Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
"But since EML will probably be swallowed up by OCP, and fat cheques all around for the BOD, this is all irrelevant to us SH's."
So how does OCP acquire EML without PI's benefitting from any share price rise? Surely if the BOD have their own stock, and far more than most of us can dream of, why would they sell at a deflated price? They have more incentive than us to add value to EML.
There is one thing, however, we need to watch out for in any equity rise and share allocations to the BOD and that is preference shares. Us mortals will have ordinary or common stock but preference stock will have priority when it comes to payment of dividends and also payment if the company folds. I don't believe preference stock can command more in the event of a company sale however. Please correct me if I am wrong.
Thanks Lew82 for the article.
Generally interesting and especially so if history turns out as predicted, potash is used in these large scale CO2 capture plants worldwide. As the article says, these plants could need 150% of the worlds annual supply. However, the article also points out that the described technique is one of a number that can be used for CO2 capture so no guarantee potash could be used in this process ultimately. "Every little helps" as another company puts it.
Re phased build, see diagram in particular in: https://www.rns-pdf.londonstockexchange.com/rns/3998P_1-2021-2-17.pdf
EML have recently said "....the Company will complete a concept study examining the potential to develop Khemisset using a stage approach,....". The results will be published when complete.
Hope this helps.
Hi Westie50,
I agree with all your sentiments. I was trying of course to summarize some of the reasons why EML has a penny SP. I also see beyond the comparison with Sirius but it would have coloured some thinking's out there.
I guess (as has been said many times) the short term prospects come down to the financing. Like many, and trying to read between the lines, I believe it more a matter of when/details (balance between debt/equity) than if. I hope it's the BoD being highly selective hence the delay. Sure, there's a risk with this balance of dilution and to the SP but there's also a risk of missing the boat and waiting for the finance announcement to see the SP sharply rise. I am not trying to time the market, rather invest at relatively low prices now and hold until at least production starts.
You "pays your money and you take your chances" as they say.
https://www.investopedia.com/articles/basics/12/beginners-guide-mining-stocks.asp
Sorry if I am teaching any "Grandma's to suck eggs" out there but the above may be worth a read?
I agree that financing is a major pivotal moment in the (hopefully) near future but there are several other factors behind the penny share price including at least the following IMHO:
* no revenue stream
* no track record as a company on previous projects/mines
* no-one knows how much is truly in the ground and its quality until it is all dug up (point made in the above)
* all our eggs are in one basket/mine (the majors spread risk across multiple projects/mines)
* potential fluctuations in commodity prices
* experiences with "similar" companies like Sirius
* geopolitical risks (with the greatest respect to Morocco and Africa that if this project were based on another continent, the price may be higher)
Having said all of this, the fundamentals are unchanged and the BoD have tried to be conservative in their estimates of resources. Moreover, the web article talks of share price rises on the back of a feasibility study and I don't think we have really seen this yet.
Lastly, I would echo a comment made in the article about the risk of investing in junior mining stocks:
"Juniors have the potential to offer a lot of appreciation in the right market. This makes them an ideal destination for risk capital, but hardly the best place to put your social security checks"
Thank you RedRoy.
Don't forget the eligibility of 10% towards the cap-ex costs from the Moroccan Govt?
https://www.sharesmagazine.co.uk/news/market/LSE20191210070003_14341516/Khemisset-eligible-for-Government-subsidies
Further to what already been said, would there not be conditions of confidentiality attached to financial discussions unless all parties to go to press once contractually agreed? It is also highly likely and I believe mentioned before that there are several options available to them and this picture is developing over time. So why reveal details of one finance option mentioned below in this situation? They may have mentioned it before to keep up a stream of positive PR as all companies try to do without being able to share the details.
Hi All,
I have owned shares in AIM and main market before but never owned during a transition from the latter to the former. What's the process in terms of selling and buying? Do the share platforms automatically sell at the end of a certain day when it de-lists from the main market? Is a sell price set in advance by EML? Have people seen the price tread water or even drop in the last few days of main market trading from previous experience? Are people concerned about selling and getting a "fair" price quickly when the shares trade on AIM in case it could rise?
On a more general note, I have around 230k shares bought at average of 4.5p and believe the fundamentals are strong and unchanged. I try to top up on the dips if I can and intend to hold for at least 1-2 years.
Good luck to all