Member Info for Mumbles2021

We are talking about company valuations, MCAPs, not the share price, te share price is irrelevant. The volume of shares on issue, and the prevailing price provides a price discovery mechanism for the company total worth as per market perception. the buyer and offered to buy 25% of a company worth 400 million USD by the price discovery process just described. consequently the company (that exiting shareholders) walk away with 75% of their previous ownership plus 100 million in cash, so they have lost nothing..... The 100 million in cashes worth far more to the existing shareholders than to 100 million in cash received. just the 30 million CAPX for the heavies recovery circuit ad $1/2 a billion to the NPV or approximately £1 to the share price even with the additional shares issued. so rather than being 20p down, this doubles the potential valuation form where we are now

To be even more patronising if that cake i am selling for 4 quid, has a whole sale cost of a quid, i can now go and buy another cake, to sell for 4 quid, so i now have 7 slices for sale…. Rather than the original 4!!!!!!

To make this simple, and yes I am being condescending. If I had a cake for sale for 4 quid , and was willing to sell it in 4 slices for a quid each. Some one come up and says I’ll have one slice . He gives you a quid an you give him a slice. So you now have 3 slices (not 4 any more) and he has 1. What you are suggesting is that we end up with 5 slices, how does that work? The fact is, the company had a valuation of 400 million and they bought a quarter of it for 100 million. It isn’t difficult

Tbow, you missed the point, if I am buying 25% of a company worth 400 million,, i exchange 100 million from 25% of the companies share holding. And assuming the market has priced in the new share issuance, the current price suggests the MCcAP has increased by 100 million

The real question would be, if you were buying rather than selling would you position be the same....... i very much doubt it

The company had a valuation of 400 million USD, representing 300million shares at $1.33 (£1). the strategic agreed to pay 100 million USD for 25% of the company at this price.So the valuation was based on 300 million shares a $1.33, or about a pound., which was and is the current price. if they had paid !.33 (or a pound) for for 100 million shares, then they would have paid 133 million USD for 25% of the company, not 100 million. valuing the company at $530 million or £1.32 in a £1 market....that was pricing the company at $400 million..... .. im glad you aren't managing my money

. to this, the shares on issue need to be increased by a 1/3 so that a volume of shares equal to 25% are available to exchange for the funds, so t

You’re mixing up two different prices.

The market cap was ~£400m at 96p.

The strategic stake was 25% for $100m.

To give them 25% post-money, you issue the number of new shares that makes their $100m equal to a quarter of the total. When you run that through GBP/USD, the effective issue price is ~80p.

That’s not a discount — it’s just the maths required to deliver a 25% holding at a fixed cash amount.

No single holder owns more than 3% with the exception of PA, M&G and FSDEA. If selection capital is showing 3.1%. And no LR1 is necessary, State street nominees is M&Gs holding company, their divestment is public knowledge I seem to remember that PREs own company share awards were held in Select capital, consequently no single holder owns more than 3% and no disclosure is necessary.

Tbow, the issue here isn’t the raise — it’s expectations. Development-stage companies always issue equity to unlock far greater value, and strategic capital only comes in at market when the project is strong enough to justify it. That’s exactly what has happened here. If someone believes that good projects shouldn’t raise capital, or that dilution is automatically bad regardless of the value created, then this sector probably isn’t the right place to be. Rare earth projects require staged funding, strategic partners and balance-sheet strength; they don’t get built on theory or preference. This investment was done at the market price and is designed to generate multiples of the value issued. That is how project finance works — whether we like it or not.

Tbow, I think you need to get a dose of reality….

Tbow, you probably noticed a lot of approximations. I did it on my head to illustrate a process not to give you an exact number

Tbow112, the strategic paid exactly the current share price, diluted from 300 million to 400 million shares in issue. It is straight math. If a company’s share price on the open market shows an MCAP of 400 million USD, and that strategic agrees to buy 25% of the current market cap, at a price of $100 million, which the market judges to be price according the current valuation, to do this the company needs to issue 100 million share, to make 400 million sjhares and for then to own 25%, then the price after the price to be paid is the agreed price / new shares issued. Which is 100 x 400/4 or 25%. This is 80p or approximately a dollar. Despite this the SP remained reasonably steady, consequently the MCAP has increased by an additional 100 million (assuming the market has priced in the extra shares issued .. it suggests that the only person who has an issue with it is you

Not entirely true treasure island, the 95 million shares for 100 million USD could be different a different Share price in sterling, depending on the FX price at the time the funds are confirmed, but they were both at the at the same price of 80p today..

Hi Stock genius, the RNS categorically says 100 million USD for 95 million shares. It’s not an assumption. The 310 million is with immediate effect when the shares it the register. I’m sure another RNS will be issued when the 100 million crystalises. The proceeds are to be used for PLC. The structure of the Angolan project needs to be understood, there is a holding company above Ozango in Angola called Sable. This holds the license for Longonjo, Coola and Sulima west. Sable is 100% owned by PLC. As has been said stage one has been fully funded, phase 2, still is to be financially structured, so at the moment we don’t know how the 11 million for the drilling and 30 million for the additional recovery circuit will be folded in to the overall 40,000 Mts capacity MREC, compared to the 20,000 Mts capacity already under construction

Tbow112, im all for a robust discussion. would you like to put forward arguments to back up your definitive statement. This strategic, has taken 25% of the company, Ostensibly at a valuation of $400 million $400 million USD, which is what the MCAP is at the moment,, corresponding to an SP of 96p, also where we are now. where is the dilution... yes more share are being issued. So how do you think they are to raise the required capital to fund the work program already advised and realise the value that i have illustrated. i suggest it is you who needs to get his text books out, dont you?

Apologies 10 million should read 100 million

The question is whether the 10 million raised adds more than 100 million to the starting MCAP...... and it adds multiples.

Its about value creation... against initial cost. and this is about the best you are going to get. the strategic knew what it would unlock, and priced accordingly, equally Pensana also knew what it would unlock, and allowed a minimal discount compared to the additional NPV. created.... it si willing buyer / willing seller.....

Sorry i just read your reply agin..... please accept my apologies. im used to responding to that idiot Smart Punter

Stock genius.... i dont need to...