Member Info for Ella10

Sewingmachine if the loan note matures within 3 months there appears to be leeway to count it as a cash equivalent?

Folk should certainly do their own research and not blindly believe what I post. Cash and cash equivalent of $5.3m was quoted in dollars for the first time and appears to include the CASA loan. The original CASA loan was due to mature on the 19th March and possibly goes some to explaining the unexpected placing in March. I guestimate we will have somewhere over £1m raised by warrants since the cash position was announced. Assuming we are now drilling with 2 rigs, the airborne survey contract has been signed and the scoping study paid for then if the new Casa deal doesn't materialise within 2 weeks I would expect another placing or fund raise of some description within that sort of time frame. This is obviously only my opinion and only time will tell.
If in a months time a placing/fund raise hasn't happened, the new CASA deal hasn't been confirmed, we are drilling with 2 rigs, have the airborne survey and the have results of the scoping study I will post an apology for using the available evidence to come up with an incorrect conclusion.

MT,
The 5th May RNS is irrelevant because it is still only a proposal!!

I agree the last line of Dartons post is a bit odd but you're in the wrong forest so nowhere near the correct tree....

MT,
You are quoting an irrelevant RNS. This is the relevant one
https://www.lse.co.uk/rns/ARCM/casa-mining-update-1egzf5y27kxpwmg.html

I am convinced that the CASA loan is included in the cash equivalent and that is why it is quoted in dollars whereas it is normally pounds.
I am not sure what the legal standing of an investor call is as anyone can err in a fairly informal discussion. The deeper drilling was known about prior to the IC and the acquisition is being funded by the issue of shares.
The tweet on the 10th March
https://mobile.twitter.com/ArcMinerals/status/1369551092762243076
Followed by the placing 2 weeks later could be explained by the fact that the loan note was originally due to mature on the 19th March.

Slurms,
I believe the reason why cash and cash equivalent is quoted in dollars is due to the fact that a future exchange rate for the dayte of maturity is unknown but it is possible to convert our cash balance to dollars using the exchange rate valid at the end ofay.

TrickyTree,
I asked for the issue of the loss of the Kalaba mining licence to be clarified via an RNS. I did get an email response but it didn't address the issue (even within the email). Emails to random individuals mean zero on AIM. There are numerous issues that need clarification via RNS. The company has told us their cash and cash equivalent and I cannot say it is incorrect or misleading therefore the company does not need to issue clarification. I am just trying to determine what it means.

Slurms,
I think your comment is valid. However I still think the CASA loan note has been included as a cash equivalent. Are you an accountant? You appear to know more about cash equivalent that I do anyway.

'Cash and cash equivalents is a line item on the balance sheet, stating the amount of all cash or other assets that are readily convertible into cash. Any items falling within this definition are classified within the current assets category in the balance sheet. The two primary criteria for classification as a cash equivalent are that an asset be readily convertible into a known amount of cash, and that it be so near its maturity date that there is an insignificant risk of changes in value due to changes in interest rates by the time the maturity date arrives. '

Slums,
From investopedia
'Examples of cash equivalents include commercial paper, Treasury bills, and short-term government bonds with a maturity date of three months or less. Marketable securities and money market holdings are considered cash equivalents because they are liquid and not subject to material fluctuations in value.'

I believe the CASA loan note is commercial paper so I am convinced the $5.3m includes the CASA loan note. So $0.3m In the bank as of end of May, the warrants will have added some funds but there will obviously be bills to pay.

F79,
I now hold a very significantly reduced position but have very good reasons for remaining invested.

Slurms,

I did some digging a couple of weeks ago and couldn't come to a definitive conclusion. I had some questions over whether it could legitimately be included but wasn't able to convince myself either way. I believe one aspect of what counts as cash equivalent is how soon it is payable ( and at the end of May this was payable on the 16th July). I agree there are question marks but why change to dollars?

F79,
Last Years cash position was in £ and was straight forward cash. This year's is $ and includes a cash equivalent aspect. Why would an aim company suddenly decide to quote it's cash position in dollars? To me it strongly suggests that the CASA loan note is included in this years cash position. I am willing to be convinced otherwise but would like someone to suggest another potential reason for the cash equivalent and reason for changing to quoting in US$.

Hi SeisNav,
The equivalent statement from last year's RNS stated
'The Company's cash position at the end of September 2020 was £1.25m after mobilisation and other payments incurred over recent months in order to progress the current work programme'

So why have we introduced a cash equivalent component and why quote in dollars?
Any guesses??
Perhaps we should have a sweepstake on when the next placing will be announced?

SeisNav,
'Such as stating that there will be another placing when there is no evidence to suggest that there will...'

That is an untrue statement. I at least try to represent the facts in what I post.

Hi SeisNav,
Are you suggesting that a placing would be well received at the moment? :-)

Hi Fulmar,
It certainly wouldn't surprise me if they caught a certain whiff in the air.

Lantier,
You suggested that the participants in the last placing at 6.5p 'were not full'. I think if you offer 6.5p at the next placing NVS will be very happy to oblige...

Agreed, I wonder what the cash equivalent in that $5.3m is referring to...

My musings a few weeks ago were that the open pit assessment was paving the path to force Anglo to relinquish their option rather than to bring them to the table in any serious manner. If another party is interested AA will need to relinquish their option to purchase and there will still be a Royalty to be paid to them.