Member Info for leehardcastle

My Brother has £3k to top up, I have another £2k, it’s going to be a busy opening :-)

The shares held before the suspension are 90% held by investors who have waited years for this day, they held when the risks were high, but the rewards even higher, so now the risks are tiny, why would anyone give their shares away for under 1p? under 2p? not a chance, the free float will be tiny, and I expect anyone wanting to get on board with any worth while volume will need to stump up more, and rightly so, the risks have evaporated, we are making headway in every aspect, improved plant, improved efficiency, refinanced with lower interest rates, quality management, peaceful environment, and the Gold value hanging at an all time high, what is not to like? the games will start, and idiots will arrive when we hit the share leader boards, but if you held before and never cashed out, you have no reason to now, Stonking BUY and we all know it, even those with negative comments, looking for the cheapest entry know it, keep strong and long, happy days are here again.

Give me strength!!!!

Let’s put it this way, I can’t see those holding shares will let them go below the 2p we reached without a finance agreement, so good luck getting in below that level in any volume with the long awaited agreement we have finally achieved, and Gold at all time highs, but 2p is silly cheap and don’t think your missing out, it’s just the starting line, 5 years from now 10p is not apple pie in the sky, AAZ went debt free and started paying a dividend, they 5 folded from that point, and it’s only the issues with war on their borders that’s holding them back at the moment, they have very wealthy cash reserves and are paying a 6% dividend, we are on the same path but we have bigger land banks and we are in a peaceful location, patience will reward those who wait for the dividend days, 3 to 4 years away, but where can you make 500% in 4 years from your 2p investment? look no further.

I hope you are thinking of buying a bigger holding Spaghetti, 60k shares is a tad light, still at the bargain point for this company, whatever we open at, most posting here are Seasoned MTL holders, with targets of a debt free company, proving up new ground and paying dividends, so the price on re-listing is not important, it’s important to buyers, not so much for holders.

I have a feeling there will be many clambering back in and I think we will surpass the 2p where we was a few days before the delisting, Those patient holders will be smug, that’s for sure

The share price was 5p back in Dec 2016 when MTL were just “ramping up production” as in they were trying the brand new processing system and everything looked bright, at that time we had just secured a new finance agreement and owed about $80 million to be paid back in 12 quarterly payments, we had the same number of shares in circulation as we do now, Gold was about $1200 and we were producing small amounts of test gold. so we were still burning through cash.
One of the top management purchased £250k of shares and that was the catalyst for my first MTL share purchase, 100k shares at 5p
Based on those facts, it’s not hard to see we are in a much better position today than we was back in Dec 2016, yes our debts are $50 million higher at $130 but we are producing around $10 million clear profit per quarter now that Gold is hanging around $1900 an ounce, Interest on the loan will initially soak up nearly $4 million per quarter leaving around $6 million to repay back the loan, the interest will reduce with each quarter down the line, and gold profits should increase with our recent improvements, we have plenty of cash in the bank, a refreshed plant machinery, secure finance and infinitely better management to boot.
So is the share price fair value above or below Dec 2016s value of 5p? thought please.

The shares post rights issue will be worth 50p to 55p, fact, so if you want a slice of RR for a long term recovery and don’t own shares today, just wait for the dust to settle and buy what you feel comfortable at under 55p, Because that’s the level they will find naturally, less risk than guessing where this is going in the next few weeks.

https://apple.news/ALkzXe5-mTE6w2WdoW0oU8w
Well I hope they are right, imagine how quick we would pay back our debt, it would evaporate in 18 months.

To give those looking in an idea of the scale of turn around achieved this year so far, even with the head wind created by the Pandemic, which has reduced Gold output by 15% this year to date, we still managed to make $11 million free cash in 6 months, so what do we expect in the next 6 months? Well, even if we don’t increase Gold production beyond what was achieved in the last 6 months, we will benefit from a $300 dollar increase In gold value, worth $9.6 million extra revenue, plus, reduced CAPEX spending as we have finished the majority of our fleet maintenance, worth around $2 million reduced costs, this leads me to expect to double our $11 million profit to $22 million for the next 6 months, making $33 million for 2020 in total.
Interest will soak up $14 million in year 1 of the new financial terms, but will reduce to by $2 or $3 million per year going forward as we repay capital and the interest rates reduce once the senior debt is paid back.
That’s working on no further improvements, which I hope is not the case, gold production is still only around 2/3 of what we hope to achieve with future fine tuning and a cure for Covid.
I think we are in for a huge re-rate this year, I’m not sure how much, but I wouldn’t want to anywhere else with my cash invested, that I’m 100% sure.

This is was Les emailed me and others earlier:

Dear All,

We have now seen the excellent news where the RNS confirms that debt will be refinanced without a debt for equity swap and that proper independent governance will be introduced. Therefore, our shareholdings will not be diluted.

The senior loan will carry interest at 7%. The mezzanine debt carries 15% until the senior debt is repaid when it drops to 7% and becomes senior debt.

It will be essential for the company to repay debt as rapidly as possible and the agreement provides for this.

I don’t understand what the Rolling Credit Facility of £100,000 is for and why £4m is needed to redeem it. Under this facility the Company undertakes not to implement certain operational decisions without prior approval of the Lenders. We await full details on what operational decisions are subject to the lenders veto. It appears to be a bonus for the two major shareholders/lenders.

As the Lenders are substantial shareholders in the Company, the Proposed Restructuring will be treated as a related party transaction and the independent director, Darren Bowden, will be required to consult with the Company's Nominated Adviser, Strand Hanson Limited, to consider, and if thought fit, provide an opinion as to the fairness and reasonableness of the Proposed Restructuring insofar as the Company's shareholders are concerned.

Overall, we seem to be miles away from where we were in March this year and as one shareholder said it’s something I can live with.

Les Gordon

Let’s put it this way, anyone selling at the old closing price or lower, will be snapped up by the masses, including me, think the opening minutes will be very interesting, I hope it opens with a chance to grab a load more on the cheap, but I doubt it will, still, I’ll be there at the open just in case, selling is not an option and never has been, like many here, the real fruit is years away, and I have bags of patience

Well said CV, thank you Les, sterling stuff

Well that’s the panic over, no dilution to share holdings, back to trading the share from 18th September, a debt total and an interest rate, the picture is clear, the terms are OK, not great, but I never expected much more, as mentioned, the gold price will melt these debts quick enough, so as long as we agree to the terms, and other shareholders, the future looks promising, happy days

Extension coming, please stop flapping

Those writing things off need to keep positive and most importantly “together” as it’s our 28% combined share holding that keeps us In the loop, the Major shareholders can’t make decisions without 75% agreement, so we still have a voice, we know the plant is running as usual, and you have a share of the company whether you can trade it or not, so keep positive as I believe this will come good still, as do many here.

It’s going to be an interesting few weeks, good to see positivity from our seasoned holders, CV...you go to say a good outcome is not a hunch, is that because you have good info on a positive outcome? Or are you just super confident in the dark?
My stance is sense will prevail, it’s obvious production is business as usual, and hiring staff proves that fact, the Major shareholders benefit most from a high share-price, I just don’t see them destroying the company to obtain 100% of it, seems far too risky and could lead to a total loss for all, when setting a repayment plan is virtually risk free with the current gold trend, just getting us trading again will see a huge share-price rise, with those on the sidelines wanting to get back on board, time to see what’s planed.

Thanks for the update Les, good to hear your opinion, fingers crossed we here a positive move this week

Great news from Les, over 28% of the shareholders. Are united together, and the Major shareholders know it, amazing work, thank you again Les.

$2050 today, we are seriously profitable, no one can say different, I think we are making a clear $10 to $15 million every quarter at these prices, Q2 results please