The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Tygra - horse sh*t. Nothing in your post makes sense let alone rings true.
Tell us, how do you develop a mine without money?
a - place shares
b - raise unsecured debt.
c - fail
Which option would you have them pursue?
No. They are aged corporate finamce weeks ago but likely conditional on reporting acceptable grades. Do you think a lender is going to hamd over money at total risk? The price will have also been agreed pre news spike. It's a lenders market, put yourself in their shoes... Oh wait, you are. Woudl you buy more shares at the price they have offered given the latest assay grades? I have and will buy more.
Hands up anyone that has actually raised money for a business? How about a business preincome?
Just bought another 1.5m at 0.0688. Crazy price given the potential now.
Oh and another thing, of course they are going to raise after good news. They get a better price from corporate finance off the back of it. In fact they are probably ONLY able to raise after good news, or would you rather they raised at a lower price without the news?
Have any of you ever invested in mining before? Where exactly do you think the money comes from pre-production? Every activity has a cost.
So the raise is at a price lower than I would have hoped, 7.5 would have been better than 6.5, but is always going to happen at a big discount to the open market otherwise the company stumping up the money for the placing would just buy on the market.
The good news is the numbers are starting to look more serious, £380,000 is a tidy raise.
To build out a full scale mine this company will have to raise millions, not a few hundred thousand. There will be bigger placing down the line, and potentially open offers too.
If you're a big enough idiot to think raises are not the way to do this then come up with another way the company can pay staff, labs, geophys surveys, security, buy equipment, pay licenses and so on.
The only question I have is why twitter and not an RNS? Surely this merits releasing via regulated news?
Of course they are going to need cash. They don't have the money at hand to build a mine, nor should they. Why would they be sat on a huge cash pile with no certainty about whether they could get a return from it?
I suppose they could hand out hammers and picks and pit helmets to share holders instead of raising cash?
1 ton of rock is surprisingly small. about 12-13 cu ft so around 3ft x 2ft x 2ft. Easy fit in the boot of your car! Might be tricky driving with it, or getting it back out once thrown in mind...
Just taken my holding up a bit to a nice round number. I can see this going back to historic highs and beyond over the summer. £7m mkt cap today, if they really do find those crazy grades in bulk then this could go an awful lot higher.
$42.5m is around the market cap at 12p. There is the larger and faster growing other part of the business which will be left post disposal.
Not too long ago the share price was 50p, inside the last two years it was 30p.
Taking off the 1/3rd of the company that is being sold for 12p a share, the remainder should be valued somewhere around 24p.
It is also possible that this is the first of two separate sales, the US part of the company could also be sold probably at a higher multiple, realising the 24p or more for shareholders.
Basically this still has a lot of up to go from 12p based on this deal. The price pre deal was nonsensical and shows the failure of the London market rather than anything to do with the company.
Notrex - your whining like a spoilt brat is getting tiresome. You've said nothing new in 2 days other than throw insults at everyone that disagrees with you. I don't often filter posters on LSE but you've just made the list, you can't argue with stupid.
Terry. This is the basic question:
The share price BEFORE yesterday was down 70% or so from its peak with the dividend until that point held in place. The dividend plainly was not helping support the share price.
What should the company have done?
a - Continued to pay out almost all profits as dividend regardless of the continued share price decline, keeping to the plan that was not working.
b - Change plan as almost certainly directed by major holders to cut the dividend, reduce debt, and invest profits for capital growth?
I am calm, you've put a smile on my face, its fun to imagine your thought processes, or rather lack of it.
You do know these boards are not only a restricted play pen for the hard of thinking?
Ha... The idea I am paid to disagree with you is hilarious. Where do you think these jobs get advertised? You really think this BB is important enough for anyone to pay for content?
You still can't see any positives, maybe your bottom lip being stuck out so far is the problem? Yes the dividend has been cut. That seems to be the end of the list of negatives.
Zero proof George. Other than you saying it repeatedly like a demented loon there is zero evidence to suggest what you say is true. Feel free to report it to the FCA or anyone else you think may listen.
I was wondering when you would show your shameful face again George. I notice you didn't answer last night after throwing the liar accusation around, I think you're only here as you enjoy the wind up nothing else.
Notrex, I am perfectly calm, possibly slightly less tolerant of nonsense than usual. Just you're wiffling on like a kid that's dropped his ice cream.
If you can't come up with a sensible suggestion of what the company should have done stop complaining about what they have done. Obviously sticking with the dividend wasn't working for anyone in the end, at least accept that.
Terry - No one cares you're upset. In the scale of things, you being upset doesn't really matter.
Put your thinking cap on and try and reason this through.
1. Do you really think Rusty and the board sprang this on their major investors yesterday?
2. Has being listed in London really helped the company in the last 18 months?
3. Are E&P companies more highly valued in NY?
4. Has holding probably the highest dividend on the market helped or hindered the share price?
5. Does the share price move the day of the results based on institutions instantly piling in, or do they take a while to analyse and digest results?
6. How long does it take to update broker recommendations?
7. How many PIs really thought 30% dividend was here to stay?
8. Who is the audience Rusty and the board are playing to? You or someone else slightly more important?
9. Trust in any executive is about trusting them to do the right thing for value of the company, not you as an individual investor.
10. There are probably loads more points to make, but none of this is going in anyway so why bother?
Notrex, I expect he is absolutely gutted about losing your trust, but if it brings institutional investors to the table I think maybe he will get over it pretty quickly.
He is the CEO of a FTSE company not a boy scout leader. Talking about trust sets you out as at best naïve, but more likely just a bit dim.
You are not the stakeholders he or any other FTSE CEO should give a hoot about. We as private investors are riding on the coat tails of the institutions, how do you think they will have taken this change in strategy?
The share price has dropped because a number of investors will have sold on the basis of the dividend being reduced. Those that are so piossed off here for a start. It will take a few days to work through and settle down.
Rusty's strategy was not working, something had to change. It is not unreasonable to change direction. PIs are not even close to a majority here, the shareholders that will have driven this change are the institutional ones, and yes they were almost certainly not only consulted but likely pushing for it.
In August 2022 the share price was £28 in new money. Since then despite holding the dividends and improving operational performance the share price has fallen 69%.
The definition of insanity is doing the same thing over and over and expecting a different result. Holding the dividends has led inexorably to a collapse in the share price.
Clued - I think Rusty and others may look at it the other way, that the UK price is acting as a millstone around the company's share price neck. Why keep the UK listing exactly? UK Retail and Institutional investors walked the price down to where it is now despite extraordinary dividends, company growth and improved operating performance.
We talk about Rusty's promises, but nowhere near enough investors valued that model enough to justify keeping it.