Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I guess most forgot about this little sideshow. Starting a 2D campaign over Sidi with reported 6-11 tcf?! Of which we own 75%. Not that it isn’t already, but suddenly 3.5p looks an absolute bargain! With a farm out and / or drill, this could look very different in say 12-18 months!
Whilst I agree there are more exciting RNS's in the offing, for me this shows that the company has taken onboard investors critisism and improved their communication. I for one feel more connected to ongoing operations now in contrast to the earlier quarterly releases.
Cheers Lyndon. Completely agree about Brian’s purchase, it is more of a symbolic purchase. I would however always take any directors buy no matter the size as generally indicating positivity from the company, shame the market hasn’t responded as such. Like I said it gave me some optimism but I hope we don’t get short changed and look forward to a great LE either pre or post TE11.
...is the SP is where we are today due to PI sentiment and that’s the problem with this stock. JP once said a company like this being such a PI centric company, on paper shouldn’t work but Sound was a company going against convention, but I think that we are now seeing the result of the cracks that started from Badile and have propagated since and in some way proved that The convention is right that a company with such a core PI base does not work especially with continuous poor delivery. If we had a bigger II involvement earlier on we would perhaps have been more stable and today at a higher price perhaps around the value of T5.
Going forward most have big paper losses, including Brian with his recent purchase. But I also think Brian is more in the know than us and felt a purchase than was a secure bet either for LE or for betting towards the Paleo as we know he is a fan of that. So his purchase gives me some positivity to a successful LE at some point either pre or post TE11.
If we don’t get what would now perhaps seem a crazy LE price that as JP said hopes to include TE11 value (50-100p) then in my view we should just crack on with the Paleo drill and look to smash it out of the park.
We are pretty much in the gutter with SP and sentiment so why settle for a potential low LE price now, as most will still likely be under water. We should at this stage having basically lost everything on paper just go for big or go home and fingers crossed the 3rd drill in the program was the key to Tendrara and proving the large Algerian petroleum systems do extend into Tendrara and Morocco. Not much left to lose, at least lessons have been learnt.
For the record I feel JP and the team have done a great job overall but can only be accused of being too positive to a PI centric base considering such high risk exploration that a lot might not fully understand. They have something right and we found gas although not producible at TE10, so for early exploration we are on the right track, but smaller companies like ours need a bit of luck for the Geology to work. this does need the big boys pockets to crack it so I hope for a good LE as sound have got some promising value for what we have, but hope we don’t get sold too short as would prefer to roll the dice on TE11!
GLA
Does anyone know of other companies who have sold an asset for a premium when compared to a depressed SP? We are constantly told that LE price will be disconnected from SP price, but I’m not sure I buy that unless there are good examples out there of this happening.