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Political instability in sub-Saharan Africa is endemic. UN forces are there to contain it and I'm certain it won't stop governments from granting licences to mining companies, as resources are a lifeline for these cash-strapped economies.
If these Islamist extremists ever get the upper hand, it is then and only then that we will need to sit up and pay attention. None of these run-of-the-mill terrorist incidents merit much coverage in the newspapers - this is far from being front-page news though news agencies like Reuters will always pen a few lines for the record. Yes, it will inhibit investment by risk-averse major funds but as a small cap we're not dependent on them for finance in any case. And when did the politics ever stop the Chinese? Ignore.
We know the MMs run this thing. What I'm more concerned about is why the BoD isn't buying more. And I don't believe that nonsense about being barred from doing so by the market regs. They need to show some willing. These greedy sobs seem quite happy to milk the company year on year.
Ned, there has been loads of demand at just under 16 since the initial trades that followed the placing RNS. I hazard a guess that MMs have agreed to allow these stragglers who didn't get filled at the placing to jump on board at a slightly higher price. MMs decide what price they are able to supply at - it has never had much to do with supply and demand, IMO.
The orders may take some time to work through. A lot more buying is needed to feed these sells. It is certainly distorting the market at present.
Those prices quoted as examples are of course pounds, not pence... £.00155 etc.
Yes, the uncertainty surrounding trade classification is a complete shambles. Why can't participants be told whether a trade is a buy or a sell. Is it possible that clarity is not what the 'market' actually wants? If the market authorities wanted it then I'm sure we'd have it. It isn't rocket science. Draw your own conclusion.
On the question of the large trades, there is a second possibility already hinted at, namely that the placees are short-term speculators, not investors for the longer term. Assume for a moment that the shares are seen as uninvestable by City investors - please see my earlier post. In that case these placees will want to hedge, or neutralise, their exposure to a speculative stock like KOD. They can do this by planting, well in advance, sell orders in the market at a chosen premium above the placing price - let's say .00155p for the sake of argument. That's a 10% premium to the placing price. These orders would be executed by MMs as soon as possible after the RNS in order to minimise placees' exposure.
For as long as these sell orders remain unfilled there is thus an 'overhang' of sell orders in the market, which may explain why MMs have apparently not allowed the sp to rise today above the initial rally to .0016 ask. That overhang has to work through the market before the sp can make any further progress. How else can one explain the lack of upward movement after the initial, early trades. It is on the face of it bizarre to have lots of chunky buys but no accompanying upward movement. Of course we have no access to the book to verify the theory. Hmmm...
I am not claiming that lth have any moral superiority over traders - that is for fools only to claim (and perhaps one in particular!) - but what we are faced with here may well be speculators with the cash to provide the needed placing funds on condition that they can exit the market soon after the deal is struck. MMs will be only too happy to assist.
On these assumptions it is entirely possible, therefore, that no actual investment for the long term has taken place. It's the City, folks... it's a casino.
SP Angel will have been hawking these new shares around the City for a couple of weeks but as the co only wanted £700K it will not have been of interest to most funds. Too small, imo. Moreover this co is likely deemed uninvestable by better names as it has no income, a poor time-keeping record, a ridiculously narrow share register with very little director participation and is still therefore a bit of a punt which would not get past an investment committee.
These large trades this morning may, just may, be the work of some potential investors who didn't get in on the placing. Hawking the co around would have brought the project to the attention of these would-be buyers and these trades might be the result. In any event, they have got in very cheaply and no-one buying here at these prices can complain if the stated outlook can be taken at face value, even with those constantly missed deadlines etc. HOLD
'Fully funded' doesn't preclude fundraising and never will, the BoD might say. They would be right.
The market reaction is positive and I'm also encouraged that persons unknown - and not our 'Chinese friends' - have stepped up to the plate. It's a small vote of confidence from external investors. Very welcome, even for such a minor amount.
This has been a buying opportunity if you're a believer. Nothing substantive has changed other than the number of shares in circulation and the cash on hand.
As for not allowing PIs in, the administrative hassle - the paperwork and the box-ticking for the FCA - of a public placing just ain't worth the candle for a sum as small as £700K. I see the logic. This is positive for lth and the market says as much.
Yes, Joe. Given the choice between minor dilution and payment by results I will always favour the latter. The PM is incentivised with these warrants, though I have to say they ate a bit of a giveaway at these strike prices. The strike prices appear arbitrary but I guess they are historic benchmarks in the mind of the BoD. .14 is the floor and .38 is the initial investment price offered to SC. If these targets cannot be met we are quite frankly all doomed!
As Dubliner says, the warrants confer the right to buy new shares - 'warrant shares', which will have to be created - at a set price. That will require a RNS.
A paper profit arises when warrant shares are bought at a strike price which is lower than the market price. So the warrants which have a strike price of .14p are now 'in the money' and the holder could if he chose exercise a warrant by buying warrant shares at .14p. He can then keep them or sell them in the open market for, say, .18p. The purchase would require a RNS because shares will have been been issued to satisfy the purchase.
Note that the warrants are awarded, ie they are given - no money paid - but the warrant shares have to be bought from the company at the appropriate strike price. The advantage to the company is that there is no cash payment to the holder at any stage in the process.
Ned, you're a good guy for sure. Yes, live and learn. The embarrassment is understandable and comes from the piggish way people on here are being treated for no good reason. It's disgusting and I condemn it. The AGM will be an opportunity for people to say what they really think. That too could be embarrassing and I won't put it any more strongly that that. .
Donny, social media bullying and threatening behaviour should not deter you, imo. I have been threatened privately but think of the serious threats faced by our politicians online on a daily basis. That must be very unnerving. To avoid these pests it might be a good idea to try another BB but as a matter of principle why should one be driven away?
The one we have here is a practised bully, posting day and night, and is used to threatening people, but I won't be bullied or muzzled by such characters. He did leave for a while but now appears somewhat overcommitted and won't tolerate any negativity because he says he thinks it might affect his financial interests. What's that one about 'if you can't stand the heat...'? I met him once and have learned my lesson. KOD is his life and he's very protective.
Best of luck and don't be intimidated by complete strangers. It's a sad internet world we now live in.
This BB has to act now. It is against rules to belittle and bully people and also to reveal personal details about other posters. This poster plays very dirty indeed. Complain to the moderators if you feel strongly about these abuses.