The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
.......with some pain in the near term with dilution or similar, surely the SP will be considerably higher in 3+ years once the Poly4 is selling well as hoped. Perhaps a rose tinted view (!) but with the mine having progressed well of late if it does survive the economics must still be very favourable?
Ditch JP Morgan - the Spivs that have ruined this stock.
The 'white knight' who comes in will only do so if they see a decent potential NPV - 30, 40p has to be their aim surely?
On another note, as soon as JPM got involved this all went wrong with their poor straight-jacket advice.
Perhaps the 'bond buyers' are just simply the wrong investors for us? CF seemed to be suggesting that the perception of risk is too high versus reality - need an experienced strategic who understands the true risk if this is so.
Why does everyone say with near certainty that this will 'end in massive dilution' - that may be correct but can anyone explain why?
Correction - it's not Brexit that is the problem as Brexit hasn't happened yet! It's the Remainers delaying getting Brexit done.
Something is needed to arrest this from the continuing dribble down down down - annoyingly I feel somewhat suckered in by the 5.5p options line :(
KennyJ - totally agree. All this talk of a dividend is absurd - there's little appetite among PI's I feel for a divi, what we want to see is a SP not languishing at 1.6p! The BoD need to accelerate Leigh Creek if this is going to be such a cash generative asset - bring it forward to replenish the cash buffer to avoid further raises/dilution. Getting an uneasy feeling about SML now.
Propinquity - you might be right but this SP won't get to 5.5p or anywhere close if there are many more sudden fund raises / dilutions like we just had.
I can't help but echo some of VanVan's comments - the number of times I've listened to JP and others tell us that we are different from all other AIM companies, we have live projects that are cash generative, cash in the bank, we try not to dilute our shareholders....................and wham a fund raise / dilution!! 18 months sat here at 1.5, 1.6 and then a raise at 1.4p - hardly the way to get the SP to 5.5p! Something needs to be done to get this SP to 2, 2.5p - but what?
Hi - could you post that YouTube link again as it doesn’t work. Thanks
Chilling - this is the main problem with holding a share that wildly known to held by numerous Private Investors, makes us a target.
Any sniff of a takeover and this will shoot up = time to get out of this sorry sorry mess.
Regardless of being told to be patient and wait til 2024 or whatever - this share price is distressingly low and really hurting now.
Myo - excellent post, sums it up well for me. The change from 'punt' to 'investment' is clear for anyone performing a modicum of research imho.
Can't agree with you there Davielad - this is an investment (not a gamble or a punt) in my view. Mines like this have been constructed before, all the necessary machinery exists, Poly4 has been tested across the world via numerous trials. It was a gamble prior to the vote to allow the project to proceed, now it is an investment (and a rather frustrating one at that!).
Well it matters to me! Losing more and more of my original investment day after day is very annoying and messes up all kinds of life plans. We've all already been patient and this is the result.......14.5p!! Joke.
So now we must waiting for the bond sale confirmation as the next 'trigger' for this to re-rate..? Or will that also come and go without any impact on the SP - constantly jam tomorrow with this share in terms of any price improvement. Sigh.
As shareholder we can't have any complaints about the contract JP has put in place with this major client for Cobre - it's water tight and has us covered. Very impressive.
NelsonSauvin - goodbye forever!
Raising via dilution would be the wrong move for SML. Demonstrating that they can find the funds internally is 100% the correct move - this would give the market confidence in the ability of the BoD. This share price needs to rise not fall to get anywhere near the 5.5p option target - it will never happen if they dilute now.