Member Info for GeologyStudent

The annual report is not a document that is subject to shareholder approval. It is a statutory requirement as mandated by the stock exchange. I refer you to the independent auditors report on page 16/17 of the annual report from BDO LLP - a highly reputable firm and one of the largest accountancy firms in the world.

The funds will be used for working capital purposes. I refer you to the concept of 'cash cycle' that describes the time lag that exists between paying suppliers and receiving cash payments from our clients. On delivery of our goods, we exercise a credit sale, whereby cash isn't immediately received but will be received within an agreed time frame. The larger the cash cycle, the greater the constraint on our working capital management. I am not privy to the length of Cradle Arc's cash cycle but usually it is a few months. Within such a time lag, Cradle Arc must have sufficient working capital to sustain operations. Further to the point, the first year of mining operations are crucial as liquidity issues are rife (a Co may exhibit good earnings on an income statement due to credit sales but may have cash flow issues due to the cash cycle). In order to mitigate this, it is imperative that Cradle Arc have sufficient working capital, hence: �3.25mill CLN raise from institutional investors, �2.4mill Open Offer on admission and $5mill working capital facility provided by our off take partners on admission. Hope this helps.

if one checks the ALO site, the 2016 accounts are available.

The accounts were available to view alongside the Whitewash Circular, prior to the general meeting which was convened for the Mowana transaction.There was an option to receive the annual report in the voting form if one chose to partake in the general meeting. Nevertheless, I'd imagine the accounts will be available to view when the Cradle Arc site is online.

I believed the 10th January admission date was too ambitious. The new date provides them with the appropriate time to perform the Open Offer.

The quantum and mechanics of the Open Offer have yet to be disclosed therefore this is a rough guide: (1) Determine your average and number of shares after 300:1 consolidation (2) As part of the Open Offer, existing shareholders will be entitled to purchased 1.6 new shares per 1 currently owned (rough estimate) (3) Each new share will cost 10p, therefore deduce new capital investment required to purchase all shares in your entitlement (4) Add up total capital invested (pre and post Open Offer) and add up total shareholding (pre and post Open Offer) (5) Divide total capital by total shareholding to find new average.

The Open Offer - if it materialises - will be performed at 10p with an associated �20mill Mcap. Cradle Arc own a 60% equity stake in the Mowana Mine which, according to the research report, has started to produce at nameplate capacity since Dec 2017. The mine is now producing 12ktpa of copper, of which 7.2ktpa is attributable to Cradle Arc. At $3.20/lb, the attributable EBITDA to Cradle Arc is $22mill per annum. Using a 6x multiple, Cradle Arc's intrinsic value is $132mill or �100mill, using this metric. In my opinion, at the current copper price, the intrinsic value of Cradle Arc stands between �80-100mill. There is a >300% upside in the share price from the Open Offer price.

The funds will be used for working capital purposes. In addition, the board have rightly decided to raise a portion of the funds via an Open Offer in order to allow existing shareholders to average down their holdings.

I've done some research and looked at AIM IPO's dating back to 2017. It appears as though delays of up to 1-2 weeks (sometimes more) is pretty common.

The board have publicly stated their intention to raise capital via an open offer on multiple occassions. If this is to materialise, I suspect a slight delay to the timetable. Let’s see.

Typically, the Open Offer period lasts for two weeks. Cradle have yet to announce an Open Offer and admission is expected on the 10th Jan. Leaving it late....

As long as you fill your basic entitlement as stipulated in the upcoming Open Offer, all will be good. I'm content that the management have increased the fundraise from £1.75mill to £2.4mill as existing shareholders now have the opportunity to purchase more shares.

Expected Mcap at admission: £20mill; expected shares in issue: 200mill. Only feasible if SP is 10p.

The share price on relisting will be 10p which is an alteration from the anticipated 20p opening; arising from the 1:300 consolidation. It is just a superficial move that has no bearing on any potential Mcap valuations, as shares in issue will be adjusted accordingly. The specifics of the Open Offer have yet to be disclosed, however it is likely that equity will be raised at 10p. In accordance with the CLN agreement, the notes will be converted at the same price as the Open Offer price.

I suspect there will be a 2 week Open Offer period in which shareholders can subscribe for additional shares. Thereafter, we will list on the AIM. My bet is on mid-Jan.

Yes. The terms have changed. Cradle Arc have the following liabilities which total $46mill: $21 unsecured loan from ZCI; $8mill secured loan from ZCI; $12mill secured loan from off-take partner ($10mill to pay liquidator and $2mill cash payment to ZCI); and additional $5mill working capital facility from off-take partner for plant optimization and DMS commissioning. This is included within the research report.

It appears as though the only things that require completing is the £1.75mill fundraise via Open Offer and admission on AIM.

visit the Cradle Arc site: http://cradlearc.com/

Incorrect. The results of the general meeting was issued via RNS.

I have contacted a member of the management team and received confirmation that the number of shares post RTO (~130mill) is correct. The vendor Penmin currently possess 40.5mill shares or 60% of the enlarged share capital. The conditions of the Mowana transaction are such that the vendor will retain 60% of the share capital subsequent to the �5mill fundraise plus CLN fees (�3.25mill Late October CLN + �1.75mill open offer). The aforementioned fundraise will add 25mill shares to the current 67.5mill shares in issue. As a result, the vendor Penmon will receive an additional 37.5mill shares ('Top Up Shares') in order to satisfy the conditions of the Mowana transaction.