Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Louis, I see no open shorts on PRD but feel free to check yourself and if there is any it would be below 0.5% as reported.
https://shorttracker.co.uk
I think you would be surprised, there would be pipework to be manufactured and delivered, pumps and valves to be ordered, a compressor to name a few thing. You have to think, if the items where being ordered for CNG development then there must be a very high expectation of success.
Below is from the 31/07/23 RNS regarding the next steps so for me that is quite clear what the plan is, what we are missing is timescales and if we are in a position to actually start testing so we could do with some clarity regarding this issue. I'm assuming (or hoping) the long lead items are for CNG development and not required for testing? Does anybody know if we have have all items needed?
"· The net proceeds of the Placing will be used for completion of an extended rigless testing programme for MOU-1, MOU-3 and MOU-4, commencement of CNG development studies and tendering for long lead items, residual MOU-4 well costs and general working capital."
I know exactly how you feel, I was very pished off myself having topped up at 20p and could not fathom why they would raise now before releasing a CPR and the prospectus if they are going to be favourable, surely the SP would have been higher and the dilution less.
But on the other hand the II's participating in the placing would have seen the draft prospectus, and they invested £10m, makes you wonder why. I suppose we only have a couple of weeks to find out for ourselves.
Keith, I believe my post was taken the wrong way, likely my execution, I was not suggesting PDR did anything underhand as I do not believe that at all, they needed funds and it was a great way to do it, Novum on the other hand... well?
Its easy to understand how PI's feel a little mislead with this current bookbuild placing, I have read through the last "Loan of Net Proceeds of Directors Share Sales" RNS as it does insinuate that the prospectus and the CPR would be released before a further fundraise although it does not specifically state that fact I believe it is just a clever way in which the RNS was put in order, whether on purpose or not?
Seems strange how there was:
"Accordingly, Novum Securities have received firm orders to buy 18,000,000 existing ordinary shares of no par value in the Company at a price of 10.5 pence each."
Would they have had prior notice of another fund raise in order to sell down, explains large sells the last couple of weeks? This part to me seem a little off.
Part of the fund raise announced today will be used to buy back the shares that were loaned by Paul and Lonney and in my opinion rightly so:
"Under the unsecured Loan Agreements the Loans will be capitalised with the return of the same number of Sales Shares to Mr Griffiths (17,500,000 ordinary shares of no par value) and Mr. Baumgardner (500,000 ordinary shares of no par value) when the Company has additional headroom and at an appropriate time"
Its all there in black and white when you read through with hindsight, the loan company waited for the high price, sold down and possibly bought back to repay back the shares in the current placing, all conjecture on my behalf of course.
Anyway, that's all in the past so lets look forward, as a saving grace I'm hoping they have saved something to stop the price crashing to the placing price but I'm not expecting much at this point, a possible TR1 with a large institution would be nice.
All IMO...
I wonder if we will get further news in the morning, we should see further info on the bookbuild to state what price and if it was fully subscribed, could possibly see a TR1, will we get any further updates, it seems pointless to me for the ii/ii's to invest otherwise as the price will drift lower if not, alarm set for 7am.
This explains the accelerated bookbuild process
https://www.investopedia.com/terms/a/acceleratedbookbuild.asp
I stand corrected in an accelerated book build, it is an auction style bid, hopefully there is plenty of interest?
"The issuer solicits bids in an auction-type process and awards the underwriting contract to the bank that commits to the highest back stop price. The underwriter submits the proposal with the price range to institutional investors. In effect, placement with investors happens overnight with the security pricing occurring most often within 24 to 48 hours."
https://www.investopedia.com/terms/a/acceleratedbookbuild.asp
Vacation, that is almost correct, bidders will submit closed bids and the winner is the highest bidder so the minimum is 11p they can bid then upwards from there, before they submit the bids they will have seen the draft prospectus so I'd assume this is now compete and just awaiting final sign off by the FCA as stated.
To quash the placing rumours once and for all read the 28/06/23 RNS
"The Company does not have sufficient headroom to enable issue and admission of new ordinary shares without the production of an FCA approved prospectus"
They cannot issue shares until the release of the prospectus and at the same time the release of the CPR
"An updated Competent Person's Report will be produced at the time of a Prospectus."
I believe the CPR will give us a very good idea of exactly what we have in terms of volume/reserves based on the information we have gained from the drilling of 4x wells albeit 1 unsuccessfully to date, the share price could well be way in excess of where it is now before any raise is required, all IMO.
Henceforth I’ll refer to the Sunday Blog as Kn0wles’s Letter. Hold on, did I just refer myself as a third person, hmmmm?
Apologies to everyone else for clogging the board with crap, this is the last on the matter.
Jim, calling everybody idiots is not the best way to go about getting yourself paid subscribers, I just had a look at other companies you post on, it looks like they have all sussed out who you are, LOL.
Louis/Oil Man Jim, FFS we are not subscribing to you non-sense f-ing musings, its clear you Louis handle is a promotional account to your paid for subscription site, just had a look at you posting history, its all about Oil Man Jim with links to you site, PMSL, so obvious and clear for all to see.
PUMA, the motives for your incessant postings are obvious for all to see, who spends their weekend if "I have no professional interest in PRD." as you say.
Yes, we know they will need funding at some point, it is clearly stated in the RNS dated 28/06/23 but what you are failing to mention is that the prospectus and rigless testing will happen prior too any funding requirement, by that time and upon a successful testing programme the share price could well be far north of where we are now.
The funding is required to "accelerate a potential Compressed Natural Gas development", by which time we will know how much gas we have and at what flow rates as there would be no development required if there was no gas to extract, the question is now, how much gas?
"It is anticipated that the Company will complete and publish a Prospectus in the coming weeks to, amongst other things, enable the return of all shares due to Paul Griffiths and Lonny Baumgardner (including those loaned previously) before the rigless well testing programme commences in Guercif. Additional working capital will be required in the future to help It is anticipated that the Company will complete and publish a Prospectus in the coming weeks to, amongst other things, enable the return of all shares due to Paul Griffiths and Lonny Baumgardner (including those loaned previously) before the rigless well testing programme commences in Guercif. Additional working capital will be required in the future to help accelerate a potential Compressed Natural Gas development.."