Member Info for Highside

Trouble is miln is the MM's make their money on the spread, now if the SP is 100p and they want to make a penny they have a 1% spread :-) but if the SP is 4p then to make 1p they need a 25% spread.
Of course thats an over simplification as they usually deal well within the spread like today the spread seems to be 3.275 - 3.69 or 12% which is actually very good for EUZ

Esta vez el año que viene rodney seremos millonarios. :-)

A lot now depends on current finance and future finance
The last RNS states they raised GBP1.5m gross in late October 21. I think this would be about £1.2m or £1.3m Net ?
What we dont know is how much they had in the coffers at the time of the raise. Its likely that the last raise took place because they wanted to get it in before the AGM and they could then renew their ability to raise again at the meeting for 2022. Going on previous years of about £2m a year expenditure i doubt they had a lot left but thats just a guess.
On that figure its likely that their last raise would last about 8 months ? although in fairness they did say they were financed for 12 months if they didn't buy a project. LR leaving would save about £75k for the rest of the year, if they didn't start the resource drilling that would save a few bob ? we dont know what other cost savings they found as they didn't tell us but i cant imagine it was just deferring wages for 6 months.
Cost on site would be rocketing. They said on GB news this morning that consumable supply inflation to manufacturing is now running at 18% !!
My point is money must be getting tight bearing in mind you cant run the balance down to zero before you raise, you need working capital in the bank.
I get the feeling they are now stretching the money they have left as far as it will go , maybe at the expense of resource drilling and a new CEO. Maybe to get too late October so they complete the 12months they forecast at the last raise ?
If thats the case lets hope they dont find another project without sorting a deal on Toral first.

One thing that makes me wonder...
The company has not been vocal about what its doing. we dont really know if they are still drilling, why Bennelong bought in or why LR left. We waited ages for the hydro and Metallurgy and yet they have not held back at all on their search for another project ? given the obvious questions that raises and the uncertainty it brings...why would you announce that at such an early stage ie: we will look at anything anywhere ? why would you not wait till you at least had something of interest to present ?
Is this tactical or just another example of the company shooting its own SP in the foot again ?

Shed
You have spoken to the management before, why not ask them how they intend to buy/finance another project ? its a perfectly legitimate question. Especially if you mention the SP is dropping since the last placing because of fears of another placing.

MFM
They cant raid retail punters, with a discount like last time they would be lucky to get 1.5p and with a 50% dilution limit that would give them 40m shares at 1.5p or £600k ? and a collapsed SP probably sub 1p.

Its an interesting one Bricks because the company would almost certainly have had to obtain permission from the nomad to combine the roles of Chairman and CEO and to do that they would have had to put forward a very good reason. As i say had there been someone else waiting in the wings i could see it but as there wasnt my guess is the Nomads hand was forced and LR walked.
The way the AIM is run means that they work to a ‘comply-or-explain’ rule where companies may not dont stick rigidly to the rules but can bend them with the nod from the Nomad.

Also bricks, i might be mistaken but wasnt it MC who first mentioned the value event on the RNS not LR ?

Hi Bricks
Of course its a possibility but if he was pushed , who had the power to push him ? He had just been re-elected at the AGM and presumably the legal contracts had just been drawn up for the deferred wage plan that included him. I dont believe even Bennelong and DB combined had the votes to push him off ?. i also think had someone like Bennelong decided to oust him, even if they could, they would have had someone in the wings to plant on the bod.
Its only a point of view/guess but solve this and you will have the future here mapped i think.

Try and understand Shed. I spent years bemoaning LR's performance as CEO, not as a project manager and as he has walked out, apparently as soon as it looked like we were running out of money ?, it also looks like i was spot on :-)
It is quite normal for people who leave to state it was for "personal reasons" if thats the case, but he left to "pursue other projects" ?. I know you had a soft spot for the guy so its understandable you leap to his defence but the state of the SP, the history of questionable placings and the votes for him at the AGM show you to be wrong on this.
These people like Justin tooth , Colin Bird and Lawrence Read who just leave with no notice dont need you to stick up for them, they are quite happy doing what they do and make a lot of money at it however much good you might think they do the company its waisted when they just leave as it contributes the poor reputation that drags us down.

Yea i know your extension is only half built mate, that aint my problem now as I'm off to "pursue other interests" on a job darn the road.
Oh thats fine my good man, dont you worry about half doing the job, thats perfectly acceptable ,we will find someone else to finish it....... :-)

I think the nature of his leaving at such a critical time for EUZ means it will be hard to move on given the endless questions it raises.
Remember the PI's have invested and taken probable unrecoverable losses under his tenure. We paid him £100's k in remuneration and he just upped sticks and left us in the lurch with no explanation other than to "pursue other interests", no mention of "Personal reasons"
Frankly i think we deserved better than that because its left us in an even more precarious position because of the inevitable uncertainty the nature of his leaving has caused.
Accepting a wage deferral and then resigning with immediate effect 4 working days later was not the way to do it.

I think if Bennelong had taken a bigger stake and had more clout or if they had been able to put someone on the BOD i would have little more faith in their being here but the truth is they are a smallish share holder. Maybe they didn't need a bigger holding to do what they want to do but as it is i cant see how they could boot LR off the BOD with their voting power if he didn't want to go. I also cant see his demise as part of any cost saving as he signed up the week before to the deferred wage plan with the others.

Is that why the hired WA to oversee a PFS last year then ? You might be right going on recent history but you cant say "it was never their intention"

Yea maybe grappa, i just feel we are financing a much bigger structure than we need. There is not much more we can do without throwing a whole load more money at this so it seems pointless wasting what we have left.

I do wish you would stop being do negative Shed. You are starting to sound like me.

I dont think their is any question about the PR, the success of the ground work v the SP sort of confirms it.
how many times has Peter Jones said " i cant see how i can get a return on my investment in 2-3 years, that makes it uninvestable to me" we should have known...
The bottom line is we all hugely underestimated the time and Money needed to get to PFS stage and the fact we have fallen short is no surprise to anyone except the shareholders :-)
The reality is now we are looking to be rescued, the problem with that is out rescuer can pretty much name their price.

I do have a little hope that as the cost saving report seems to have been abandoned their might be a reason on the horizon that makes it unnecessary ?
Failing all else i would pretty much shut down EUZ back to the day after they bought the Toral lease and re advertise it for sale at a price that reflects the work put in ?. I cant see any reason to run us down to the last penny when there is little else they can do.
As for this idea we need a new CEO ? Who's going to pay him :-)

I think you are over thinking this crisp. No one will be short on this, the 2 rises you mention were more likely just the normal AIM herd mentality as panic buy and panic sells were triggered by social media pumpers (and a mix up in the ticker)

I dont mean a financial return, i mean a beneficial return in jobs or financial advantage to local business etc

Definitely not ruling it out. I can see with things like the university tie in they get an immediate return with no risk but putting money into a mine 4-5 years down the line before ( dare i say it, a PFS) is a commercial risk, thats playing at investment with no guaranteed return The junta would have to be really sure with its DD and the question of why they should take the risk and not a mining company would be forefront in their minds, thats all i am saying.
If however some sort of deal was struck to finance a mine with a major then i can see local money being more fourth coming as it would be reasonably de-risked .

I cant help thinking that EUZ as a listed company/Business is unlikely to receive local authority help ? These funds are more likely to be for the benefit of local people and the area rather than propping up a business ?
If my area council had a grant i would expect it to maybe tidy up the park or re pave the high street or refurbish the car parks, not invest in some foreign company that may be about to go bust.
I dont want to pee on your fireworks but i suspect it will be big business risking investing in small business rather than Local area fund risking in a business unless of course they took a stake with a possible return......but thats a JV and again i dont see that as a likely outcome with a local authority..

Given how appallingly unsuccessful the presentations have been so far i would rather save the £50 than waste anymore money on them unless we get someone who can actually do PR...
Someone needs to give the broker a kick up the backside as well :-)