Member Info for panda1

Why try to raise $30m when a $10m loan would be enough. Clearly will need to try and raise again in the coming months which will put people off investing until the funding is sorted

JP using some of his salary to buy SML shares after the PEPR RNS today.
Should see a re-rate in the share price as a big stumbling block to getting the copper mine started has been cleared

Tom Winnifrith suggested today that there will be a placing at 5p - if it's possible to get one away at all in the current market. Perhaps that's why the share price dropped today?

I don't think the umbrella agreement will make much difference unless it is binding. There have financing agreements in the past but didn't lead to any funds being received by TKGM e.g. the agreement with ANS for example

It's clearly very undervalued given the cash generation, strong cash position and potential to significantly increase production in Romania and Tunisia

I already explained how the company is adequately funded.
The performance at Yanfolila has very likely improved significantly due the additional machinery purchased and full utilisation of the mill after the maintenance carried out in Q1

We had the same conversation about funding on here recently.
The company raised the full amount required to build the mine at Kouroussa from Corris Bank including a percentage set aside for contingency.

Furthermore the various suppliers aren't all paid upfront and there will be a significant amount of CAPEX still owed to suppliers after the mine is built and producing gold. This will help ensure the company is fully funded until Kouroussa is generating cash. This was explained by the Financial Director in a recent presentation and he said the situation was the same after Yanfolila was built i.e not all the cash raised to build the mine was spent until the mine was fully operational.

The company just announced its results which showed cash of $45,000 at year end with debt of around $3million.
Since then there has been some warrant exercises that have brought in some cash but has had drilling expenses, especially the Grant East well as that was 100% working interest. It would be useful to know the total cost of drilling, completing, fracking and testing that well but I would think around $500,000.

So they did 7,440m of RC drilling at Jundre East which would have cost a considerable amount in terms of the funds available to the company and the results were so poor that they don't even want to publish them!
Why is the company even carrying out gold exploration in Australia when it clearly doesn't have any experience in this field.
Shareholder funds will just be wasted on drilling and fees to consultants in Australia. If the projects had any prospect of being commercial do you think they would be really in the hands of ORCP?

I only mentioned it as I assumed you didn't know about the fixed price contract when you wrote: 'I am no geologist, but from what i've read, this could add material value, particularly at current gas prices.'

We have asked the company about negotiating a higher price on previous occasions but they say there's nothing that they can do about it and it is a positive when market prices are low but negative when market prices are high so on balance it evens itself out

In Egypt all gas production has to be sold to the state owned company EGAS under a long-term fixed price contract (SDX receives $2.85/MCF)
If I recall correctly the government is also entitled to 51% of all production

A couple of decent sized buys this morning but expected to see more given the amount of funds that could be incoming from DRC court decisions and that AB is in country to collect

Are there any indications that the Egyptian government will be willing to increase the fixed gas price contract price from $2.85/MCF currently which is a small fraction of the current market price in other countries?

Need gas prices to rise in Egypt from the current ridiculous fixed level to see a decent profit from it

Great news on the drilling in Romania as I wasn't expecting the first well to spud until later this year. Permitting must have been expedited due to the current gas crisis

According to the last accounts, the company had cash of £1million at the end of September and the cash burn is £100k per month so that's likely to be £800k burn to today out of that £1m. The monthly payments received from Lanstead are a fraction of what was set out in the fundraise announcement as the share price has been far below the benchmark price of 2p. The company will be well out of cash before the test is reworked by Q1 2023 and I think it will be very difficult for the company to get another fundraise away

There is a cash problem now as the monthly payments from Lanstead to NFX will be less than one quarter of the original amount as the share price is now well below the benchmark price of 2p. Under the sharing agreement the value of the monthly payment is in proportion to the share price performance. This is the problem with these death spiral facilities

I think there's a good chance the company will be delisted from the stock market

Red Rock Resources account tweeted: "Good neighbours......Southern Cross, just E of our Kilmore licence in Victoria. A new exploration area opens. SXG price +230% on the day. People will peg nearby ground. Except us - because we already have a lot of it."

https://www.fool.com.au/2022/05/30/southern-cross-gold-share-price-explodes-225-higher-on-unprecedented-discovery/

I wouldn't be surprised to see another potential acquirer start building a stake in the company