Sapan Gai, CCO at Sovereign Metals, discusses their superior graphite test results. Watch the video here.
I think that was a pretty fair assessment HH, the progression of UFO doesn't worry me, its the short term funding that does and the decline in SP is not going to help raise funds this year. BBG has to pull his fingerout and get a little bit smarter with how he manages newsflow, half the companies on AIM get pumped so CEO's can draw down big salaries and run lifestyle companies. UFO has good fundamentals and is moving in the right direction, but if BBG can't learn to play the game and get some sentiment back into UFO we will struggle to raise capital at current levels .
I've been underwater for 14 months and now I'm past my original buy in of 0.6p which was nearly 18 months ago, I've had alot of patience, time for BBG to find a new game plan because this one is clearly not working anymore.
I agree 5x5, there has been news flow and certain things did not go our way last year in terms of tailings and Mexico JV which were out of BBG control, however there is a certain amount of playing the AIM game required in these high risk investments, there are alot of company CEO's who are capable of getting some momentum into some absolute dog's purely to milk a very generous salary from the business with very little chance of success. We've all been involved in some of these over the years I'm sure, my point is that BBG has a solid business with some great potential he just needs to get some positive sentiment back into the company and some volume. UFO need to start playing the game a little better, because we have a big cash burn and no income.
There are some companies on AIM that don't need to raise too much cash through placements because they have a business that generates income, they keep the market updated but aren't really interested in the daily price action of the SP. For UFO the only way they can raise funds is through placements, warrants and dilution all of which have a direct correlation to the SP, so if UFO is so reliant on the SP for future fundraising, why are they so poor at managing news flow. There are plenty of other CEO's who understand the rules of the game and know how to build momentum into the SP even when substantial news is thin on the ground, BBG may be a great geologist but he is showing his inexperience when it comes to running a listed company. The further he lets this slide the harder the next fund raise is going to be, the clock is ticking and if we aren't well north of 1p by the time BBG goes back to the market with his begging bowl, the next placement is going to be woeful.
I would love to see UFO become self funding, the placements are becoming a drag on the SP, but do we have enough funds to get Hammersley producing? How much money do we need until the end of the year to fund all the drilling we have scheduled, that's becoming a worry for investors, I still feel we should have raised more cash in the last raise, its going to take a while to get some momentum back into the SP and I honestly don't think I could stomach another placement below 1p, but if our cash burn is high we may not get enough drill results to increase value and may need another sub penny fund raise? when are you hoping for 10p, within the next 3 years?
I agree with Turbo and Smiller, I think both sides of the argument are valid, Bill has to walk a tightrope between laying out a strategy and timeline but not missing self imposed deadlines and spooking the market. I still feel he could lay out a framework for the next 18 months, we need a decision on mexico good or bad either get on with it or cut it loose, the uncertainty is not doing us any good, just make a decision. I know there's delays which are completely out of Bill's control but what's the priority and estimated time for delivery, I'm not expecting an exact month but just the priorities for the rest of this year and early next year. We have limited funds and I would like to know how these are being allocated to projects, if he spreads himself too thin we are going to burn through cash and going back to the market with his cap in his hand with little progress is not going to end well. We need some overall direction and prioritising of resources, trying to do everything at once on a shoe string is going to stifle progress and the SP, Smiller if you're anywhere 10p in the next 3 years I will be a very happy man.
I agree with you turbo that I would like to see a more structured strategy taken by Bill for the next 12 months, I'm sure he has a well defined plan in place but as others have already stated if he pins himself down to too many specifics then he is going to be constantly under delivering and undermining any momentum we have. I'm annoyed that we don't appear to have a strategy but on the other hand I do understand why Bill would not commit to too many timelines given the nature of the business and ongoing Covid issues. I'm frustrated and p*ssed off being constantly underwater, but I have to take the emotion out of my decision making regarding UFO, I still see potential and the market sentiment will hopefully swing back to mining, but I have no idea when and the not knowing is really starting to irritate me.
I know people are really fed up at present, but we are all here for the same reason I hope, we aren't making money and haven't been for a while but there's no point attacking eachother, the market is sh*t and has been for a while, most people have lost paper gains in alot of plays recently and the sell off doesn't look like its even started yet. Its pointless arguing on this forum, its not going to change anything, hoping for better days.
I hope so, I just hope the big reset doesn't pull us down with it, the S&P large cap growth (Tech) stocks have been on a rocket since last year as more II's having been buying trying to preserve cash reserves, with the increased liquidity from the FED its kept the markets buoyant but Powell has got to increase rates soon and that is going to start the sell off in the markets in my opinion. II's won't have anywhere else to park money in the short term other than value stocks and commodities , surely money has got to start flowing back to mining stocks at that point or have I completely missed the mark?
2021 was awful, I consider most of my holdings to be value stocks rather than growth, I've feared for a while that a correction was going to happen and purposely didn't chase growth stocks last year, I missed some big gains in some tech and oil stocks that I hold but didn't double down on. I believed that money would swing back to growth, I have alot in lithium miners, copper, gold and UFO, also hold some green stocks. I hope we do see some money flowing our way after last year because it looks like the S&P is about to start falling and once the sell off begins its going to be a race to the bottom. I just hope Bill can release enough news so people can understand the potential here, we have very little volume and no sentiment and the longer this goes on the further away 3p looks.
I agree the results are not in anybody's control with current back logs, but there's been so little news released and as yet no clear strategy for the rest of this year, we've got cash in the bank, how does Bill intend to use it?
The lack of news and constant downward drift in SP is becoming very frustrating, alot of folk here, myself included have been holding underwater for the last 12 months, Bill needs to up his game, he had a good end to 2021, we moved into 2022 with cash in the bank so what is the plan? There's been very little in terms of strategy for the next 18 months, are we just going to keep drilling holes until we run out of money? What is happening with Mexico, Bill needs to get a handle on this and start communicating, we've been in a bearish channel for nearly 14 months and the BOD need to start getting a grip. The markets are starting to rotate out of growth stocks back into value stocks, there couldn't be a better time to get results out and get some positive sentiment back into UFO.