Member Info for HarChris

At the moment the only ‘justification’ for such a depressed share price would be enormous jurisdiction risk attached, a la Resolute Mining and what’s going on in Mali.

The reality is the opposite. Thor is stuffed with respected and experienced Nigerian businessmen that have ties to the government, Resolute’s board has little to no Malian (or even African) representation. Mali is cracking down on foreign investment, Nigeria is incentivising. Thor is winning awards and praise for its ESG work and initiatives, Resolute is constantly maligned.

But what’s worse… despite having their executives detained and only released after paying a $160m tax liability (cough ransom fee) they STILL trade at a far higher multiple than THX! Laughable.

In H1 Resolute posted $33.4m net profit, less than the $40m THX made. H2 profits expected to be both in the $50m range. Resolute market cap? $520m still, today, after all that’s going on in Mali.

Don’t get me wrong Resolute is the bigger business but Thor will keep generating more profit from Segilola than Resolute do over the coming years thanks to industry low AISC (Resolute’s more like $1450/oz) and the tax holiday.

Considering Resolute’s dire situation in Mali and the above I can’t see how they are still trading 3.5 times higher than THX.

'Appreciate that revenue isn't everything, especially with debt almost as much as revenue here... But is anybody aware of any other companies listed in London that has a revenue of £25m+ but a market cap at a 1/3 or lower?'

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Yeah there are countless examples, some much more egregious than DKLs.

Here's one - Gem Diamonds (GEMD). Revenue in 2023 was $140m, revenue H1 2024 was $78m so 2024 is expected to be $150m i think. Market cap? Just $17m, barely 1/10th its revenue. And they will have posted a profit in 2024. Reason for such disconnect? Well a combination of debt and long term outlook of the diamond industry.

More important than revenue (as you did acknowledge) is profit, as well as net cash or net debt position. Full year accounts will show something like €30m net debt, something that will be a major challenge to turn around.

Giving four weeks or so notice is standard practice / he’s not been fired in disgrace so no reason to walk away immediately.

He won’t care about being in charge for the next update, it’s not like he needs to face shareholders. It’s future interviews, Q&As and AGMs that he won’t want to be involved in.

‘ How does Novacyt benefit from this ? Thats all i am interested with. Anyone explain ?’

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Spoken like a true doctor.

‘So £2.55m generated with 6.66m shares. My maths makes that 38p a share?! Is that right?’

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‘The New Ordinary Shares are being issued in settlement of the quarterly principal of £2.55 million and interest repayment of £0.50 million in respect of the Company's unsecured convertible bond’.

Did you get bored after reading fifteen words and switch off?!

Human beings who dedicate their time to charity and people who spend their days responding negatively and sarcastically on this BB occupy totally difference sides on a Venn Diagram - I am absolutely certain of that.

I honestly can't get over the fact that those who bought in the LSE IPO in June 2021 are currently down on their investment.

THX had yet to pour a single ounce of gold and was gunning to develop the first major gold mine ever in Nigeria, an obvious risk with no precedent. The gold price was just $1750/oz and the DFS, completed a few years before, expected just $178m cash flow from the entire life of mine (base case of $1300/oz gold).

The reality? THX has already generated ~$178m cash flow at just over half way through the mine life and is now able to produce that amount in 2025 alone and then, gold price depending, again in 2026. This is everything and more for investors.

The fact that IPO buyers in June 2021 are losing money defies all reason... but it won't last forever.

Obviously we can’t predict what gold does over the coming years but at current gold price vs a year ago revenue from Blue Mountain has increased by ~$70m. That’s a big deal for an $8.5m mcap business.

Perhaps partly his reason to step down? He’s sold/selling these shares for the last £100k in the bank and couldn’t conceivably do that and stay in charge as CEO until administration?

Or he’s just embarrassed to do another IMC after the full year results are out with no business to talk up.

You’re going to get a Heights related rns in the coming hours…

Whilst it does look like it will be a share payment the commentary alongside will be important. And there’s always a chance they announce a buyer to take the shares off Heights.

In a sense it’s nothing ‘new’ as the rational amongst us assumed there was no positive developments going on behind the scenes but this has all but confirmed it.

Having said that it wouldn’t shock me if Jan op update shows just 8BTC mined and the market barely shrugs!

It’s difficult to convey what this gold price means to THX but they now have only a fraction of their gold selling for a lower price (forward contract) and after March will realise the entirety of this current $1800/oz margin in cold hard cash as they have no financing costs and will be at a working capital surplus.

That’s $40m injection of cash a quarter.

That’s the end. We said before that Chippas’ remuneration package greatly incentivised keeping Argo alive for a few more years but his stepping down is surely a sign that he’s failing in that front.

Clear there’s no deal re these machines and no new hosting agreements elsewhere.

Early April for full year results which will show $90m-$95m net profit.

May for q1 results that all being well will show $35m-$40m net profit for the quarter alone.

Those are the sorts of numbers that start turning heads, especially if gold price is still as high - currently holding above $2700/oz against a strong dollar is very positive.

And in the meantime there’s news due on committee report, the DFS, dividends/buybacks and more drilling results from Segilola. (Possibly a surprise lithium update too, just as that sector is starting to recover).

Trustatrade, you’re free to make claims like that but the volume since 11p means there’s no way ‘they’ do it as systematically as you’ve just laid out - I’m sure some placees sell shares but not all en masse or the share price would totally crumble, just just trickle down over a few weeks.

I’d guess we tread water between 8 and 9 pence for at least a good few weeks unless we get an external catalyst, ie rare earth China tariffs or just a healthy rise in NdPr.

I added for the first time in absolutely ages today so fairly irritated right now but I think it’ll be a totally different picture by Q2, so not too long to wait.

My question was about breaking this cycle of progress followed by discounted placing which was put to Will amongst a whole host of related points so didn’t expect him to address it directly.

I guess the truth is they can’t sit here and rule out further placings because there are too many factors in play such as potential grants and government funding. But even if there are further cash injections as long as Mkango has reached commercial production in the UK, Cotec has successfully raised the funds to develop HyProMag US and the SPAC has listed then there’s no way it would be at anything less than 100% higher than this 8p raise.

All that matters is the 3-4x volume like you say, ie around 100m shares. A couple of months at average volume but with news that sees higher than usual interest (say announcement of China tariffs) we could well see that in 15-20 trading days.

‘ Nice to wake up and not see an RNS, presentation hopefully now Is all about positive things.’

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Famous last words Gallmat.

I'm not sure about monster overhang. The last £1.25m placing at 5p was 25m shares - now it's £2.34m at 8p so 29.1m shares.

If we get news we're after driving high volume the overhang would be cleared in a matter of weeks.