Member Info for ocelot

The administrative/disclosure RNS of last Friday, the tidying-up of interests RNS of this morning, everything is pointing towards the spin-off of New Listco in the fairly near future, maybe after the Summer holiday season (?).

Acquisition of Amitsoq and Melville Bay Minority Interests

Alba Mineral Resources plc (AIM: ALBA) announces that it has acquired the minority interests in the Amitsoq Graphite and Melville Bay Iron Ore Projects in Greenland. Consequently, Alba now owns 100 per cent of both projects. These acquisitions are a precursor to the spin-out of Alba's Greenland projects into a new AIM-quoted company ("Listco"), most recently reported by the Company's RNS of 20 July 2021, which transaction requires 100 per cent ownership of all the Greenland projects to be delivered to Listco. In return, Alba will receive 100 per cent of the Listco consideration shares from the disposal of the Greenland assets to Listco...

Very thin, almost non-existent, trading, will take very little buying to shift this price upwards.

Have put CynderLad on filter, but, before I did so, wouldn't have called his posts "sly", thought he was quite open about his dislike of UKOG!

Some of those who denigrate UKOG now will become buyers very quickly if they think there is money to be made, it would help justify the time they spend on this board.

Many more PIs follow UKOG than are currently invested in it, hence, when they decide to pile in, the kind of leap upwards in very big volumes that occurred around Easter.

$70.18

Just to spell it out: low market expectations will, of course, amplify the effect of any positive news.

For myself, I always think intemperate language employed by a poster who is negative on UKOG is a bullish sign, because it means they are running out of arguments.

Nobody knows what the results of Basur-3 will be, but we can all see that UKOG's market cap is very low and that, therefore, market expectations are low.

GL has spoken of offering a dividend, maybe in 2023 when the bulk of the debt has been repaid.

Is better news coming for UKOG shareholders?

It is long overdue and is possible, but, for the present, nobody knows.

What we do know is that news is fast approaching.

https://www.barchart.com/stocks/quotes/UKOG.LN/opinion

https://www.barchart.com/stocks/quotes/UKOG.LN/opinion

The 50-day moving average has come down below 0.20p to 0.198p, the 200-day is at 0.169p.

... and makes for a refreshing change.

xcoder,

As part of the Spin-Out Transaction, Alba will receive New Listco shares valued on IPO at approximately GBP6 million, resulting in Alba becoming the majority shareholder of New Listco.

So the £12m valuation assumes that Alba's majority holding consists of 50% + 1 share.

Prior to the IPO, however, all of the £12m valuation of the Greenland portfolio is Alba's and should be reflected in Alba's valuation which, imho, it isn't.

It's never been clear whether UKOG management wants the open offer to be a success or not, given that it wasn't something they chose to do of their own volition.

The placing provided them with the key funding they sought.

A modest take-up of the open offer (and, as of now, it is likely to be very modest) limits the number of new shares they have to issue at the current level of the share price.

If we say the valuation of New Listco is currently £12m, that is equivalent to 0.192p per Alba share.

At Alba's current share price of 0.26p, Clogau, the Dollegellau gold field, Limerick and HH are, therefore, valued at 0.068p per share.

As part of the Spin-Out Transaction, Alba will receive New Listco shares valued on IPO at approximately GBP6 million, resulting in Alba becoming the majority shareholder of New Listco.

The final valuation will be determined when the IPO is announced.

If we say New LIstco's valuation is £12m, then Clogau and the Dolgellau gold field, Limerick and Horse Hill are currently valued at about £5m in Alba's market cap - that looks like a very significant undervaluation.

Mind you, very little of New Listco's valuation is currently in the market cap!