Sapan Ghai, CCO at Sovereign Metals, discusses their superior graphite test results. Watch the video here.
Salene Chrome was commissioning, with production due to commence in Q3 FY2022 when a Government Export ban on Chrome concentrates resulted in the the Plant being placed on "Care & Maintenance" pending a review of the ban and the Business Case.
With Chrome prices at their highest since this Export ban was introduced, I assume Tharisa are keen to address this ban with the Zimbabwe Government, because it must have hit our potential revenues and Share price massively over this last couple of years.
I can't believe this has not been discussed more on this Board. Why was the ban on exports introduced? How long is it expected to last? What is the future for Salene Chrome?
It's about time Tharisa gave a comprehensive update on Salene Chrome.
From AGM Presentation 14th Dec. the Itumbula West Well intersects the 1st Fault at 250m and the 2nd Fault at 520m. Assuming their depths are correct, they will hit Basement at 955m and TD will be 1015m.
However, from the 8th Jan RNS and most recent interviews, it appears the scope of this well may have been reduced to target and evaluate the 2 Fault systems and the conventional Karoo play with no mention of penetrating testing and evaluating the Basement.
I assume this will be down to timescales and funding, but could mean the elusive, potential Basement source reservoir remains untested.
Shares should have been suspended before announcing the need for more funding, until the details of the funding had been sorted. Existing loyal Shareholders were totally disregarded with many diluted out of existence. Trust has been destroyed.
Based on June sale of 61 carat white Type II diamond which achieved $31,400 per carat, this latest find ought to realise around $14m. I'm no expert but from the Website pictures it looks of similar quality but is considerably larger, so may achieve even more. That's roughly 1/4 of our Market Cap for a single stone!!
In my experience for "sophisticated", read "manipulating".
I'm not happy that these shares are to be issued at a discount to the current price just prior to spudding when the Share value was just gaining momentum. These "sophisticated" investors will probably end up selling into profit to keep the share price artificially low for various nefarious reasons in the near future. I'd like to know what their definition of a "sophisticated investor" is.
I apologise if this comes across as cynical, but I'm still feeling traumatised by the SXX debacle.
If they were interested and having discussions 9 months ago they must have been expecting to pay over 20p/share.
Unless the discussions went something like. " Make a hash of the Stage 2 Funding, annihilate the share price and we'll see you right in our takeover.
Before dropping the 6th August RNS bombshell announcing suspension of the proposed offer for $500m Senior Secured Notes, trading in SXX Shares should have been suspended. Failure to do so, decimated the Share price / Market Cap of the Company, severely compromised our options, weakened our negotiating strength going forward and is the reason why Anglo American can confidently offer 5.5p/share instead of the 20p or more they otherwise may have thought necessary. Management would have been all too aware that publishing the RNS would destroy Shareholder value which leaves me to wonder what the reasons were for proceeding as they did.
In the 8th Jan RNS Statement regarding a possible offer, Management proudly list the premium the AA proposal represents to various prices over the last few months. What they can't quite bring themselves to do is to include that it also represents only about 1/3rd of the share price just prior to the RNS publication on 6th August last year.
To rub salt into the wound, they put the frighteners on by informing us that the final offer may not materialise, could be lower and is likely to be recommended for acceptance if eventually made formal.