Member Info for shamI89

How do you this company has not dug a "hole" this company has spent nearly double than initial estimate and cost can spiral out of control. Magical word is "at least 35% of total capex". Lenders are into charity business to bail out mug punters they would want to maximise returns.

Let mug punters lose money, there are a few of them trying to Sue iog management for making misleading claims. Companies do release updates but if mug punters don't listen it is their fault. A few of them would give up when they realise they can't move the price, a few of them would "average down" and a few of them would stay in till very last. Wait and see

But have not seen this level of incompetence. Many miners encounter problems after production has started but you rarely see costs skyrocketing before production has even started. How can you justify this at least 35% increase when they raised 61 millions before and has set aside 25 millions?

Fresh wave of "traders/gamblers" has been trapped and it will go on for a long time now. It reminds me of iog, where quite a few people took heavy positions and shares kept on going lower and lower. Equity wipe out is almost a certainty here and it will leave many people bruised. You know things are bad when usual suspects on twitter have given up. It is not one of those shares where you can pile in to pump and dump.

And capex has gone up by at least 35% and even more. Who will pay this extra 35% or more and are they not in breach of banking covenants? Secondly how can anyone trust their production target after last update and why would banks provide further funding? There are far too many unknowns and management does not have a clue. Some extra money was put aside in case they overrun costs but noone thought it would get to this stage. Follow the money institutional investors are not dumb and they would not have exited if they saw a value.

Lol did not invest any of them as go through my posts history did try to warn but then again people like you learn hard way. Anything else?

Lenders are in control here, on the priority list they come first. They can demand their money back and can put it in administration. But problem is they will have to take a hug cut on their debt. Whatever other funding options are they would wipe out equity.

I think it is worst that Iog, as with Iog we knew what sort of money is needed and IOG was already producing. It is a different story here, company is not producing, they don't know how much cash they need and last update cast a huge doubt on production targets and cash flow prediction. If we knew money requited, we could have looked at different options but no figure is given. A trader's share where traders would try to pump and dump it occasionally.

Problem is no buyer would touch it with this mess, as we still don't know what sort of money we need. Whoever would stump up cash would take a big chunk of equity. It looks like lenders would take a heavy loss too as they would need to spend more money to let it get through to the production and then recoup their money, but highly unlikely as financial institutions don't tend to get into that sort of game. Not an ideal situation, glencore seems to be likely candidate as it has money and technical expertise to run it.

Too many unknowns and debt holders are in control here. I suspect they would take a massive loss here too and a third party would end up owning the assets.

I suspect there is more than one institutional seller and we will only hear about them when they go below a certain threshold and some don't even bother reporting until they are done selling. I suggested this on Tuesday and some people claimed otherwise as it was relentless selling. They paused selling yesterday as there was no buying to absorb that sort of selling and we had mug punters jumping up and down. I suspect institutional sellers would use any volume and there is way these mug punters can match that sort of sell off.

That is wrong, as noone has a clue, company needs at least 35% of capex and it can go up to 40%,50% and even more. By the way it did have 26 millions in case costs overrun. Time will tell but equity is toast here.

Is more than one seller here, selling was relentless. RNS was released to let institutional get out before pulling the plug. These sellers needed volume so mug punters provided with with opportunity to sell into. Along this a usual suspects on twitter have pumped and dumped it and their followers are trapped here. Equity is toast, why would an institutional seller would sell if it can climb back to 50/100 as some people here claimed.

Trapped, they are providing liquidity to institutional sellers yo sell into. Whatever way you look at it equity is toast. Traders would be left heavily bruised.

Brand value. Deal looks interesting

They had 25 million restricted cash in costs overrun and raised 61 millions last year as well. They need to meet certain conditions and if found to be in breach lenders can pull remaining funds and ask for their money back. No put this into context cost has nearly doubled, mine is not finished, management don't seem to have a clue and we have heavy debt to pay. I suspect shareholders are not the onlyones who would be shafted here, lenders would lose out too and ultimately winner would be someone who has got this mine, which I suspect would be Glencore. It sounds like a great plan, sell your asset to a junior miner, have it financed and built and then buy it back at a heavily discounted rate.

Management does not know itself what sort of money it needs, they have already raised money before as capex increased. Worst thing is they must be sitting on this news for quite sometime, they can't find out Sunday night that they need 200 millions or more. Secondly lenders must have been monitoring this situation closely and they must be in talks with company.

They can't suspend the shares without a valid reason. Had they come out with a figure market would have acted acoordingly but there is nothing much to say. Ball is in lender's and major shareholder's court.

If it is found to be £175 million then raising it through placing at current share price would eventually wipe out existing shareholders as anyone putting in money would want huge discount. Going through updates company had some restricted cash 29 millions in case cost exceeds the allocated budget. Wording used was they needed minimum 35% of additional funding and it can go up to 40,50,60 and 70% noone knows. Thirdly future cash flow and debt repayment is heavily reliant on production and company hitting them, how can you trust this incompetent management with hitting production target and paying off debt? Gross incompetent or corruption of highest order. Glencore are known to be predatory and ruthless vultures who push juniors into corner and then screw them and sadly this is a Godsent opportunity for them to take advantage of. Time will tell but I don't see a way out. It looks like quite a few traders have their fingers cut while chasing this falling knife. It has lost more than 80% value in two days and looks like market is expecting worst case scenario.

I think that has been debated numerous times here, they required extra 35% of capex which works out to be 200 millions. How can we say otherwise