£1.505 Jun 2021 08:36
@Legalease: "Share price Could be £1.50 by 8.30 am on mon". Is that because you believe the market might factor in 27% of the previously unimpaired valuation of the Amapa project of $1.2B, rather than 20% of the impaired $660m? 27% of £850m = £230m and with 148,649,098 shares in issue this is, roughly, £1.50 a share. If Amapa comes good this likely increases the total value of our other holdings from low double digit pennies, and with a first right of refusal to go to 49% of the Amapa project (£2.70 a share), your £1.50 might be seen as a stepping stone to £3 and beyond by the market?
Whether this happens will clearly depend on lots of factors, not least we get an RNS at 7am on Monday! LoL. If not Monday, then hopefully Tuesday or Wednesday. Obvious AIM sentiment resistance points are £100m (67p) market cap and £1 a share. No doubt many will de-risk substantially, perhaps even fully selling out, around each and it'll depend on how much buying pressure there is, and from who, whether we'll break through them. Once the enormity of the deal sinks in across the markets we should see those with deep pockets come on board, which should certainly help with momentum! ;-)
Conservatively, I personally think we've got a very good chance of breaking £100m on 20% news and £1 on 27% news, and once it becomes clear how we get our hands on 49% we might break £2 if it is seen to be achievable and at not too much cost and dilution to us, perhaps from selling an asset instead of a capital raise.
It's also quite likely there'll be many wanting to take it off our hands once we've done all the hard work. And my, was it hard! £100m? £150m? £200m? Name your price territory IMHO ;-)
Ob.
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