Member Info for Metalhead25

I think the key points are (a) they’ve hit chalcopyrite as well as magnetite, (b) since chalcopyrite and magnetite are often found together the presence of magnetite is a positive for the future discovery of more chalcopyrite, especially deeper, and (c) we’ve drilled into the Proterozoic twice and hit interesting things both times, which from a proof of concept perspective is great

Disagree, he has done a decent job at Corcel thus far. We were told Q4 for close on the peakers and latest tweets still say that. Progress on the nickel projects is mostly out of Scott’s hands, but that notwithstanding we have had some decent progress

A couple of recent comments from Ben on Twitter about the scale of the upside here:

“If we get this right & Mother Nature is kind to us, the upside is staggering in the #KSZ”

And there was another one in a conversation under his remuneration thread over the weekend which I now can’t find.

This is why I’m heavily invested here, and sorely tempted to keep buying more. For every £10,000 I have here now, I’m hoping to have at least £500,000 in a couple of years. Remember, we have a district-sized area under our control at the KSZ. If we start making discoveries, this will go nuts

Yes and when you add that to the diamonds and the HMS it becomes apparent that all being well we are likely on a forward pe for 2022 of less than 1.

Todays’s trades overwhelmingly on the buy side but not moving the price much because there is seemingly lots of stock available at around 0.81. Got to be the churn. Once we’re through it, off we go!

Completely agree that in two years’ time those sitting on a 1.2 average are highly unlikely to be upset.

However, one way of looking at it is that if the SP were to be 20p in two years’ time, somebody with £10k at 1.2p will have £166k, whereas somebody who averages down now to £20k at 1p will have £400k…

Of course, it might not go that way. But actually this current opportunity to get averages down could be quite valuable

Quite hard to see why it should go anything like so low. The more it goes below the placing price the less motivation there is to sell placing shares

Well it sucks if you were planning on selling in the last two weeks or the next few weeks. Otherwise I’m not sure it matters all that much!

Hi all

Since lots of people are expressing bemusement at the share price and/or at people selling, I thought I would explain a bit about how placings work (according to my understanding):

1. The company (here UFO) instructs a broker (here WH Ireland) to run a placing.
2. The broker (WH Ireland) has a number of existing clients on their books to whom they offer placings on which they are instructed. These clients may be institutions but are most common professional or semi-professional private investors.
3. So the people who were offered the UFO placing will have been WH Ireland clients. Not Bill’s mates. And crucially, not people who are PARTICULARLY interested in UFO. What they are is people who are interested in placings.
4. Why are these people interested in placings? Because they are done at a discount to market price and they hope that they can flip their discount shares back into the market at a profit on a short timescale. Most of the people who took up the placing will not have been looking to be long term holders of UFO; indeed they will have known hardly anything about UFO.
5. As a result of the above, many of the people who took up the placing will sell either prior to their shares being issued (by shorting) or soon afterwards. This is particularly likely when the SP is at or above the placing price. When the SP is below the placing price the placees are perhaps less likely to sell. But even then, they may accept that the discount-placing-flip strategy hasn’t worked this time, take a small loss and move on.
6. The conclusion is that in the weeks following a placing, the share price is invariably dictated by the short term flipping strategy of the placees, which has NOTHING TO DO WITH THE MERITS OF THE COMPANY. Even if this was Tesla in 2018, these people would be selling.
7. After a (variable) period of time, the above will work through and the share price will revert to being dictated by whether buyers and holders like the investment merits or not, so in the case of UFO we would think the share price should rise.
8. But in this interim period, the dynamics of the placing will dominate, at least unless we get some really incredible news.
9. The key for us LTHs in these times is patience. There is no reason in my view to think that what the share price is doing now bears any relation to what it may be doing in a number of weeks.

Hope that helps

Serabi Gold have their own assay facility with an Mcap not much bigger than UFO. Seems a good idea to me, although obviously depends how much assaying you have to do it. Also, it may be cheaper to set up in Brazil

Reading between the lines, I think Lloyd has said “it will help me to sell this project to lenders and offtakers if we do further drilling of x type” and so that’s what we’re doing. This is exactly what Lloyd is here for and this kind of focus is exactly what will get us to production ASAP

The current price is ridiculous, but you have to bear in mind small cap share prices often disconnect from any valuation of the company during periods of major capital flux, including after a placing. At some point, the disconnect closes and we move back to a price based on valuation and/or sentiment. In my view, the periods of valuation disconnect represent the best buying opportunities on AIM. We know the SP is unrealistically low at the moment, we know why, we know it should go back up once the placing has worked its way through

Some MM games this afternoon. In the space of an hour and a half we had a 5m sell and 6m in big buys (all the buys wrongly marked as sells). The MMs’ response to a net 1m buy? Price down! They want your shares on the cheap

Yes and it’s not like EH/Munni Munni is a shot in the dark either. We already know we have visible minersalisation, plus very encouraging XRF

I personally think Align’s analysis attributes too much value to FGS and not enough to the nickel projects. And I have limited time for Align because their Twitter account is run by a conspiracy theorist and I find it hard to get past that. But either way, I agree the company is very undervalued!

Nice Max. Also, please see the below which I have pinched from another board and which illustrates what can happen when you drill an ultramafic complex in Aus (like EH/Munni Munni) and get great results:

“ I've mentioned Chalice Mining (ASX:CHN) before... They staked a claim in early 2018, around a strip of ultramafic intrusion at the western edge of the Yilgarn Craton in W. Australia. They hoped it could be prospective for NI-Cu-PGE ... First drill was just 18 months ago, and they had a lucky hit.

The details are on Proactive:
https://www.proactiveinvestors.com.au/companies/news/965634/chalice-mining-soars-to-new-heights-thanks-to-record-breaking-maiden-mineral-resource-at-gonneville-965634.html

"330 million tonnes of ore, grading 0.94 g/t palladium, platinum and gold (3E), 0.16% nickel, 0.10% copper and 0.016% cobalt (roughly 0.58% nickel equivalent or around 1.6 g/t palladium equivalent).
That’s equal to 10 million ounces of 3E, 530,000 tonnes of nickel, 330,000 tonnes of copper and 53,000 tonnes of cobalt (roughly 1.9 million tonnes nickel equivalent or around 17 million ounces of palladium equivalent)."

Market cap was next to nothing 2 years ago - is now AU$ 3.4 Bn, or £1.9 Bn. Nice! Here's hoping....”

This is why I think Kav is such an amazing value proposition. In 6 months’ time it will either look like the KSZ is going the way of Chalice or it won’t. If it does, the chance of an Mcap in the billions will have started to be priced in and the share price will be multiples of what it is now. If it doesn’t, the KCB and Ditau should still support a similar Mcap to what we’re on now (or higher if we have had quick exploration success there). In my view, Kav is currently priced on the downside case only

It is perfectly obvious to anyone with half an eye on this (which will include the MMS) that as long as the peaker financial close RNS comes at some point we must catapult far north of here. So I don’t think it’s at all surprising that the MMs want shares. Investing is all about having the nerve to buy/hold low (and of course having the self-control to hold/sell high)

Actually, looking at the minuscule size of the trades which appear to have taken the SP down, I’m inclined to put it down to MM manipulation / tree shake / attempt to trigger stops before good news

Good news in today’s RNS. In particular:

1. We seem to be making good progress on the peakers.
2. Our exclusivity rights over Avonmouth have been extended.
3. The extension of the Burwell grid connection significantly strengthens our had in the negotiation with Pigeon.

2 and 3 above significant mitigate or eliminate the two main short term risks which Corcel was facing.

Not sure why the SP drop today. Perhaps there was a leak and somebody expected today’s RNS to be negatively perceived. But if so, I really can’t see why. Nearly there on the peakers plus two good bits of risk reduction - all good for me