focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
when trading restarts would you buy or not? i'm not in currently but have funds ready to go
looks like forced arbitration with other party forced to put huge compensation deposit in court bank pending result of arbitration
reading as we speak, not looking good
Can you post the link
Certainly lower than DRC but still not great...
Republic of Congo: Risk Assessment
Country Risk Rating
C A very uncertain political and economic outlook and a business environment with many troublesome weaknesses can have a significant impact on corporate payment behavior. Corporate default probability is high. - Source: Coface
Business Climate Rating
D The business environment is very difficult. Corporate financial information is rarely available and when available usually unreliable. The legal system makes debt collection very unpredictable. The institutional framework has very serious weaknesses. Intercompany transactions can thus be very difficult to manage in the highly risky environments rated D.
Strengths
Abundant natural resources (oil, iron ore, potash, phosphates, wood); agricultural potential
Potential economic diversification with opening of free-trade zones
Weaknesses
Heavy reliance on oil and gas, and on China
Lack of infrastructures; lag in poverty reduction
Poor business climate and weak governance
Lack of transparency in terms of its debts; uncertainties about interest payments
Current Trends
Growth Still Highly Reliant on Oil and Gas and China
Slow Improvement in the Twin Deficits
President Strengthens Grip on Power in Context of Serious Social and Security Tensions
Following his re-election for a third term of office in 2016 in a challenged election, President Sassou-Nguesso’s grip on power was strengthened in the parliamentary elections of July 2017. His party (Congolese Party of Labour) won 90 out of the 151 seats in the Assembly, in addition to the ten seats won by his allies. The opposition (Union Panafrican for Social Democracy, and the Union of Humanist Democrats) is split and won a total of approximately ten seats.
The social context remains extremely tense, with protests by government employees triggered by late payments of wages. In addition, there has also been a renewed deterioration, since April 2016, in the relations within the Pool region, adjoining Brazzaville, between security forces and former rebel soldiers, who are supporters of Pastor Ntumi.
Relations with the neighboring Democratic Republic of the Congo are likely to remain precarious as a result of rising political instability in the country. This political instability will likely have a negative impact on the business climate in the country, in a context of inadequate governance and an extremely high level of corruption.
Been looking at SXX for comparison. Currently over 4b shares, so lots of cash calls, lots of the loans convert to shares later causing further dilution, currently predicting $4b capital costs on their project.
Whilst not totally comparable gives a ball park on future costs. With regards cash burn. The figure was from their rns and £5m was forecast costs for next quarter with no income that's £5m a quarter cash burn.
So as soon as the DFS analysis comes out we are probably looking at either a massive placing or a massive convertible loan to move things forward. The huge nav or mcap makes little difference to small PIs if the SP is low because of the billions of shares out there.
Also looking at investment risk of DRC, it's not necessarily going to be plain sailing. https://import-export.societegenerale.fr/en/country/democratic-republic-of-congo/investment-country-risk
Ha ha ha, TaffEvans just had a quick peek at your past posts, looking at what you were saying on YU yesterday definitely a case of the pot calling the kettle. But like we agree, all just people giving their views and of no real consequence eh, only yesterday you stood to gain from what you would label as 'ramping'.
I have researched the company, what I see is huge future potential but lots of near term costs and only a few quarters of funds in the bank. Time from feasibility study to profits can be very long and costly so short term share prices (which, let's be honest, is what a lot of people on here are interested in) are very volitile. With a Conservative £5m per quarter cash burn and a sp about 6p you'd need to place 83m shares a quarter to pay the bills. That's nearly a 10% dilution every quarter until we hit production.
So I can do my own research, but still looking for 'expert' views from those more familiar with the mining sector. Every day is a school day eh.
So anyone have a view on how long to analyse the DFS or get to production? I see they have lots in place to hit the ground running once they have the funding.
Any one with any experience from similar studies take a guess how long it will take to digest the DFS?
How many years from production (and cash flow) are the DRC projects?
How much additional funding do we think will be needed before money it generates any income?