Member Info for shamI89

Existing shareholders look at other companies where these sort of deals have taken place.But nothing beats an average aim punter who would love to gamble on these sort of shares.

As debt to equity swap would determine shareprice.Shareholders are likely to be heavily diluted here I am afraid.

Think increasing revenue is key here and that is what this company is doing.If they can increase cash flow then debt can be paid a lot early.Risky investment but can do really well if they manage to pay off debt.

You are right but we agree demand increased and so did price.But at this level company is losing money on production.

But that sort of money tends to flow into Gold and recently a lot has gone into cryptocurrency.It was construction boom in china due to which vanadium hit 130 level.What transpired afterwards is a different story and nobody knows where it will end.Demand was expected to increase after covid but that did not happen.

These"definitive statements" I am making are based on RNS.We had an update according to which if they dont get no money then they will need to suspend operations.As far as price of vanadium is concerned it was construction boom in china that drove the price up in 2016 and right now gobal economy is struggling.Company is shot of funds and would need to raise money soon in my opinion.

Problem is they cant keep on deferring it forever and besides that money will need to raise money for working capital as well.Now look at full picture they are not making money at current levels , have massive debt to pay and production will be stopped soon.If Vanadium prices dont increase company is in big trouble and I cant see that happening.

How can we say company does not need immediately they need to pay 7 millions to Orion shortly and need to raise money to fund day to day expenditures as they are not making any money at current price.2.2 millions wont last long and this sort of money would certaintly lead to shareholders wipeout!

Over the last two years this share has hardly let any trader escape with a profit and is in dire need of funds.But that wont stop gamblers from taking gamble I guess.

Even if they receive money from SPR and Acacia now they will need to find 7millions shortly to pay orion and need some working capital too.At this point placibg would sort out funding issues but would wipe out shareholders certainly.We may see Vanadium entering a supercycle again but Bushveld wont be around.

There is "ore " in the ground but extracting it commercially is key here.Some oil and gold mining companies were in the same position but dont think you can compare vanadium with them two commodities.Company has debt to pay and there is no cash flow at the mintue plus it is not making any money at current vanadium price.This cant go on forever.

Suspending these operations would choke cashflow and that would lead to a possible default.That is what SPR wants probably.

Many were optimistic but crook management had a part to play in it.Got to say looks like Fortune is involved here somehow, it is funny to this new entityhas not coughed up cash at this critical time.

Th

These shares traded at 45 at one point I believe. These assets were acquired at the expense of shareholders and now they have disposed them off at shareholder's expense.Worst thing is whoever will foot this funding shortfall would take a big chunk of company for peanuts.

Whatever way you look at it it is disastrous for shareholders.They need money for working capital,they need money to pay orion and they are not profitable at this level.Aim at its finest shareholders will be shafted royally here.

Company has to suspend operations if no money is received in coming weeks.

Things have changed since November as big chunk of cash has been absorbed by their own admossion, however that is not the end of it they have lowered revenue forecast after a week.We will find out soon either way.

Outlook

We are maintaining sales guidance of £23m for the year ending 31 December 2024. However the scrap problems in particular have absorbed a sizeable amount of working capital and cash. The Board are assessing options to address this short"

How can you say no cash is needed as I am curious to find out about "options that board are assessing"

And needs to raise it through placing.What I dont understand is why did they let shareprice get this low and not raise it around 6.This company needs minimum 5 millions and that would dilute existing shareholders heavily.