George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
It does appear silly at first glance but perhaps there are charges and restrictions not discussed in the RNS?
If not, is it just plain bullishness which also prevents Jennings from selling at these levels and knocking the price?
What other reason is there?
(Maybe we should all try and get similar terms from Ext - lol.)
"Can someone explain to me like I'm twelve why this rns spikes the price by 11%?"
The management are showing that they are prepared to buy 99 million shares today at a price that is twice the current share price. Buyers see an opportunity.
"Maybe EXT think that if Jennings sell the 99 million shares on the open market then it will crash the share price. If it does, then so be it."
Maybe they are very bullish and would rather buy them from Jennings than see others buy them so cheaply?
I know they have a lot of shares already and AK has just been involved in the fundraise. With all these things, you hope that the management has integrity.
The "Auto-exercise" on the Call option at 1.5p could well have activated if TO14 results were good. The share price got around those levels not so long ago.
I just read this that Ext are bullish. But if I am wrong and I stick around I will hopefully learn why I was wrong.
In the past they were producing from only the top 8m. Perhaps they already knew then that the deeper areas were too difficult to flow.
We already know it is a productive reservoir that appears to be recharged with a possible increase in reserves. If Sonangol can get the engineering right to produce from deeper down, then there would be upside both here and in other similar areas on our blocks wouldn't there?
If they can't do it then what has changed anyway? Nothing so far to say that the EPS can't go ahead is there?
Didn't they say that the previous equivalent well flowed from only 8m and we had found reservoir across 80m ?!?
In the RNS: "Reactivation of the fractured carbonate reservoir has been challenging,"
Anyone know why that could be?