Member Info for ocelot

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Yanis,

I'm not sure anything very much is priced in for the present!

Agreed, Yanis.

The market is getting behind Alba in determined fashion, no idea how high it can go but am convinced it is going higher.

Some of the best MMs are ****neys from the East End of London!

They've been operating on a shoe-string for so long, carefully conserving and allocating their cash resources.

This morning's RNS shows what adequate funding can do, it enables them to move ahead on 3 of their projects at the same time.

"This funding will greatly strengthen our balance sheet and enable us to execute our plans for an ambitious surface drilling programme at the Clogau-St David's Gold Mine. In addition, we will begin preparations for drilling at our high-grade Amitsoq graphite project and for Resource expansion drilling at Thule Black Sands."

£2.05m in the kitty since 03/08, in 7 weeks, therefore, £1.75m through 2 placings, £300k through warrants.

market cap back below £20m, but for how long?

... If proven by future production, the calculated gross mean recoverable resources would place Loxley second after the Saltfleetby gas field, the UK onshore's largest gas field to date, which produced approximately 73 bcf...

Agree with Mr Nation's comment, "gaining momentum".

Looks as if Alba are in quite a hurry and confirmation the funds are available to back their projects.

Note that the warrants are exercisable at 0.55p and the accelerator provision kicks in at 1.10p.

DegsyAlmomd,

Outstanding warrants should cover funding requirements for quite some time (see page 49 of the last annual report):

https://www.albamineralresources.com/ul/2019%20Alba%20accounts%20FINAL%20version%20WEB.pdf

Alba is no scam, management is decent and professional.

It's also the case, garykc, that Alba is coming up from a ridiculously low level. Personally, I had never imagined it could fall so low, 0.20p perhaps, at the very limit.

Market cap after the most recent exercise of warrants: £21.9m.

If we take take the Daily Telegraph's £750m figure for Clogau's potential worth and add on 100% for the Welsh gold premium: £1,500m.

Given Alba's other assets, about 1% of Clogau's potential worth is currently in the share price, 1% being £15m or 0.29p per share.

https://www.telegraph.co.uk/news/2020/05/24/gold-mining-company-lodge-planning-application-dig-snowdonia/

Warrants being exercised doesn't necessarily mean the corresponding shares will be immediately sold, it simply means the holders have obtained the shares which they can sell when they choose, like any other shareholder.

If they want to cover the exercise cost, they can sell just enough shares to cover that cost. With a share price of 0.42p, the cost of the exercise of the remaining warrants at 0.13p is covered by the sale of less than 1/3rd of the corresponding shares.

Yanis,

Add in nex trades and Friday's volume was above 1bn shares.

Given recent volumes, will there be a TR-1 declaration of a 3%+ stake?

A 100% premium makes the Daily Telegraph's £750m become £1.5bn.

How much of this potential should be reflected in Alba's share price today?

That is the question we are all seeking to answer!

Even in First Equity's extremely conservative valuation, they added on 100% to the international gold price for the Welsh gold premium.

"Huge" regional potential, in the words of Alba, who choose their words with care.

"High possibility" of finding gold, not "probability", but you couldn't get any closer to saying "probability".

$1,950.66 (spot gold) at $1.29185 = £1,509.97.

The $ has been weak recently.