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.
SP decline post updated resource estimate is just baffling. Think Bernie needs to give us some further communication to stem the tide. The drop is completely unjustified given project post tax NPV is now c.11x our market cap.
Could you please explain the mechanics behind "They could all end up taking each other out in a damage limitation move".
Not quite sure I understand how this would work JD? The shares have to be returned to whereever they were originally borrowed from, so trading intra shorters wouldn't solve this?
A short position does not accumulate any shares. The premise is that shares are borrowed and sold onwards in the hope that can repurchase at a lower price and then hand back to whoever they were borrowed from.
You could argue that Havieron also existed all those years ago when it was drilled but not to a sufficient depth and therefore not discovered. Essentially you need the right team and structure in place in order to be able to extract value.
Also using all capital letters is just childish Paul and gives you no credibility.
@Laverda, I am on the fence regarding a large mining company tbh. On one hand, I agree that it reduces our likely overall return as some of the economics will be passed to the mining company, however on the other hand, it reduces our risk significantly whilst providing a return in a shorter timeframe. It is a trade off but I am leaning towards bringing in someone with mining experience. It is not particularly common to see the explorer to miner transition.
Plus if we did get a chunk of cash, we could also focus on our other assets in the portfolio.
With this SP action you'd think we got bad news yesterday...! The project NPV dwarfs our current market cap by over 10x. Annoying to see the price slide however so much upside to be had. JV / funding arrangement incoming which should see a significant re rate hopefully.
I think this is incorrect. A private equity firm typically has a target 20% return given their mandates, however pension funds / SWFs / family offices etc have lower return targets. If a company has a cost of capital of 10%, then a mid to high teen IRR is massively attractive.
Our time will come.
Based on todays USD:GBP spot rate, our market cap has 10x upside to match the post tax NPV listed in today's RNS.
So 10x upside which gives no credit to:
- Further exploration and expansion of the Bougouni
- Further upside in spodumene price (note todays' value is VERY conservative)
- Other Kodal assets aka GOLD