Member Info for mattwales

when it hit the low of 0.09 last year they had 1.05bn shares. With 2.5bn shares and with every fall an increased provision to the driller come September this could hit 0.05 or even lower by the time the driller's shares are issued to them. Last week they got 66m shares based on today's mid price that'd be around 106m extra shares, at 0.05 that becomes around 300m extra shares. It's fallen 40% in a week due to the bad results and driller overhang and the unwillingness of the MMs to take stock so they drift it lower and lower and its fallen despite there being results in a week or 2, which the market already has shrugged off as being as bad as the rest. I cant imagine the carnage when final results are out and they have no more news to give.

its not his style he was buying in up to 5m chunks. Could have only been someone closing a short if they had borrowed the stock from the market to cover their equity short or they sold on a t20 basis bought back on a t3. However, it don't make sense a professional like that would buy well over the odds when they could have bought back in smaller drabs at just over 0.17. Same with someone buying in you wouldn't need to rush a stake like that to pick the stock up. Maybe Maldini and co bought it to try and spark interest and rally the price up while they offloaded the estimated 170m drilling shares.....as therev says lots of smoke and mirrors all along.

25 million sell at 0.145, I'm guessing that's part of the drillers recent issuance unless they forward selling, with the SP sliding they onto a winner with at least 50% extra shares over their last allocation.

couple of large sells going through NEX followed by a flurry of buys in the past hour. I guess people hoping for a bounce but very risky play knowing 100m shares will be issued to the driller who will be selling them. http://www.nexexchange.com/member?securityid=1812648

I'm not surprised after all the hype results were terrible with I'm guessing terrible results still to come. at just over £4m market cap we still a long way off the market cap low of just over £1m. Lots more dilution to come here, approx. 100m drilling shares, approx. 700m outstanding warrants (but most are underwater) and at least another 200m shares to keep the lights on till they drill next year where we get more shares, for me it can only get worse here..

I feel it will hit the low and possible downside on that too because the driller will offload the shares he due end of sept. added to this they have to get money to drill the other zones they have currently failed on, the mms will just walk it down.

I guess hope results will boost the price but driller has around 100 million shares to forward sell by end of Sept and that's if the price don't continue to slide which I feel it will.

I know royoboy joked during the drill who would sell out with sells of some pretty large trades going through and he said maybe its the driller......maybe it was the whole lot of them forward selling their positions on the placings and the drills.

maybe it was a pump and dump for maldini, the placees and the driller, after all it was them with their gold is everywhere, love the drill cores, gold is at surface blah. Its a fact that all these people must have forward sold their new shares in the placings and the newly issuing shares for drilling because at no point have their been any updates on holding positions and as they forward sold it brought the price down, its my take on it (as well as the poor results).

trouble is the iron ore is only valuable to one group and that's to Sula's next door neighbours, a lack of a deal means that Shandong will keep to their plan of a $700m ore processing plant to tie in for when they run out of DSO and they have around 40 years of that ore to process. Management here should have tried to do a deal for the DSO and thrown in the ore when the price was at $90 but by now i'm pretty sure it's too late but if Sula is still around in 40 years they may sell it then. We were lied to about Coltan and I fear we have those same lies with the Gold under a different manager, we were told gold was at surface, drill cores look great, gold is everywhere and when results are issued only 1 or 2 holes confirm that gold's at surface the rest is very deep and veins are thin

I'm increasingly in your camp though kimura iron ore they cant sell and gold they may not even be able to mine cos its not commercial.

nope, they do have something on Sanama at least but it may come under expectations of even 800k ounces, time will tell but results so far have been poor.

thanks rev, I just read MY21s interpretation and he also mentions the lack of a coherent strategy but I feel that's partly because not finding gold in the other areas backed them into a corner that they had to concentrate on Sanama. The worry here is what do they do now, obviously get a JORC for Sanama but even then its likely to be at lower end of expectations, if its anything below SP will tank further. Another worry is obviously they have to drill the whole of the asset and that could be another couple of million dollars with quite a massive dilution in order to find zilch at the end of the process and by then there could be 4bn+ shares issued.

in fact u can prove that they have been forward selling their position as for every issuance of shares they have had for drilling they have issued no new holding RNS....forward sell them at the right time and it has a detrimental impact on the SP and they get issued more shares, which again I suspect has been happening.

its also in their interests to forward sell their position which I suspect looking at the trading history they have been doing with the 5m/7.5m etc trades.

Equity Drilling will get whatever the mid market price dictates at the time end of sept, if same price as now then approx. 87m....if 0.09 then approx 165m extra shares

The additional point I was trying to make was markets don't like overhang situations and MMs tend to exploit these situations by knocking down shares. With an overhang of shares not known till end of September just feel it'll be knocked lower possibly to as low as 0.09 and then Equity Drilling get issued with a truckload more shares than they would have at 0.225.

to be fair its a badly worded RNS. I'm not trying to get people's backs up here when I mention uncommercial just based on everything so far it just looks that way......of course I could be completely wrong and they come up trumps on Sanama. They could also find gold on their other licence areas. However to even speculate there they're placing a lot of shares at a low market price and if they fail issuing more drill shares at an even lower price. Don't get me wrong I hope everything works out here, it's just even if it does there are painful dilutions ahead.

they were paid half in shares yesterday half end of Sept please re-read the equity issuance RNS.

based on results so far its not at surface save for 1 or 2 drillholes and the seams of every find so far have been very thin and at the lower end of anyone's expectations. I mentioned death financing Darwin style as it is a fact that another set of results as bad as yesterday and this will tank further so Equity drilling will get more shares at a lower price end of September. If the price stays the same as now they already receive another 30% more than was just issued to them and why I stated death financing because if they'd got the cash for the whole drill they'd have issued a lot less shares.