The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Rich3r while I agree that 2 suitors is best for best price, 42% of the shares here are held with directors + ‘friends and family’ so it isn’t going to be sold on the cheap to anyone anytime soon!
The market cap here is crackers, but in this situation not terribly relevant in the context of what the assets are worth to the right suitor.
There's some discussion on another bulletin board about the company being employed to do the AI. The people doing this job are Planetary AI which has been formed out of International Geoscience Services, the former having received funding from various Governmental investment funds, the latter having a multitude of international mining and exploration corporate and Government clients including The World Bank in the USA, The Foreign and Commonwealth Office in the UK.
In Africa they have done projects across Africa (Mozambique, Zambia, Kenya, Malawi, Cameroon, Sudan, South Sudan, Tanzania, Burkina Faso, Nigeria, Mauritania, Liberia and Sierra Leone, mostly in conjunction with projects many of them funded by The World Bank.
More specifically and more importantly from a BOD perspective, in Botswana they worked for the Ministry of Minerals, Energy and Water on a Government-sponsored plan to transform the Department of Geological Survey to a statutory public entity known as the Botswana Geoscience Institute (BGI).
They don't necessarily need a big balance sheet or a herd of employees to do what they do, but it seems reasonable to assume that the bona fides of both Plantetary AI and IGS will have been thoroughly checked by the abovementioned investing and client organisations, and so would appear extremely well equipped and experienced to do this particular job. Looking forward to seeing what they find!
Agree IG - bear in mind that DeBeers are spending USD 1bn just to extend the life of Jwaneng, have just appointed a new, younger/ambitious CEO, and just agreed a new/extended deal for the Debswana jv with the State to continue and they are short of new resource... BOD can't not be on their radar.
The RNS highlights the enormity of what they have in Botswana - 380 gigabyte of data, 95000 sq km of coverage, that's around the size of Scotland and Wales combined. And the second biggest exploration database in the country.
At llong last some movement on Stonepark!
G11 share price up 50% on the news
ARK hardly moves and mcap still only circa £1.5m. Crackers!
MCAP now circa £1.2m (with plenty of very interesting assets and no debt). Madness!
As InvestingGenius says - do the maths!! Cf the Mcap of £5m or so (and no debt).
This is also a very important piece of BOD’s role in the rapidly-developing Kalahari diamonds jigsaw and hugely enhances BOD’s already-central seat at that table. Roll on February for the other anomalies.
Brine lithium in Botswana… now that is interesting and for all sorts of reasons !
I suspect you're thinking along the right lines, but I've a gut feeling it's bigger than just KX and Ghaghoo - James's presentation of a couple of weeks ago mentions a couple of other producing/potenially-quickly-in-production mines not far away (in Kalahari terms anyway) including Lerala which is the right size, location and on care and maintenance since the (local) owners haven't done anything with it since acquiring it a couple of years ago, and perhaps more significantly mines belonging to DeBeers/Debswana (though I'm guessing not Jwaneng or the main Orapa operation - too big/developed, too old, but Daamtshaa would be an interesting fit).
The concept of a joint effort for a mid-tier operation to mine and market diamonds from the CKGR with these components (plus perhaps others) is a strong one given that all the pieces are largely already in place, with production already happening or can be made to happen in short order. Then there's the whole Maibwe/Sekaka/Sunland prospects to add exploration and development of new resources into the mix, all of which the State has already stated it strongly desires (and, who knows, may even provide some backing).
Like I said earlier, big big stuff for a very small company to be involved in, and beyond exciting were it to come to pass.
Techguru all good points and agreed.
The 'sudden' decision to make this move on KX36 cannot be insignificant, the very directed nature of James's presentation the other day was not insignificant and the specific mention of Ghaghoo in the RNS is, I suspect, not insignificant either. It all points to a bigger picture process of creation of a more substantial 'thing' being done in the Kalahari presumably with JV partners. It doesn't take a rocket scientist to work out who they are most likely to be - just look at who else has operations nearby plus the declared desire of the State to increase and polarise production in the country - and, if true, likely to big big news for a very small company. It would push TR and Mars into relative insignificance (even though they were, I know, the reason many of us bought in here originally and I share the frustration of some others re the lack of information). But circumstances change, opportunities arise, and this one looks very exciting indeed.
Very promising indeed!
Market cap now only circa £2m (and no debt) so off the radar - for how much longer I wonder.
I agree JPW. The new NomAd is much better positioned, much more useful than the previous one as an ally for not just fundraising whether debt, equity or whatever, but all sorts of corporate finance activity.
Roll on some decent news!
A good move to Strand Hanson! Not particularly price sensitive I suppose (sadly!), but they are well-connected in the mining sector and likely to be a very constructive advisor/partner IMO.
They raised USD10m last September, stated that they had USD 4m+ at bank at end 2022 and have since announced grant awards, plus have stated that operations are going much much better in 2023 than in 2022, so hopefully now cashflow positive, so a raise seems rather unlilely to me, but of course anything is possible!
(That goes for Maibwe and the rest of Sekaka too of course, but they are a long way off production compared to Ghaghoo and KX36).
I should think it paves the way for any deal for Ghaghoo and KX36 involving a jv partner/third party funder to be able to go ahead as it removes that element of uncertainty regarding the Botswanan Government’s attitude to, and revenue share requirements from commercial diamond mining operations in the country (ie not just DeBeers). What’s your view TR?
I suspect the 'big trades' were bed and isas, similar types of crossed trades occurred at BOD today too.
I agree that this will need G11/Glencore/Stonepark action to get things moving but all seems to be quiet for the moment.
At least I can't imagine they need to raise much if any cash in the foreseeable future, hopefully not at these levels anyway - £1m mcap! there are shellcos valued at more than this.
I think it fair to say that Vast need the diamonds loot (if they ever get it) for repayment of already overdue debts plus presumably investment back into licences in Zimbabwe and possible new projects in Romania. Highly unlikely there’d be enough left for Ghaghoo/KX36, those need friends with sector/underground expertise and reasonably deep pockets.
Agree TR - this is one of the best boards around in my view. But there may be dark secrets which can only be shared in a private setting! Lol
Personally I am very excited about what’s potentially in store.
Echo sorry gave wrong profile name my Tele is perroverrde with 4 ‘r’s (no idea why!)