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RRR gets a write up in this article: https://investingstrategy.co.uk/financial-news/is-the-aim-market-an-unregulated-mess/
Funny how he calls it Blue Air Resources
I think the directors should make an alternative proposition otherwise shareholders should vote in favour.
Needs to be salary cuts with bonuses if milestones are met. Williams should go and Oza should step down as CEO as suggested in the requisition and be replaced with someone who has more experience and a good track record
Indeed HarChris, the timing of the export restriction announcement couldn't have come at a better time for TGR and should be a game changer. I think it will lead to institutions throwing money at the company to help them fast track increases in production.
I don't think people fully appreciate the implications of the China export restrictions and how much if an impact it will have on TGR. There will be very strong demand for the shares as one of only two listed graphite companies that are actually in production. It won't be easy (or cheap) to take a big position - it will be like when BAT was selling but in the opposite direction!
How did you calculate the cost overrun as the company are still saying Kouroussa was built on budget?
When looking at the figures you have to take into account the company is also developing an underground mine at Yanfolila. I'm not sure of the overall cost but I assume around $20 to $25million which may account for your cost overrun. I think the company said in an RNS earlier this year that it had ordered equipment/machinery for the underground mine for around 11million Euros plus there is a lot of digging and concrete involved in the development of an underground mine
The call set out exactly where the company is at in the development of Kouroussa. Betts said several times there are now no obstacles in the way of reaching steady state production by year end. The plant is performing at capacity without problem and the mining volumes are what is taking the time to ramp up. The low production so far is because they have to remove the overburden in the pit. Once they reach the high-grade ore body production will ramp up very quickly
People now know that you have to take what he says in an interview with a pinch of salt.
If you watch the previous interview again, he must have known about the ongoing problems but chose not to mention them and instead set people up to expect good progress in the quarter. Today's RNS revealed:
A fall in production from Q1 (when a rise was expected)
A significant reduction in guidance for H2 production
A lower head grade than expected. The last time head grades were mentioned, a while ago, they said the problem would be resolved. Today we are now told to expect lower grades to continue for the rest of the financial year and additional capex will be required to try and rectify it.
It will be hard to achieve a recovery in the share price until the H2 results and full year accounts have been released and that's dependant on whether they show the company is starting to deliver on its promises. There is also the worry about whether BAT will need to continue selling when it receives the next tranche if shares in December
I'm not at all surprised by the reaction considering the unexpected fall in production in Q2 and that the company has told the market that is cash constrained. This will put people off buying until the cash required has been raised
How did they end up producing less in Q2 than Q1 when production was meant to be ramping up rapidly?
You have to read between the lines in these operating updates and the performance and outlook is significantly worse than expected
Very poor compared to the guidance given by the CEO, particularly in interviews. The 3% head grade compared to the 4.5% expected is a big problem and full year production will be significantly lower than expected. The company is clearly cash constrained and burning cash so it is a big gamble whether debt can be raised on reasonable terms or whether an equity raise will be necessary.