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I think PG knew he needed more to finish MOU2 as soon as they stopped drilling. Sending the mud off for analysis gives him time to get MOU1 tested. He must have known ball park almost straight away.
They play it safe now with 5% dilution or he waits for MOU1 results. After that it’s way above or way below todays price. PG seems confident it will flow.
They may be further down the road with the subsidiary idea to get funds than we think. He’s mentioned twice now and interested JV parties have already done DD previously. Perhaps the results kicks it all off. The initial plan was to test both but I’m sure if MOU1 flows well then something could be worked out relatively quickly.
Either way, MOU1 testing is funded, if they are confident there’s little reason to raise before releasing those results.
PG stated aim is to prove up and sell on. Provided shareholders get most of what he gets for Morocco , via special dividend for example, keep a little back to seed the next idea, he can do what he wants going forward. I wouldn’t like a significant amount held back to finance his next big idea though.
Yes. The market doesn’t know what to do at the moment. MOU1 will either be positive and opens up favourable funding or it won’t and it’s a placing at a lower level to get MOU2 done.
Also, as MOU1 testing is funded there’s little chance of a placing before results, which the market appeared to be pricing in, at least on the initial drop.
It should move up but the modern ‘investor’ can’t hold for 5 minutes let alone 5 weeks.
I understand the need to remove the uncertainly with being funded.
That’s twice now PG has mentioned someone coming in using a subsidiary to avoid regulatory delay.
He must be confident in MOU 1 unlocking the finance for MOU2 completion and then MOU A or he’d raise the minimum today to get MOU 2 finished.
Things should move quickly once the testing is completed. Whether positive or negative MOU2 will be re entered.
He has mentioned the Green Hydrogen previously. I am not a fan of the next shiny thing to get excited about while Morocco needs sorting, but yes, the inference is Morocco should be moved along sufficiently this year to move onto that.
Crude Trader, he said MOU1 testing by March, this will provide further funding options, next step MOU 2 re entry. I think he needs more money to complete MOU2 but doesn’t want to raise at these levels. All eyes on those results.
You advocated £5 million raise at around 5p. I’ve only looked quickly but it looks like 5-6 % dilution for 88e.
Similar for PRD would be 20-25 million shares issued. £5million would have been nearer 100 million shares and around 25% dilution. That is not similar.
Yes we are but you don’t raise money at this level unless you have to. If you have to you raise what you need. The time for planning for more than needed for headroom was in the planning up to the drill, not now.
The idea that you raise any amount now at any cost because the prize is could be worth it is not a sound argument in my opinion.
If he needs it he needs it, and I agree, get on with getting it, but at this level why would you do the biggest placing in the companies history of it’s not needed.
They are finishing the last 250 or so meters of a drill and a couple of tests away from having the ability to raise in a multitude of different ways and at the very least a much higher placing price.
The market, if he needs one, is going to bend him over. He will make it as painless as possible with the least amount possible at this stage to allow more options at the next stage.
There is no financial advisor on the planet advising to get £5million now on the information we’ve been given.
I think it’s purely the funding weighing on it. Ironically even if a placing, with the uncertainty removed it should go back to pre drill. There may even be a decent run up to the final spud.
Time wise , if the rig is no cost for a couple of months he will be trying everything to get it done it that time.