Member Info for EnricoPallazzo

Yes, it's weird that there's so much buying at 2p, with very few sells in between, but the price has not moved. Perhaps that suspicion of shorts closing is correct?

Ah, but that would mean they are letting Cantor out before the inevitable rise, is that what you're saying? I like rises.

How would that work? Do you mean the company has conspired with someone shorting its shares?

In fact, the second part of the RNS does provide some detail, and more details are available on the company's website.

Two new drilling targets identified at Baggy Green, with a potential extension of the strike by 800-1200m which would triple the resource estimate there. What's not to like, unless you expected a multi-million oz increase?

Can any of you remember GGP in the (not so) good old days? Look at them now. Patience will pay off here too.

Or a 'sell-off' rather than a 'well-off' (I was still chewing my sandwich).

Good morning everyone,

I missed some of the action today: I was having a lovely breakfast with my missus and children.

People are amazingly impatient. Some, like Charlie, switch from posting high valuations to warning of big gaps at the drop of a hat. (I hope you get your lower buy-in price, Charlie. I'm too risk-averse for those kinds of manoeuvres.)

The results haven't been reported yet: the company has merely stated that they were received from the lab. I doubt the company would be doing the block listing for warrant if they were not expecting the warrants to be exercised soon. Who would exercise warrants at 2p if the SP was below that level? It would make no sense. What does make sense is that they expect good results and will communicate them in due course. Remember that the >600 results have to be looked at so that they can figure out whether and where drilling should take place. It would be useless to report raw results without any interpretation.

There is always risk but I feel that it's just a well-off by the impatient who thought the SP would suddenly jump to £1 this week (actually, last week).

Stay long and strong!
EP

We aren't all waiting for a takeover. We're looking forward to further developments at Havieron which is the most advanced prospect (with Newcrest). We're waiting for news about other prospects, especially Scallywag.

GGP won't just 'dig it up' because it takes an awful lot of money to start digging, and then you need a processing plant to extract the gold and copper.

Patience will pay handsomely here. It already has.

All the best
EP

In my opinion, the company will have to RNS any warrant exercise.

This Friday, I expect the total number of shares in circulation to be as per the placing RNS from last Friday (~180m).

I should have read the Block Listing RNS more carefully. There is a paragraph explaining the inclusion of warrants which suggests that they were not being exercised at the time:

"For the avoidance of doubt these applications are not applications to list the warrants themselves on any regulated market but merely an administrative measure to ensure that the Company does not need to make multiple applications for admission of ordinary shares to trading on each separate occasion when the existing warrants are exercised by holders. The warrants remain in uncertificated form and there are no changes to the terms and conditions of the warrants."

Why would the company do it then, other than expecting the warrants to be exercised soon? Why would they expect them to be exercised? Because they are expecting the VWAP to go above 3p and so the accelerator clause to be triggered soon, after which the warrant holders will have 20 trading days to exercise them.

I've re-read the company's prospectus and it seems to me that they are expecting the SP to move fast now; hence the block listing that covers almost all existing warrants.

It has just occurred to me that the company must have been notified of the warrant exercise after the second RNS on Friday: the RNS stated the new total number of shares following the admission of 25m new shares. That number did not include the two batches of exercised warrants. This suggests that warrant holders either reacted to the first placing RNS or that they had actually participated in the placing and exercised their warrants straight after that.

Quant,

Perhaps I've misunderstood the accelerator principle but my take on it is that the warrants can be exercised any time; however, if the VWAP is above 3p for five consecutive trading days, then they must be exercised within a short period of time or they'll be lost.

Lancashire_Lad,

It isn't a silly question. I don't know. The company hasn't provided a detailed schedule. All we know at the moment is that further activities (beyond stage 3) have been postponed pending the clarification of Covid-19 situation. This leaves plenty of stuff to do in the meantime. My guess is that a more detailed schedule will be provided as soon as they know how many new targets have been identified, etc. I expect that step-out drilling on existing resources will happen first, as this carries less risk and gives quicker tangible results (upgrading an existing resource estimate is quicker and cheaper than getting an initial MRE on a new resource).

I think some people may not have seen the Block Listing RNS published on Monday 11th May (the RNS is not shown here on LSE but other platforms, e.g. ADVFN, do show it). It states that three batches of shares (two relating to warrants and one relating to last week's placing) will be admitted to trading this Friday.

I suspect that the warrants are being forward-sold as we speak, and that is blocking the rise at the moment. How many shares have we churned through in the last three days? I don't think the placing shares are being sold, so we had an overhang of circa 73m shares as of Monday (or perhaps even last Friday, assuming the company was notified by the warrant holders last Friday). We must have chewed most of the way through that overhang.

Here's an excerpt from the RNS:

The aggregate of 98,515,957 ordinary shares will rank equally with the existing issued shares of the Company.

The block listings consist of:

1. 25,000,000 ordinary shares in respect of the February 2018 subscription warrants, the "February 2018 Subscription Warrants Scheme";

2. 38,018,582 ordinary shares in respect of the November 2018 subscription warrants, the "November 2018 Subscription Warrants Scheme"; and

3. 35,497,375 ordinary shares in respect of the January 2020 placing warrants, the "January 2020 Placing Warrants Scheme".

The expected admission of the shares will be 8.00 am on 15 May 2020.

The last interview, on 20th Feb, happened two days after the release of Stage 1 completion RNS.

I reckon the BOD had initially expected the results from the lab by the end of April and so they had scheduled this one for last week. When it became clear that the results were delayed, they moved the interview to this week (no specific day was mentioned, Wednesday was our own guesstimate). If the results are in, the RNS should be issued this week but I wonder whether it'll leave enough time for an interview. Is it a good idea to do one on a Friday? Is it better to wait until the following week?

The main thing now is the results. People are twitchy because they interpret delay as an indication that the results are not good. I don't share that view. I think they will be excellent but still within the realms of reality: we won't get an increase of the resource estimate now, just an indication of additional drilling targets that will later be drilled to demonstrate that increase. So, no jumps to 30p yet; we'll have to wait for the drilling results to achieve that.

Rookie,

I did see it yesterday. It was shown here on LSE and also on ADVFN. It looked like a sell though: how did you manage to buy at that price, given the spread at the time?

Cheers
EP

Looks like another shake.

Is anyone here aware of any clauses preventing forward-selling of newly admitted shares and warrants to be exercised? If there is no such clause, perhaps this is what we are witnessing and that's what is retaining the SP under 3p at the moment. I doubt the new shares would be subject to such a manoeuvre but the warrants would yield a nice 40% return if sold at 2.80p.

I don't think it's that though: the volume of sells, even at lower levels, is simply too low.

A few stop-losses taken out. Bouncing back or another ride on stop-losses set at 2.50p?

This is fun!

Actually, two of them. A rollover perhaps?

Just seen a 1111111 buy at 3.10p. First class.