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Current in situ JORC resource of 29m carats estimated value of $261m at an average price of $9 per carat.
This figure excludes the additional 168m to 344m carats in their JORC exploration target with a value of between $1.5 to $3.1 billion.
Worth a read of this slide from previous mine owner Magnum mining and exploration ltd from 2018/2019
https://www.mmel.com.au/site/pdf/62f69607-2db3-4f48-8102-b6a28abffd91/Institutional-Roadshow-Presentation-Amended.pdf
They state that they were targeting initial production of 3 million carats per annum which equates to circa $27m rev’s at $9 per carat average price and operating costs sub $2/carat.
$27m rev’s pa minus $6m operating costs is $21m/£17m pa PROFIT - now let’s say the 3m carat per annum target is unrealistic, let’s say they only achieve 1m per annum to start, thats still almost £6m PROFIT per annum, shows the potential and likely why Andrew Austin has got involved here as he clearly sees the value.
Management own 45% of shares in issue
Management history of creating shareholder value at Lexington Gold 2p to 10p
Andrew Austin likely one of the most successful investors/founders in recent years invested at 2p.
Tiny Market cap of £4m
Ticks all the boxes for me, not forgetting their other Zambian licences for REE’s also.
I have eggs in other baskets, I’m not foolish enough to lump everything in one stock.
I very rarely hold anything long term, the only other stock I am holding longer term is LSAI.
The 2 things this and that have in common is everyone involved have plenty of skin in the game, so are all aligned with shareholders.
The other thing is they are both sub £5m Market cap, which is something I look for also, the smaller the market cap the better for me, as these have the potential to do some of the bigger returns, albeit tend to be risky.
Lastly, you say how do I know this is the bottom. I don’t, but for me the fact Andrew Austin is now backing this at 2p, I suspect this doesn’t see sub 2p again, in fact I’ll be surprised if it went sub 2.2p again. I’ve built a holding at 2.4p average and not fussed being in 20% higher than Austin - reckon this does 4-5p within the next 6 months, so not fussed being in a little higher than placing as not concerned about intraday moves.
Not fussed being stuck in an illiquid stock as don’t have any plans to sell at this level and happy to wait it out.
Would rather build a large holding now whilst relatively at the lows, than try and build a decent holding as it’s starting to rise later down the line. Added a couple more clips today also.
Took a relatively large position yesterday for a medium/long term hold. Ticks all the boxes for me and the fact Andrew Austin has come in also, is a bit of a game changer and adds huge amounts of credibility.
P.S - nice couple of large late reported buys towards close
Clearly the same buyer yesterday just before close, most buys we’ve had in a single day for 6 weeks! Bit of volume arrives and we’ll be trading at 0.2p+ again
Exactly right - also the fact that Reality Mine are also yet to release their results and their Data marketplace logo being literally identical to LSAI logo
To many coincidences? We’ll see
Carlsburg scenario would be, all warrants exercised on RTO, no further capital required to be raised which in effect wouldn’t alter the share structure and we could see an almighty move post RTO! I think management know this, if they do it this way, I reckon they’ll get a raise away much higher a while after RTO as it’s so illiquid it’ll fly
Really feels like something is very close here - wouldn’t be surprised to see a deal announcement before results are due in of June.
Chart has also started to turn back up, the weekly chart looks very interesting with a higher low set in and a 20ma/50ma cross about to occur, price breaking above the 50ma
Hardly shameful if they do a deal at multiples of todays share price. The people involved here who hold huge amounts of stock are all fully aligned.
Book has now firmed up, there was 5m available now 1.5m max before big premiums wanted
Certainly feels like something is close! I thought those 2 trades today were some sort of rollover or isa transfer, nice to know they were both buys 👍🏼
I’m genuinely fairly relaxed here to be honest. It’s just a game of patience. There is no way they aren’t going to do a deal that creates value from this share price considering the people involved at 0.2p! Anything below 0.2p should be considered fairly risk free!
Let’s face it, do you honestly think the people on this share register put in almost £4m at .2p to do a deal for any less! Any RTO will be priced at a bare minimum of 0.2p but I believe we’ll see a deal closer to 0.4p+ not forgetting Wilkinson, Hughes and Kamani have £3m worth of warrants at 0.2p also, they are going to want these well in the money.
I reckon we see all these warrants converted on RTO and a deal at 0.4p+ and IF, it’s a big if, but if the share structure isn’t altered a great deal on an RTO, ie no placing with retail, this stock is so illiquid it could see one hell of a move!
…unless those results aren’t being released as they are planning to tie them in with the incoming RTO target results also within the next couple of months - interestingly Reality Mine results delayed passed last years date also, something could be very close IMO
Yep 30th of June after which shares will be suspended until results are released.
I’ve had contact with Nigel about the results and he said results should be out late June but before month end, delays at auditors beyond companies control was what he said.
Not 100% sure if that is true as he obviously wouldn’t be able to tell me if the delay was related to a potential RTO, so possibly could be a bit of an excuse to keep me off his back, I’m not sure, time will tell IMO.
Either way it’s irrelevant to me as I bought in to hold for RTO news on the back of the names of the share register holders and the fact it was/is trading at a heavy discount to where their almost £4m went in.
Keep reminding yourselves that these holders aren’t multimillionaires because they like to lose money - the only thing you need here is patience, it will come good.
I personally don’t believe the results haven’t been issued at the end of March for any other reason than an announcement of RTO is close. Interestingly Reality Mines Results are likewise delayed passed last years reporting date, is that a coincidence also? Time will tell - keep saying it, big money went in at 0.2p from very influential people, the same people have 1.5 billion or £3m worth of warrants to exercise at that price also. Reckon we see them exercised along with any RTO, gives the incoming company plenty of cash and the 3 large warrant holders a larger piece of the pie!
Yes I totally agree with regards Reality Mine. Let’s see if our Annual Report gives any hints away as to timelines of a transaction. Realistically something needs to happen fairly soon for those 1.5 billion warrants to be exercised and be well in the money by the 3 year deadline from now. The warrant holders being simon, Richard and Mahmud might even elect to convert them once a transaction is announced we’ll see.
Personally I just can’t see how this doesn’t do multiples from this level. Yes it’s been a long wait, but with everyone who is involved here and with those £3m worth of warrants at .2p these guys will want the share price as high as it can be for maximum returns
No it’s not it’s a transfer from broker to broker - see todays Cantor reduction RNS - question is why the sudden activity and shifting around of stock - is it because a deal is close and everyone getting their affairs in order or because of the recent Monecor/OvalX fall out?
Time will tell…
That’s my Bed and ISA done
Yea nice couple of buys today, looked like it could have been a roll or transfer but the BID and ASK both moved so must be 2 buys!! Hoping whoever it was doesn’t buy anymore until 6th as want to get as many as I can in the ISA whilst at lows
OvalX closure means any stock held by the CP there is being transfered to any other broker
Actually my bad, just been made aware likely holders from monecor/ovalX transferring out to CMC or Spreadex due to OvalX closure.
Not sure who the nominees are behind the monecor holding but I presume maybe one of the concert party - they’ve reduced by 117m or over 4.5% that clearly isn’t an on market transaction, so now we wait to see who has picked those up shares up.
Maybe one of the concert party needed the cash and another of the concert party stepped in to take them, who knows, guess we’ll find out shortly