George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
I don’t think this run is going to be about mcap. Anza is going to take years of drilling etc to establish its vale. I think the trend (ie share price) in 2024 is going to be driven more by strength of the gold sector, FOMO and exuberance. If OMI gets to previous highs, that will be driven by this herd mentality rather than more rational assessment of the fundamentals.
The big question is what heights will it reach in 2024 and driven by this exuberance?
Crusty - it's not impossible that they might hire out the Rig, but I personally just don't think it will happen before Q3.
The cash they had as at 31 December 2023 was pretty much all spent on drilling Itumbula. The cash they have presently is what was raised at the recent placing. If it's enough to cover them to Sept 2024, and also to pay for the EWT, then He1 would come out and say they are fully funded and have no plans to raise. They haven't said that. I've been in and around He1 long enough to know that this means they will raise prior to the EWT. I'm not going to have my holding chopped away by whatever sized discount the broker will give away to its clients this time round.
But at the end of the day, it's for each of us to make our own judgement call on this. If you don't think there will be a raise, then fair enough.
He1 knows better than most companies what impact the fear of a raise can have on the share price. They have been around the block a few times now. Therefore, if they have no plans to raise before the EWT, they would just say so. A raise is inevitable and the only question is at what discount. If previous raises are anything to go by, then the discount will be significant, especially if a large amount of funding will be needed.
I doubt very much the Rig is going to generate any funds in Q2, such that those monies can go towards the costs of the EWT in Q3. I think if anyone was planning a drilling campaign in Q2 and wanted to use the Rig, we would likely have heard about that by now. Also, with the issues that He1 have had with this Rig, would they even want to risk hiring it out to a third party at this stage. Do they even have all the ancillaries that a Rig contractor needs. It's one thing not having these when your drilling your own project and having to order them in, but quite another if it's a third party who you have contracted the Rig to. Not sure He1 are quite ready for that myself.
Overall, I remain of the view that the best time to re enter here is after they have the finances sorted out for the EWT. Until the risk of a raise is gone, it's hard to see the share price going on a sustained run in the interim period. If they are going to raise, then hopefully they will get it done sooner rather than later, because the lower the share price falls, the more painful the eventual placing. All imo and dyor
Now's not the time to delve once again into the mishaps of the past. They have been discussed exhaustively on here and happen all of the time on AIM. Go on the bb for other juniors and you will read similar laments about their BOD. On AIM, you have to spot the opportunity and take it when the going is good. Right now, the going is very good. There might come a time, once again, when it is not good. So you just have to decide whether you are going to swing trade the highs and lows, or stick with the stock through its ups and downs. If the latter, then you have to accept the trials and tribulations that will come with that strategy, as there will be LOTS of them regardless of which junior. In fact, how many have invested in a junior where it has all gone smoothly, and every decision of the BOD has been well received? I can't think of one.
BG has pulled off a blinder here in that he's secured 100% ownership and control of a potentially world class gold project that has had £30 million spent on it. He has done this for zero upfront consideration. And everyone now has the opportunity to make some serious cash again. Ironically, this opportunity would NOT have presented itself had everything gone smoothly with MMA.
So don't get distracted by noise about the past, and focus on the opportunity ahead of you in these coming weeks. All imo and GLA
Thanks Tiger - all noted and I will take a closer look at GMET over the weekend.
We are already seeing the kind of volume that ignited the previous big moves up in the stock. If the herd arrives and it catches fire, then all bets are off in terms of how high it can go. But will the herd wait for confirmation of the deal, or will FOMO set in much earlier?
I do think we will be in double figures by the time Pepas drilling comes around.
Thanks Ice - GMET has been on the radar for a while, so it might be worth taking a closer look.
I think it's falling for the same reasons that were given following the last update, namely:
1) Not returning to operational activity until Q3! That's a very long wait on AIM.
2) They are likely to be raising again in order to pay for the EWT. At what discount?
These are currently the key fundamentals. Now the rampers can spend the days and weeks in between now and the above events talking up the various positives that there undoubtedly are here, but if the aim of the game here is to make money, then surely waiting until they are fully funded again is the optimum time to buy again here. Otherwise you are just sitting duck for the next fund raise. It's not really that complicated and no surprise the share price is struggling right now, as most people appreciate the above realities. All imo and dyor
Worth listening to the interview again - it's that good!
https://www.youtube.com/watch?v=9a1sFDBvRc0
I haven't followed the IPOs in any great detail, so I suspect the below remarks will be unfair, but it does seem to be the case that the IPOs themselves are also progressing the projects they inherited from POW very slowly. It's almost like a family of tortoise have been created here, with POW being the slowest moving one. Take GMET for example, is it any closer to getting grant funding from the US? What about the others in terms of how close they are to a commercial discovery?
This is gearing up to be the top performing AIM goldie next month. Whilst most of us are expecting a RNS towards the end of April, imagine if we get an RNS in early April, giving an update on drilling plans. Also, BG has said he will be doing a webinar on Pepas. Hopefully there will be lots of media and tweets throughout April and May.
LOTS of money still to come in here. Only a few days left to quietly accumulate under 5p.
I see that it went to 5.7p as recently as January 11, and that was before it was confirmed that Anza was coming back to OMI, or the timescale for the deal. The only reason it hasn't got back to that level already is that since then, we've had the placing and its overhang to clear.
I'd say it's almost inevitable and a no brainer that it's headed to 5p again now. All imo and GLA