Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Well the 'significant' unexpected contract news today is far more important to me then CC selling up. I hope PI's will feel the same tomorrow.
I also noted that no value was put on it...previously we've seen $4.5 million and so are we to assume this is much bigger than this?
Loving the news flow since the AGM. The II selling up will be quickly forgotten when we get the expected Tema RNS.
Very exciting times.
HB
I was at the AGM and along with a few other PI's the issue of raising funds was specifically discussed with PF afterwards.
MikeGP's post earlier was spot on and so I've copied this and commented on it below :
At the AGM a placing was discussed,... but purely to facilitate real contracts..e to facilitate the Iran contract ( which is not seen as happening in the short term)....PF said we would need circa £5m..... less for smaller contracts. Dependant upon the contract this might not be an equity raise,.. might involve more traditional loan/debt etc., ---
In addition to the £500K cash at time time of the AGM,.. we had income of circa £3M from the new tech contract due in one the next 5 months,.... and once the contract in Ghana is signed,.. we have immediate income from that.
Knowing how we have been diluted on the past,,... I doubt that they will go for a placing without an associated contract as a 'carrot'... and IF they did,.. given Ghana is likely to come on line soon,.. then I would imagine that it would be just enough to keep the lights on etc.,
I would add that PF stated he wanted to minimise dilution, as he's always wanted to as such a large shareholder, and so would not look to raise all the funds from the market i.e. he hoped that we'd be in a better position to get good terms from banks etc.
I heard it a bit stonger that he would only need to raise funds if an ADDITIONAL transformative managed service contract was signed on top of Tema....wow that would be happy days for us all. If this situation arose I suspect there will be a combinattion of bank lending and a small raise and he'll use the opportunity to pay off the CULN. He reitterated his desire to pay off the CULN early....I suspect this may be a home for the ealy returns from the Tema contract.
Just my take on things.
Happy days
HB
I wouldn't want to risk being out of this this weekend or indeed before the contract lands....especially as it is so clearly undervalued.
Off to get BBQ supplies for weekend. Will taste better with the warm feeling about WSG near term and long term prospects.
Life is good isn't it:) This is why we invest in AIM
https://www.ghanaports.gov.gh/Files/TEMAPORT/Customer%20Guide%20To%20Tema%20Port%20Tariffs.pdf
Plenty of scope for the charges we are after.
Game on
This is the sort of thing that will put us in front of the institutional Investors. With so few shares in free float accumulating a position will quickly impact on SP.
And what if the Saudis themselves want a part of the whole of WSG....they could buy us out of their pocket money.
I think the signing of the Ghana contract with good financials in the next couple of weeks will be the true lift off here...it's an actual contract and massive on its own rather than just good potential. Having said that the sentiment has turned on this and so I think a fair bit of the potential will then start to get priced in.
AIMO
https://www.theguardian.com/world/2016/jan/13/the-lifting-of-iranian-sanctions-what-happens-next
Wow, fully lifted this weekend.....now that would be interesting for WSG and make for some more positive questions at the AGM
https://twitter.com/tradegovukMENA
Lots of diplomacy in Iran
Good find Eskers....again.
Is this the one we have been waiting for...it's in Iran, right timing and gives us the lead in time that we need. All seems to add up.
Hopefully we get our exchange of letters and RNS any day now.
This would explain the unexpected small placing.
Tick tock
I was just thinking that perhaps WSG think the contract would land during the next two weeks and so built in this contingency in the placing....would be a good play so that they don't get criticised for doing the placing now if they thought the contract would land. If the contract doesn't land in this tight timescale then they have the added cash to continue to develop the opportunities outlined in previous RNS.
I'm probably over thinking it and you're right H&N.
The Placing is conditional upon admission of the Placing Shares to trading on AIM becoming effective in accordance with the AIM Rules ('Admission') and the placing agreement between the Company and SVS becoming unconditional and not being terminated in accordance with its terms prior to Admission.
Application will be made for the Placing Shares, which will rank pari passu with the Company's existing issued Ordinary Shares, to be admitted to trading on AIM. It is expected that Admission will become effective and that dealings in the Placing Shares on AIM will commence at 8:00am on or around 22 February 2019.
That's two weeks away and it's conditional and on not being terminated before then.
All this is a bit unusual isn't it? Placing usually are unconditional and are immediate....aren't they?
If a contract lands before the 22nd Feb could we not proceed with the placing and do it on better terms?
Any thoughts?