The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Dream scenario PaulFG....we are funded for next stage of drilling I think. Greg was a little hesitant and not 100% clear but if we are fully funded and drilling comes back positive surely we will re-rate from such a low market cap?
Let’s say for arguments sake we are sitting around 7p after drilling for £23m market cap. I’m not convinced it will get there until we have an updated JORC but dream scenario!
Greg hinted the next raise is almost certainly going to be a private placement and not an open offer despite his claims he will get the brokers thoughts on all an open offer.
Let’s say we raise at 5p for a 30% mates rate discount (from 7p) for 20% of market cap raises £4.6m issuing 92m new shares?
Say half of the 2021 warrants/options at 2p are taken up for another £650,000 (32.5m shares).
The only issue with this is doing a raise when the cupboard is bare which is risky but I think they have plenty of backers willing to invest as long as the drilling is favourable.
So....let’s say after dilution we have 428m shares in issue and £5.2m in the bank with a market cap of still £23m, roughly 5p?
£5.2m would certainly allow them to ramp up exploration and drilling.
If (huge IF) the IOCG targets look promising we can forget about RC drilling we will need diamond rigs drilling to depth so drilling costs will increase dramatically. However if there’s a valid reason to continue to investigate the potential of these targets the positivity of the IOCG being worth drilling at depth will add substantial value to the company.
The next raise is key to how quickly the company can progress. If they only raise £1-£2m per year it’s going to be a long hard slog to release value.
As soon as Andromeda need to contribute through the JV that will also give us more funds for exploration.
Sorry for the waffle but that’s my take on funding and going forward, complete speculation in other words!!
I’m all for de-risking and doing geo-chem in advance of drilling but what I don’t like is the 5-6 month hiatus where there’s no excitement with no drilling results coming through.
Craig did mention that the project will build momentum as we progress but surely they can time it in such a way that they stagger the geo-chem and drilling so they are happening simultaneously?
All though saying that I appreciate its easy sitting looking in questioning the strategy but realistically their hands are tied due to limited funds and they can’t go gung-ho and blow the budget without having all the geo-chem data to direct the drilling, chicken and egg!!
Caught up on the webinar last night. Lots of info and overall thought it was worth them doing just to keep investors updated and explain what’s happening.
Little concerned short term there’s not going to be much news to keep those invested from not getting bored and selling up. Mid September onwards things should ramp up and the excitement return.
If they intend to stick one drill hole into Prince Alfred and they’re not doing any geo chem in advance of that why don’t they do it now rather than wait until the end of the year!?
It’s all about the drilling now!
Still to catch up on the webinar Dan but did they say how long they expect it to take to reach 1m oz target? At the end of the next round of drilling or longer? Thanks
Thanks Bitcoin. Looking forward to catching up on the webinar later.
Did they touch upon how long to production and estimated timescales for 1m oz resource?
Can anyone give me a brief rundown what questions they answered please?
Now on website....
https://secureservercdn.net/160.153.137.14/w32.3eb.myftpupload.com/wp-content/uploads/2021/06/COBR-Capital-Markets-Presentation.pdf
I don’t know for sure but I think the presentation will be quite technical. We’ve all been bored stuff waiting for some decent action and I’ve been guilty of thinking what the **** have they been doing since January. Tomorrow we’ll find out with a deep dive into the geo chem analysis for each tenement drilled. Investors and analysts have been invited so I’d imagine it’s going to be very in-depth but not any new news as such just an update where we are at and what’s to come next. I’m really looking forward to catching up when the webinar is posted on the Cobra website. I’d imagine a 7am RNS giving a link to the new presentation giving everyone a few hours to divulge the info before the webinar. Not expecting any significant SP rise but hopefully all the info will reinforce my belief in the companies strategy and future potential. Bring it on!!
No problem Dillon but it’s just my opinion so don’t take it for granted!
Negotiations are still ongoing with Andromeda about the JV. Once finalised they will need to contribute anything from 25% to 50% depending on how quickly we progress to 75% ownership of Wudinna. I’m pretty certain come end of the year the Wudinna Joint Venture company will be created so we’ve got that to look forward to as well.
One of the questions we have submitted asks for more details on the JV. I can’t attend on the day but anyone who is listening in should definitely make sure the board are grilled about the JV as it’s potentially huge news for us going forward!
Realistic timescales?
June 2021 - mid July 2021 = aircore/geochem drilling
Mid July 2021 mid August 2021 = assays
Mid August 2021 - beginning October 2021 = analysis
Mid October 2021 - begin drilling campaign
Mid October 2021 - mid January 2022 = drilling
Mid December 2021 - end February 2022 = Drilling assays
May 2022 = updated JORC hopefully showing 1m oz!
Now at what point are they going to raise funds as they will need to and at what price!?
Ideally raise after JORC increase when SP could be around £30m (10p give or take) for 20% market cap (£6m) roughly 60m shares!?
Think this covers it!
1. News flow is important. Communications are not good enough. Can this be addressed? Regular updates and increased PR? It drives PI's Sentiment.
2. Once the 75% earn in has been achieved @ Wudinna what are your plans?
3. Although a little premature until the next stage results have been confirmed but do you consider a JV with our site partner will be an option or the natural next stage of our partnership?
4. Do we have tin in our tenements, could we target tin if confirmed could this be the way forward?
5. When will a replacement for Craig be confirmed?
6 We have a new licence area pending but are there any other planned acquisitions, or are we to be a one trick pony?
7. Is our Copper tenement worth investment, is any planned?
8. Finance..where are we with this have we enough to take to the 75% work in stage? Will a listing be required if so can current holders be given an opportunity to par take.
9 What are Cobra resources aiming to achieve, what is the game plan? With what we have currently and in the not too distant future?
10. Given the relative success of stage 1 drilling how confident are the board they can achieve a 1m oz resource?
11. How much longer do they think they need to achieve 1m oz, after stage 2 drilling, stage 3 drilling etc?
12. Given the 1m oz resource will be spread across multiple target areas do they foresee this as being an issue when it comes to mining?
13. Realistic timescale for starting production?
I’ve got lots of questions regarding the IOCG targets but I’m sure these will be answered after geo chem and stage 1 drilling results come through.
14. Will there be a lock in of CM stock for orderly market purposes?
15. Have we to date found any tin grades worth exploring and is the method of sampling we are using, the best method for discovering different elements?
16. Do we think we should get another broker involved alongside SI Cap?
Ok that’s the questions submitted to Ben at Vigo. Really hope Carribean gets in touch as I’m sure he’ll have quite a few he would like to be asked. Hope he’s ok!
This is what we have so far....have a read through just to make sure your question has been covered already to avoid duplication....
1. News flow is important. Communications are not good enough. Can this be addressed? Regular updates and increased PR? It drives PI's Sentiment.
2. Once the 75% earn in has been achieved @ Wudinna what are your plans?
3. Although a little premature until the next stage results have been confirmed but do you consider a JV with our site partner will be an option or the natural next stage of our partnership?
4. Do we have Tin in our tenements, could we target tin if confirmed could this be the way forward?
5. When will a replacement for Craig be confirmed?
6. We have a new licence area pending but are there any other planned acquisitions, or are we to be a one trick pony?
7. Is our Copper tenement worth investment, is any planned?
8. Finance..where are we with this have we enough to take to the 75% work in stage? Will a listing be required if so can current holders be given an opportunity to par take.
9. What are Cobra resources aiming to achieve, what is the game plan? With what we have currently and in the not too distant future?
1. Given the relative success of stage 1 drilling how confident are the board they can achieve a 1m oz resource?
2. How much longer do they think they need to achieve 1m oz, after stage 2 drilling, stage 3 drilling etc?
3. Given the 1m oz resource will be spread across multiple target areas do they foresee this as being an issue when it comes to mining?
4. Realistic timescale for starting production?
5. Can you give us more info on where we stand with the JV negotiations?
I’ve got lots of questions regarding the IOCG targets but I’m sure these will be answered after geo chem and stage 1 drilling results come through.
Carribean has gone awol on telegram so just in case he’s having problems/issues I’ll compile the questions investors want to ask and fire them over to Craig and Ben at Vigo. I’ve just received an email from Ben asking how the Q’s are coming along. They need them ASAP so they can review them before the presentation.
I’ll go back through the recent posts and put the questions together so last call for anything anyone would like to ask in advance?
Yeah I’ve submitted some. We should be getting loads of info from the presentation!
Looking forward to the presentation and hoping it will kick start the share price to head the right way!
Medium/long term not too concerned but short term Jesus who knows how low it will be taken. Need something left field (JV update/new CEO announcement) short ten to stop this rot. Nothing in the pipeline until drilling commences to bring a bit of excitement back but that won’t be until at least August. 17% spread doesn’t help either!!
Hale Energy Pty Ltd appears to be Thor Mining for the funding. 7am RNS so we definitely didn’t get any funding!
Not sure who the contractors are but I’d imagine if we had been awarded funding we would have had news by now. Just thought it was strange not seeing Thor’s name on the list.