RE: Results7 Jul 2021 15:38
@Pokeman ... there are many companies on AIM which either through circumstances or design become "pump - placings - dump" machines, which provide funds for BODs to continue their activities and protect their income stream at a relatively low personal risk to themselves but at the cost to shareholders. Now, I don't for one minute put GF nor other senior staff in that category, however, new potential investors would in general be wary of AIM pre revenue stocks for those same reasons.
With the spin off (basically a demerger), then I would hope that ALBA would become self sustaining from its own operations in about 3 years time and require very little in terms of fundraises, as shares in the Greenland newlistco would be saleable. My guess is would take about £3M (from any source, gold in tip, early strike of bonanza zone during exploration, placing, sale of Greenland newlisto shares, horse hill optimistic disposal).
Greenland newlistco is another matter, dependent in part on whether it is the company's strategy to sell a proven JORCd asset (for its NPV z discount) or to maintain an interest in such assets until and beyound exploitation stage, which would inevitably need a fund raise, but not necessarily so through placings, but debt and Joint venture or combinations of both (as JAY) are possibilities. So the value that ALBA bring to the table isn't the sum of the value of the ore in the ground, but the value of a proven resource, without all the development capital. My guesstimates, containing many rules of thumbs and toes, is that if all was raised through placings and ALBA didnt sell any of their newlistco shares nor add any, then theyd have 8% of the company by the time the greenland assets go into production.
Sign In
Follow the stocks
