Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
We are now witnessing a new cycle in the companies dream selling business model, the previous battery storage cycle has now run out of steam and so a new story is needed and this time its going to be oil and gas. Previous dream selling stories have ranged from American coal production to Sudanese phosphate to a Tesla car rental business.
A wide and extensive skill base would of course be required to run such a broad and diverse set of businesses situated in nearly every corner of the globe , but thats never proved to be a problem here because succeeding isn't the name of the game ,the name of the game is simply to tell a good story this will enable them to keep their very high salaries rolling in and thats their only real objective .
Talentless wide boys in suits who's only pony trick in life is finding projects that they can sell as having a 10 x fold growth potential .
Rinse then repeat, this proven business model has been highly lucrative l for them for more then 20 years,
Probably due another name change here given the fact that the company has altered direction yet again for the umpteenth time.
Using data from the when this company was first started shareholders have been diluted by 50% every year and this is set to continue in a masked way via SE Asian investors and Director salaries.
The model here is Mambare as the long dream investment accompanied with short dream selling investments running along side.These short dream selling investments get replaced every 1 -2 years to create the illusion of progress , freshness and a new story for new investors to get excited about.
Its a winning formula for the directors because for the last 20 years they have been living off the life savings of multiple waves of investors that jump on board every couple of years.
If you can get out of this with only a 50-75% lose if may feel like you have lost on your investment but compared to others that came before you are actually a winner cos most CRCL investors over the last 20 years lose 99% of what they put in .
Its basically impossible to win with this stock, because any meaningful Mambare news is at least 2 years away by which stage £1.5m debts will need paying off and £2.5m (£1.25M X 2 ) will be needed for admin costs.
At todays SP that equates to 1.6 billion news shares
Any new dream selling stories will also come with further dilution costs.
Remember: historically 99% of CRCL shareholders lose 99% of their investment .
Put simply this is a lose ,lose investment and remaining shareholders should be braced for yet another share consolidation , the 3rd in this companies history.
Previous RNS
"Following the funding solution announced today and the planned conversions outlined herein, the Company would have a total £1,460,000 debt of which principal amounts of £125,000 are due 31 April 2022, £720,000 being due end October 2022 and as announced on 14 December 2022, a further £619,000 due end December 2022."
Todays announcement only covered the October debts, the time bomb hasn't been defused yet.
Dream selling comes at a cost but is an important part of the companies business model .Historically as soon as they get their hands on any share liquidity in this case a possible Singapore listing they will sell into that liquidity to pay off the debts accumulated by the companies past dream selling ventures .By the time the pain of mass dilution is felt the dreams the debts money was used on have all failed and even more money is needed to purchase new dreams for the next new wave of mug punters.
The business model here is they take on projects that can easily be sold to PI as having huge potential growth stories when the reality is very different . The latest has been multiple battery storage type projects , but before that there has been over a dozen other dream selling projects that predictably all ended in failure.
Thats their business model and its been making them a very nice salary for nearly 20 years.
Yes Mambare might end up coming off one day but by the time it does there could be 3 billion shares in issue plus the last time they found themselves in financial trouble they forfeited on their share of the costs of Mambare which finished with their share of the asset dropping from 50% to 35%.Lets all hope they don't make that mistake a 2nd time.
An over all valuation of £400k would equate to 0.08p
With £1.3M of debt that expires in the Autumn and £800k in average admin cost pa. they are going to need to issue a lot of new shares to continue as a going concern.
Any good news will be diluted into @ 1.5p assuming the news comes before all the money runs out and another fund raising is required . Huge loans simply postpone the inevitable dilutionary event and the payback dates have been set.
They have been making a very nice living out of following this proven "Dream selling" business model.What we are witnessing is a new set of investors awakening to this reality.
Also on 12 May 2021, the Company announced that it had agreed a new loan note to provide £500,000 through an unsecured loan facility to be drawn down in 5 tranches. The loan plus a fixed coupon of 8% was to be payable upon maturity, which is 31 April 2022.
Discussion of Results
The Group incurred a loss of £1.227 million in the period ended 31 June 2021. Finance costs over the year fell to £0.065 million, reflecting interest and finance fees (2020: £0.247million). Overall, administrative costs increased slightly for the year to £1.014 million (2020: £0.838 million).
On top of all this £760k of long term debts have been transferred to the short term debt category which now stands at £883k.
Add £500k of new debts payable in May 2022 and annual admin costs of over £1M and Corcel are going to need it shareholders to cough up £2.4M over the next 12 months and thats just to stay afloat ,
This is of course the CRCL business model , leaving the new wave of mug-punting shareholders to desperately need one of these venture to come off before the dilution date .
Theres only one winner here and thats the guy who salary makes up most of the £1M admin costs.
The trick played out here has been used in different formats many times in the past ,why have one project on the go when you can have many ? Of course in the real world it would be prudent to only have one project that the company then fully develops so as to test the business model works then taking what you have learnt from that and then applying it to the next project with fine tuning.But thats not the Scott way, the Scott way is to have multiple projects on the go all at the same time so as to create the illusion huge progress is being made when in reality the management haven't got a clue what they are doing regarding take a project/s like this forward. This strategy works rather well for a few years until of course the new set of shareholders you have been tricking since the last reincarnation beginning to awaken to the realisation they have been following a con artist that has been following a well worked and proven formula. This is exactly where we are now and the story ends exactly in the same way it always has in the past with mass dilution .The trap is set as the exit door comes at a huge cost to those who bought into this with volume .Its easy selling a few hundred but not quiet as easy if you need to shift a few million .