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'Just say Phulbari'
Shouldn't GCM be shouting that from the rooftops.
Here's a company with a project ready to dig coal and end Bangladesh's Forex and energy crisis. And end the misery of the people. A legitimate Project partnered with a massive company like Powerchina and with a considerable green energy package as part of the deal.
So why are GCM silent? This is the best opportunity they have had in years. They should be in the media and social media every single day explaining how they can end Bangladesh's energy crisis. Yet its just more silence.
Has the project even been submitted yet? Submittal is 4 years overdue and they have never had an opportunity to sell the project like this. Its very much now or never so what more could GCM be waiting for?
Nice idea Redeye which I would willingly accept that deal but there's probably 2 major stumbling blocks - 1 Tang is here to make 100s of millions not just a couple of million so isnt going to give it up that easily, and 2 Bangladesh do not have the ability to mine the coal which is why they put it out to lease for royalty payments in the first place. If they bought the lease they would still have to go to the likes of Powerchina and that could take years to set up, whereas GCM and Powerchina are ready to go right now.
Moodys credit rating cut.
https://www.bloomberg.com/news/articles/2023-05-31/moody-s-cuts-bangladesh-rating-on-reserves-market-distortions#xj4y7vzkg
And what it means -
https://www.tbsnews.net/analysis/moodys-credit-rating-downgrade-what-does-it-mean-bangladesh-641602
'don't want to be out of this over the weekend'
Jeez wish I had a £1 every time I read that old guff.
You've changed your tune pal.
Have you done a bit of research since you last posted false information? Or just running with the hounds again.
Payra plant shut down.
Barapukuria coal mine running out of coal.
No dollars to buy coal.
Indonesia stopped supplying coal due to outstanding bills.
Prolonged energy blackouts for the people.
https://www.google.com/amp/s/www.tbsnews.net/bangladesh/energy/2nd-unit-payra-power-plant-shut-down-644274%3famp
Price dropping but can get a bid to sell any large amount.
Someone is buying whatever they can get hold of.
Not only do the people need the jobs the powerstation will still need the coal. GCM has all the solutions and in time for 2027 -
'However, reserves are dwindling at the Barapukuria Coal Mining Company Limited and it is most likely to be shut down by 2027, leaving many local workers like Afjal to fend for their livelihoods.'
Good find searcher.
Sarker must be somewhat confused - only GCM has the 'option' of proceeding with a mine at Phulbari. Barapukuria Mine Company Limited do have the option of Dighipara which has exactly the same problems of land resettlement and aquifers as Phulbari - but could only produce 3 million tonnes of coal annually whereas GCM's Phulbari mine can produce 16 million tonnes annually. Why go for the smaller option with a higher cost ratio? And 3 million tonnes is a drop in the ocean for Bangladesh's coal requirements. GCM's Phulbari project is far more advanced than BMCL's Dighipara. GCM has a detailed feasibility study and plan in place to deal with all objections on aquifers and land resettlement. Only GCM with Powerchina as partners is ready to go and produce coal within 3 years. Well in time for when the Barapukuria mine contract end in 2027. Ducks being lined up I wonder?
'When contacted, Zanendra Nath Sarker, chairman of Bangladesh Oil, Gas and Mineral Resources Corporation (Petrobangla), the owning company of the coal mine, expressed concern and stated that Petrobangla is exploring options to ensure continuous coal production.
"We have two coal mines near the existing one – Phulbari and Dighipara coalfields in Nawabganj -- as options in our planning. We can proceed with one of these if we get approval from the highest level, though these mines are at very preliminary stages," he said.'
Maybe 4 years late is better late than never.
https://ep-bd.com/view/details/news/ODA5/title?q=GCM+and+POWERCHINA+Inks+US%244bn+Power+Deal
20m shares issued (9.6% of new MK). Interesting no 3% acquisition notification. So will a notification be done? Was it 1 investor or was it multiple investors each below 3%? Approached and presumably shown something of a business plan and not simply happy to pay Tang's salary and expenses until Christmas. Do they add influence to the project? Even below 3% 6m shares would be a nice windfall if GCM is successful.
Surely with no coal, no ForEx dollars and energy blackouts blighting the country as coal power stations are being paid to lay idle, Bangladesh is desperate for the coal buried in their own back garden. The limited fundraise is just enough to last until Christmas. It feels like it's very much now or never as Bangladesh are in such a desperate situation. As is GCM. Are things expected to happen before the year is out? The new investors must think so.
Bangladesh is incapable of setting up and running a mine which is why they put it out to lease in the first place. Powerchina buying the lease is the more obvious answer but they seem happy to just be a partner to GCM right now. Or maybe that's just Tang's doing keeping himself in control hoping that at some point Hasina will be forced to change direction.
When the 20m new shares are submitted on Wednesday we might find out something about the 'new' investor.
And things have only got worse for them since.
https://www.dhakatribune.com/bangladesh/2022/08/12/is-it-time-to-take-another-look-at-coal
Hasina takes yet another $2.3bn loan to solve her energy crisis! That should last a week or 2! Once the money runs out it'll be back to square 1 - no money, more debt, and no coal, no energy.
https://businesspostbd.com/front/2023-06-14/govt-loaning-23b-from-itfc-to-fight-energy-crisis-2023-06-14
Nobody 'simple' has £500k to throw away.
I'd be confident that the 'investor' was cherry picked and is an ally of Tang, and that a solid plan was laid out to them. Maybe even from China or Bangladesh.
21 June - 20m shares, 10%, should see a new name or 2 appear on the share leaderboard.........and hopefully a bit more will be revealed or an update from the company.
Major shareholders are the same - Dyani, Polo and DGI hold 41% of the shares. Dyani also hold a chunk of Polo. Never in a million years are GCM making decisions that will wipe out their own holdings. We suffer they suffer.
Hopefully now the discounted fundraise is out of the way we can start to hear some good news from GCM. The situation is exactly the same - Bangladesh is desperate for coal, has no money to buy coal, rh3 people are suffering through power cuts, and GCM has a project to mine 572million tonnes of the black gold ready and waiting to go.
Come on GCM give us an update.
I expected £2m fundraise and nearly 33% dilution of 66m shares. £500k and 20m shares is great for shareholders.
My guess is £500k is a specific amount to see the company through to whatever is in the pipeline.
Remember the RNS said - 'The Company confirms that it has no price sensitive information to announce at this time'. 'At this time' being the keyword.
At a £7.5m market cap how does a £500k fundraise knock it down 50%. We have somebody willing to invest so a plan must be on the table and was shownnto the investor. What a great opportunity to buy as no way should the SP have dropped to this with such a small fundraise.
Where do we stand? Bangladesh is in a coal crisis and GCM has a coal project, with 572million tonnes of coal, ready to go. Its unbelievable that Hasina isn't begging GCM and Powerchina to dig the coal, but import seems to be the only plan. Was GCM actually being truthful in the RNS - 'The Company confirms that it has no price sensitive information to announce at this time and there are no material updates to add to its previous trading update'.
Who knows, but we do know that there's going to be seriously massive dilution in the imminent fund raise. Last year it was £2.1m at a 36% discounted price of 5.14p. This time such a discount at current prices would see massive dilution. Assuming the same £2.1m raise to keep the lights on another 12 months (and pay Tang's massive salary) then against a current £7.5m market cap will we could see 66m shares against a 3p issue. This will see a huge reduction in current share value.
Same old same old. Shareholdings being diluted away just to keep the company alive. The fundraise details are going to be interesting.
There have been many unexplained rises in the past and the company has not had the urge to issue such an RNS.
So why do it this time?
So Earl of Aim thinks the people are against the mine.
Really? It sounds like their local MP is desperate for the mine for his local people.
'Raising the question Mr. Sibli Sadiq MP said, While we are struggling to run many of our power plants due to fuel crisis, the Dighipara coal field that has been discovered in my constituency could have been a blessing for the country. I do not know, why there is no progress in developing this coal field despite having completion of feasibility study. We have seen comments from many countries on climate change issue and proposing ban on burning fossil fuel, but they have been burning coal for long, way back 200 years, and enjoying a higher living standard. But why we are unable to utilize this resource? My submission to honorable minister, please let us know why the development activities of this mine is not started?'
https://www.energybangla.com/open-pit-coalmining-possible-at-phulbari/
Given that the last fund raise shares were taken by Dyani, Polo and the returning Kilkenny its unlikely they would want to increase their price paid unnecessarily.
Last time the fundraise was at 5.14p which was above the then 4p SP. Significant that they still hold those shares and even more significant that the lobbyists DGI who are at the front line in pushing the project to the Bangladesh government have also held all their share payments and are now listed above 3%.
There's a lot of confidence in the main players here and it does seem like just a waiting game before Hasina buckles.