Member Info for KnockinOnHeavens

Ya-man!

Alan's hurrah optimism finally starts to materialize!

Breathe, Alan.

I'm not an expert in various financial tools when it comes to raising additional capital but to put it simply (and optimistically assuming that they will rise those 3bln via senior debt and will look for alternative source for the extra $400-600mln):

IF the company, once fully operational, is supposed to generate such a marvellous future profits counted in billions year by year for the next century or so, WHY the hell would they even think of permanently diluting the current holdings of many investors causing PERMANENT damage to future SP and future dividends of the current holders, only for the sake of raising that "small change" of $400-600mln (it is relatively small amount in comparison to projected future turnover / profits of the business)?

Couldn't they just propose some form of debt solution involving existing share holders and giving them a priority of choice and ONLY IF the full amount needed is not obtained, propose an issue of new equity in order to find the remaining amount?

Wouldn't that be more fair to all already involved and allow to raise the same amount in the same time? Just saying.

Forced dilution sound like the worst possible scenario for any LTH. There is absolutely no need for that. I'm sure that many PIs would gladly lend the money to the company they believe in.

I'm not sure about logistics behind that but as a general idea, it's not bad is it?

That's the SP in 2 years time after accounting for dilution you keep rejecting the possibility of Alan lol

Time goes so fast....Not that long ago we had a lively debate about ST1 funding - it was in 2016. Today we can say that in around 13-14 months we will be in 2020, would you believe? It will go really quick too, guaranteed.The opening day is just around the corner. Don't allow temporary fears and fluctuations to blur your vision. In a couple of years we will all likely regret that we chose to be paralized by fear and speculations rather that spending the last dime on more SXX shares. Current 22p per share is ridiculously low by any standards. I wish I had more money now.

Bellers,

Yup, no point of even debating people like that. Let's move on.

The more speculations, the lower the price.
The longer it takes, the more uncertainty it creates.
The lower the price, the more you can buy.

If you believe it will get built (regardless of method of funding) and you are here for the very long haul, all the logic would suggest to take the opportunity and buy NOW. It may truly be one of the last periods where you can see that share in the region 20p.

" 400-600 will be a strategic partner at best or at worst dilution but we are talking of a mine delivering up to £3 billion pa and life of over 100 years so 400-600 is circa 5 months profit"

Alan..... it may be an equivalent of "5 months profit" in 10 years time (if everything goes according to plan) but do you realize how much extra shares in circulation would that create TODAY if it was all raised via dilution and what devastating effect would that have on future SP and your dividends over the next 10, 20 or 30 years?
Not to mention that even the initial 3bln via senior debt is not in the bag yet either.

Sober up.

Of course it will likely involve some dilution. The big question is: how much?

If they somehow managed to secure full 3bln as senior debt and some of the extra 600 mln dollars (466 mln pounds at today's exchange rate) via alternative capital other than dilution (let's say half of it), then it would be a great news.

It's a lot of money to find - I would be very surprised if there was no dilution at all. I just hope it will be at reasonable level but as it often happens public investors will probably be forced to bend over and take up in the asss for the last (hopefully) time.....

"I think you must know more than CF who all along has said stage two will be all debt"

No, he didn't. He never said it "WILL" for sure. Stop lying, Alan.

AlanG,

Yeah, it will be built but who will pay for it?

Don't you think that little detail is somehow relevant to the current SP, my hurrah optimistic friend ?

I wouldn't really say it was "positive". It wasn't negative either.

Except from the slight change in terms of expected commitment letters (now extended to Jan 2019) it didn't really say anything that wasn't already included in price.

Nothing new really, he already said they are working on it 1 or 2 RNS ago.

I can smell some dilution, hopefully at reasonable levels.

Really? Lost 99% of your money? How did you manage to do it?

What stage did you invest at? Enlighten us please.

Golfer70

I know, just before Christmas break. It might be too late, we will see.

Cheers

I'm getting my bonus on 21/12/18 that will instantly be converted into more SXX shares first thing in the morning.

Fingers crossed for lack of news and another month of stagnation.

OMG Jacko91, 16 "likes" and still counting

It clearly illustrates that subconscious desperate need to seek comfort and justification of the decision everyone made when investing in SXX stock, doesn't it? :)

Human nature is so predictable and never changes. We just love to "like" posts like that because it just "feels good" when we read them. It simply strengthens our belief that the decision we made was right.

:)

23.92

Yes, Alan G.....It must be the truth because an investment bank said so!