The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Dear oh dear ! No one will back Kibo with this man at the helm. There MIGHT be value in SOME of his remaining projects. But they'll take money and time to earn any income and the priority is to keep shareholders (and potential new investors) happy that there is a plan to raise cash as necessary and ensure a share price that remains healthy. LC hasn't a clue how to do it (and neither does Schaffalitsky who has presided over this disaster ever since listing and done nothing, absolutely nothing. A chairman is supposed to be the link between company and outside shareholders. ) I really think the only answer is to dismiss the lot, and start again with someone (if he can be found) who knows how to plan ahead.But he will have to be convinced there is value at the end of the tunnel. Its quite possible LC's 'business plan' has been unworkable from the beginning.
What happened to all those who listed on here their enormous shareholdings ? Between them they could have had an influence - to bring about the only thing will rescue Kibo in my opinion - a complete clear-out of the whole board and invitation to someone else to run it - except that running an effective SHAG requires a spokesman who knows the issues to his fingertips. I don't think there's anyone here who fits that bill.
Podcast is nonsense. How can LC build MCPP without cast-iron offtake for the whole project, without which its economics won't make sense and he won't get investors to fund it. Or is he going to build a smaller plant ? Same question applies, and a new BFS will be needed. Looks like it was Tanz refusal to pay a capacity charge might have sunk it.
'Asset still there' ? What asset. ? Nothing there until built - see above.
'Heavy lifting' ? Moz & Bots haven't even got feasibility stiudies. How can he negotiate PPA's without the vital cost and profit information they give ? He can't rely on their being the same as MCPP. If anything, the coal will be different, and mine economics and transport.
'Explain strategy' ? He thinks sufficient to say 'we're getting together series of power plants' ! - Neglects to point out involves spending unknown shareholders' funds, and in return dependent of major funding partners agreeing an unknown dividend at an unknown time ahead, which is only income Kibo will get. (share of earnings won't impress investors. They want Kibo to earn hard cash so as to get an ongoing dividend themselves)
Goes to show how woefully he doesn't understand what 'strategy' should be about. No wonder he's stumbled from one idea to another. Med obviously wasn't thought about until he realised above cash problem, so is far too late and probably too small. And how can he say it'll be on stream (a tiny amount) by Q4 when govt moratorium on reserve power is still in place ? One despairs.
Interested in your definition of a GENUINE holder ? Are you in to make money on your investment ? Are you in to keep shovelling money towards LC ? Are you in like a Millwall supporter to keep yelling Kibo on regardless whether it deserves it ? Or do you invest philanthropically to keep LC and his mates in cigars ? And will you ever GENUINELY sell ? GENUINE questions !
Sonic. For 10p read 5p. For a 'few years' time' read 5 years plus. For 5p add 'depending whether LC keeps share issues under control' - for the latter read - 'he's already shown he won't.' For the latter add ' because he has no idea how to ensure a rising share price instead of a sideways expansion of shares in issue' - to the latter add 'so as to build a $750m company that will justify LC a much higher salary' (and under his breath 'shareholders can go and take a running jump')
You first heard it here !
Its hard to imagine that in some 8 months of 'PPA negotiations', LC's team didn't pick up some hint of Tanz's thinking, or of their sticking points, enough to flash red lights, and to warn shareholders. (But LC of course doesn't go in for the latter. Maybe the Nomad could comment, except that he doesn't much go in for ensuring transparency either)
Once LC comes clean !
- about Moz's and Bot's economics, the spending still required. Proper figures for Med, reassurance about cash needed to keep the lights on and for how long I could go on ! Short answer, not for a long time yet.I expect shares to go a lot lower, in between clappy spikes.
Of course LC is going to come out with a 'reassuring' RNS. How many times has he done it before ? How desperate is Kibo now for cash ? What happened the last (many) times he was in the same situation ? How close are the shares to emergency consolidation ? How many years before any income from Moz and Bots even if they happen ? How much share had Kibo earned in those projects so far ? How little will be any income from Med without spending large upfront on them ? Only possible answers are very little, very large, or a very long time. Nothing in between
Botswana is NOT at an advanced stage. It only has a PFS for the mine, and a scoping study for the power plant. MCPP had to spend $11m to produce a BFS, which took more than two years. Mabesewka has only spent $6m in mine development for which Kibo paid $11m. Just one small example of economies with the truth. A major one was LC;s 'endorsement' of Doh!fort's 30p share price at a St Bride's event. There are many, many others.
Maybe Tanz has decided (under pressure from World Bank's displeasure re coal) not to go for coal at all - and is clearing the way for gas . That wouldn't contradicts the WB's funding for the transmission line.Gas is much easier and quicker to build. In which case write off some $18m of Kibo's assets.
Kibo has no debt Mr Sleepy because no one will lend it money. No debt means co has to keep coming to shareholders and diluting their interests. Just one basic bit of share analysis Sir, to prompt you to learn a bit more.
What pathetic logic Mr Wag. What's vengeful about spotting a dud and pointing it out to clods like you ? You're From Down Under maybe ? - thinks he knows all about mining (ex) mining) shares.. Knows no maths, nothing about company structures and accounts, nothing about commercial contracts, no ability to spot all the empty spaces in LC's announcements, and contradictions in his spouted figures showing HE knows nothing about project economics, let alone how to plan company strategy so as to ensure a rising share price ? Stick by your logic Mr Wag and we'll soon be spared your drivel.