The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
I still can't see them getting a placing away multiples above the prevailing price at the time of the placing Announcement.
In reality it just doesn't happen.
The price has to rise within the next 2 weeks to have any chance of a placing price above 2p
The 3 cornerstones will have to write their shares off and start again in order to save this company.
The banks don't care as they will get the mine proceeds from the sale.
You only have to look what happened to ROQ on Friday . They had to abandon there raise because share price went down from 7p to 4p. Probably had it earmarked for 6p new shares , nobody would want those shares if the price is now 4p .
Same at HZM , today will pay 5p when the shares are at 2p .
It does stink , I had to sell mine for a loss. Don't want to be in a non tradeable company. š¤¢š©
I wouldn't say it was allover just yet.
Something is going on š¤
Whatever, it is ,it won't be good for existing shareholders.
In terms of asset sale the shareholders will get nothing as banks will get most of any funds in.
So we wait . Mid April might get some update š¤
Could be a raise at 2p now instead of 1p . The more the price increases the higher the placing price will be.
More good news is needed like Tuesday RNs.
We need a good leak to suggest an agreement is near. Might get a big leap then .
Bottom at 250p , me thinks š¤
Sorry Mv. The "market doesn't reward failure" . If you think 20p is a distinct possibility then why are the professional traders/ investors not buying hand over fist ?
Because the placing , if there is one , will be between 1 & 2p,
If you believe it's 20p then you should sell your house and buy shares tomorrow.
If not you are just ramping and dumb investors will waste their money tomorrow. We'll see shortly.
Still think the 3 cornerstones could take it private and then refloat it once it was up and running.
Seems a very popular tactic at the moment . That way they can pick up the company for 2p a share , probably about 3 million.
Don't bet against it . The 3 cornerstones will be just looking after themselves .
They will say it's in the best interests of all shareholders blah blah. After all they will say the alternative is admin .
Wasa, you are right in what you say .
Hzm is priced for admin as at the moment it has effectively no money and a load of creditors.
They are effectively starting a new company in the shell of the old one, Hzm marks
They need to convince everyone in the negotiations that they have their sums right this time when they got them wrong by a factor of 2 last time.
All 3 CS`s were on the watch last time so investors need to know the same 3 have got it right this time. Might be a big ask for all new investors
Rover, I suspect they would take what is offered . When the company has run out of money , then beggars can't be choosers . To be fair it might be that LA that buys out Glencore out. LA has put there own man in there so i think they mĆ y be taking the lead ?
Mv , I can't argue with your points re CS`s ,
BUT you just don't see premiums to prevailing share price.
Can you think of a company within the last few years that has done a placing at 100% to the prevailing price.
It just doesn't happen . They somehow have to get the price up before they announce the placing .
Only good news can do that , but the good news is the placing . I don't think they could say ," we think we are going to have a placing" , can they š¤
i think it will be 1p on the basis that placings are generally done at a discount to the prevailing price.
with the cs`s having 51% , then they might have the leverage to increase the placing price š¤
i honestly don't know whether that can be possible .
i can't see new investors putting money in at a premium to the current share price , and how many of the 49% are willing to put more money in after bad. most will just be so ****ed off they will want to get out. you see it all the time with companies that have gone bad, the stale bulls want out .
Where there's a will there is a way.
They all appear to be willing, so signs are still good.
Interesting that they added a fresh dimension to the caveat at the end. Care & maintenance as a possibility.
I can't remember that being there before. How would they be able to do that if they have to continue paying interest on the loans etc š¤
I can see how they might want to kick the can down the road as money for mining projects might be totally different in say 2 years, but I suspect it's more of a negotiation ploy against the creditors.
I suspect the mine is viable , otherwise there would be no point starting the negotiations in the first place.
And yes the 3 cornerstones don't want admin as that would open up the part finished mine to other competing miners who may want to pick up the remnants for a lot less than they are worth. Something more will have to be announced next week so we won't have long to wait