focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
The different wording is key as in the previous update it said
“Cash at bank as at 31 December 2019 was US$5.4 million.”
Then the most recent one
“ Cash available for use as at 31 March 2020 was US$5.2 million.”
Wording is always key in an RNS so the money hasn’t vanished it just can’t be used.
Wondering if there is a legal argument to be made here as we had a credible refinance agreement offered by the banks originally to raise funds but the majors rejected this as shareholders. So can they then default the company later by buying the debt like that and not offering repayment terms.
That seems wrong on a legal level as they could it could be argued of pushed the company into this position
DB and the board cannot buy when they’re in debt negotiations slight hint of insider knowledge dont you think.... so there’s your answer to that they physically CAN’T
You also say a big seller but actually the sold volumes are small it’s just very little of this stock changes hands so it looks big. The total sold probably is around 8mil not massive. In the context of the panicked markets thats tiny.
Lastly the refinance is about getting the debt levels down to sustainable levels not removing all debt.
Also correct me if I’m wrong but dont the two main shareholders have conflicting views i.e one tried to buy the mine but the other rejected it? if so why would they now work together
Suhail your statement is actually very wrong and misleading. Re-read the Rns;
“The debt is expected to “include” a debt:equity swap”
Key word here being include the definition of include?,
1) comprise or contain as part of a whole
So refinance will not be all debt for equity as your post suggests so you’re quite clearly wrong on that.
Any debt for equity will be done at a reasonable price and will not dilute existing shares into oblivion.
That’s it, people don’t like uncertainty and theres the unknown of finance terms.
Good thing is while we wait Q1 production gold sales should be at least around the $1581 mark on average. Add to that slightly more gold produced too and a slight reduction in costs we’re trucking along.
Everything considered this remains beyond cheap and should be, at a minimum around the 1.7p mark even before refinance terms
The decline is a two fold one. I’ll explain.
Market uncertainty given coronavirus... it affects gold producers too because if our workers are hot or refineries stop then we stop.
Secondly its traders, profit makers and people not wanting to await the unknown of a D4E swap.
It really is as simple as that look at all the other gold producers you’ll see the same as well as the ftse and dow