Reasonable logic that the company is diluting but it has got $1.34m cash from issuing new shares. If the company disbanded tomorrow, it would have more than 26.4p to give out to those new shareholders as they're paying a premium to get in. So the value per share has gone up imo
Certainly it's easy to see a discounted placing is clearly a loser all round but raising at a premium can't be all bad. Say we raised $5m by issuing just 5 shares at a huge premium at $1m per share. Still dilution, but making the company more valuable.
Weird isn't it that a company does a discounted placing and 'down she goes' - do one at a premium and mm's not impressed.
RNS seemed quite straightforward, $10m convertible bond completed (could be converted @37p); $1m equity raise oversubscribed (now $1.34m) and being extended a week for further possible raising @30p (they previously said the $1m could be increased to $5m if there is demand)
Rumour was about that Dekel was finally getting rid of all his holding and the last week's director deals were to absorb his shares. That will soon be the end of Dekel's and anyway the company looks to be going from strength to strength.
I've asked Chris Eger CFO to explain a bit more simply Ciftay's deal which is a fantastic one to make sure construction gets up a pace.
Great spot on the smelter results. Not sure of the implications but think everyone is agreed the whole process of allowing a license for the bulk test and then pulling the plug after success would be daft in the extreme.
Looks good for some really big developments in Togo very soon to me.
Another non-answer answer I'm afraid after I asked :
"But where to now with Toga? Does the acceptance and testing of this sample have anything to do with our getting a mining license? Does the end-user have any clout with regards the Togolese authorities?
Sailing mid-March with our shipments. Can you say how long roughly to arrival at end-user or how long any testing might take?
I am very hopeful that long-term my investment in Keras and Calidus will come good and this year it looks good for the distribution of CAI shares with a positive PFS. Can you shed any light on when we might proceed further in Togo, presumably the bulk-sampling license was not granted as a one-off as that would be ridiculous.
He came back with : "Evening pabs
Thanks for the email and your patience as a long term investor.
Unfortunately I can’t say more than what you have read in our announcements.
Obviously this is a big step forward and shows the relevant authorities in-country that we are capable of mining the Nayega deposit so can only hope that it focusses their minds.
With regards the timing on the smelter results we will give everyone an update as soon as we have more information.
I posed what you'd said JimBL at 08:49, basically : 'In all fairness, the dmtu price hasn't made the project viable until recently as it dropped in 2015. Was that why the license wasn't pressed for? But manganese has risen enough in the last 2 years to make this a profitable project again and I am having trouble understanding why the BOD isn't being far more informative on where we now stand. If we got permission for the bulk sample, then why? The site is apparently equipped and ready to mine. The sample is showing it's profitable. Local labour was used and more jobs ready to be created. I'm more interested by what isn't being said than by what is.’ and asked, 'What now?'
I knew DR couldn't say much but he came back with :
"Everything stated is correct. This question is probably best directed at Russell but I doubt you will get an answer as we are just not in a position to answer with any useful detail prior to any potential market announcements.
Obviously we want to get the full operation happening and I believe that is a benefit to all stakeholders and would seem the logical way forward." -------------------------------------------------- It had struck me the end-user will need to process before giving the go-ahead - the 10,000 tonnes hasn't even left port yet, so I suppose that's another month or so.