM
Resolution 4 - Approval of securities issue to OIA
I would get decent profit with 2.5p and I think a few here same as well. but I am just not sure how it could happen with other big holders like Dingyi as they paid much higher than that for their shares.
Compared with previous years, at least now we have a clear timeline with SEPCO.
SEPCO has committed to a work schedule that provides for:
- Site visits during the months of August 2023 and September 2023. (WE ARE HERE)
- Completion of all of the engineering design works before end December 2023.
- EPC Contract offer to be made to the Company during January 2024.
what would you willing to pay once EPC offered? OR how much you think the share price will be then?
Talking about the future, very soon OIA and SQM will confirm whether they inject new fund into KP2. the 21 days deadline coming up.
the only thing going for KP2 vs many other potash explorers is OIA and SQM, who both having deep pocket and can fund the 1.8B. and they have not sold any share yet. instead keeping injecting new fund year after year.
Both scenarios have to be approved by majority and at fair price. no one can say "I offer 0.6p for all KP2 shares" and it is over. cause another party (who may own no KP2 right now) can come in and offer a higher price.
99 - agree with all your post except for one detail.
from "20230808 Revised Agreement with SEPCO 6A1162477_KP2", there is this part
"Any participation by OIA and SQM would be in addition to funds raised via the Fundraise and
announced here"
so the $1M USD already paid. and the $1.5M extra (about $1.9M USD) can be used to pay for the 25th Oct payment?
SQM and QIA new inject fund would reduce the amount to be raised. KP2 cash run out in Dec23 so 100% another raise required.
yet on 25 Oct when SEPCO provide the final plan + guarantee, the risk profile for KP2 will be different. people like ALB for example will join in the buy side.
so it would be interesting to see how both forces play out on the market.
KP2 cash at Jun23 = 2.6M. each quarter spend 1.2M. so at end of Dec23 cash will run out.
This extra amount will cover the expense till end Mar24. right on time for the financial package.
Also let's say things happen as you suggest. what would happen after that? the main shareholders set up a new company where they would own some % with the Chinese own the rest? the same outcome they can achieve by offering Chinese some %. why go through the trouble of a "false" takeover? I call it false as the fair price is higher than 1.2p.
At 1.2p, KP2 investment will be a loss to all main shareholders. and as I said before, ASX will require a very good explanation for why the takeover needs to happen despite all communications so far PLUS I guess the final plan and finance would come forth soon. in law, it is something along the line of "acting in good faith".
so ALB, all your prediction so far has been right about the share price. but it goes down due mainly to KP2 pay directors in shares, which they sold some, putting pressure on the price. price goes down NOT because all those reasons you said.
What I find interesting with your comment is whether you have ONE example of this scenario that happened before? on ASX, there are strict rules about this. and from all the communications so far, if this actually happen, I would 100% contact some lawyers to explore for compensation. cause it would be fraud.
also why do BOD want to do that? to scam PI? who own tiny % of share????
99icecream - you are right. I got the name mixed up. the one I am talking about is Dingyi Group Investment. their ownership has decreased over time.
My first post in this board. I am in Australia so bought KP2 on ASX. I notice that whenever price increase, there would be a big sell to suppress price back down.
looking at the latest share issue, Harlequin, the Chinese comp, got 25% of the total share issues. It is very much in their interest to suppress the share price.
use say 1M share over the time (sell when price increase and buy back at lower price as well).
The reward is pretty good. They get 31M share this time at lower price. costing 250K instead of say 500K or even higher if no share suppression.