Member Info for cyberbub

Dusterinmong I agree. The final BFS may well not be issued for several months. But there is a very detailed CPR to Western standards already available, and it's certain that Mick Davis will have done his due diligence on the 'draft' BFS before investing. So IMO there is nothing stopping the company getting 'heads of terms' agreed on a debt deal during that time, which can then have final tweaks and be signed-off quickly once the BFS is issued....

NAI

I know some people will be looking at the massive rise this week and thinking it may soon be time to sell.

If you're a short-term trader then maybe. But if you have the patience to treat FAR as an investment, consider this:

Within 4 years, if Phase 2 is fully operational, then the company could be making $400M+ operating profit each year. Say £200M after all taxes, investment, depreciation etc. Put it on a conservative p/e of 10 (given the low-risk nature and the decades of resources I would think higher but say 10). That's a market cap of £2bn - the company is throwing off so much cash that debt will probably be modest and falling fast. We already know from the funding deal that there will be approx 500M shares in issue.

* £2bn / 500M shares = 400p share price.

* If 50% of profits are distributed as divis (why not, it will be a cash cow!) then that will be £100M / 500M shares = 20p per share and a 5% yield which is very typical.

But buying at today's share price that's a 50% yield in the fullness of time... 50%! No wonder instis will be scrambling to get in IMO...

NAI DYOR etc

What is Diurnal's Twitter handle? I couldn't find it searching on Twitter and there is no reference I could find easily on their website.

Or can you please post up the link to the video directly here?

Thanks.

I reiterate that the move to AIM is absolutely no problem IMO. Yes there are many 'dross' companies on AIM, but frankly there are a fair few on the main market too. There are many successful largish-cap companies on AIM like Boohoo, ASOS, Brown Group, Eurasia Mining etc etc.

The bottom line is that the excellent resources, economic case, and management skills won't change by moving to AIM. Those are the things that will deliver shareholder value!

GLA NAI

Very nice video Contrariwise thanks!

Two quick points: there's an error on the market cap figure at the end (as mentioned by your colleague), and halfway through you say that all of the forecasts are based on $4 copper where the slide shows (correctly) that forecasts are based on $3 copper.

But very good and comprehensive, and Frank as well. As you say there may be headwinds from placing shares and warrants for a little while, but if the management deliver a good positive newsflow then these won't take too long to overcome IMO.

The basic requisites for major profitability are: management execution and copper price. That's what you're risking your money on by investing in RMM.

NAI

The placing price is clearly disappointing, but not surprising that the spivs in London have front-run the placing. Plans for a placing *always* leak out in the London market, especially on smaller companies. Emmerson should have possibly voluntarily suspended the share at 8p ("pending an announcement") and then done a placing at 7p IMO, like they do in Australia. I don't think there's anything preventing this in London, but I could be wrong.

Having said that, the difference between raising this cash at 5.75p or 7p is only 15M shares, which, after we've done the bigger fundraising for capex, will be nothing, probably only 1% of the shares in issue. So it's not a big deal IMO. Plus I believe that the majority of the money has been raised from instis, who will hopefully hold on for production, or at least for 12 months+.

The move to AIM seems to be making people nervous. It's no big deal, most of my shares are on AIM. Yes there are a lot of crappy potless companies on Aim, but also plenty of very decent companies, like Asos and Boohoo which are multibillion cap companies leading the fashion field, major online retailer BrownG, or in the mining sphere Eurasia Mining (cap £600M).

To me the key is having big resources (check), an attractive economic case (check), and top management (check). The rest will take care of itself, for LTHs.

NAI

Er, two identical sized massive trades a few seconds apart? Surely it's a rollover? Or maybe a spread betting company trade?

Great news that Blis seem to have abandoned their defamation action, it was probably just a face saving action.

The company still have enough cash for all of 2022, and revenues will definitely start to recover in the spring as we come out of Covid.

I guess the negative commentary about the industry, and the "business review" (perhaps Mr Market thinks possible delisting?) are what has spooked the market.

Market cap only £2.5M seems far too low to me nevertheless. Seems that I can still sell quite a few so someone must be buying?

GLA NAI

Er the date stamp for the 600k trade is clearly from this morning not yesterday?

BobbyAxelrod don't forget that it could be multiple funds buying in, now that a 10% return rate has been confirmed...

I bought a few today, been looking at their resource, the cut-off grade is zero, anyone got any comments?

Nice 1M buy, thanks to your father in law!

I dropped an email to Gobind just asking politely why Covid was preventing the closing of business deals. He hasn't replied 3 days later, which implies that either (a) he doesn't care about PIs, (b) he hasn't replied yet as he's too busy, or (c) he can't reply, as the answer is in the upcoming trading update - ie business has been closed! Take your pick...

If the update shows that AUM is over $30M that will be good progress. Over $40M will be excellent IMO. Over $50M and we will rocket, as Mr Market would know that breakeven will be achieved by Spring.

Just my views DYOR

Despite someone buying 500k earlier, I can still sell 1M shares at 2.725p at the moment - so someone still wants more?

Personally I would think 4p-5p is fair value at the moment, based on the assumption that the company can reach breakeven in the next 6 months. If that turns out to be the case then we could easily go higher. 10p is only £25M, which could be achieved on only £1M profit if the growth rate is high.

NAI of course, DYOR

Can anyone confirm which broker they used to buy NQMI shares? Interactive Investor don't seem to allow it. Thanks.

This looks risky with Lenigas involved. On the other hand production is rocketing.

Can anyone set out the financials position? The last interim result had a bit of a car crash balance sheet, massive $90M debt and high net payables. Has the $55M with ING retired some of that $90M, ie it's not 'extra' debt, just refinancing at lower rate? Having said that, LIBOR + 6% in the ING loan is still pretty high...

Is it possible to buy these shares through a typical UK broker like I.I.?

Thanks for any tips.

It's not the level of competence expected of a main market listed company that's for sure!

Hopeless management. Do they not read their own reports before issuing them?!

Despite their attempt to hide it, Mr Market now knows that a placing is incoming shortly.

As far as I'm concerned, putting a statement in the small print saying that the broker has *already* been engaged 'in Dec 2020' (today is the 31st) to carry out another placing is deeply irresponsible. Of course everyone knows there will need to be more money raised before breakeven. But pre-announcing another £500k raise in 'early 2021' is guaranteed to collapse the SP. It could be weeks away, and unless there is a stream of good news in the interim then the management have guaranteed maximum dilution of shareholders. Why would they do that??

Having said that even if it's at 2p (I can't see any lower) then £500k is still only a 10% dilution.

As far as I can see the company needs around $80-100M AUM to break even. 'If' we can break the $50M level in the next quarter then I think we could see a rerating in anticipation.

I wish the management didn't treat shareholders with such a casual, disrespectful attitude though.

And I'm still suspicious why Covid is preventing closing of business. Do they not have webcams and Zoom in America?

..on the positive side there hasn't been a massive stampede for the exits today - unless there are a load of late trades still to be printed... Looks more like possibly stop losses and nervous Nellies? Let's see what happens on Monday when people get back behind their desks properly...

I disagree, every annual report I normally see *does* include a post-YE update and some sort of forward looking statement. These guys never bother. It's disrespectful to the company's owners IMO.