Member Info for HawaiifiveO

Oh and one final point, I noticed Richard Lloyd holds no shares in Shuka, why is that ? Why did he not participate in the placing ?

If the CEO fully believes this is a massive opportunity why has he not put his hand in his pocket and bought a meaningful shareholding, again another question, perhaps he has no confidence in his own abilities, from the outside that is how it looks.

Something needs to give here, investor confidence is shot to pieces currently, answers on how to restore it on a postcard please !

The elephants in the room here were sensibly pointed out in my last post, I noticed JB never commented on any of them, maybe facts and truth hurts.

As for an overhang following that wretched placing, well currently you can buy, without difficulty, 500,000 shares at the placing price, so yes there is a material overhang, when was the last time you could buy that number easily in the market ?

Another aspect, why the JSE listing ? Why did they use the usual bucket shop London route instead of raising on the JSE ?

I suspect none of these questions will get answered, unfortunately following COVID presentation events are now majorly online as opposed to face to face as before, this enables demanding questions to be vetted or totally ignored, directors can get away with murder in the knowledge they no longer have to face the shareholders front on, another tragedy of that epidemic.

No wonder the junior space (and AIM in particular) is dying a death.

If anyone knows the long history, especially regarding their search for a new JV partner, I would suggest we are very close to a deal. I suspect there have been internal discussions for some time, they have cleared the decks for a deal by paying off debt and clearing liabilities, the recently acquired US investors are here for a reason !

Make no mistake IF the deal is announced the share price will rocket, the issued capital is only 77m shares remember.

JB as you clearly read this BB you should be aware how Shuka has become 'damaged goods' following the claims of the Chairman a couple of years ago, the main one being that all deals would be funded by cash and dilution would not occur. Investors were taken in by this aspect, the fellow was reported to be a billionaire so why not believe him. We all know what happened next, no explanation given of course.

It is clear that you are supportive to the best of your financial ability however sentiment is rock bottom here, loyal shareholders waited months on end for the delivery of cash to close the Kabwe deal, the very day that cash arrived the CEO kicks everyone in the teeth with a miserable bucket shop 4p placing. Worse still he said in October he would not raise at the current share price regime (then circa 4p), no doubt investors bought shares on that say so.

Now we move to Rukwa, every long term shareholder of Edenville is aware that this coal project has been a total failure and money pit, various management teams have tried but failed to deliver value from Rukwa. Question, why does the current regime believe they can do better ? This is a serious matter and needs addressing, the CEO needs to explain in detail how he believes he can deliver value when no-one else has over many years. Already the sale of the coal fines has not materialised, as ever, no explanation as to why, the goal posts have now changed to sale of briquettes ?

A strategy needs to be delivered concerning Kabwe, no-one knows how this project is going to financed without a potential and appalling level of dilution to existing equity holders, is the aim to seek a JV partner, is the aim to secure non dilutive project finance, the CEO needs to explain.

Basically the CEO needs to answer some hard questions, most shareholders do not want the usual powder puff Stockbox/Proactive interview, so far RL has been a little evasive, he needs to get out and front this outfit more, hopefully you will reach out to him and put these points across ASAP.

Absolutely nothing has been available online for the last 3 days at advertised offer, when this happens it usually implies news is not far away, at current gold prices what is the betting Conroy are closing in on a JV partner deal, remember these deals are often worked on internally for some months ahead of an RNS, the current market value of Conroy is just £9.5m - their JORC confirmed gold in the ground is worth £1.7 billion

Brewer just posted this on X

Jason Brewer @JB_MiningAfrica

Shuka Minerals is dual listed on the @JSE_Group and I am looking forward to seeing increased interest out of South Africa on a mine that operated for over 88 years and was one of the richest zinc mines in the world.

https://x.com/JB_MiningAfrica/status/2011369921108980120?s=20

Clearly certain entities know something material is about to break, the share price has been hit hard but the drop from the mid 3p's has been on very low volume, it will not take much to move it back there as a result.

IG now asking 1.56p for just 100,000 shares, advertised offer sits at 1.4p

NT to buy currently.

I think this is a good move, from what I saw of NT I was none too impressed, he hardly seemed the dynamic type, hopefully his replacement will excite, they surely have someone lined up.

Whilst I appreciate it is the norm for juniors to raise cash via placement I really did feel that Shuka was not the kind of company that would mislead and go back on promises made historically, both have now happened.

Many invested on the promotes from QvB (in particular) and JB that all deals would be financed by cash and would be non dilutive, there were so many commentaries of this ilk on social media a few years back that it seemed inconceivable that they would do the opposite. Well they have, the Kabwe deal has been funded via a share issue and some cash but the delay in delivering that cash has been penal to sentiment.

The next 'betrayal' and much more recent was the interview with Richard Lloyd in October when he clearly said and I quote 'when and if we do a raise it won't be at the prices we are at at the moment' (the shares were trading around 4p at the time) He also stated that if and when a raise was carried out he wanted institutions involved, the link to this interview is below (the funding statements start around 44 minutes in)

https://www.youtube.com/watch?v=NSf5N__x-FE&t=2689s

In my view the company has a great deal of work to do to restore market confidence, they really have dragged their feet in this aspect unfortunately, I appreciate the project is massive and for a minnow like SKA to acquire it is a material event, we now need to know how they intend to deliver shareholder value without ripping the guts out of existing holders by continued dilution, maybe the aim is to bring in a heavyweight JV partner, maybe that is the plan ?

Thing about all this they had already lost all credibility in the market by the constant delays in securing, what in mining circles, is peanuts in cash ($1m) Lloyd was party to a fanfare event with the JSE listing ceremony, he later declared, quite clearly when asked, there would be NO PLACING at the current levels of the share price.

Having waited months and months for cash to arrive then shareholders are rewarded with a truly pathetic 4p placing to raise a measly £1m before costs, question is how are they going to finance this massive project when they are scrimping around the back of the sofa to raise such modest cash in the first instance?

No real progress on Rukwa, has been a money pit for years, no explanation how this lot can turn it around when so many others have failed totally.

Make no mistake the next event will be a 'soft' PR event when nice questions will be asked to Lloyd, all in the garden is rosy for the BOD who are still taking very comfortable salaries and have delivered zero in shareholder value.

If nothing else Lloyd needs to buy a meaningful share stake in Shuka, will hit happen ? Do pigs fly !

What a total let down, the money finally arrives and then they kick frustrated and loyal shareholders in the teeth with a 4p placing, remember that interview when Llyod said they would not be placing stock at these levels.

Not only that the participants in the placing have been awarded 1 for 1 warrants with an excise price of just 8p - 25m of them.

This whole saga has been a disaster, I will avoid any company that JB is involved with in the future, remember those sharp suited interviews with QvB promising the earth, no dilution, all deals would be completed via non dilutive cash, Llyod has also lost credibility and still has zilch shares in Shuka.

I am NOT amused !

Been very hard to buy Conroy in any real size over recent sessions, one wonders if some corporate event is upcoming, the long awaited new JV partner for example, with gold at current levels CGNR's project becomes very attractive indeed.

The share price has been in range for a while now, it seems well poised to break out, at 20p a share CGNR would only be valued at £15m !

The fact the money is quoted in UKP suggests it is in the banking system already, finally it looks like the deal will complete, another RNS could come today but no longer than 3 days maximum for receipt of funds.

The share price could bounce significantly as a result of today's announcement, hard to believe it was 15p a few years ago, not many shares have been issued since either.

DYOR etc

I noticed someone commented regarding the strange trades that have occurred over the last week, having checked it appears there have been many 'SI' trades, these are some form of automated programme (look up on Google) there have also been some larger trades that appear to be sells but are later cancelled (see today 300k trade, then cancelled) In between of these there has been some 'normal' buying presumably by retail investors but could also be insiders (we all know news leaks)

I have no idea what all this means in respect of the direction of the future share price but we all know how thinly SKA is traded, as a result the price can move disproportionally.

The fact the continued delays have kicked sentiment in the teeth is clear however sentiment can change quickly.

Yet the buying continues, it will never be massive volume but the trend has been bullish as the long stop date of the 15th approaches, where could the share price go if the cash arrives ?

The share price hit 12.5p back in March 2024, many were taking about 30p/40p the time, the buzz was ginormous, anyone remember that Stockbox interview with Quinton v B, the billionaire and major shareholder, promising that ALL deals would be funded by cash, no dilution at Shuka he said. We all know the rest, he vanished in a puff of smoke.

We are where we are now, good news is very few shares have been issued since the heady days, the potential for a major price uplift remains, Brewer just needs to deliver, once again today he is pumping NEO, maybe just maybe the money is imminent, judging by the thin buying some think it is incoming, tomorrow is another day, the long stop date is the 15th.

Let the bashers bash and the shrewd accumulate - 4000oz pa at current gold prices is circa $18m revenue with costs of circa $10m equates to $8m of free cash - the gold price could rise further, it looks to me the guidance is conservative, as others imply there are explorers valued at 2x 3x Goldstones current market valuation.

$2.5m of creditor debt re-paid in the last FY also.

The main shareholder and debt provider is supportive for a reason.

Plain fact is the stock has been battered down from the 4p/5p range established in the summer to recent lows of 1p on very low volumes.

My bet is something material is going on in the background, deals can be worked on for several months in advance of an eventual announcement, the market is telling all and sundry something positive is coming, it will not take much to re-rate the stock back to that summer range IMO.

The shrewd are buying at current levels.