The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
@Obs, "as we evolve from investment company into owner/operator"....
You mean minority owner / joint operator, right? ;-)
Still a step up from our other JV's which are minority owned with no operational control.
And yes I believe KM will deliver. The grey area is if the peeled back version of 'owner / operator' can suffice the market. You can look to the reaction of us taking 20% then a further 7%, but as I said IMO the PFS will decide.
@Obs, It's our strategy that needs validating.
The comparison with MIO is compelling, but....
1 is a designated Iron ore development company. The other is an Investment company.
1 is 100% owned and operated. The other is a minority JV owner with 50/50 operational control.
Plus, the market has already told us what was needed to achieve a greater sp valuation.
Back to my post here on 07/03/22....
"In 2017 KM approached the II's, Brokers and MM's seeking a better reflection of our worth, he was told we are an investment company and are valued so, i.e. equity stakes in EMH and BCN etc. KM argued that he could justify more through our JV's via their NAV, he was told we are not the owner / operator of said JV's and the market cap of the owners of the JV's didn't justify a better valuation for us.
Roll on San Luis and a strategy change, we were going to be owner / operator, so any value proven through feasibility studies etc would be attributable to us.
Now Amapa where we are a minority JV owner and a 50/50 operator. Is this strategy enough for the market to re-rate us... the PFS in July will guide."
Indeed @Obs...It's the contradiction from RNS's and presentations that I was questioning.....
"Cadence's next stage of investment will be a further investment of US$3.5 million on the grant of all operational and environmental licenses, at which point Cadence will own 27% of PBA."
"The second stage of investment is for a further 7% of PBA for a consideration of US$3.5 million. This second stage investment was conditional on several material preconditions, which have now been satisfied. Cadence will now vest its next 7% which will be funded from its recent equity raise.
We don't as of yet have the Environmental licence, but all key licences have have been ticked in the presentation?
I know but we do not have the Environmental licence yet.
But RNS 02/11/20
Cadence's next stage of investment will be a further investment of US$3.5 million on the grant of all operational and environmental licenses, at which point Cadence will own 27% of PBA.
I'd have thought an Environmental Impact Assessment would be pretty key. Which we don't have yet.
I've no doubt that we will eventually vest the US3.5M, but as yet we ain't been advised that the V5 has been sent off, unlike the 20% lol.
IMO the money was raised quickly to continue the PFS work, which is fine.
The point is @degsie if we are still waiting for key licences (as the presentation suggests) we have not yet met the conditions to vest the US3.5M for 7%.
Yet they are ticked in the presentation....
https://drive.google.com/file/d/1-gjZfb-Xs7pK6p_SqtkQJwQKi7LIKTF6/view?usp=sharing
Which leads me back to my original question...Are the licences he's referring to @16:21 key or not?
@cmsammy...Listen from 16:21
https://drive.google.com/file/d/1-Icd6IJ_yIo1aQmX4UCVOdul9q2r52ub/view?usp=sharing
A Fib retracement from 13th Jan would have done....
https://drive.google.com/file/d/1-cJr2t19xufjbVS_w97ydmGyNXawBpAR/view?usp=sharing
When KM used to do regular Q&A sessions through BRR Media, one of the questions was "Will the company let PI's participate in future placings?", was it one of yours @Bannor?
The reply was "It costs the company 100k and there's no guarantee of the uptake, so ineffective and time consuming if you need to raise capital fast, but we will look into it. But often PI's will get the opportunity to buy at the placing price anyway on the open market, and very often....cheaper."
He nailed it lol.