The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
It was interesting to hear Greg’s response to the last RNS on funding and Sheffield. He was underwhelmed by the market response! He would say that, you might say, but having talked to him, he is a genuine straight talker. It also sounds as though we have a following wind with the planning authorities. They now want it to happen!
Having attended the last two AGM’s, Greg is now delivering. A large rerate is in order, we are going to be a miner, unless we are bought out before! As Greg says the discount will reduce over time, the clock is now ticking, which is great news for LTH, as it has been a very bumpy ride. I need the share price to more than double to break even!
I think this is very good news. It puts the pressure on LB who have been dragging their feet, for a better offer. It puts financial support behind the project, technical expertise and a back stop to the share price. The project is happening so risk is reduced.
When you have a few million ounces, with prospects for a lot more, then a few hundred dollar increase in the price of gold puts things in perspective. Compare the increase to our current market cap! That increase in gold price goes to the bottom line, I am pleased Jim is holding out. The market is jaundiced and jaded, heard it all before! I think we will be surprised to the upside.
Well Safe, I am very pleased that I have taken a day out of my life, to check in on my investment. I will sleep well tonight, happy in the knowledge that PC is going to do the best for the shareholders from the assets that we own. If you think otherwise, the logical behaviour would be to sell? Being so dogmatic about PC never being able to deliver, makes me smile anyway. I have time to wait. Good luck with your investment.
Well Twiggy, it was more the fact that the 3 suitors have been given the value of what we are negotiating over. They believe the Tolsa deal will come in, but will be in December, and that deal alone is worth our market cap! He repeated the rule of thumb how much royalties are worth, every 1% 10% of the equity value of the project. The CS deal takes the full area potential as well. A mining licence for a million tons a year, for 28 years and we are valued at 1.8 m in total! With pozelene being sold at $100’s a ton, Sometimes it is hard to see the wood for the trees, and we end up navel gazing and the market drives down the valuations, it is so beaten up. I left him with these words, I hope you are being greedy! I have also been adding, as I think the market has it wrong. I think it is a when, not if, and we will look back kicking ourselves. I am however a contrarian, and very willing to trust. In my other life I was a FCA, on the commercial side. I understand that deals take a long time, but happy that the market is moving slowly in our direction.
That is not really correct Safe if you are being honest, projects have been advancing. The share price like most commodity plays have performed terribly, that is the big issue. The situation can however turn on a sixpence, we currently have to live in hope. Hopefully the market will turn as the same time as news drops. In the meantime we wait, nursing our paper losses. Nothing else we can do, but trust, moaning about PC will not reverse your investment decision. I did come away confident that the board will do the best for shareholders. We own some great assets, with potential for more asset upgrades, which underpins my confidence. The board are feeling it as well!
The AGM went well, sitting in a restaurant waiting for my train! Shock horror with this drop, however can’t even buy £500’s worth! There were only 2 people who attended, myself and a person who I met two years ago with 100m, the last time I attended. We were free to ask whatever we wanted. It is frustrating, but we can’t force our suitors to speed up, not a matter of the price! Which I am very relieved about. Very happy the value of our assets far exceed our market cap, in the directors view.! The market disagrees, but my money is on the market is wrong! Painful as it is for all. Just have to wait I am afraid.
PC sounded confident. Pushing to get the CS project done by June, sales of some description with a long term revenue stream. I liked the rule of thumb, a 1% royalty equivalent to a 10% equity stake. Makes one think about our potential at this level! PC is going to shout out about our assets a bit more. Looking forward to getting some more detail on Thursday.
I very much doubt he will be removed by a vote Tottyman! I believe the majority of LTH are waiting for the conclusions of the discussions. I would prefer that our ‘crown jewels’ are not negotiated away at a giveaway price. If we have to wait for the right deal so be it, running costs are a minimum. I am going to the AGM, are you? No doubt an RNS will be released on Thursday with the updates. I look forward to asking a few questions.
Harry certainly looks relaxed and confident in the interview. This to me looks to be almost nailed on, baring an African hiccup! The market thinks the same, only an RNS saying signed will cause any material shift in the share price. Happy to accumulate.
Thanks for the advice Shelly. I would prefer to stick around and see what PC comes up with. In the meantime I will nurse my paper losses, and fantasies about what could be the value of our assets. I am in no hurry, and will see him at the AGM. I will ask him directly whether he can counter the comments made against him on this forum, with some evidence of performance. I will be able to look into his eyes, and then report back to you with his response. It is only him that knows what is going on behind the scenes anyway. From experience I know that good water tight deals take an age, especially when you could be talking about two sites, and a number of different parties all going at their own market pace. You never know, but by the time of the AGM PC could be your hero!
Investors make their own investment decisions based on information available. I understand the frustration, over the value that the market gives to our assets. Today’s fall, with a spread of 50% adds to the frustration and despair, with a minimum of shares being sold. I am prepared to wait, depressing as it is, and find out more at the AGM. PC is the biggest shareholder after all.
PC’s statement is exactly as expected, with no new news. We just have to wait, safe in the knowledge that the market demand for our assets are improving and have a clear direction of travel. This gives me a great deal of comfort. I would think that the deals being discussed might involve both the CS and Hazen project, and include the perlite as it can be ground down. This will explain why there is no separate mention. I will ask at the AGM as I aim to attend. With a low cost base, it is better to wait for the right deal rather than one that gives suboptimal shareholder value. I can however see why some shareholders are frustrated, and have a lower level of patience, having had expectations enhanced two years ago. PC is honest about this, and rather than keep criticising PC I would sell up. PC is going to go as quickly as the market dictates, and I support that approach, there is no alternative.
Hyperbole Tottyman, look at historic voting. We could be days, weeks or months away from news on the CS project. The assets are still in the ground, relax. I am sure PC is doing his best to maximise shareholder value, the timing of deals will depend on the market rather than shareholder noise. It is frustrating with the share price as it is, but we have to be patient. There is no alternative, that is reality. Hopefully PC will become your hero, that is what I am betting on. I am pleased with the Tolsa deal, and pleased with the Goldstone news.
A bit frustrating, I would agree with you Safe. However the assets are still there. I hope to go to the AGM, so will have a better view of the status and hopefully be able to extract an Idea of the potential value of the discussions. In the meantime in my view it was ok news with Tolsa, so we have a bit of money, Patience is certainly a virtue here. GL everyone, a depressing market for commodities as a whole and SRES share price!