The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
IMO, a lot will depend on the progress and results of the current drill campaign. The more proven Jorc'd assets, the more the Mcap will rise to reflect that. Until then, talk is cheap so apart from perhaps an initial hype induced spike common to IPOs, the market won't take much notice until the assets are better scoped out, reported officially and thereafter a route to exploitation is delineated.
This has done the rounds lately (full repost on the FRR BB) How paid derampers operate -
"We have multiple accounts/identities split into 4 categories of characters we've created:
1. The blatant negative shorter who's aim is to create negative subject headings and get them pushed to the top of the chat.
2 & 3. The wingmen who back up no.1 by being negative on the stock but with more substance around why.
4. The concerned holder who sways from being positive about the share to win trust before then losing faith and encouraging others to do the same."
Plenty of similarities with some posters associated with Arcm, of course some like CB are a bit more 'inept' at this game than others and easily trip themselves up. Should get sacked soon and go back to washing windscreens, picking cabbages or selling copies of the Big Issue or whatevs...
They've been scratching around for 15+ years without finding anything much. I find it suspicious that the previous CEO said they think there is a huge IOCG core under Sharktooth mountain containing millions of tonnes of copper ore worth $billions and yet they haven't pursued it beyond one abandoned failed drill attempt a couple of years back. This is in an era of clean energy and ever increasing copper prices, so you'd think they'd be falling over themselves to get stuck in and locate it. No, as with many an AIM share it's been a nice never ending comfortable little earner for management while delivering the square root of naff all for shareholders. :-(
Yes let's hope there's graphite way beyond the end of the drill depth though I see the outcrop is on a peninsular that juts out into the sea. Perhaps it continues undersea on some sides, and might that pose a problem for mining?
Once there are Jorcs in place for the Greenroc assets one would expect that development cash will be raised in a non dilutive manner. With graphite being a strategic/critical mineral (and possibly ilmenite too for its titanium content) it's likely that development cash will be made easily available.
Had there been any serious buyers other than a few bottom fishers this last few months, we wouldn't have seen £40m wiped off the Mcap.
You'll always make a better return in the long run by processing yourself or in partnership than simply selling off. You're only likely to get a few % of the final spot price when selling whereas mining and processing will return up to 10x that. All ballpark figures just to stress the point.
Well we've had a couple of years of court cases and it looks like this is set to continue indefinitely. One wonders why lobbying fees have been regularly paid? Of what use are they when we are stuck in seemingly endless litigation, can they help us exit this legal tangle?
Aah, those heady days dreaming of £1 parties, oil field as big as Saudi Arabia, resource of national significance, Bougiye Bros buying shares all day long in ever increasing multiples up to 10m etc etc........sigh :-(
I didn't realise that AA owns the De Beers diamond company...
As far as IPO v JV goes, in my experience the incoming, better experienced and wealthier JV partner often strikes a miserly deal with the smaller usually cash strapped junior partner. Sometimes the junior ends up giving away an arm and a leg (70-80% of the value) just to have the big boy on board. Via the IPO route we still retain a majority share and overall control.
My post was aimed at ian12. Why are we paying for a GL drill campaign and not Newco?
Good point..
In some parts of the world those coffees may well have been spiked to put you in a more amenable frame of mind. ;-)
Yes, minimum 51% but who knows how much higher?
As it's an IPO, anyone can subscribe for shares prior to the floatation, so maybe keep some funds ready, though we don't know when they're likely to float.
Yes but we will enjoy 50%+ of any upside without having to raise cash ourselves to fund development, as I see it...
Pass the salt...
Chillin.....;-)
The sampling and processing was only ever designed to confirm that the plant works well (and the drilling campaign was only ever to confirm whether potentially gold bearing host rock is present) Neither was expected to deliver shovel loads of gold. By my schoolboy maths I worked out that the first concentrate results contained about £5 worth of gold and the second set about £45 worth. We won't get substantial amounts of gold until the tailings pits begin to be processed, IMO. I'm also expecting the dewatering permission to start moving the s/p, as well as news of progress at Amitsoq. There are some positive milestones to look forward to this year and l'd hope us to be substantially higher by year end, assuming no unforseen setbacks.
Or they want in at a lower price? Maybe even CB is praying for 2p again so he can buy back in at the point where he panic sold so he can recoup his losses?