The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Perish the thought that you are a trump supporter, though your slavish towards the competence of MM is sometimes disconcerting, I believe you are sincere in your beliefs and attempt to apply logic to your arguments.
It sometimes feels, over the last 2 years, like He really has tripped up more times than he has succeeded at Wres, yes starting up a mine is difficult and fraught with difficulties but there have been numerous occasions where the difficulties were self inflicted and over time I have become somewhat disillusioned by his lack of candor. Furthermore, whatever anyone says, the extension of the warrants without any legal basis, which will potentially benefit him considerably, was beyond the pale. We are not a charity and there was no reason to show such largesse whilst we are struggling so badly.
I am working on the basis that Wres will succeed and hoping before the end of 2021, but his actions now mean I will most likely be diluted further as a result of that action and there is more chance of the sp being impeded from increasing because there are more shares to be sold.
Even if/when we come good, it does not excuse his failures. Some will argue that Wres succeeding, even with having him as the captain, is testament to the workers there and I would agree. He is, as I said before, a good second hand cars salesman.
So back to next week, who knows, they may bother to announce something....maybe good...maybe bad...there again they may not...we are hostages to the fate that awaits us.
He doesn’t need to do much, and he doesn’t need to give daily updates, but if he was a competent ceo he would take the time to engage with his PIs in a far better way than he has to date.
We will agree to disagree as to the propriety or sincerity of the November statement. The fact is it deliberately gave an impression that we were doing better than we were (otherwise there would have been some reference in that RNS about what was happening and that it was being fixed) But continuing down this line is an exercise in futility. What is frustrating is that much like trump in the US, there are those here who do not wish to hold MM to account for his numerous failings.
Being optimistic, whilst we are at these prices Atlas can’t get dilute us anymore.
Hand on my wallet, which is a lot lighter than before I started investing in Wres, I believe if Pablo took over the market would be happier and it would show in our sp. Any alleged Midas touch MM had has, much like the battery on my iPhone 5 died out a long time ago.
GIT, fear I have to call you out...pls go back to the last time we had a Quarter end when he didn’t do some kind of interview after. This quarter end the RNS said they had once again had problems in October and November, contrary to the impression they gave in the November RNS, they also had to pay creditors with shares again, and all before Feb. they also said that the upgrades would be done early feb, we are past that now. Is his silence strategic or is he just no @#£&ing good at PR, on his past performance at Wres I would suggest the latter.
Yes we have 7.7 billion shares, in part thanks to him, but a large part is lock3d up due to our ridiculous sp which means we are in a loss position. Percentage of sp holders who will flee when they at least break even so they can invest in places which will give better returns should not be under estimated as we still have no idea when they will get it right. Remember that in that November 2020 RNS I referred to they were desperately trying to give the impression That the ship had been repaired and it would be smooth sailing, even when they could clearly see it wasn’t.
GIT and other MM supporters, I would hate that your false, albeit genuine, impressions lead to people investing here as over the years there have been numerous occasions that you have genuinely believed the bottom had been reached and a corner turned and each one has turned out to be false. Now on the plus side, I can see this slipping to 0.0005p but no lower. And before anyone poopoos me remember when we were at 12p not long ago and where we are now.
Let me put it another way...if my investment in this company was a human, with all its limbs, walking along the path from initial investment till the company reaches where it should have been a couple of years ago, I believe I will reach the end but thanks to dilution and delays I would be short of an arm and two legs. And at the rate they are going I may end up looking like the knight from Monty python and the holy grail.
The point is the impression given was that everything was rosy...it was far from rosy and there were issues in both months...congrats on topping up
GIT/safety/Tro et al pls reconcile the Nov 26th RNS; "Following the improvements that led to such a strong September, I am greatly encouraged that this momentum has continued into Q4. These significant plant improvements together with accessing higher grade portions of the ore body are enabling us to build production rates each month as we work to increase concentrate production. We look forward to updating the market with the Q4 production update in January." Which gives the impression that things are going well in October and November . We then had the RNS from 21st Jan, which paints a different picture “ Recoveries for the quarter were impacted by the performance of the jigs which slowed the recovery rates for both October and November. Whilst this was disappointing, especially after such a strong September,...” .The uneasiness comes from the fact that even though they knew full well that Oct and November were not continuing as well as September, they blatantly wrote in such a fashion as to mislead us and then in January they painted a different picture. This is borderline dishonest!They also said that the upgrades would be finished early February, “These improvements continue apace and should be completed in early February 2021.” Well we are past early Feb and fast approaching mid feb. does it mean they missed another target? If it has been done isn’t it just bl@@dy common sense to have an interview and trumpet it or at least and RNS.Will sit back now and listen to the excuses....
I am waiting for the next full moon before hoping that production figures forge ahead....
Does anyone have Twitter, perhaps you if enough people put a message on their asking for interview they maybe shamed into giving one.
You are right on every point you raised. The relationship between MM and PI’s has reached a point now that him resigning may actually raise the price as perhaps then we will have someone we could have confidence in. Just basic common sense would dictate that after a quarter end, especially one which you admit had problems for 2/3 of it that you had not been foreseen, you would go on some friendly channel like proactive and make a half assed attempt at explaining what went wrong the first two quarters and what happened in the month of Jan to make us believe that December wasn’t just a fluke.. The CEO of a company is both its captain and manager. If it’s a football team and they lost 5 nil, you would expect them to give an interview at the end of the Match so as to give the fans (eg us) some confidence. Ps Captains and managers get fired all the time and new ones do a better job.
It’s like the dialogue with the deaf....
Point taken though unlikely they sold 11m shares at a 10% loss on what they converted, it is a possibility.
It is subordinate but if we reach that point it will make no difference to them ( Atlas) if they are creditors or equity holders, if anything, shareholders come below creditors so they would be better holding on to their debt. Furthermore, when they convert the debt they no longer get interest on it. This new mess has its roots on subpar production due to problems in October and November, when we all were led to believe all problems and been resolved by end of September, the Atlas conversion, and giving our creditors shares thereby giving the valid impression that we were still short of cash, even after Blackrock gave us 7m and finally, from optics perspective, the extension of the warrants which means we potentially have another 500m dilution to look forward to, even though there was no legal reason to do it. At current sp, it seems the MM will have to extend the warrants to December 2022.
As for the grant, the reality is 5m will go to pay an “unsecured” creditor, well secured to the 5.3m grant, and we end up with 300,000 and stop paying low interest, so don’t think that should move the sp much.
The problem is Markets don’t like uncertainty and they don’t like a vacuum and when the company breaks with tradition and has no interview or engagement with the investors after quarterly reporting, people get jittery.
If anyone had suggested that we would be at .0009p (I did that to reinforce where we are) the glass half full brigade (not singling out GIT but the merry band of men who don’t seem to wish to be too critical or too loud about our predicament) would have abused them...but here we are....
Maybe someone who needs the cash, suspect then a loss and most likely forced due to circumstances. Or someone know knows something. I doubt Atlas or vendors who got our shares as payment in kind are likely to be selling at a huge loss unless their business in desperate need of cash.
Would help if MM took 15 mins out of his toilet break and did a proactive interview...
L200, If that was the case case, why would Blackrock put in another 7m just a few months ago, way after Atlas got their claws in us....just saying
Know something. Makes no sense
As if they will reply lol....how long ago was it Justine said the company were looking at doing some form of interview or information sharing about the last quarter. Yet we carry on waiting for....well at least it wasn't another dilution
We are still waiting for them to do an interview about the last quarter figures so who knows, when they finally get round to it they may give us some info about how 2021 is going but as per doctor’s advise kindly do not hold your breath as it maybe a while...there again it could be this week.....
Haven’t we suffered enough...
Fully appreciate start up problems, hence not relying on their aspiration of 24/7 by April, I am expecting the continuation of start up problems for some time to come, until we have consistent numbers showing 24/7 uninterrupted production (as per their plan so obviously excluding foreseeable maintenance etc).
GIT, according to them 24/7, bas3d on passed performance I wouldn’t bet my shirt on it and would be grateful for 24/5. You can’t blame me as the impression we were given when they did the webinar was different to the problems we faced in October and November so reasonable to take their words with a pinch of salt. People keep on saying we have to be patient, and some of us have no choice, just not nice being kicked in the nuts every few weeks whilst we wait.