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Rmm is a public company. The main reason for being a plc is to have access to markets to raise funds. That's what they have just done. The markets like their story. All upside from here. Regards JJ.
I remember investing in a mining company a few years ago, called SXX. They were a completely different company to RMM, but my point is they were not able to raise funds at the end because the markets did not believe their story.
Hi Notrader, you're not at all argumentative. The share price/mcap reflects current perceived value at this moment in time. I'm just looking at what may happen to our sp post 5% sale. And as we're selling part of our business which includes the assets and the costs of extraction then I think the price paid will be a market value and reflect in share price.
Let's leave it there, I'm only gently offering my view and would welcome yours. JJ
Hi Notrader, I'm not saying our assets reflect our market value.
I'm saying that what is paid for our 5% reflects Real value, because it is discounted to allow for time, costs of extraction and risk. Therefore if we achieve more than one sixth of our current mcap for our 5% then our sp should rise accordingly.
Hi Potters field, if you take my arguement that I'm temporarily ignoring any other gold fields, then the current market cap is relevant. If you divide it by six then that is the current market view of our 5%. If we achieve more than that then our price should rise accordingly.
Please ignore previous version of this note.
The price paid for our 5% will be a discounted value to reflect the time costs and risks of digging out the gold . This will be a real market value
It is not unreasonable ,therefore, to assume that our remaining 25% is really worth 5 times this amount.
To get a ballpark idea about share price, I'm dismissing any future value to our other potential gold Fields.
As our current market cap is circa 500 m ,if we divide that by 5 = 100m.
£100m for our 5 % is therefore the pivot point. 50% more would give a 50% increase to our share price etc etc.
Then add back in current perceived value for the rest.
Very simplistic ,I know but gives me a simple view of my investment.
The value that we achieve for our 5% will give us a true value for our remaining 25%.
The price paid for our 5% will be a discounted value to reflect the time costs and risks of digging out the gold . This will be a real market value
It is not unreasonable ,therefore, to assume that our remaining 25% is really worth 5 times this amount.
To get a ballpark idea about share price, I'm dismissing any future value to our other potential gold Fields.
As our current market cap is circa 500 m ,if we divide that by 5 = 100m.
£100m for our 5 % is therefore the pivot point. 50% more would give a 50% increase to our share price etc etc.
Then add back in current perceived value for the rest.
Very simplistic ,I know but gives me a simple view of my investment.Touch and hold a clip to pin it. Unpinned clips will be deleted after 1 hour.The value that we achieve for our 5% will give us a true value for our remaining 25%.
The price paid for our 5% will be a discounted value to reflect the time costs and risks of digging out the gold . This will be a real market value
It is not unreasonable ,therefore, to assume that our remaining 25% is really worth 5 times this amount.
To get a ballpark idea about share price, I'm dismissing any future value to our other potential gold Fields.
As our current market cap is circa 500 m ,if we divide that by 5 = 100m.
£100m for our 5 % is therefore the pivot point. 50% more would give a 50% increase to our share price etc etc.
Then add back in current perceived value for the rest.
Very simplistic ,I know but gives me a simple view of my investment.Touch and hold a clip to pin it. Unpinned clips will be deleted after 1 hour.The value that we achieve for our 5% will give us a true value for our remaining 25%.
The price paid for our 5% will be a discounted value to reflect the time costs and risks of digging out the gold . This will be a real market value
It is not unreasonable ,therefore, to assume that our remaining 25% is really worth 5 times this amount.
To get a ballpark idea about share price, I'm dismissing any future value to our other potential gold Fields.
As our current market cap is circa 500 m ,if we divide that by 5 = 100m.
£100m for our 5 % is therefore the pivot point. 50% more would give a 50% increase to our share price etc etc.
Then add back in current perceived value for the rest.
Very simplistic ,I know but gives me a simple view of my investment.
A simple question:
We currently have a share price of 13p, a market cap of 500m and 4bn shares in issue.
If we sold 5% for 200m, we'd have 25% remaining.
So is it reasonable to assume that our 25% remaining is worth 5 x 200m ie 1bn.
If that's the case then our market worth would be 1bn, double our current market cap.
So a share price doubled to 26 p for starters?
I'm not a regular commentator on any of these boards.
One thought does occur to me, though.
It is possible if one agrees with a post to give it a recommended vote.
Shouldn't it also be possible to give a post that one doesn't agree with, a not-recommended vote.
Some posts are too ridiculous to even bother commenting on, whereas a show of not-recommended votes would give a clear view of what the board thought without tiresome arguments.
Gecko, You're so right. Plain English.
You will discover that Rns's and corporate tweets are extremely carefully worded.
So to answer your colleagues question.
What do I think 'successfully conclude' means?
It means--there are many things that have to be done to reach a successful conclusion.
Plain enough?
Regards JJ
Tilly, In the tweet that the company issued on Friday, it said:
With much more to follow as we successfully conclude our initial strategy.
Could you tell me how you interpret the phrase, MUCH MORE TO FOLLOW?
Regards JJ
If you're a shareholder, you've invested your money in this stock and you deserve to know where you stand.
I'm a shareholder and I feel positive about the eventual outcome, here.
There seems to be a belief that an rns is imminent to announce an asset sale, and declare a dividend. I think you may be disappointed.
I would ask you to read carefully the tweet from Friday.
Kola nickel marks the start of our plans for 2022. Ok
With much more to follow as we successfully conclude our initial strategy.
MUCH MORE TO FOLLOW.
That tells me the that a lot of things have to happen to successfully conclude.
A lot of things is a lot of time.
I can wait, as long as I'm clear what is happening.
Saxon, Bumble etc.
I'm a shareholder and I'm not selling.
My view on the price falling tomorrow is only to pre-warn you of what will happen tommorow, and to try and avoid your disappointment.
Rather than rely on what you wish to happen, it's best to focus on harsh reality. If you do that you won't be disillusioned and you'll be a better investor.
I'm invested here to make money, it just won't be tomorrow.
Best wishes JJ
I'm so sorry to say this, but I do think that the price will close down tomorrow, assuming no more news is published.
I say this because all the messages from EUA are about what they intend to do. We need messages of what they have done, for anything significant to happen to SP.
Unfortunately the majority of posters are expressing what they wish would happen, and not what is happening.
I say this for all the real investors.
Regards JJ
Why is EUA still at 27p when there is talk of a (say) £1-00 dividend?
As far as the market is concerned there will either be an asset sale or there won't.So the market sees risk and errs on the side of caution and adds zero value to the share price regarding sale of assets. It has no idea ,either, of what value the asset sale may be.
The share price is at 27p because that is the only reference the market has ie large purchases by institutions at 27p ish.
I'm a holder because I think it's a good bet.
Any firm news of a dividend will cause the price to rise to that amount, regardless of the amount, reflecting the value of the dividend from disposing most of the company and very little to what remains, because again the market won't be able to give a value to it.
The company has indicated that it wants to dispose of the majority of its assets so that points to selling the nickel and the PGM and leaving the hydrogen.
I'm sure some will find this note negative, but its not , it's just reality.
I'm very sorry to disappoint you, but the reason for the sudden upturn in the sp at close of play on Friday was that 23.2 was the last price paid. MM's need to balance their books, and needs must, if 23.2 was the price to pay to achieve that then that is what most likely happened. 21.5 is the real price and I'm fairly sure we'll revert to that on Monday morning. Regards JJ