Get real2 Nov 2015 08:12
What was Prickett's Private Equity Group supposed to do? See $40 million largely invested by themselves over past decade become seriously at risk? Or take advantage of having some conveniently manufactured opportunity to pick up ownership of 20% of the Company for a mere few hundred thousand £s with this latest Placement? They trousered more shares with this Subscription than TOTAL shares that were in issue for the WHOLE company in 2006/07!!!!!!!
I appreciate commodity prices are a moving feast - but Nickel value has been struggling for some considerable time now, showing little sign of recovery.
The current cash price is circa $10,100 per tonne. Yet 3 years ago LND stated that the overhead expense for them was $12,000 per tonne to include operation, refining, transportation & smelting costs. Who would want to find the CAPEX to make an acquisition offer for LND and then the additional funding to construct a mine? Exploration expenditure to date is soon to be $42 million with another $50 million needed for a mine construction. Even if the share price miraculously reached 10p that would value the Company at $100 million to any potential suitor.
So, well over $150 million minimum investment required - a lot of money/investment to pay for any potential profit from producing a pathetic 100k tonnes, is it not? Where's the profit + attraction for a prospective purchaser? From what I can see - the IRR is non-existent.
WOW 96% of share value lost in 10 years of trading. Watch this space.