Game 1 - Guess the date of the next major RNS:-7 Apr 2021 08:03
Morning All
Another cold start to the day -0.5'c showing down here in Leigh on sea.
I hope RMR1969 got his Halifax ISA top-up, it was late in the day yesterday so maybe it is in the system for today?
Today's hopefuls are:-
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TheBread - 07/04/21
Bothwell - 07/04/21
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Good luck to both of you!
Well, now that we are all 'locked and loaded' let the games play on!
Hopefully, another blue day for the share price, it is way lower than it should be for a company with such great in-ground resources!
I think the problem people see here is the company profit margin, they take one look and take a step back, totally missing the point!
This was a very expensive to run exploration company, that after years of burning through mountains of cash, has only just turned the corner and is making some profit, even directors and senior management took shares at par in lieu of payment when the coffers had virtually run out!
They must have seen the future value to be great to take the risk at the time of payment in shares!
At the turning point from an exploration company into a small-time production company, other companies started to take note, they saw that the most expensive part, the exploration was ending, and production was at last starting.
THEY approached EUA to see if they could now buy out the company, they saw the value within this company and wanted to own it outright.
EUA, after receiving many expressions of interest, finally, put the for sale sign up.
They have spent many months sifting through the non-binding offers.
And are now converting the best offer into a binding one!
We all wondered, why this process was taking so long, some shareholders thinking it was all falling apart at the final stage!
Then the company out of the blue issues an RNS, informing us that it has spent $0.5 mil on an accretive deal which for 2 years gives the company, exclusivity, over NINE more mines!
The negative among us just look at this from an accountant's viewpoint and say, how can the company afford this extra expense at this time, when it has just put its self up for sale!
There answer for them is, all deals are now off the table, and we must be going it alone with some cash sale from nan asset sale of some sort!
I said the company HAD NO intention of taking on any extra mining, this was for the company buying us out to take on IF they wished to, access to unlimited expansion with another 104 mill oz available JV for an ongoing license payment!
I then found that the line 'The company OR its assets' had changed into 'The company AND its assets'
So back to my theory, this company is up for a FULL sale, all the company has done by spending $0.5 mill is just make itself Iristable to a major!
And now we know why everything is taking so long! this deal is going to be huge in my mind!
Your money, your choice!
The BOD are very astute, NO one takes on MORE debt at the point of a sale!
G
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