The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
Spade - not bleak at all. I think you missed the point, which was for any future funds raise, of which there will almost certainly be (that's not a bad thing btw), my preference is for that to be weighted towards debt rather than equity. That was all.
Jiffy - share buy-backs are what lots of companies do when they have excess cash - they buy shares on the market (i.e., take them off the market) and that means fewer shares out there, higher value for remaining shareholders. It's a good thing.
Speedy - I hope at some point in the future we are able to buy back shares with excess cashflow (or use it to keep building out asset base), but you'd also like to think the cost of buying back shares would be much greater than the cost of servicing debt - certainly the case if this goes where we think it can. As you say, I'm sure SD and the team are all over the financing options - and equity likely a part of that as lenders will likely insist, but as a retail share holder I'd like to see the near term (1-3 year) risk put onto lenders, if things go as we hope we'll rue the interest payments but be more than happy with the impact of long term, undiluted, cashflow on share price.
Raising through equity effectively dilutes cashflow in perpetuity, raising through debt does so until debt is repaid. I have a strong preference for any raise to be debt heavy - not least as I believe cashflows will cover the interest easily and allow the debt to be repaid - or as we see in most companies, refinanced - typically, once a company is up and running with steady cashflow, only the cost of servicing the debt is reflected in share price, the assumption being that any loan can just be refinanced as and when needed.
Question - when GGP puts out RNS about their MRE updated, will Newmont also have to put out an RNS given they are the majority owners of the asset? I would think it would just about hit a materiality threshold for them, despite their enormous size, and even if it's GGP's MRE it's about their asset too?
I think 'algorithm' is a bit too grand a term for it - they just look at the best bid & offer shown at time of trade. If the traded price is exactly between the 2 it is shown as 'unknown', if above the midway point shown as a buy, and if below shown as a sell. Whether they are 'buys' or 'sells' isn't factually known, but trades above the mid point tend to indicated buying interest and below selling interest....BUT the best bid and offer price are shown by market makers, and whether they choose to accurately reflect where they perceive supply or demand to be is another question entirely!
Telfer classed into this category, which suggests it stays in?
"Full Potential improvements:
– Increases productivity and reduces costs and
through mining and processing improvements
– Rapid replication of leading processes and
advanced technology"
Gordon Brown announced he was going sell gold off in advance, triggering the gold price collapse he sold into and costing the taxpayer millions. Whether you think selling it made any sense at all is one thing, the way hi did it cost all of us a bundle!
I think our share price has pretty much followed overall AIM market development over past 12 months - so not good, but not reflective of a company level disaster, rather a tough spot for small negative ebitba companies. Where we differ from other aim companies is that we don't really rely on demand for a 'product' - it's more about ensuring we get to the point we can generate revenue to cover costs inc. debt interest etc. I think we will, but as everyone says it's not in our hands. I think our mgmt is positioning us appropriately and hopefully not too many storms ahead to get through - I think we will get there!
Bamps - re: Rio Tinto having no interest - completely disagree with you and don't think your view is consistent with their messaging on growth strategy. Whether it's 'wishful thinking' or not is a different matter, depends on valuations etc. etc. But my guess is, when the cards fall, there will be a major player operating telfer and with multiple interests in mines in the region.
Isn't this the local administrative entity that sits under the current Greatland main (UK listed) entity? There as a local aus entity needed to pay the rent, tax (one day!), salaries etc. But under full control of main entity. I would have thought asx listing will require establishment of a new holding company.
IOT fyi https://www.cnn.com/2023/05/05/economy/australia-china-exports-record-intl-hnk/index.html