RE: Inertia20 Feb 2021 08:20
Morning Bricks thanks for your comments. I think if all LTH's got together (Zoom obviously for now) we wouldn't necessarily iron out specific differences of opinion about EUZ but we'd probably all have to concede that we've been on a learning curve with FCR / EUZ, could that be some common ground at last? I admit when I first came in I was naive as to how much cash would be needed to get us to a point where funding options would become reality beyond placings. I found a presentation around that time which stated we had 0.5m cash, can't remember if US$ £ or € but I'm sure you get the point, placings were inevitable. Soon after, the placings started and with hindsight this is where management called it wrong, they started (when the SP was higher) with tiny raises that were never going to address funding in the long term and we ended up with the two 50% raises when the SP was low. That's hurt us but of course when they did the series of small raises they, just like us investors expected the mcap to grow. Anyway we are where we are and as even Bobby says there is still enough left in this to deliver good returns for shareholders. As you say DB aren't going to be sentimental about this, they protect wealth for their clients and they'd be gone if they didn't expect returns on their 12.75p, as we still have a little risk to negotiate I would surmise that their risk / reward calculation see's the upside as significantly above that or else the money would be somewhere safer. Finally I read somewhere that AH might "Pull a rabbit out of the hat", I'm sure the comment wasn't intended to be flippant but nothing could be further from the truth, his and our chances stand on the shoulders of the meticulous work on the ground. It's the successful delivering of the PEA and Bara's recommendation to pursue the PFS that will inform the analysts whatever structure a deal takes. Not the perfect analogy but I think of it like building a house, the more of it that is built and signed off by the building inspector the easier it is to get a mortgage, it's about security and that's the conundrum and why non equity funding wasn't an option before the operational achievements. From what I've read it would be better if he had the PFS behind him but there is this nagging doubt about how far current funds will stretch. The £2m needs to go a long way with this drilling, costs to assay, metallurgy costs, hydrology, geotechnical and I think the Junta want some more environmental work done. I'm not sure how much we have to pay AMS to rubber stamp the new JORC but if we could get a copper credit at last that would be amazing plus I note they intend to place the "current resource into higher categorisations", does the plural suggest they aim not just to move some more inferred to indicated, but indicated to measured also?
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