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If I knew the answer to that Sarah. I'd have been able to pick the winning Euro Millions lottery numbers last week, & I'd have a share portfolio worth more than Warren Buffett.
Until we see the details of the deal later this week everything is speculation. So investors have to look at the facts, see what is in front of you & make your decisions whether to buy; hold or sell accordingly
Not IMO, but investors need to do their own research & from that calculate a realistic potential mcap & SP.
We're all hoping for a good deal between Katanga & ZCDC, based to a degree upon the comments AP made in his Proactive interview a couple of weeks ago. But we need to see the deal before we're able to judge if it's better than what we were told would be our opportunity as reported in Vast Corporate Presentations regarding the deal with Red Mercury
Actually Sarah, we don't know if they have any of the agreement that Katanga is going to sign with ZCDC. When Vast failed to be chosen as 1 of the 4 entities to be granted the right to mine IMO all previous bets were off.
We don't know yet the details of the Katanga & ZCDC deal, so we don't know if BOD are still involved.
I personally hope AP pauses. We got into the mess we were in because we had too many projects & no capital to exploit them. IMO we need to focus upon ensuring we get BP into profitable production & whatever is required in Chiadzwa before we try to start another project
Hi Sarah, I’ll endeavour to answer your question about the IPO.
Vast created a new subsidiary company called EMA Resources in the Summer of 2018, with the purpose of exploring & hopefully exploiting the Blueberry Project. The Blueberry Project was an exploration licence owned by a Romanian company called Blueberry Ridge (BRL), clearly the shareholders of the Blueberry project hadn’t been able to obtain funding because they & Andrew Prelea had been seeking to exploit the licence for a number of years prior to AP joining Vast. So last year BRL entered into an arrangement whereby they would transfer the rights to the licence to EMA in return for 70.59% of the ownership of EMA. In addition Vast had to find at least $1 million to fund exploration of Blueberry to obtain a JORC valuation.
The theory was that by the end of this year EMA would be floated on a stock market, through an IPO process whereby new shares would be sold to new investors. With I would imagine as is the the case of all IPOs, a percentage of the cash raised going to the current shareholders, i.e. BRL & Vast, but the majority being used to fund the development of the mine.
Thus Blueberry is normally referred to as a project that won’t cost Vast anything but which will be value accretive to us as shareholders because of the value of our 26.5% shareholding in EMA.
That’s a positive opportunity if the theory is fulfilled. Vast managed to raise the $1 million last October & we received a drilling update in January. In the drilling update RNS, additional work was to be completed & we were meant to receive an update by the end of July. However nothing has been reported.
But there is a reference in the Annual Report which is potentially concerning. When the $1 million was raised last year, we were reassured there was no cost to Vast, with as such no consequential risk on us as shareholders. However in the Annual Report it states that if certain actions are fulfilled then Vast have a $750K liability to the provider of the funding with payment due in December.
So although we’ve not heard anything about Blueberry for 9 months I hope progress has been made, because if not we’ve got a nasty bill to pick up
gerorio, most certainly not investment advice, but undoubtedly yes. IMO Vast is the organisation that the ZCDC manager referenced when he said they'd be a signing a deal this week, following cabinet approval.
That then triggers the details regarding the finance deal & I would expect a date for the GM with voting motions. So IMO a full news week.
I agree starvest. That's why I think it's going to be a minimum of a combination of a charge on the Romanian assets & the Mercuria warrants.
IMO as others have said the SRK report is very important in establishing a realistic value for the Romanian assets. That then leaves the question, is further security required? If so that is something we'll be asked to approve when we see the GM motions.
Flipping heck Sandy, the regulars are going to be worried about you & me agreeing, but the timetable you outlined in your post makes perfect logical sense to me.
In reply to Starvest, IMO the SP is irrelevant to the financing. I personally don't think this $13.5 million arrangement is linked to the SP, other than in terms of warrants or other security we might provide. I would like to think this is a straightforward loan/bond with a rate of interest negotiated between Vast & the Financier. With a reasonable repayment period that we'll have no problems working to if the diamond & BP revenues and fcf forecasts are achieved.
Like any such loan the company will need to provide security, with a charge on the Romanian assets being one part, as with Mercuria; certainly the re-assignment of the 'Mercuria' warranties & potentially a GM request for a further security top-up. Obviously the higher the SP, the less warranties etc required, so let's hope for a massive rise when the ZCDC signing RNS is released.
Hi Sam, there’s clearly an error with the linkage to previous price. Until close of business today C&C group will be listed on the Irish stock exchange, where the price is currently €4.05. From tomorrow it will listed only in London. So the price for the single purchase today is comparable to the current Irish price
Sarah, you certainly have no need to apologise to anyone for a spelling mistake. Look at mine or anyone's posts & you'll see loads. Especially with flipping predictive text. I sometimes post & wonder if I've changed languages.
Getting back to the substance everything you've said makes good sense. I hope you're right & we don't see the SP make steps forward & then fall back. I just know I need to be more dispassionate about my investment in Vast & be prepared to take profits, rather than holding as I have over the past 4 years as the SP fell from 2p, when many of the real Vast cheerleaders have clearly sold & bought back when the SP has stabilized.
Whatever happens I think you're right about next week it's going to be hugely exciting
100% agree about how companies behave on AIM.
I’ve not traded Vast yet, but I think it will be the sensible thing to do. Everyone has their own opinion, so I stress this is not investment advice.
IMO we will see a very significant rise when the diamond deal is signed. The finance deal depending on what it looks like will either boost the SP, or cause it to fall back, I think it’s that binary. Then inevitably we’ll see an SP fall as the traders move off - the trick is going to be spotting the right time to follow them.
Then the final part of the puzzle, when to jump back in when the assets are in production & Vast’s SP starts to behave like that of a profitable commodity company.
I tend to agree Sarah.
The original RNS last week said the first week of October for Katanga to sign the deal with ZCDC, the first week of October includes Monday.
The article Jason found with his usual excellent research had the head of a ZCDC quoting that they’re going to sign a diamond deal next week. As it requires Zimbabwe government sign off, I got the impression it will be later than Monday. Am I worried about the delay? No way.
Am I confident that Katanga is the party they’re signing with? You betcha I am. Andrew Hall wouldn’t have been tweeting the information from what Jason shared f it wasn’t Vast. He is after all VAST’s PR guru, & to tweet what he did if it’s not Vast, then why on earth would he start tweeting as he’s going to be ridiculed & look like a total kn*bhead, he’d have kept quiet.
Will the SP be 0.4 on Monday? I have no idea. But IMHO (please DYOR), by the end of next week it’s going to be much higher.
Hippy, please read the Annual Report. It is very explicit Manaila is going to stay on care & maintenance until such time as a second round of funding can be obtained to facilitate the implementation of a totally revised plan for Manaila.
Read what the company says, not what you see on a bulletin board.