Member Info for Highside

I think the thing i can draw from following this forum is no one really knows what is going on day to day but more importantly, the time frame for what is going on. There are some very enthusiastic prediction which are similar to those of this time last year.
It makes an entry point very hard to predict and i am sure plenty have been caught out by this before and this lack of transparency is why the SP is where it is. No one can deny that the recent falls from 15p in March to 7.5p in September is wholly down to speculation on funding. You dont know what has been applied for or what they need for the PFS/BFS and you dont know when then will need it or how much . Some will say its to be expected which is probably the case however it follows that the price fall was also to be expected because of this.
Unless Lawrence drastically changes his ways (which is not going to happen) this is uninvestable for most at this time as the daily volumes show. I agree with BrickSA that its unlikely there will be another placing, not because they dont want to but because i cant see them being able to place the stock at anything near the SP as the potential investors can point to recent history and longer term history and simply say we would want at least a 50% discount meaning the company would have to place twice as many shares, you could be looking at £2m raised at 4p. or 100% dilution.
Presumably it now rests with an EU grant and the bureaucracy on that could be months or years i would guess ?
Of course i could be completely wrong on all counts and therein lies the problem, nobody really knows which makes this a punt and not an investment in the short to medium term.
thanks to all for your insight but i will pass i think for the time being
Good luck all.

Steven
This out of my area but could EUZ sell Toral if its tied in with the EU grants etc, I suppose it would depend on how much of a stake the EU has but personally i dont thing any of the BOD would want to put themselves out of a job. What if they sold it on the cheap so they could keep their jobs ?
I think it a can of worms with the lid best left on. :-)

"with or without LSE and JSE Toral will be mined"

Yes well i hope it is "with" both or you have all done your money :-).

"That tells me that they think PR expenditure is better directed at presenting ourselves to a Spanish audience and that might tell us something about where they see funding coming from.

"In that case Shedulike the Spanish audience should be very wary because a British /south African audience has pretty much given up on financing this and lost a huge amount of money , £7.2m in for a £3.5m company in return..

Would you ?

My understanding is its been delayed to allow for the inclusion of an updated JORC. I would guess majority of the work is done so once the JORC is sorted the PFS should follow soon after. No one knows when that will be but my guess is this year ?

Thanks again BricksSA that makes good sense, i agree the goal must be to get this past PFS and then i think people will be watching very carefully as it goes to BFS. I agree that small amounts of funding at a time to clear hurdles is more viable until momentum takes over the SP on a favourable PFS/BFS.

what do you envisage this grant being for and how much do you think that will need ?
My worry is if they gave EUZ for example £2m to see it through another year they would effectively be taking a 60% controlling stake. I know thats an over simplification but the value of the company v the cash its using doesnt really make sense as it is.
This where the company policy of playing the end game might backfire because had they worked the SP to get it up to say 30p it would have been much easier to raise £2m for a £12m company than £2m for a £3.5m company ?.

Thanks BricksSA exactly what i wanted to know.

Well as the RNS i quoted was 19/7/21 barely 9 weeks ago and they said it would be based on 17mt and thats 7.5 months after your quote of Jan 21 i dont think that was an unreasonable question.

In July they stated the PFS was underway based on 17mt including Zinc ,lead and silver.
Presumably copper will not be included ?

A few points worthy of debate ?
I would imagine that any money from the EU would need to be at least matched by the company if only to satisfy the EU that the company they are investing in is solvent.
Why has the 2nd part of the current grant been withheld ? is it because of doubts that they will get the proportion that is a loan back ?
The RNS did say "we are actively involved in a number of initiatives that we believe could potentially lead to a major value event" So its not just one initiative that has failed to provide a major value event, its a number of initiatives that have failed.
I note that even the diehards are now starting to cover their backs as sentiment is going backwards much like the SP down 42% from 13 to 7.5.
When all is said and done it will be interesting to see if Lawrence does something tomorrow to rescue the sinking ship or if he is happy to sit back and watch

Of course i am researching the facts, thats the only reason i am here :-)

Will you chastise MM for under playing the money raised by £2m ? no of course not, far more fun to have a go at me for being a couple of hundred ks. out... Might i suggest in future you do some research then you will know how much is raised and will not need to rely on erroneous BB posts for your information :-)

"No apology your posts were poor and missing the facts over a reasonable period "
Unbelievable. :-)

The amount of cash raised pre the last couple of years is totally irrelevant seeing as the operation has expanded since then. You have to base the expenditure on the ave of recent figures.

Cash flows used in operating activities

Exploration and evaluation expenditure (1,507,897) (1,387,317)
Payments to suppliers and employees (828,272) (1,337,373)
Net cash flows used in operating
activities

2019 £ 1,994,700 ($2,724,648)

2020 £1,703,403 ($2,336,166)

Likely to be higher in 2021 as you have had an extended drilling campaign and increased costs.
I will write to the BOD to tell them their figures are misleading for you lol

The fact is it doesnt matter because the general consensus is the £2m raised just over a year ago is probably near exhausted.
If its not then thats great news.

Well one of us cant add up :-) where is the £1m raised on the 30/9/19 ? and what about all the warrants ?

12/12/16 550,000
9/6/17 225,000
8/9/17 193,000
2/11/17 185,000
20/3/18 1000,000
27/7/18 563,000
29/3/19 960,000
4/9/19 65,000
13/9/19 41,000
30/9/19 1000,000
10/10/19 16,000
24/10/19 41,000
19/8/20 2,000,000
19/10/20 400,000

£7,239,000

OK its less than £2m a year but these figures include cost going back to pre drilling and extra staff and warehouse rents etc. The cost recently have been £4.5m in 2.5 year so not far off £2m a year.

Feel free to apologise Crisp.

Sorry i thought end of year was April

Unfortunately i dont see the accounts being a great help as they will be nearly 6 months out of date and EUZ is cutting it close to the wire now although i am sure they were fine 6 months ago
Sometimes its better to be left worrying than to know the truth :-)

Historically EUZ has used about £2m a year. drilling has stopped but rents and wages, farmed out reports etc have gone up i would imagine. They have been using £166k a month, £135k will not last 3-4 months, i doubt it will last 3-4 weeks TBH.

You say they must have cash or why would they give a grant ? Have they given the 2nd part yet ?