Member Info for CrustyPete

New year.

A wide spread also helps the MM's to "fleece" the traders..... ;0)

FYI Dai "note 23" relates to "Commitments" beginning on page 52..... Self evidently this was written as oif June 2023 and will have totally changed since then due, in part, to the recent cost and timing overruns.

Apologies yes Dai, you are totally correct - I have just been through them.

And the Accounts for Year End June 2023 are not yet filed at Companies House so you cannot interrogate them.

It is meant to be a frank and reliable statement of the company's financial position to shareholders and other interested parties (creditors etc)... Though ordinarily can be used to obfuscate or otherwise mask the "true" position; basically if a company cannot make a positive or at the very least a neutral "going concern" statement the Directors are obliged to put the company into administration. So all the time that you did not know that you could not raise funds and there is the remotest of chances that you can - then there is no reason to end the company up. How realistic that possibility is, is anyone's guess....

Oh and probably most importantly, our huge recent decline in Market Cap as a result of our operational issues and that overspend.

Yes but of course that statement pre-dated recent events, like the overspend on Tai3 etc. Almost prophetic.

Sorry, missed this bit off.

"As with all similar sized exploration companies, the Group is required to raise money for further exploration and capital projects as and when required. There can be no assurance that the Group's projects will be fully developed in accordance with current plans or completed on time or budget with the current level of cash held by the group, and therefore it is expected that further fundraising will need to take place over the 12 month period from the date of approval of these Financial Statements, in order to fully fund work programmes currently contemplated."

And of course the statement above "There can be no assurance that the Group's projects will be fully developed in accordance with current plans or completed on time or budget with the current level of cash held by the group" could not really be more apposite....

Dai, see below:

"The Group meets its working capital requirements from its cash and cash equivalents. The Group is pre-revenue and to date the Group has raised finance for its activities through the issue of equity. The Group has $9,600,786 of cash and cash equivalents at 30 June 2023. The Group's ability to meet operational objectives and general overheads is reliant on raising further capital in the near future."

It is in the End of year Accounts dai....

LW, yes, of course they would have to RNS it - but after the event. So once the Fat Lady has finished singing....

Hasiba, yes I suspect (certainly hope) that they will find funding of some kind but whichever form that takes will leave current shareholders hugely diluted - JV, Merger even lending will come at a huge cost to shareholders (capital and interest has to be repaid and without income can only come through equity participation - "death spiral lending"?).

Anyway, and as LW alludes, I very muchdoubt this will be resolved before Christmas so, personally, I am going to ignore it for now and have another look in the New Year. The problem being that, without news between now and the New Year, this sp will simply erode on a daily basis I fear.

Reassuring? No, not at all, not for me at least. As I suggested earlier I have recent experience of two companies, one in Biotech and another in Fintech that were both "in discussion" with potential funders but ultimately whose discussions went nowhere; with the inevitable consequences for shareholders.

Hasiba you say "And must warn the market beforehand of the financial difficulties but they didn’t or haven’t yet!".... really?! They have just told us that they cannot drill Itumbula or re-enter Tai3 without a fund raise - that is warning enough. There are no guarantees that a fund raise is possible and nor have they told us it is; indeed quite the contrary - they were very circumspect in making any statements about funding at the AGM or the current cash position or anything to do with cost overruns. Plus they have made statements about the risks around He1 not being considered a "going concern" during the next financial year without additional fund raising.

So, believe me, they have given as much "advanced warning" as they need to.

Agreed LW and that presupposes that they can find funding - full stop.... I am not convinced that they can. I have experienced two "administration" events with AIM companies recently and they both suffered the same fate - both running out of cash and funding opportunities before being able to monetise their asset(s). this looks horribly familiar.....

I think some of the outstanding questions as yours below LW will be answered if and when we get funding - will it include funds for re-entry of Tai3? It really does need to, so if not, does that mean they were incapable of raising the necessary capital or that they never had any intention of re-entry?

Based on what was said at the AGM yesterday I do not think they have any intention of pulling the casing; indeed because of the casing they will need a smaller diameter drill when they re-enter the well, something they currently do not have. It was largely for this reason that they vacated Tai3 and moved on to Intumbula - they could not re-enter Tai3 with the current equipment.

I rather hope they already have something arranged otherwise we are in dire straits and today's modest rise will not help one iota.

They absolutely need to raise enough to do Itumbula AND tai 3 - imagine a scenario where the Itumb"ula drill is as inconclusive as Tai3 and they do not have enough cash to compete the Tai3 drill?!?! Back to market for the third fund raise in less than 6 months! They would be laughed out of court... If they do not raise enough for Tai3 and Itumbula is inconclusive it is all but over for shareholders save, perhaps, for a token holding if we are lucky...

Could not agree more; whilst you might pay a little more once funding is confirmed you would at least be assured that your money will still be around for one or two more drills.

With funding? Huge dilution, No funding? No drills, No company..... Better to wait methinks.