Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
When the nomad decides there can't be a fair market in the shares. In turn when the co first realises it can't raise the cash it needs, and is therefore bust. Alternatively on a take-over approach or anything which the nomad thinks will lead to a marked change in the share price. Kibo's particular nomad though, in my opinion, has missed a number of triggers (they want their cosy on-going fee). Mostly they are that Kibo has raised shareholders cash for too long without fully explaining the risks and any rewards.
With market cap around £4m, and extremely thin trading (contrary to the impression given on here that Kibo is a hive of market activity and interest) nobody will be interested in shorting, and the MM's are certainly not interested in working their books for their own profit. More likely they will be staying as little exposed as possible given the chance of Kibo going bust.
PS re Kat. Another example of LC's brilliant strategic brain. If Kat had concentrated just on Imweru, although Kat would have needed to raise funds to develop it, so diluting shareholders' interests, it would not have been diluted nearly as much as will now be the case to develop Haneti, which - if it ever does - won't deliver anything for at least 5-10 years. So those who were looking forward to something for their Kat shares out of Imweru, will now see practically nothing. Of course LC couldn't do anything but shove Haneti into something else. Just as he inherited Rukwa/Mbeya ctp, with no clue how to make the best of it. Not many here will remember the scandal whereby LC brought on board the Mzuri portfolio, only to see the shares decimated subsequently because the Mzuri shareholders sold out (they obviously knew their LC) bringing about the March 2013 1:15 share consolidation. This and all his subsequent failures should have prompted Schaffalitsky to replace him years ago.
Re Kat. They were well and truly warned too against another bogus 'target' by Doh!fort. But my calcs were deleted here. Still on the other place though Wonder if anyone wants to sue Doh!fort (aka Sanderson) ? They'll have plenty of evidence.
john ! that's not quite what I meantt, which is that to expect a rising gold price to produce more profit is misplaced ! silver of course has always been pushed for its industrial uses but despite all the hype re electric cars which has helped copper, has been seriously weak over the last few years.
It takes time to arrange fund raisings - even in a panic, and no doubt he was waiting for Sepco to bail him out. And why do you suppose LC wheeled in First Equity and paid for a puff 'research' note exactly the same as Doh!fort's if not to get them to tap their own clients ? Now that the price has tanked, he will have to come to shareholders to consolidate the shares, and after the MCPP news it'll be hard to convince any investor, new or old. The June balance sheet and P&L account shows clearly he will be running out of cash around now.
Not many seem to realise that far from being a goldie with silver credits, Kiziltepe (not Salinbas) is more accurately described as a silver miner with gold credits. 92% by volume (oz) of the ore is silver, and only 8% is gold. It means the value of a tonne of ore is derived about 63% from gold and 37% from silver. Makes a difference to the 'cash cost' figure for gold which might be correct on one level, but is misleading to compare with other pure goldies as if to show Kiziltepe is fantastically more efficient. Another result is that benefit of a higher gold price will be limited unless silver follows suit. Note that the silver/gold price ratio now is about 1/85, whereas calcs to convert silver to gold equivalent always used to assume around 1/50. AAU aught to be more upfront about the reality, but is happy to let the inexperienced think in terms of gold, rather than silver. Makes Kiziltepe look better !
Why does anyone think there is anything at MCPP to be sold ?There's nothing TO be sold. All the feasibilities and economics are for that particular site and that particular coal. MCPP only ever was to have a value if its built. It is dead. It has ceased to be. It is no more. It has expired and not even gone to its maker because it never was in the first place. Ii's bleedin' demised ! In short. Its a stiff ! - and shareholders (not to mention Sepco - will they ever speak to LC again ?) ) have been stuffed.
Sorry to spoil the party but I think hopes of big buy-ins whether from funds or miners is misplaced - at least for a long time from now, before anyone knows how Salinbas turns out. Don't forget Eldorado sold off Salinbas cheaply because its then economics didn't warrant the development costs. It will take a long time and much drilling to improve that picture, and it is those costs that are eating into the cash generation that the bulls hope will start flowing in as Kiziltepe's loans are paid off. The picture is reflected in PG's analysis (which I would rate much higher than any others in the past) showing only a 14% increase in AAU's forecast 'asset value' in the three years to 2021 (because Kiziltepe cash is going to Salinbas drilling) and even that £24.9m is 1/3rd due to PG's thumb-in-air estimate for Salinbas. In othe words, I think the recent price surge won't go much furher, especially because PG's 'target' is based on a 10% NPV, which in my 15 years experience, always predicts a share price at least double that actually achieved. AAU of course is 'on a roll' currently so on can never tell when it wil peak. Nevertheless, institutions never rush to get onto a bandwagon being propelled by private investors. Don't forget also that MARL's Hot Maden didn't get reflected in its share price until a bid took it out at below what the bulls had hoped for.
john - I seem to remember Hanno talked $30-$40m. I have it somewhere. He also talked of raising from shareholders to increase NCCLs project share. Depends on the maths and share price whether enhancing or not. One definite point is that there won't be much of a a so-called 'free share'. Look at my past posts.
One characteristic of poker Sleepy D is that the player tries to win cash from his opponent by preventing him knowing his hand. I can't think of a more apt description for the way LC over the last five years has withheld vita information from investors while taking their money. How long have you been observing him ?
Oracle Coal has taken a much longer time than Kibo. But has kept shareholders better informed, with at least some idea of its funding needs. So its broker's parent has backed it strongly. Looks like the all important $1.6bn financial close might come this year. And Kibo ?