The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Yes, don't run away with wild speculation. This is firstly a lead/zinc prospect. The silver is a bonus. Of note when they talk in the exceptional historical drill results of Zn equivalents, these exclude the silver.
I'm not saying it's the case with EUZ, but this makes interesting reading: www.investegate.co.uk/burford-capital-ltd--bur-/rns/evidence-of-market-manipulation-in-burford-shares/201908120700046828I/
Maybe, maybe not. But 12 months down the line, we're still waiting for that "slingshot". I'm a holder in the red on this one.
Sujood. You might as well ask how long is a piece of string. When it happens is the best answer, which is why patience is key when you buy into value and have the courage of your convictions.
There's your problem: "Yet LR has not commented on either position."
IMO LR has learned absolutely nothing about PR, just posted Turner Pope's work and done nothing proactive himself. There's still risk as Turner Pope points out:
Sensitivities: metal prices are key to valuation
Our valuation is most sensitive to changes in zinc, lead and silver prices. Of these, zinc is the greatest contributor
to the company’s valuation. All else being equal, a 10% increase in zinc price results in a 38% increase in our NPV
value.
With 11,927m shares outstanding and further funding required for the development of Toral we see further
dilution as a significant risk.
The lack of detailed metallurgical and mineralogical studies is also a significant technical risk to the project. The
Company is currently drilling the high-grade area of the deposit to acquire sufficient material for metallurgical
testwork.
What scares me is the thought that the drill hole was straight but didn't like what they saw, so pulled it on some spurious excuse ....
Can't drill straight, over budget and late. Can't manage the news and can't manage the project. What else can go wrong? Time for change at the top.
Bobby, from my side I think this must be the last cash raise. This is for the simple reason that CB and MC were part of the last placement (memory says 40 000BP for CB). Now that they've got skin in the game at a bargain basement price I doubt they would want any dilution. There's a lesson to be learned here about timing.
I guess it's a decision that will be made on the fly. They'll have a look at the core on site first and make a call
Oiltap: Not a new hole, just go 250m deeper with the one.
I'm with you there DD. It would be nice to see the hole furthest along the strike go deeper. The SS makes this point:
"Mineralisation is hosted in a dominant single structure or “lode” with six small sub-ordinate
lodes. The area has a relatively sparse density of drilling considering the extents of the
mineralized zone with drillholes generally terminating a few metres after cutting the main
lode. As a result, there is potential for additional subordinate lodes and “thrust repeats” of
the main lode which have not been intercepted by the existing drilling."
Yes, positive news indeed, especially with the directors digging into their own pockets. Now that all the mates are ready to cash in, can we see some action?
I hadn't seen the SS before either. I don't know how/when it got snuck in or missed.
As for the drill rig: about bloody time!
Booby. I, for one, am not asking just for price sensitive information. I want to know what's happening in the field. Regular news updates that don't need RNS
First trades after the long weekend are up. The next few days will decide if it's a positive trend.
I really hope they shake the tree a bit. PE companies are hard-nosed about making money and they're not long-term investors, so maybe they will inject some sense of urgency and direction into this bunch of palookas.
Maybe they got tired of waiting and decided to action some change themselves? Lots of voting rights. But it's a good sign to me.
I seriously considered getting more at this price but at the moment it would be throwing away money that can be better used elsewhere and more productively. For now we're chasing rainbows and I'm staying away until there's positive news and upward movement. Potentially there's lots of upside and you don't need to worry about losing out. Equally, you could lose all.
Check the auction calls on RNS on Friday 29th. This is probably the placement.