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Earlier this year another AIM listed cyber security company was sold for of ECSC £5.4 million. I think it has lower revenues than Falanx and didn't have a penetration testing division which I think makes Falanx a very appealing target
Change the zero in directors to an o to watch the interview
this is the director that has probably arranged the sale. he's very well connected in the industry https://www.***************************/falanx-group-william-kilmer-says-its-a-bright-future-for-managed-security-video/4121087303
there were several director buys last year around 100p so i doubt they would settle for less than that also the large shareholders bought in at a much higher level so wouldn't vote for a sale at a low value
They are looking to get this into production very quickly so there would be absolutely no point in putting out high grades that aren't representative. It's not comparable to a gold project that would take many years to get into production
As well as the 3.5million tranche 1 shares I think BAT was also issued over 2million shares for the sale of IP:
"The terms of the Acquisition as announced on 3 April 2023 otherwise remain unchanged including the issue of 2,018,944 ordinary shares of £0.025 each to BAT at completion covering a sum of AUD$994,571.86 (£539,058) at an issue price of £0.267 per ordinary for the transfer of intellectual property (the "IP Consideration Shares")."
I'm not surprised due to plunge in graphite prices and a delay in ramping up production. The low level of cash even with the recent pre-pay facility means the company may struggle to operate and ride it out until the commodity price recovers. They are bound to be exploring funding options during the visit to London.
https://www.fastmarkets.com/insights/spherical-natural-graphite-prices-plunge-11-year-lows
https://source.benchmarkminerals.com/article/natural-graphite-prices-fall-by-20-on-china-supply-increase
Interesting article today with Goldan Sachs forecasting a glut of cheap batteries made in China will be dumped on markets in Europe https://www.thetimes.co.uk/article/026ae8e6-48d6-11ee-ae7e-1fff6c8e0528?shareToken=fc244a8f57212fce3de549d5f199d58a
A scoping study on the project showed Net Cash generated over LOM (life of mine) of $137million and an NPV (8% discount rate) of $33million. There was a large fall in the TYM share price when the decision went against TYM in 2018 so it could now be of significant value if it comes back into play, especially if the JV is still in place
Last year there were several directors buys at around 100p - 7 separate RNSs were released for these transactions. I'd expect them to be buying heavily at the current share price level unless they are in a closed period or inside so cannot buy shares
Well I am certainly not part of the pump & dump crowd and more of a lone wolf looking for value. I noticed 2 of FCS's peers on Aim, ECSC & OSI, have been taken over in recent months. There is a good chance that FCS could follow suit as the share price is at such a low level so that even a bid at a 100% or 200% premium would be cheap. FCS's penetration testing operation would certainly be desirable to other companies
It was a pure graphite play with a producing mine in Madagascar, sound familiar 😉
It was promoted as the only graphite producer on AIM and made a big play of how the battery metals space was booming and there was a shortage of graphite. However, the processing plant was beset with operating problems despite Poddar being touted as an industry expert and it was eventually delisted. Here's a sample RNS as an example:
3 August 2015
StratMin Global Resources Plc
("StratMin" or the "Company")
Optimisation and Increased Production at Loharano
StratMin Global Resources Plc (AIM: STGR), London's only listed graphite production and exploration company, announces that it has successfully completed the second stage of the Loharano plant optimisation.
Highlights:
· Hourly production rates have been significantly increased and graphite purity levels maintained.
· The plant and processing modifications are now stabilised, therefore the Loharano operation will move to twenty four hour production six days a week during August.
· The upgraded plant has now been running with increased feed, delivering up to 900kg per hour of refined graphite.
· Exploration programme currently underway at Loharano and Mahefadok to deliver the required JORC categorisation for the final feasibility study and enable improved mine planning for existing operations.
· In conjunction with studies for the proposed Mahefadok flake graphite plant, a review is being conducted into hi-tech value added products.
· The benefits of the strategic partnership with Tirupati Carbons & Chemicals Pvt. Ltd ('Tirupati') are positively impacting all levels of the business.
· Issue of shares to Tirupati as compensation for technical services.
Loharano Plant Optimisation
Following conclusion of the joint venture agreement with Tirupati and the appointment of Mr Shishir Poddar as an executive Director of the Company, a staged optimisation programme was devised to increase the productivity of the Loharano operation. The goal was to leverage the success of the pilot phase in producing >94% purity flake graphite and deliver a stable operating plant capable of producing 6,000 tpa processed flake graphite.
Utilising the technical expertise of Mr Poddar in flake graphite operations, initial process modifications were immediately implemented to enable the plant to run at a steady rate and provide a benchmark for further analysis. A review of the operation at this point identified certain bottlenecks in the process and a programme was developed to address these in sequence. The second phase of this programme included modifications to the floatation cells and the process flow.
The fabrication and installation of these modifications were handled by the Company's own in-country technical team. This was an important step in demonstrating the Company's ability to operate independently in remote locations, as well as providing the technical team with
This reminds me of Stratmin Global, an AIM listed company, which had a graphite mine in Madagascar and Poddar was the Technical Director responsible for production. There were constant problems with the mining operation and the company never produced graphite efficiently or in the quantities that were talked about by directors. They kept investing in new equipment for the plant which they said would fix the problems but the share price kept falling and the company raised funds at lower and lower levels so investors were virtually wiped out and the company ended up delisting from AIM