George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
“ Oh and another thing, of course they are going to raise after good news. They get a better price from corporate finance off the back of it. In fact they are probably ONLY able to raise after good news, or would you rather they raised at a lower price without the news?”
So you think they arranged corporate finance in 24 hours and agreed upon a 35% discount at the previous close of circa 0.1? Think again.
“RE: Re placingToday 08:16
It is difficult for sure.
Where the business is at I look on it as at least it can still successfully raise funds in the market.
But how many more rounds can they go?”
We were told no less than exactly *THREE YEARS AGO* that they would be using the waste tip spoils to generate “early” (laughable) revenue streams to mitigate future placing. Not only has there been SEVERAL since that time, but we learn this week they’ve not even tested the contents yet of the spoils and still require planning permission (IF!) they find there’s economic quantities. Seriously what have they been doing for 3 years. Every time GF describes their current activity and timescales, it sounds like people milking a wage and getting paid to turn the handle on a cottage industry.
the timing of the placing today and the appallingly low price is a ******* disgrace. i’m absolutely sick of the constant dilution. why could the placing not have taken place prior to the rns earlier this week? i’m capped out on how much my broker will even let me purchase, so have no ability to average down. i’m just stuck with a free fall share which forever loses me money and has no likelihood of reaching its old value given the endless dilution at ‘bonanza’ discount prices always immediately after any positive news so that the share price never recovers. we receive good news these days and don’t even make it back to the point the price used to fall to on no news or bad news. race to the bottom this share. all the tampers can get to ****.
Not sure why people are complaining about additional, easier, early revenue sources from one of Alba’s assets.
Apparently old mine dumps can contain 200-500 ounces per 3k-5k tons. We have 20k tons, so say between 800-2k ounces of potential gold (viability to be confirmed in as little as 2 weeks). That’s circa £1m-£2.5m. That’s a lot of revenue for an early stage explorer and saves getting that cashflow from additional placings. This is (potentially) very good news in my opinion and will be confirmed shortly. Hard to imagine there won’t be gold in 20k tons from an active Welsh mine not exploited in a long time using modern techniques. Could there also be the so called Welsh gold premium attached?
The de-rampers on here can say what they want, but there was some clearly very influential language being used in the RNS, which strikes of having to be careful what they say at this stage, whilst still alluding to their positivity:
“To this end, the drilling at Llechfraith has been more successful than we could reasonably have anticipated: the physical attributes of the veins that we have intersected in our drill holes reflect the characteristics of the veins that were successfully mined in the past."
“before reaching any preliminary conclusions, the significant dimensions of the Llechfraith Lode, as defined by the drilling so far completed, indicate that this could well be a significant contributor to future production at Clogau-St David's”
Personally I think they’re trying to keep a steady news flow in the meantime to help neutralise the falling share price. Hopefully the meat and bones news is due shortly. But the language indicates to me a positive sentiment. I’m no ramper, but I do expect the share price will fall slightly further on this news. I’ll be buying more in the low .30s. I expect it might touch .29 and after which it will start to head north again with new buys.
Thanks, appreciate the reply. Was just curious more than anything. I’ve decided to take a small punt anyway after reading various encouraging news recently. The Chief Exec’s interview on progress to Dec sounded good too. As you say, 0.2 or there abouts seems to be a good baseline. GLA and here’s to a promising 2021!
Hi there, interested in buying here. What happened back at the end of 2018 to make it lose most of its value?
I’m really impressed with the rate and quality of information which Alba management release to us. You certainly can’t complain that they keep us in the dark.
The rises these last two days have been a pleasant surprise in getting the shade back closer to where it deserved to be. I originally thought of Alba being relatively short term once it reached the 1.5/2p ranges. But with all the information recently I’m thinking it’s become even longer term. Great prospects, which that video summarises nicely.
Good luck and Merry Christmas to all fellow holders!
I think that was a very encouraging RNS - promising results showing significant quartz at every intersection, plant now in place to get 2021 off to a great start and a brilliant summary of all the positives which Alba has at Wales. I’m really looking forward to 2021, we’re on the cusp with that RNS.
Very rudimentary. But based on POG circa £1,350, AISC for Newcrest round about $700, call it £400. Net £950 achieved on 4.5M @ 30% share results in £1.28B. That excludes everything else, Scally etc and by all accounts 4.5M ounces is conservative for the life of the project. Stacks up to me.
See this confuses me personally on Gold co valuations tbh. It doesn’t at all accord with mainstream FTSE/Fortune co’s who can make not a dot of profit (Tesla’s and Palantir’s of the world), yet be valued at billions on future expectations.
If 4.5M is, by all accounts, a conservative figure for MRE which has the potential to grow in future. Then how does 4.5M @ (?) circa £1,350 POG @ 40% stake not translate to a larger valuation than £1B? That’s excluding all other projects. Yes there’s costs in achieving that 4.5M, I.e. it’s not to say that is profit. But still, that’s a hefty amount of future value.
Agreed it’s early days. Greatland is not a short term holding for me personally, so I’ve not seen anything that’s put me off long term. But with a morning drop of 13.5%+, that’s a disappointing market reaction for me. It’s not helpful (actually it’s just a wind-up!) to be hearing “deck the halls, here we go, blue sky later this afternoon etc”. That’s clearly not the case.
Ok, today has proven I will no longer listen to the mad heretic ramping on this forum and focus solely on my own instincts and understanding. I’m still holding, nevertheless the SP was down as posters were still proclaiming “up, up and away!” as if this was a minor retraction and was due to climb further. Mindless proclamations aren’t helpful, we’re all adults. Good or bad news, I’d rather have an informed discussion about it with fellow investors.
I’m not worried to be honest. The current price is only marginally above the placing price of 0.385 (I believe - correct me if I’m wrong). The placing gives much needed liquidity to actually make use of the assets found in the ground - useless unless you can afford to get them out. Yesterday’s RNS was confirmation there is in fact gold. I’m astonished the price reached highs of 0.58+ on speculation and optimism. But yet, 0.4 on confirmed gold before the assay results are even out on the bulk. But nevertheless I see this following a pattern akin (though diminished by comparison) to Greatland Gold. I’m quite happy with my 0.4p average and despite a small show of red just now, very much optimistic about the future. Onwards and upwards!