Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
The adage, fear and greed rule the market, is so true. The reality of the RNS are now starting to sink in. I believe we now have competition to who is going to be our partner, which must be better news for the shareholders. I don’t believe the core shareholders would sell, from my conversations, they want to pick the fruit of many years of investment in this company, certainly not at 20p anyway! 2024 is going to be an interesting year, and we might through this process get a glimpse of the value of the assets we are sitting on.
We are not there at the negotiations, everything is supposition. If you want to take a negative view of the RNS, that is your prerogative. The market action backs up your negativity. I am following the money, my experience of negotiations, and what I heard. I don’t live in La La land, feet firmly planted in reality. Relax, in the meantime the MM’s will do their stuff with the uncertainty. I now expect a better end result for shareholders, as competition is brought into the process. I expect the shares to bounce back tomorrow, the lure of buying back at a 25% discount to the insiders! I don’t think the process will take as long as feared, there have been site visits by other interested parties, and they have the old MOU as a blueprint. LB should now get their skates on, if they want to be our partner. We just don’t know I might add!
I see this RNS as positive and part of the negotiations. I went to the AGM in October, arrived late due to a train delay, and they kindly got Greg on the phone for me. I specifically asked whether LB are the only player, he said there was much serious interest in our assets. Greg is not stupid he knows he has to create competition to get the best long term deal for shareholders, and this RNS is a sign of strength. We are sitting on a proverbial gold mine. The insiders topped up at 4.25, knowing full well the tactics, filling their boots and giving the company financial muscle to play some hard ball. I am very comfortable, allowing the game to be played in this manner for the best long term deal. It has been a painful journey, but am confident that Greg is aligned with shareholders, he has to balance short term gain, long term gain, risk reward etc. The future is bright, but we have to wait a bit longer. The market has reacted accordingly, as it can’t wait and sees the RNS as negative. The MM’s make hay, while the LTH sit tight. An opportunity, as we have our licences back, fully funded and are back in the driving seat. Negotiating from confidence is a lot easier, and the RNS speaks volumes. Relax and enjoy the game being played.
Something is afoot, I have had to phone broker and do a telephone trade, just couldn’t buy on line, for a small punt of £500.
About 10 years, sitting on ever increasing losses all this time. It is now that counts, and I believe the hints that MC has given, and the fact that the insiders have loaded up, gives me hope for a sale above my break even. The market currently disagrees with me!
You are correct Seingred, he didn’t use the exact word imminent. I interpreted MC’s time frame into my understanding. Given his past failed time frames, I believe he will have learnt about giving too an optimistic a time frames, and will now be being prudent. I am sorry if I have misled anyone. Personally I think it will be before the new year. I think the wait will have been worth it, with a higher sales price, even after the dilution, given the gold price increase all going to the bottom line. This is when it counts, all past failings are forgotten, as the assets and gold price now do the talking. I trust the greed and experience of our billionaire investor to get the best deal. We will know soon enough, and good luck to you as well, let’s both hope we are surprised on the upside. I need 50p to break even!
You are entitled to your view Seingred, I was purely giving mine. I think a bid is imminent, my view, and a bid will come from one of the 6. Hopefully followed by a rival bid from another one of the 6. There is nothing wrong with having optimistic expectations, unless you think that only one view is allowed. The market currently agrees with you, but the market is not always right in the end. With gold over £2000 and selling a potential gold district, the bidders might take a longer term view than most investors. We will know soon enough, it might be tomorrow for all we know! Relax, I am quite happy to believe MC’s current optimism , hopefully we will multi bag from here.
My definition of imminent is that CNR is expecting an offer from one of 6, which could come at any time. MC has given a window of his expectations of first quarter. I think he is being conservative due to the length of time the process has continues, he is now managing expectations having been criticised. The bids come from third parties, I presume from the Chinese due to the hint of visiting the embassy. The timing of the bids are outside MC’s control, hence my comment of imminent. The insiders have their extra shares at 15p, so it is all systems go from the company’s point of view. My gut says before the new year, very happy to be wrong, as my bed is now made.
Why not, when you have the insiders buying at 15p, and we have been told that a decision is imminent. With gold at 2000, and big Jim in the driving seat, my bet it is going to be a lot more than 20p! Downside is minimum, bagging is a distinct possibility. Good odds, I say.
At long last some action, the market is feeling a little more positive towards CNR. Not a bad increase considering the doom and gloom talk. Hopefully this is the start, and we get our announcement before Christmas. There has been enough signposting as to the potential from the board allowing everyone to get in and load up. Considering gold is above 2000, I would like 75p or above. I think we will look back in hindsight and wished we had bought more! Not long now.
We are where we are. Looking back at where the company has gone wrong, is of no benefit going forward. The investment decision to continue, or increase holdings in CNR, should be based on today’s facts. The recent RNS and the current gold price. The directors and the inner circle are buying at 15p, non binding bids have been rejected at a higher level. The downside risk is that the market gets bored until an announcement, and there is a temporary fall in price. The upside is that a considerable profit will be made at today’s price. The risk reward is OK IMHO at this level. I am trying to be detached from this share, having been in it for 10 years! I have been badly wrong so far.
As MC said they are not a miner, and have had a reality check! They have brought it to stage of being mined, leaving some profit for the next company to take it over. Time to put it in new hands, nothing wrong with that. He doesn’t have to resign, the strategy has changed. We are now at the point where the rubber hits the road as to value, all those years of work. The market believes 16p, as it is fed up, jaundiced and the general commodity and gold sector is in the dumps. JM believes differently, MC is hinting in the podcast, I back JM rather than the market sentiment, and am averaging down. We will soon see. I can certainly acknowledge your view, better for me!
I can concur with your arguments BenBen, the market agrees with you. I am a contrarian, and follow the adage that fear and greed rule a market. MC I believe is fair, he knows the share price is pants, he knows he has created no shareholder value. He has also personally lost out, and I bet his average is a lot higher than 16p. He is now telling us long suffering shareholders IMHO to buy up as he knows the offers.
Well BenBen all we have to go on is what MC says. Gold hit record highs at 2130 on Monday, US annual deficit will hit 3.6 trillion this year, US treasury’s are being dumped, the world dollars dominance is on the wane, central banks excluding USA are buying record amounts of gold. China is having an economic war with the US, whoever controls the commodities has the power, China takes the long view. I am very comfortable to allow Jim to maximise his and my value of this company. Not long now, and if I were you I would start crowing when you know the result, you are currently a bit premature and you might be surprised! Enjoy the suspense.
It does not look good at the moment, I agree, they have not delivered any shareholder value, in fact the opposite. I have to 3 bag to get any value. However it does not mean it will stay that way! I do not believe MC and Jim are in it for a couple of bags, this is an aim investment after all. The Chinese, the clue, will value gold in the ground in Nic at a higher value. The clues are in the interview. I expect to be surprised with gold over $2000 bucks, but there again I am an optimist! The fact they are dishing out some shares at 15p to the inner circle when they know the level of offers and the interest, says that there is some money to be made at this level. You buy the shares you take the chance. We have not long to wait according to the interview. Go Jim go!
About 10 years, you are right to be sceptical so is the market! What is the downside at this level? I am a believer as there are so many clues. Mc is fair, we could all subscribe at 15p on that big raise. The market is jaundiced and just doesn’t believe, we will know soon enough.
Personally I am pleased that no deal has been done, and yes it has cost us some running costs. The price of gold makes a world of a difference, when you are sitting on a potential gold district, to the valuations. When gold has risen by 100 bucks and you have 5m ounces, it sets the heart racing, when we compare to our current market cap. Yes we have to discount down, but it backs up MC’s optimism, and why Jim is in no hurry to sell it cheap.
I am not at all concerned by the suggestion, they do not need the money now JM has stepped up. It is about fairness, which I like. This is in short supply in the AIM market, but having followed MC for the last 10 years, thinks he has a conscience. It signals to me that there is some money to be made. They know the interest and the offers, on top of that gold increases 100 bucks, and with central bank buying likely to keep the momentum. There is the opportunity at these levels, and MC in his boring way is shouting about it! Let the bidding begin and enjoy the ride, for once I expect the share price continue to rise as expectations increase.