The next focusIR Investor Webinar takes places on 14th May with guest speakers from WS Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
Wasa the RNS literally says by December they need suppliers and other build stakeholders to work on credit for a company desperately trying to find funding and no money the bank. Tens of millions in promises that a financer will step up in April.
There wont be construction. Money runs out in December / maybe April 2024 the lenders take it over.
How Jeremy is still leading is beyond me but I feel he is just there to parcel it up for the lenders who got him is bonuses.
I am devastated over this from a pride point - they are in my punts account and I discovered them myself at sub 1p and pre-financing just to see it all collapse from the Board hiding massive news in a quarterly update.
Nothing is too big to fail, all it means is that there are cheaper assets to scoop up.
It is too much of a gamble for me right now (having bought at the original 1p years ago) for a few reasons:
- they struggled for a good deal when money was cheap and got a pretty rough financing package
- BoD have now shown themselves unable to (1) raise funding well (2) plan the project (3) communicate honestly
- the project will be complete but it is now more tasty to be grabbed up if it fails
I am keeping an eye here, hoping for the best and will try to jump in if I think any is changing
Not to get off topic there but trickle down Reaganomics, tax cuts for the rich and business to invest more has been proven to not work and this was BEFORE Boards became solely focused on quarterly shareprice.
There is not a discussion on the viability of these policies, they have been done before in more suitable economies and always massively fail.
Great to see the price jump, albeit for macro factors, but lets not go too crazy. The financing rates are still high and the risks remain which will dampen pre production SP growth.
That said, onwards and upwards.
I am in 2 minds here.
1. The board have lost my trust a good bit. Unable to raise favourable finance in a booming market and globally significant holding at a time when money is cheap. The placing price with an afterthought for PIs makes me feel like this is a massive sweetheart deal for Orion etc. They will make out like bandits here. The price is nowhere near the 2021 average.
Cost overruns for a large amount too for a project that is barely off paper?
but...
2. First time miner with no production yet. Good money on hand but not enough to do anything leaves them at financer's mercy. They raised much more than market cap with said project still mostly on paper. We are in a booming market, not due to covid uptick or logistics, but because of long term demand over industries for the product.
I cannot agree with those thinking we will see a rise after placement, I think at best we are stuck in 7-8 range until first production reports.
I am lucky to get in at the bottom years back but in the midterm I think my money is better elsewhere as I can come back here late 22 and prob still get 7-8.
GL all