RE: Cui bono1 Nov 2019 07:03
20 Million Quid would be terrible !! With projected revenues of $25m supposedly just a few years away, Galantas should be getting to a stage where an offer of £80m is more the tune.
With the kitty getting poor and the share priced at hopeless levels of financing, the market will not take to mothballing and the company could be driven down and down to the receivers, at which point, low and behold a new company comes forward to buy the assets at knock off rates, secretly owned by some dodgy offshore trust, could be friends of anyone's including the current shareholders, who knows, but the operation is bought, taken private and sails off into a glorious sunset where the mining indeed does take place for the new owners, gold is reaped for the few, and the current shareholders get the square root of zilch.
I think the biggest problem is that GAL's finances are rubbish. With several million in the bank, it's more agreeable to take time out and solve problems, but now the clock ticks, and Roland does not act with any urgency or ambition, he never has.
IMO Buying at these levels becomes a gamble, no longer a high risk & high return investment. If your holding is smallish then averaging down is a possibility right now. As the saying goes:
"Be Greedy when others are Fearful.
Be Fearful when others are Greedy"
Right now we are fearful.
We are below asset value, but that doesn't matter as an investment if the company is driven into liquidation and picked up for a song by the vultures.
Could Roland handle things better locally ? Well for example he could perhaps get some locals on side by spending on events for the local community, halloween parties, fireworks and xmas, sponsoring gardens, local church roof, local charities would all garner local support. Imagine if a local police chief appreciated the nice tulip display in the local green or his grand kids had the time of their lives and all it cost was £800 for an inflatable castle and a day's gardening to plant 1000 bulbs. He might even make sure the paperwork is done for blast supervision on time. These are just small ideas, but I bet none of these have ever even crossed Mr Phelps mind.
He has already admitted that the banks are not willing to lend.
Apparently one of those top bankers loves tulips.
OK The tulip digression might not be serious, but you get the point. There are a multitude of possibilities, ways and means but Galantas never does anything to boost image, regional influence, non-financial or local sentiment that we know of.
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