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There is nothing stopping, but I suspect his secretary will say he is too busy. In any event he can't tell you anything that is not pubic knowledge. He will just refer you to the info in the update.
Look at the price up to the month end , if it drops it is likely to be bad news, if it increases in anyway then the placing may be above 3p. You need to decide whether to reinvest again . As you say if it's 70% finishing they can't get their sums wrong again π€. I get a sneaking feeling if they get this done , they might suddenly find the extra costs aren't that high. But that's me being cynical.
Rover, I don't think you understand the seriousness of the situation. Companies that run out of money normally go bust and are in no position to negotiate a good deal.
They have to take wot they are given.
The company needs new investors. Other than the people on this board, probably a dozen , a lot of the existing 49% will not want to reinvest after the way the old company has just destroyed their investment.
Mining ventures are not popular at the moment and are always high risk so many further investment will have to be at a substantial discount to the current price , I guess 50 % easily. Unfortunately, that's what happens when a company gets it seriously wrong. They get punished.
For East Imp the chap that runs the co has been doing presentations prior to the placing and to give him his due he has managed to up the price from 0.5 to 0.6p .
Advisors/brokers will be doing the same thing for Hzm. Touting round the placing idea to see what price new investors will pay. Then they will do the cap reorg based on their findings /recommendations. To be safe they will settle on new shares at 1p , but hopefully place them at some sort of discount to the prevailing price
Electric L,
It would be the only way to get the placing away . New investors want a discount to the prevailing price . They would never pay 20p when the shares are 3/4p . Just look at say Avacta . At say 100p would investors pay say 400p . Of course they wouldn't . They had to set it at 50p , much to the frustration of the existing PI's
You can change the nominal value of the share by way of a General meeting . East Imperial has just done it on 2 nd Feb.
There share price is 0.5p and the nom value is 1p. They have done a cap reorg and will issued new shares at 0.1p . They haven't placed them yet but the price will be less than 0.5p . Probably not at 0.1p π²
So if the board a cap reorg they can get the resolution passed , they can reduce the nom value to 1p prior to the placing . I guess as the 3 main investors have 51% it will go through .
You have several problems here ,
The company, not the project, is priced to fail, ie the mm's believe more than likely going into admin, hence the price of 3p .
It's not the value of the project it's the value of the Hzm shares.
However, if the market believes there is a viable solution at the end of the month the price should rise towards the end of the month. Inside info will always leak out to some degree.
I can't see any placing being done otherwise than a discount to the prevailing price at the end of the month. It really does not make a lot of difference to the main players who will have to stump up best part of 100mill for new shares. whether that is shares at 2p or 6p they will have to stump up the same amount of money. They then have to rely on existing shareholders and more importantly new investors to stump up the other half . For any new investors they will want the shares at a discount , which makes it a really attractive deal. You only have to see what Avacta had to price their shares at and they are supposed to be a well regarded stock.
So watch the price during this month to get a feel as to what may happen. Unfortunately, the 3 main players will only look after their own shareholders, that's their remit. They have no remit to look after Hzm shareholders.
None taken. I have a pretty thick skin.
TBH I can't see them making any further statements untill the final results at the very end of this month . They may delay to early April if they have a proposal. It will make grim reading , but the shares may actually bounce as everyone knows it's going to be bad. If there is any light at the end of the tunnel we may see it then.
In their update today they stated that they had conserved a lot of the interim finance money so I can't see them needing any further cash until the end of May when hopefully they will pass any resolutions that will take them forward. As long as the Trio don't fall out over the details then we are off to ππ
You can insult me as much as you like. It just shows what and infant you .
I'm laughing at you because I don't have any shares in this mess, although I will be investing at 2p if the trio get their act together , loads of money π°π°, then off to ππ
No it's no fun or funny to be in that position. I still own some Bezant which are all but worthless.
But I just don't get why you would think the shares will be offered at 20p. Probably about 95% of placings are done at a discount to the prevailing price. The other 5%'are done at a small premium as the company is going gangbusters.
So this will likely be done at between 2-3p.
The sums on dilution are as follows, say you invested Β£1000 in shares at 125p . That investment is now worth about Β£40 .
It will still be worth Β£40 after the placing but the company will be worth 180 million . Even if it then doubles from there to 360 million your investment will still only be worth Β£80 on an original investment of Β£1000. It would have to more than 10 bag to get anywhere near your original investment π€π
In terms of dilution, I reckon they would have to offer up 8 billion shares at 2p to get 160 million sterling.
Current share are 270 million , that will be a dilution of 30 to 1 , we'll see what comes , but I wouldn't be advising anyone it was a strong buy or buy
Totally agree, a definite punt at the moment, downside is zilch , upside difficult to see much π€
Best to wait for the proposal and then invest in the new shares , most likely at a discount to the price at the end of March π€π€
As I suggested the trio of controlling shareholders will want to pass through any proposal at the AGM at the end of May .
I think they will have something as they will be too embarrassed to fail , given that they have overseen the debacle and Glencore will want to use the mine to replace the New Cal mine that they announced the closure of.
Assuming the trio keep faith with the 49ers, then at a ratio of 1:1 equity to debt then the placing may be 160 mill sterling of new shares.
Unless the company is doing really well the price is seldom at a premium to the current price , so at the moment I'd bet on 2p π€
By the way Billy the laughs on you not me , I'm not the one holding the fooked up shares π¦π¦
Mv, the mm's mark the price down as a result of how they read the RNS, most probably by an Algo, then they will adjust the price during the day depending on the level of buying and selling. Like you the say the price bears no relation to the cost of the project so far . It's priced to fail at the moment , only good news will send it higher
Rover, correct , but I am not suggesting Glencore goes it alone . They appear to be acting as a trio and I suspect they will go forward as a trio as they will get whatever they propose through the AGM in May. Unless they fall out and then it's anyone's guess as to what happens.
The final results should be out at the end of March so I suspect something may be proposed then or very soon after , with the proposal going to the AGM in May for approval. It would make sense in t erms of timing.
I am tempted to wait until after the final results before investing as that is the least riskiest option.