Member Info for Daisan

Strange how we both say "don't disagree" rather than "agree"!

I can't disagree with that.

An uncrossing trade. Suggests some pre-market activity. I'm amazed that people haven't cottoned on to this yet but the market activity suggests not.

Well, it looks like I am in the middle of Adastra and hereandnow when it comes to optimism! I think you are a little too optimistic Adastra. The dilution will be somewhat higher owing to the share price collapse today and I think that a little caution is deserved when considering the potential production rate. It may hit 15k tonnes but I do not expect this to be maintained for the whole of the rest of the year. The indications are that this is the maximum rate so erring in the side of caution seems sensible. The share price reaction is typically harsh but who can blame them?

Hard to dress that up positively. Only the large stones were anything to be pleased about but they will not be enough to address the revenue shortfall. The production ramp up problems are disappointing but, as I have said in the past, they are nothing particularly out of the ordinary when it comes to opening a new mining operation, especially reopening an old mine. The management, however, have underperformed in a couple of areas. Firstly, they have not been at full strength for some time, something that should have been addressed a while ago but it looks like they are finally going to do something about this. Secondly, they are too optimistic with their forecasts, the flip side being that they have always raised too little cash when they have gone to market. In this case I hope that they are not making the same mistake again with the latest fund raising process. Whilst I am sure that they will raise the finance, both short and medium term, this is going to hit the share price and the terms are not likely to be great. The key is that they raise sufficient to take them through to full production and the renegotiation of the IDC loan is a positive in this regard. Even if these issues are often encountered during startup, it is still very disappointing news unfortunately.

I hope not as that would be insider trading!

This morning at 8.5p. Not sure where these shares are coming from as the volume has been weak the last few days. If we presume that this is Labro, and I suspect that it is, then that is another 1m in the coffers and, more significantly, that is now a price paid of 8.5p meaning that would be the minimum price for any takeover within the next 12 months. This looks to be such an obvious buying opportunity and yet it seems to be going relatively unnoticed.

Oli12, It is far from normality! I fully expect Labro to be gradually collecting over the next few weeks/months. They will try to do this covertly so as not to push the price beyond their buying range. As usual, I would expect that the average AIM investor will get bored and sell out on any slight rise, thus playing into their hands. At some point Labro will make a play for CGH whether the price is 7p or 20p. I believe that this is a low risk opportunity and it would be great if we could make them pay 20p+. Let's face it, the asset at any other point in time would have been worth well north of that.

It would seem not. They are clearly taking it slow so as not to force a price rise. People should take advantage but will they?

I don't currently see this as an AUE situation. The cash burn here is relatively small - even when they were only processing tailings they only made a small loss. And they haven't poisoned the local area as far as I recall.

I'd give them a bit of time and then perhaps give them a call? Phone calls usually elicit a better response I find than emails.

When did you write to them jaf1948?

OK. That 1m late reported trade would do it! I suspect that this is still a private investor but one with such a largish number of shares bailing out at what is close to an all time low is disappointing to say the least. And to be at such a low when production is just commencing is unusual. It looks like the company leaders have a great deal of bridge building to do.

I tend to agree that the communication should be better at this time. The August stoppage was not, in my opinion, something that would warrant a RNS in the normal course of things. However, we are currently in the process of commencing and ramping up mining which is a fraught process liable to issues. This is exactly the time when communication should be stepped up and they have not done so, whether through RNS, media or through answering shareholder enquiries. They may claim that they haven't issued an RNS because it is business as usual but up to now we haven't had 'business as usual' and don't quite know what that is yet. I remain committed to the company even though the share price is challenging. I believe that the sellers are private investors and the main reason for the price dropping is a buyers strike rather than the volume of sells. Buyers will return if we can see some ramp up of production. August was poor, let's hope September/October come in better.

Doesn't look like people have got the message this time around which just plays into the hands of Labro as they can continue to pick up chunks cheaply. Maybe the next RNS (it must be them collecting) will prompt a bigger market response. Or the next sizeable trade. Either way, I believe that each trade they do will put a floor under this owing to the takeover rules so the risk is very low. Not sure what their highest purchase has been in the last 12 month (anyone?) but if yesterday's trade was theirs then that is 6.87p.

What are views on this? According to Company Check the company has a net worth of £1.1m as of February. With shareholders here having 7% (it says minimum but...) at current market capitalisation that would value the new entity at £12.5m.

You have to laugh. With Labro's tacit signal that they want to increase their stake further, somebody sells out at the first opportunity. This is the closest thing on AIM that you will get to a low risk investment (if you can call money placed on AIM 'investments').

Agreed. Buying in the market on 4/10. Yesterday's trade suggested that they were also doing so on 5/10. Can buy up to 21m and have only bought less than 2m. Green light to buy and if they do make an offer, they would have to offer at least the highest price they have bought for in the previous 12 months (off the top of my head!)

Actually, the 70k trade was actually three different trades. So, after a slow couple of days we had four trades crammed into two and a half minutes just before the bell. Interesting. If there is a very positive RNS tomorrow I would have to say very suspicious as well.

Just before the bell. That's £118k. And at that price I don't see how it is a sell but heaven knows where they have managed to get that many shares from. Looks like there was another trade of 70k at 7p as well just after. Hmmmm. Moves afoot?