Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Hi cf, did you add any last week. I picked some up last week. Pre announcing a possible raise at 15 p was bad imv but did give a chance for bottom fishing . It is now moving as it would have last week had they not forewarned of a raise. Nearly at breakeven now and going to think about de risking mid 20 s. Might be being hopeful but funded for good 6 months makes a big difference. The market knew Cnr was going to have to raise just like last year and pushed the price down.
Good luck
Cf, yes. We have burnt m in the last year and £4 since jan so imagine a 6 month runway and Mellon still has another £1 m outstanding. Hopefully now the sp will start moving a bit. Really this should have been released with the previous rns but hey it’s done now and we are funded for a good while. Let’s see if we can get the deal finally . Year and a half is a long time to sell an asset and £6.7 m spent to achieve is not impressive mr m.
Simms, what you fail to consider is, number of shares at deal end , expenses including Hannan, mc and anybody else’s rewards, legal costs and I believe 15% tax. There is likely to be 2010 m minimum shares, quite possibly more. There are outstanding warrants at 23p and 28 p as well as another £1 m at 15 p. I believe you can deduct 15-20 m from total. I think £100 m would probably be a fair price. Nero example gives £184 m for a much bigger resource. You can argue the pros and cons but we are not worth equivalent. Even taking the present number of shares nearly 200 m and no costs, that would give you 50 p a share but there will not be no costs!
Slipperry. The way it was worded was that certain investors would like some at 15p, so taken on face value would imagine it is already agreed. Should have let the sp run and then announce any raise when it is ready at the market rate. Mc has effectively manipulated the sp down which I do not like at all. He has given market sensitive news that has affected the sp, but not by rns. The only benefit is to whoever will receive the shares. Do you think this will be another open offer?
Slippery, I get being funded is a good thing for market sentiment etc, my point is that if he hadn’t mentioned 15 p raise incoming then the price would more likely have carried on up . We could have then raised higher which would be much better for us and given the message that Cnr shares are worth more than a measly 15 p. It was stupid imv. You would not expect having just secured funding for 5 months for the sp to be rooted at 15 p still. Does give peeps a further chance to buy in the open market at 15 p I guess.
Bit odd to tell everybody of a probable raise at 15 p . Means that the sp is not likely to rise from that point until after this raise. Tells the market that Cnr value their shares at 15 p currently . Kind of puts the brakes on until whoever gets more cheap shares. Would rather he kept Schtum and let the sp rise and then dilute. Alternatively these investors could just buy in the open market and help move the price up. Quite unususual situation. Never seen a raise price telegraphed like this before. Imagine we may well get details before Xmas .
Nero, yes I get the example of two bidders pushing the price up and hopefully we may see the same.
It is 280 k oz pa forecast production and also other assets .
$234 usd not £ sorry which is £184 m.
Useful for a bit of comparison . Cheers
Nero, interesting comparison . Just had a bit of a read up. Agree with two companies we could see them bid each other up . There is however a limit . But for sure we want more than one if possible .
I note that they had proven and probable of 5.1 m oz against our 600 k. Another thing of note is the fact that there is around two years between pfs and fs . Taken us longer than that just to get the fs out .
Deal total£234 m for 5.1 m oz .
Simms, mc did not pull the plug because he had big offers. Strategic review tells you sanctions and the large cash to raise prevented funding . Also states and restated this week that we are not mine builders.
The m cap could well triple but what you have to factor in is any extra shares and costs . So a tripling of m cap won’t mean tripling of share price. Agree Mellon will be better beneficiary than most holders. Remember there will likely be some further benefits dished out before the end of this long run process.
Justine, currently Mellon has converted some of his options. This shows that see have got through £5 m together to this point. Obviously infers he hopes they are worth more than 1( p. However he has paid £1.60 in the past so he isn’t the messiah. He doesn’t state who wants to partake in a raise. Not specific that it is insiders, just investors. You do not know what level any non binding bids were at only that they were low ball. Agree 15 p risk reward ok.
Jem, £1 , imo no chance. Perhaps you could give some method to that Hope? The news's is very positive for new and old holders? What news ? we have raised yet more cash ? Agree that hearing negotiations are ongoing is hopeful Shg we’re in negotiations with 3 companies, two of which were Chinese and no deal happened . They were more saleable than Cnr and still only around £140 m m cap with soon to be 100 koz production . Care should be exercised with this kind of information imv.
Good luck
Justine, In the latest podcast mc states that explorers shouldn’t become producers yet Mellon on his master investor sold 100 k story. Most of these paid for pieces previously sold the production story giving simms the idea that we would get £1 in dividends etc. But we are not mine builders! Sorry mc but sag mill was not a requirement for selling a construction ready project , it is the product of a muddled strategy.
According to previous interviews we should have had offers by summer! The clues, are £6 m raised and another due soon in a year and to date no agreed sale, but Mellon is impressed with the process. Gee. I think telling us that two parties are in advanced talks is the absolute minimum you should expect at this point and that gives no guarantees. The fact that they are considering a placement on top of mellons £1 m is a bit concerning to me.
Mellon got his partner in crime onto the bod at time of convertible note last year , any idea of why and what benefit it is to holders ?
all that said, got my average below 19 p this week and accept the risk reward with eyes wide open.
Good luck all
Ddd, personally a little shy ov your reckoning with £100 m 120 m top. We will have 200 m shares soon and any warrants and options that are in the money. Also is mc reward benefit which isn’t clear how it is worked out . Then hannan and I believe 15% tax. Not sure if tax is incurred if it is a takeover though. estimate £20 m leaving either £100 m or £80 m and probably 215 m shares.
Yes I have thought from the begining that Chinese was the likely suitor.
Obviously will be very happy to be too conservative on my guesswork. I think that we may miss April again😜
Geo, yes I found it odd to telegraph this raise speculation .One assumes that it is perhaps it is outside of the bod. Why not buy on the open market? What’s the advantage? Hope it’s not attached warrants! There is still another £1m of Mellon 15 p warrants . Perhaps he would prefer some sharing ov risk till a deal is struck. There are quite a few at 23 p too.
After over a year and another raise and more to come Mellon is impressed with the process! Can’t say I am but hopefully we are heading to a deal. Naturally not as sold as some here, after all they have got to throw some kind of bone after a raise,2 warrant cashing an and another raise imminent and more than a year spent already. By the time this deal hopefully completes you could have almost built the mine.
It can only be good though that the market knows we are funded for 5 months . 15 % down today is much nicer than close to 30 yesterday. Added today and some late last week. Hope we continue to move at open
Agree Jack news has to come first . That’s the conundrum. I have been gradually adding small ammounts over the last couple of weeks. Not paying over 3 p. It’s a gamble But less of a gamble at 3 p than it was at 8 p. Glad I followed my nose.
Chick, well not fully convinced but you are never guaranteed in this casino. Having a good run elsewhere so bit less risk averse atm.
Rob, glad your house projects going well. I am in building game small scale but looking to semi retire soon hopefully. Feeling like hard work these days.
Yes I think next year could be a good year for gold/silver . Also crypto for the very same reasons. Take a look at cleanspark graph. Moves massively with Bitcoin so good for trading . Also microstrategy to a lesser degree. Been two of my best shares this year along with. Cameco.
. Hopefully keeep adding bits from profits elsewhere.
Let’s hope we are all toasting this time next year.
Good luck
Awax, I was expecting one Nov dec. was surprised that mc stated cash into next year but raises are never done when we are down to last hundred k. This should settle the market somewhat as there is funding for another 5 months hopefully. There is of course one more tranche of warrants if needed. Interesting that there is opportunity for other investors to take part in a small raise. Not convert warrants. Mm.
So looks like we have two shots at a possible deal but don’t ignore the very last paragraph.
Simms, the price Mellon wants and gets may be two different things. By the way remind me of the price you think Mellon wants ?
Would have to think that the two parties must have done site visits so have been involved for a long time since site visits have been static for a long time.
Let’s hope we are on our way to an exit .
E l, I think when your largest shareholder director and soon to be chairman states production of 120 k oz in around 2 years time ie this year it is pretty poor to say the least and should make you question anything else he comes out with! It isn’t happening at all is it and never was. If you don’t expect anything that ceo or chairman says to come true then how do you invest in a company. Personally I knew it was bunkum but posters were quoting it as if fact. Do you think anyone that watched mellons podcast and bought on the strength of that statement and mc £1 aims are too stupid to be investing?
Agree nobody should invest more than they can afford but if you can’t expect your bod to give you fair guidance then what’s the point?
Anyhow, eyes down
Good luck
Hi Rob, long time no speak. Hope you are doing ok. Gold looking strong atm yep. I have been adding producers gf or a few years on the dips. Quite a bit a few weeks ago and seeing them all doing ok. Some more than others. I am more cautious on explorers . Will take longer to filter down.
I have been adding small ammounts here recently having sold most from 8 p down. Not convinced Brad can walk the walk but hard to imagine he can be stupid enough to take on big new commitments without some way out. Needs a good kicking if he is that stupid or deceitful. Taking little bits of profit elsewhere for punting.
Bitcoin is storming along with gold and it is alt season so some very good gains there and looking good for next year.
I am spread pretty wide so not over exposed in any one sector but buying more stateside shares. Uranium and Bitcoin miners have been my best miners this year but gold producers catching up a bit now.
This is a punt to me but generally bullish in many things currently but crypto above all for me.
You mentioned buying another house last time we crossed paths . How’s that?
Hope all is good and good luck here 🤞
C f, as ever showing reason and research.
E l, I didn’t take it specifically for me. This is a bb to share research and views. I don’t get things right all the time. In fact I hold here at about 20 p so not sitting great and wish I had been a bit more cautious on the descent through the twenties. I have also taken hits over the years as lessons. Truth is although being de ramper I didn’t foresee things going a whole year with nothing to show!
Have actually been adding a little sub 15 p in the hope of news but it is a risk .
Are you saying that when major investor tells you 100 k oz production for this year you don’t hold him to account if you invested on that basis?? Most here invested on the basis of production . I think it is fair to be cautious of Mellon Who obviously was either blatantly misleading possible investors , or was woefully researched in . Either explaination doesn’t give confidence to me. Are you saying that bods of aim companies have no responsibilities to their shareholders? That is the complaint against most aim companies! Cnr is a long way from the worst examples but you can only invest on the information supplied which is usually minimal and opaque. Of course sensibly you can use your own research and read between the lines.
I don’t claim to be an investing genius or even clever , However I have stated my views here for years Taken personal attacks and unless you care to state otherwise have been proved correct generally, unpalatable as it may be. Stating some people shouldn’t invest is open to many interpretations and not very constructive. Yes do not invest what you cannot afford to lose but doesn’t mean unquestioning loyalty . Mc has had in excess of a couple of million, will get a pay off for any sale , many here are likely to lose out. It is true that many bb contributors are more guilty of getting expectations up than mc over the years with ill informed predictions but Mellon is chairman and largest holder!
Anyhow, yes stay on the train or get off. There is no real alternative at this point. Good luck .