Sapan Gai, CCO at Sovereign Metals, discusses their superior graphite test results. Watch the video here.
Say what you like about ACP playing the waiting game, but it doesn't look like the ordinary shareholders will benefit over at BKT.
"We have several key de-risking milestones due near term and this A$10m placement should provide the
Company with sufficient cash reserves to complete loan and contract documentation ahead of FID as well as
working towards consummating a deal in the partner process in which we are aiming to sell a stake in the
project at a premium as a less dilutive pathway to cashflow."
Key phrase:
"...we are aiming to sell a stake in the project..."
Their monster Capex and infrastructure projects has made it incredibly difficult for their management.
People moaning about the lack of progress at ACP should be careful what they wish for.
We're in a solid position here as infrastructure build-out progresses.
It looks like this graphite District will be getting well and truly underway!
There is one thing I would say, and that I know exactly which company I would rather be a shareholder of, and it's not BKT.
BKT CEO is a Professional who will get the job done, but he doesn't own any shares - So he gets it built, and it's a notch in an already impressive CV.
The dilution doesn't bother him, and there will be another one coming for the BKT shareholders.
No monster Capex costs for us, no major infrastructure work to be done, and our shareprice has performed quite similarly when measuring the falls from the high.
BKT shareholders' 20 bagger may end up being reduced to a 3 or 4 bagger with the amount they'll have to raise.
Suddenly, waiting it out is looking to be a lot smarter a strategy.
The dilution is irrelevant to him.nal.
JB asked me to reply:
"Dee you made factual incorrect observations which were advised to you and which you have since failed to acknowledge or comment on.
No problems with you doing such an assessment but please have the decency to admit you made some mistakes and post such corrections. "
Https://twitter.com/GungHoStocks/status/1770929760085979599?t=IH0xXiDyc3zRRrcukuZvRw&s=19
I've tweeted my response to the comments he made on Telegram.
13. If Q Global get to 51%, they effectively have the right to never own less than 51%.
They will be at 46.3% of the fully enlarged capital.
That also doesn't include what they can charge Marula for services rendered. Going of previous history and acquisition of projects, a lot of the considering has been both cash and shares. I would expect some of those services rendered to be paid back in cash as well as shares.
14. Takeover Panel rules are an absolutely nightmare to navigate. I have no idea how holding over 50% will further impact on Marula from a Takeover Panel standpoint.
15. How much are these total debts/services rendered going to be exactly? What mechanism is in place to regulate it? Can Q Global bill whatever they like? Why do Q Global need Marula?
This seems to keep coming up, and whenever I ask questions, we're usually told to just "research more".
So I did. And it only generated more questions, as opposed to answers.
Happy to hear a counter view/opinion.
So I've have a couple of Personal Attacks in the past from Marula holders on Twitter, Telegram (both DMs and in The Hive).
Some questions have been asked before, but I can't say I've had much of a satisfactory response, or anything that's been confirmed to the point of a technical report or an economic study, or even a clear RNS.
I kept getting told to 'read up' for answers to my questions - So I did. I took a look at the short-form prospectus and have the following questions/points:
1. Blesberg Project
If they announced 100% purchase on 25th November 2022, and still not received regulatory approval... Don't they need this in order to make commercial sales?
3. The preliminary assay results from the stockpile came in at 5%-6.53%. This was based on only a 1 tonne sample.
The follow-up was done independently, but it doesn't state whether this was also a 1 tonne sample, or a different amount?
3. $1.35 Million from the Subscription will immediately be paid back to fund the drilling costs?
4. Drilling was completed on 6th December 2023. We should have assays soon? Why the delay?
5. Ore Sorter cost is £750,000, which will also be deducted from the subscription cost.
6. If only 1 tonne has been sampled, there's a risk of the first shipment to Southern Jase Resources Pty Ltd being 26.5 Tonnes short due to lack of sampling?
7. This was terminated 1 month later, with the aim of shifting focus to European Trading Houses. This was due early Q1 2024, and was the reason for terminating the original off-take agreement, and then paying Jade Resources in shares? This means Jade Resources was terminated for discussions with Q Global's trading partner, which didn't happen, and then led to the deal with Fujax
8. Why was this Jade Resources terminated, if the deal was only for an initial 27.5 tonnes? Why not just deliver the shipment, and why just pay them shares?
9. Kinusi - "Small-Scale Copper Mining". What is the definition of small-scale?
10. 10-15 Million Tonne deposit target, potential of up to 50 Million based on phase one exploration activities - Is there a report produced from Geofields for us to view? I can't find it anywhere. Surely a publicly listed company should be sharing the geo-reports?
11. Any debt accrued to Q Global or subsidiaries can be waived in exchange for shares?!?!?!
This is for up to 6.25p per share? So over 50% discount to the current price?
This can happen at any point between now and 31st December 2026?
Aggregate consideration for 147,800,000 shares is:
£8,530,000.
Take away £1 Million for drilling, £750,000 for one of the ore sorters, plus other potential costs leaves a total of:
£6,780,000 minus any debts for services rendered to Q Global.
12. I didn't factor in the Tanzanian Budget which is on the next chapter.
Leaves a total of £4.68 Million less any costs for services rendered by Q Global.
13. If Q Global get to 51%, they effectively have the
Another $40 Million from a Tanzanian Bank:
https://hotcopper.com.au/threads/ann-approval-for-us-40m-in-new-debt-facilities-from-crdb-bank.7906200/
Great news for the region, and to be completely honest? It's pretty damn smart of Armadale to allow someone else to front run and pay the $50 Million in infrastructure costs.
Let's see what this week brings!
Whatever dilution we have, it's going to be less the $33 million cost of Power Lines, right Amtech?
I'm talking about Capex Dilution here. Raising even $50 million debt is exponentially easier than raising $100 million in debt.
BKT have the higher costs, so they have the much higher dilutions.
As for working capital dilution, we do have listed investments as TraderDan01 has mentioned.
I know you don't like a little bit of good news AmTech, but it's here, it's positive, and now let's see how ACP starts to develop.
I would also add, there's likely to be a monster dilution over at BKT
It's one of the reasons you're sometimes better off being second to the prize.
You have the luxury of a smaller capex, and therefore smaller dilution, and easier finance.
Blackrock have finally signed off on finance!!!
Let's see roads, hydro-electric, and reduced infrastructure requirements for Armadale.
Let's see some progress in the upcoming months!
It's been a hell of a long wait!
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02785313-6A1198491
Https://twitter.com/GungHoStocks/status/1759644526249968045?t=EDUBUPzGuAhPTzUo9o6suw&s=19
Here's the year by year breakdown.
Raising $200 Million is significantly different to raising $50 odd.
Anything below $100m capex is reasonably easy to finance should the economics make sense.
As your Capex gets high (especially in this market), it becomes significantly more difficult. The key for BKT was to get the first package done, as it de-risks the process for further packages.
It's like getting your first credit card, which is significantly more difficult than getting your second, third or fourth.