Member Info for Greg25

You'll see as the climb up will start from this week's massive results

They can't replace a working capital £5m CLN 18 month loan facility with a £2m strategic placement without making up the £3m difference. Current production is variable as it's being upgraded.

Robbie has already stated they can't do another placement for several months.

They have already streamlined the purchase in Tanzania and increased the amount payable by $1m USD.

Robbie has said what they can't do but hasn't said what they can do.

So what are the facts and what is the most likely option available.

They need more capital by end of July
They can't add to the share count
They can't say how they can raise more funds

They can't say at the moment because there's a 3rd party involvement and they're going through the process.

A look at the company's finances will reveal just £50k difference between MCAP & EV therefore the company is carrying very little debt.

They are a gold producer so they have the means to service a larger debt facility.

Most likely option is they are involved with a 3rd party and looking to increase their debt to provide near term working capital.

Hi Trek,
yes agree I've also known circumstances whereby they actually sold at a loss knowing they'll recoup more on the conversion. Perhaps that's what's happened here?
The risk is in the expiry time parameter of the warrants and the company achieving their goals.

PXC does look like an innovative way of raising funds without dilution. There's several non-dilutive avenues the can take and they also have a clear advantage being a producer which widens the possibilities.

ATB

By Xmas this will be a different company to the one that started the year. The quarterly results, financials and everything else will all be a lot clearer until then I doubt they'd be clear in comparison as the variables are always changing.

2023 will be another growth year and expect more acquisitions from a strong balance sheet going forward.

Hi Trek,
The warrants just give the holder the right to convert to shares at a set price, in this case 2.5p.

If the SP stayed below the strike price then you wouldn't convert instead just buy more shares on the open market at a cheaper price and let the warrants expire.

My main point is that the converted warrants would raise funds for the company, £7.5m.
They need these funds to pay for the capital expenditure CAPEX. They are producing revenue through gold sales but it isn't going to cover the cost of the expansion and continue to drill at some point in the future they'll need extra funds
They did have a £5m CLN which they changed to a £2m strategic placement.
Maybe the £2m is enough but as long as the warrants are there before they expire, the risk of huge dilution isn't there for this year.

ATB

They showed their hand on valentine's day on the capex issue because a £2m strategic placement is a lot less than a £5m CLN from December 7

If my capex theory is right the next fundraise with warrants would be 7.5p minimum strike price and they would mostly be exercised from 10p taking profits from 34% upwards.

My theory is based on them warrants. They're worth £7.5m and they need them excercised for the capex.

They run out on new year's eve, so that means there'll be no mass dilution this year.

In order to make sure they get them exercised they know the SP would have to be at 5p because who would hold them when they're guaranteed to make 100% profits.

Bit more than a gut feeling it's all there you just have to find it.

Trek,
Thanks I did misread the question can I ask you one though?

If you had warrants with a strike price of 2.5p what price would you be willing to convert them and why?

We're all on the same side

Them predictions are all out of date and only show part of the pipeline unless you think 4.2p is going to make a mid cap company.

They need to hit my first target before any higher 5p by Xmas is the goal

5p before Xmas 10p next year here

You'll see

This will do a GGP type rise the fundamentals will be too strong.
Even though the GGP rise was fuelled by furlough lemmings that petered out GCAT will have a solid investment base.

The sellers that was here proved the charts were useless at predicting the SP.

This will get to 5p before Xmas on RNS news and sentiment

You'll see

We're looking at expansion with minimal dilution here and they'll be paid in Nairobi shares.

5p by Xmas you'll see

Serious question, if you were having your car engine rebuilt and upgraded would you be concerned about the MPG along the way?
It looks to me like they're doing a thorough job and will be completed before Xmas.

There's no elephant this will be 5p by Xmas!

You'll see

@Bebo yes if you have 27 commercially viable drill results then you should release 27 commercially viable drill results!!!!

5p in H2 and 10p in 12mnths

You'll see

You'll see