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May I remind you of one of your recent posts dvh?
"Massive deal for KEFI, massive deal for Ethiopia. You either believe Harry will deliver it or not. NOT an investment for bed wetters fretting over an RNS this week or next week or the week after imo. The short term traders bagged their 10% (nice) but (hopefully) LTHs will bag much more...."
Maybe you're somewhat manic-depressive, or maybe you also "speak with a forked tongue". Either way, I'd suggest being a little less enthusiastic about telling others off for having the temerity to express a few positive thoughts every now and then, given that you did so yourself less than a week ago.
Back to the same price it was about a month ago, to put it in some perspective. But this time, the threat of a potentially imminent placing has now become history. Plenty to look forward to, once the market has finished throwing it's toys out of the pram.
I'm with you guys. Have no funds available atm unfortunately, but will do shortly, so hope the price stays low for a short while. Can't believe the emotional reactions by some to wholly predictable news, but I still prefer that to the cynical deramping by traders who are clearly still interested and watching closely.
0.6p isn't a particularly bad price honestly, considering it was below that level less than a month ago.
Also selfishly hoping it'll stay low for another month, so I can move more into my ISA.
Worth re-posting what I said on Jan 24th...
"I'm probably in a minority of one here, but in some ways I'm actually looking forward to the next placing. No, wait, I'm not crazy - hear me out!
We all know it's coming - it's inevitable - we owe money, we spend money and we don't make money. What we don't know is when, how many more shares or the strike price. That fear I think is a large component of what's stopping some investers buying right now. When the placing happens, yes, the SP will take a hit and yes there'll be more shares, but the fear will be gone (at least until the next time, but one thing at a time). Thus I'd expect the SP to recover quite strongly after the placing.
And that's not considering any other factors, such as TK finance closure, which I think there's a very good chance indeed will happen before the placing, and any other positive developments.
No-one likes placings, but they're a fact of life in a company that does not yet make any money. So you better make your peace with it, or else leave and don't look back."
Thanks Rob. That's a second example, so should put to bed the idea that it can't happen here. Whether it will or not remains to be seen.
The CNR SP at the time was only a little under 20p however, not way under as HZM is now. No twisting or deramping, just the facts. HZM is in a tough situation, that's really not up for debate. Just have to wait and see how it all shakes out.
CNR is the only time I've seen such a thing happen, yes. A company needing to raise funds when the SP is below par value is an unusual situation to begin with, but here we are. CNR placed at 15p, FWIW, but also with a bunch of warrants. It was painful, but not fatal. It would probably have been worse if the company had not been able to raise funds at all...
In addition, in the case that HZM does not opt for a sub-division of shares as CNR did, that is by no means some guarantee that any raise will actually be done at 20p. They will still need to find someone willing to pay 6 times the current SP. No mean feat.
Rover - this has been discussed, and although (understandably) no-one wants to face-up to the possibility of a raise down at these levels, it absolutely is feasible.
Ref: https://www.lse.co.uk/rns/CNR/proposed-open-offer-to-raise-up-to-16339m-a4tik9tfdwi7a3r.html
"The Open Offer is conditional upon Shareholder approval of the Sub-Division, which will be sought at the EGM to be held at 11 a.m. on 21 December 2022, a notice of which is set out at the end of the Circular. Under the Act, a company is prohibited from issuing new shares at a price less than the nominal value of its shares. The Company's Existing Ordinary Shares have a nominal value of £0.20. The middle market share price of each Existing Ordinary Share on the date prior to the date of this letter was £0.1925. In order to enable the Company to offer New Ordinary Shares at a discount to Qualifying Shareholders to fund the Company through its sales process, the Company proposes subdividing each Existing Ordinary Share into one New Ordinary Share of £0.001 and one Deferred Share of £0.199. The Company expects that the Deferred Shares will never have any real value. The Deferred Shares will have no rights to vote or to dividends. The rights of the Deferred Shares to participate on a winding-up of the Company are unlikely to be realised, as such rights will be subject to the prior payment to the holders of New Ordinary Shares of the nominal capital paid up or credited as paid up on the New Ordinary Shares together with the sum of £10,000,000 on each New Ordinary Share."
I'm not commenting much at the moment, because I tend not to say much when there's not much to say!
But just in response to the permits/construction ready/building the mine question - Nic is not Australia, or Canada, or the UK - that has worked against us in all the ways we are well aware of, and Seingred (repeatedly) reminds us of. But it can have advantages too. Specifically, it seems clear that the small-print of contracts and permits is really not critically important. For better or worse, personal relationships with the movers and shakers are more relevant. That has already allowed us some lee-way with regards to construction deadlines, and is unlikely to be a blocker for any particular takeover scenario, or purchaser's intentions, provided there is something for Ortega's administration one way or another.
Furthermore, I am unsure if the terms of the permits currently assigned to Condor necessarily pass, without alteration, to a purchaser. It may well be the case that many of those terms are either null-and-void, or at least need to be re-negotiated with the new owner.
More generally, I think one of the few things we can probably all agree on, is that the time is now. Regardless of the price struck, I have other places for the money, as we all must do, up to and including JM. We have been given virtually nothing to go on, and so we are left to twiddle our thumbs and argue amongst ourselves as to whether JM is playing 4D chess, or is simply trying to avoid losing every penny he's put in here. Either way, it's surely time to wind it up and move on.
It's all relative deedee. 100% of your portfolio in any share, never mind this one, is unwise to say the least. But 5% of a rich's person's portfolio could none-the-less be several million shares. Position-sizing is one of the easiest and most effective ways of managing risk in my book, but that side of things is not talked about much, not among PIs anyway - far sexier to plonk 100% of your portfolio on a single multi-bagging stock and retire early! A lot of folk get badly burned doing that though.
The view that only existing shareholders have a right to comment on boards such as this is clearly nonsense - the views of that demographic logically leans to the positive - after all, why would you continue to hold if you had a negative view on the stock? (Mostly a rhetorical question, although I think it does happen from time to time, perhaps due to psychological issues such as loss-aversion, but I digress...)
However, it is also the case that those with no interest in ever becoming a shareholder would, logically, have little reason to be spending their time and energy here. Seems to me that, invested or not, SB is still keeping a close eye on proceedings, perhaps with a view to buying back in due course, and as such, his views may not be entirely without bias themselves.
Regardless of all that, if Kefi's share of SA is only worth 7.5m, then, well, someone needs a new calculator. Not saying who (I am a holder myself after all!), but well, make up your own minds!
Snap! :-)
Can't tell if you're being sarcastic or not shiny, but yes, I think there are a number here with upwards of 20m shares. 4m shares is a lot for many PIs, and certainly not to be sniffed at or looked-down on, but it's not a significant trade on it's own.
Certainly doesn't imply anyone knows anything more than we all know. Just the usual chicken little's predicting dire consequences several times a day.
In possibly related news, there's a trade for just over 4m shares half-an-hour later than the 1.5 and 2.5m trades. They may all be part of a single transfer, with no net change overall. Either way, the trades are in the price now, which is showing a bit of strength, so there's reasons to be cheerful.
I'm sorry, but I don't see a raise happening at 20p if the SP is less than a fifth of that. That 20p target is purely psychological anchoring, as it's par value, but raising at that price won't be easy.
You really can't do that Mach_20. I mean, they may have a little wiggle room, but stock market rules are quite clear - price-sensitice news must be released ASAP, in order to treat all shareholders fairly and limit potential for insider trading.
IMHO, it's best to simply ignore obvious trolls. Just filter them.
Another idiot/snake (delete as appropriate) green-boxed. SMH.
I look forward to the day (not so very long now) where foolish statements like "THIS. IS. NEVER. GETTING. OFF. THE. GROUND." are put to bed once and for all. There are none so blind as those that choose not to see.