Member Info for JDwag

Pitiful. To be fair, volumes and valuations on AIM (now spreading to the Main Markets) aren’t good, either as it looks more and more likely we are heading into a world slowdown / recession.

A long game here alright!

JD

Strange holding pattern here, I think all of the trades today where buys and considering what I could dummy sell at the real spread is less than 1%.

JD

The fact he’s got a placing away at all
KAT and at a premium to the SP on what is a pretty illiquid stock probably tells us both it could be a placing?

Maybe, who knows.

JD

Yes, interesting that, thought we was broke?

JD

For £500k / 100m shares and dilute Sanderson and Shumba by 8% or so for circa 3 to 6 months cash? Doubt it.

By management taking shares and streamlining your business you can get by until something better comes up. If (and it’s a big if) for example we get PPAs signed by year end on MCPP then FC won’t be far behind it and the large SEPCO3 bullet payment and much better financing options. That’s what they are waiting on IMHO.

People have been screaming placing here since Noah was a lad, it’s yet to materialise. Further dilution will of course come, it’s the how and who and at what cost and quality.

JD

https://novuscomms.com/about-novus-comms/

Seem to be a quasi PR Company / London small / medium cap movers and shakers. Probably trying to raise their awareness to the London Private Equity markets IMHO.

JD

I used to wonder that, but it could be for almost any reasons and people just now need the cash after waiting 6 years (using my timeline here as an example).

Anyhow, Q4 tomorrow, where does the time go. Need the PPA(s) for MCPP and BIPP in the next three months.

JD

Agreed, utilising the Sanderson Facility is the best option at this point, we’ll ‘hobble’ on austerity measures until better quality financing options become available (probably after the Benga or MCPP PPA’s are signed).

There is no way Sanderson will allow a placing at silly prices.

JD

5 March 2019 RNS:

‘The Facility will be available for a first immediate draw by Kibo, amounting to GBP100,000 and a second draw on or any time before 15 March 2019 amounting to no more than GBP400,000. Any additional draw-downs of the balance of the USD 2,940,000 limit are to be agreed between Kibo and Sanderson on a case by case basis, and all draw-down amounts will be subject to a facilitation and implementation fee of GBP5,000 per GBP100,000 drawn down.....’

27 March 2019 RNS:

‘The terms of the acquisition also provided for the continuation of the Forward Payment Facility agreed between Sanderson and Kibo in December 2016 for drawdown by Kibo of up to USD 2,940,000. To the end of August, Kibo has drawn down GBP550,000 under this facility.’

There is a £50k ‘disparity’ here between the two RNS's and he even talks of it to the end of August (out with the interim reporting period). So Sanderson are clearly continuing to fund things here under a tight financial leash until a better funding option can be found (which could be SEPCO3). Can’t see an immediate placing at these levels.

JD

I’m always puzzled when people have a go at the junior market participants for not generating revenue and issuing shares (in some form) to pay for the progression of the assets, that is the whole point of this market! Not to everyone’s liking, which is fine, you don’t have to invest, but to have a go at the whole model is odd to say the least.

JD

Cash could be anything, that's why it's a stick on to be another Sanderson drawdown. No way would they run on such little cash not knowing where the next lot is coming from (a placing success is never guaranteed) BoD are probably on deferred wages and I expect they are taking shares for wages soon.

As for the Coal to Liquids market? Clearly exciting for MCPP.

JD

No, that must be RNS’d.

JD

So from combined £1.15m in cash at start of the year and sanderson money for all of 2019. Cash burn in the first 6 month so of 2019 was £920k but have managed to make the remaining £220k last 3 months?

That’s quite a reduction of pro rata cash burn. We need furure funds soon of course and I’ll still say odds on another £500k lump from Sanderson which at this rate could’ve take us well in 2019 and future funding options. All IMHO of course.

Positives Chairman Statement.

JD

Kibo has / will produce the ML and all the work and management cost that has gone with that and all of the experience they have obtained over their portfolio is obliviously valued greatly by Shumba and they have recognised this through the tie up. There is a scale issue here too, the larger they make themselves and the overall project the more they can leverage the deals required with beasts like Power China. For me the SEPCO3 / Power China dynamic and a further tie up is very interesting.

JD

With so much coal in our ML and PLs and with 100% to play with in Tanzania surely LC must now be looking at leveraging this kind of Power Plant / Liquid Fuels tie up at Mbeya on top of the MCPP?

JD

In for another 78,912 today.

JD

That said, Bcl, when was the last time LC threw out shares for a tiny amount of cash? Other than the Sanderson shares for the MCPP stake (which I agree was painful) the last shares LC issued was at 5.25p over the MED and the Irish Investor Shares. Contrary to what we PI’s lament over (I include myself in that) he simply hasn’t just frittered away large scale shares for next to no monies at anything close to this SP, even the shares he gave to Shumba for the original MCIPP deal (at 6p) has come to fruition by being included in an even bigger deal and the Sanderson issue was required as you are not going to cut yourself off to the off market facility (could be critical).

Btw, I don’t see a wholesale dilution coming, not when you see how Shumba has just acted (by agreeing to be locked in) and no way Sanderson are going to allow themselves to be diluted out the park. I do however, expect that the BoD will soon pay themselves in shares (and will pay themselves at a higher rate of SP to that of the current SP).

JD

Considering the amount of work and news that has come and gone in 2019 on so little money, I just assume LC does everything from striking deals with Vale to typing out his own letters and taking the office garbage bins out.

He’ll hit the regulatory date of the Interims, he always does, but the guy will probably have to agree the interims over a Skype with the BoD at 11pm on Sunday night, Kibo will not have a lot of administrative staff, let’s be honest.

JD

Either out today or Monday.

JD

Yes, now a consolidated ML for a 7.5m tonne a year mine and a near 800m tonne resource.

JD