The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Capt,If your looking for adult conversations on this board you may disappointed. Some posters on here like using big words to try to demonstrate how clever they are and take delight in putting others down and belittling them
Capt,If your looking for adult conversations on this board you may disappointed. Some posters on here like using big words to try to demonstrate how clever they are and take delight in putting others down and belittling them
The risks are just the same as when the SP was 39p
d189 your right if there was nay glimpse of good news they would tell us about it The Q4 report will say more on what is not printed. Like you I hope I am wrong but I cannot escape from this feeling that all is not going according to plan
On factor that gives me some comfort in all this is GR's involvement. She knows a good investment when she sees it and has financial clout to see it through. Yes I know she took the urine when lending the money but I am glad she has a member of her team on the board so there are a pair of external eyes looking at what is going on.
I'm only guessing but it really would not surprise me if increases her stake in this company.
OR
It might be 'bleedin' obviuose to you and me but not to other posters that I was responding to . Yes they could repay the money when they reach 20mtpa but without the funding that point will never arrive
Lets look at the facts here;
No letters of intent received to date,
No Stg2 funding in place,
UKI garuntees in place the company havn't said that,
Massive contingencies in place so that's why the company have stated they need other options for extra funding iincluding dilution which is the most likely option..
Assets as security, the 'asset' is a mile and a half underground and needs 3bln to get it out,
The company as this time have enough funds to keep going until the summer.and that's thanks to Gina who put in 250 m to get the company to the end of Q1 to get the funding.
Yes the company is progressing well in terms of contstruction but as the company itself has said the funding is pivitol to this company progressing. The BOD is beginning to create a history of making statements then having to amend them at a later stage.
I believe in this company and what they are trying to achieve has huge potential but there are going to be problems on the way and funding is the biggest its no good putting your head in the sand persuading yourself that everything is great and dismissing any contrary negative views just because you don't want to hear it.
The company needs the money far more than the banks need to lend it to what is a venture that contains risks they know that the company has very little options and they will capitilise on this as did Gina
The problem is not the contingency cash it is raising the 3bn if the lenders see desperation the will demand bigger repayments that will eat into OUR profits.come on BOD a bit more transparency.
An option that no one discusses is what the company will do if they only receive a portion of the money. I guess they will carry on with construction and raise more money later.
Time will reveal all just remember who said it
This BOD do not help themselves. The lack of information on funding creates a vacuum which becomes full of suspicion and rumour.
They stated somewhile back that they intended to cover the funding all by senior debt. We know that is not happening and dilution is a certainty.
They stated that LOI's by end of the year that's not going to happen.
Now they state that LOI's by end of the year or January.
They state funding complete by end of Q1 why should I believe them. Some posters say that funding is in the bag well tell me how you know then I will buy loads of shares and make loads of money in March.
The trend is your friend and that's downhill people are not going to buy shares when dilution is round the corner.
I hope there is dilution as this would mean that the main bulk of the funding is complete and they are just sorting out the additional funds reqd. The next operation report could make interesting reading look for what has not been said and not how many meters they have dug.
15p? wouldn't bet against it.
Remember the name Gina REINHART she must be licking her lips.
I really do not trust the BOD they are quick to release good news we've built this or dug that but they will wait until the last minute to tell us about any bad news. I noticed that they initially stated LOI's by end of the year and the latest statement stated end of the year or January.
I stated before that if we do not hear about LOI's by the end of the year this could get messy.
A placing is a dead cert I will be waiting for more clarity until making a further investment decision.
PS// They have gone very quiet re Euro TORP.
Ive said it before and Ill say it again whatever you think of Gina REINHART she will be a major shareholder soon.OILMAN called this right (-20p)
LOI not before Christmas probably late Jan .
Gina Reinhart will increase stake in the company and become a major shareholder,
Issurance of new shares.
Stg 2 completed late Mar .
I don't think there will be a takeover because I think Stg 2 will be successful (Not counting the additional $600 M which will be raised through a placing)The reasons are as follows;
Gina Reinhart would not have given £250 M if she thought she was going to lose it. She would have carried out her own due diligence and had insider knowledge about the chances of success,
Secondly they are recruiting fifty apprentices why would they do this if a few months down the line they would have to say to them that there is no job, if there was doubt they would have deferred the decision.
Mark my words we have not heard the last of G Rinehart.
JR Ooooh you bitch!
Am looking to top up ,however this is in a strong downward trend. will wait for an upswing.I'd rather pay more for the luxury of seeing where the bottom was.
Oilman I remember when you stated that the SP would drop to 20p (I said 25p) and they all laughed at you calling you and me derampers. Well in the words of a certain N Farage "your not laughing now are you".
LL agree with you re the factors you have mentioned however I would add that investors are concerned re possible share overhang with the on coming dilution and concerns over financing.
If this price if all goes according to plan this is dirt cheap, however confidence in the BOD has been dented. If LOI are not issued by the week before Christmas this could get really messy.
Andy I hear a lot of grievences on here regarding shorters and the MMs in particular. I am not saying it is right but we just have to deal with it nothing is going to change.
If funding is secured and the mine is built all the shorters, bond holders and MMs in the world will not stop the SP rising