The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
Show me a compamy which says "we are sh*t and have no intention of making a penny in profit" .That is how these companies survive they paint rosey pictures and then keep on issuing new shares.That is where research comes into play.It was a "really good asset" but no major bought it and no bank was going to finance it ,seems believeable does not it?
Stas20 what about them "neverending share conversions" as there were massive sells and some iditots thought it is "their chance to average down".From 25 to 0.05 you should have asked yourself why is shareprice falling?Circus would have carried on but they ran out of idiots.
Dont think you can blame management for releasing them RNS as that was part of their job.When this death spiral financing was announced share-price was way high and then we started seeing daily drops.At one point it had lost over 90% value and some idiots were ramping it mad.Shareholders were never going to win as there was no limit and price kept on falling.
I am talking about "death spiral financing".Common sense dictates that if these assets were really good why did they not get proper financing?Lower the price went more shares were converted and more money was made.This was sitting on crazy valuation at some point and someone has made hell lot of money here.
Bondholders have been fleeced too but I do thinl they have made most of their money back through never ending dilutions. This is name of the game.I did try to warn people but I guess some people were too thick to listen.Ever since they announced debt spiral financing share-price was going one way while we had people "averaging down".Sometimes taking time out to make sense of things does help.
Still have three to four years of mining life left and they have already acquired assets which will be drilled to prove up resources and would be brough to production really quickly.So there is no need to worry for atleast couple of years about production.Meanwhile price of gold is hitting all time high and every €100 increase adds extra 1.7/2 millions per quarter
I agree Tygra anyone wanting to take it private would have to pay a premium but we cant rule out such a move and that is what I am arguing about.I had listened to interview and Darren was headhunted by Nick candy and they have set their sights on two other assets too.That is why drilling compaign is important.
Yes and major shareholders did not reach required "75%" because some of them had high averages than 13p.Two entities own debt and one of them opposed debt to equity swap as an alternative this plan was cancelled.
you are incorrect i am afraid taken out of may 2020 rns
"whilst there can be no guarantee an agreement can be reached, discussions and negotiations with the company's lenders in relation to restructuring of the group's overall debt position continue. it is expected that the outcome is likely to require shareholder approval, as the restructuring is expected to include a debt:equity swap component of part of the us$129.8 million of group debt."
it was not rejected by bod i am afraid.************* did cover it and one institutional investor opposed it.when it comes to lenders there is nothing bod can do.
It was one of major shareholders who blocked it if I am correct.If he was in agreement it would have gone through.Funnily enough candy brothers's attempt to take it private was blocked by other fellow institutional investors too because price they got offered was way below their average.We are in a different place now but wont surprise me if we see similar move again in not so distant future.
In my experience when it comes to billionaires vrs ordinary shareholders ordinary shareholders tend to get shafted.They tried to wipe out normal shareholders by imposing debt to equity swap but it was blocked because not all of them were on same page.I still think that it can be taken private but market would determine the price.If drilling compaign is succesfull and they can bring that asset to production really quickly then sky will be limit.
Is on the move.May be market is rerating it every quarter should add 10/15/20 millions to market capital and if they drilling compaign is successful then that asset can be brought to production really quickly and can increase cashflow.Fingers crossed and good luck to everyone.
Problem is buisness model is viable anymore.This company has taken on more debt, income has fallen and vanadium prices have fallen too.If it receives money from SRB it still wont last them more than a few months