George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
Welcome and substantial increase in the order book to £72m in today's trading update - plus other signs of the market picking up. Cash is down to £9.3m though which could indicate slow payers or just the seasonal opex peak. And no debt.
I topped up yesterday so perhaps my timing was perfect for once…
Scotgold Resources has now been wound up.
https://publishednotices.asic.gov.au/browsesearch-notices/notice-details/Scotgold-Resources-Ltd-127042773/e47be22b-b0ef-4c3a-b694-ec2d5faab06e?appointment=All¬icestate=All&companynameoracn=127+042+773&court=&district=&dnotice=
So next week's creditors meeting will consider "to consider the early destruction of books and records". Hard to think of a good innocent reason for that motion.
https://publishednotices.asic.gov.au/browsesearch-notices/notice-details/Scotgold-Resources-Ltd-127042773/8469a308-28fa-4de6-b9bd-1b14d71f926f?appointment=All¬icestate=All&companynameoracn=127+042+773&court=&district=&dnotice=
Crunch meeting on 22/12//23
https://publishednotices.asic.gov.au/browsesearch-notices/notice-details/Scotgold-Resources-Ltd-127042773/bc586440-1960-430d-a481-45a1e597cd47?appointment=All¬icestate=All&companynameoracn=127+042+773&court=&district=&dnotice=
First creditors meeting this week…
https://publishednotices.asic.gov.au/browsesearch-notices/notice-details/Scotgold-Resources-Ltd-127042773/0c0820a9-3fe8-4350-ad6e-0db153ec9c01
They never clearly stated where the silver went or how much they got for it but they implied that it was bartered to the concentrate buyer to cover his costs.
And now comes the final slap in the face as the price of gold and silver heads strongly north.
The same amateurs who couldn't even forecast the grade of the BPT stockpile; or make more than a few ounces of Scottish gold; or fake a gold pour so that anyone might believe it; or keep within their permitted mine boundary; or keep any promises; or…?
In case you didn't scroll down…
"Resignation of Nominated Adviser
Shore Capital has informed the Company of its intention to resign as Nominated Adviser and Broker to Scotgold with immediate effect of release of this announcement. Pursuant to AIM Rule 1, if a replacement Nominated Adviser is not appointed within one month of today's date, the admission of the Company's shares to trading on AIM will be cancelled. The Administrators will consider this issue in more detail over the next few weeks but based on the information available at this stage the Company does not expect to appoint a replacement Nominated Adviser."
Administrators are in Australia which makes it harder to keep an eye on them. Commiserations to all shareholders apart from Graham Donaldson, Coliwobbles, Risk Manager, hickfromthesticks and the rest of the bully-boy gang who promised riches and would allow no other view. Their loss pleases me - and my devil's advocate pals Shylock, pr100 and Jon Chapman - immensely.
Looks like they're keen to bring the curtain down before they have to publish their final results next month. Pity since shareholders haven't a clue where all the cash went from the fundraisings over the past 18 months. Obviously, none of it was secretly diverted out of the company.
Pre-pack administration imminent. Not sure how NLR managed to do that when the company hasn't technically defaulted on his loan yet:
"Bridge Barn Limited ("Bridge Barn"), a company owned and controlled by Mr Nathaniel le Roux, non-executive Director, and provider of debt funding to the Company, has agreed to postpone all interest payments that are currently due and payable by the Company to Bridge Barn up to and including 1 December 2023. The total of the interest payments being deferred is £450,000." (RNS 5/4/23)
Daily Mail interviews the locals. "It was fun while it lasted," say Cononish landowners.
"Their luck seems to have run out with astonishing speed," observes the Mail, astutely.
https://www.dailymail.co.uk/news/article-12763513/Theres-not-gold-thar-hills-200m-Scottish-gold-rush-finally-lost-glitter.html
The problem with a pre-pack is that it doesn't allow anyone else to bid for the assets so shareholders will never know whether the administrators could have realised more cash through a routine liquidation process. On the plus side, administrators tend to like routine liquidations because it means a bigger fee…but nothing to prevent a pre-pack buyer from reaching an equally lucrative deal with administrator, ie over-paying him for the amount of work involved in a pre-pack.
It's possible that NLR is planning a pre-pack administration which would see him buy SGZ Cononish from the administrators very quickly after administration is confirmed - allowing no opportunity for other options for the disposal of assets to be explored. The outcome for unsecured shareholders would likely be no better.
"Pre pack administrations can be controversial, as they may involve the sale of a company’s assets at a lower value than would be achieved in an open market sale, which can result in losses for creditors, particularly unsecured creditors."
https://www.franciswilksandjones.co.uk/company-administration-guide/
See also: https://www.companydebt.com/what-happens-to-the-shares-of-a-company-that-has-been-liquidated/
If, as looks inevitable, the administrators are called in that would likely be a lengthy, complex process which could take a year or more to conclude - during which time shareholders will not see their periodical reports, lists of assets, lists of creditors, etc unless shareholders register themselves with the administrators as creditors of the company. Only the creditors will be able to access the detailed reports. If necessary, shareholders may need to send an invoice to the company before it goes into administration (eg. For services rendered in online forums: £1.00). That will make you eligible to register as a creditor.
Otherwise, the most information you will get is the standard "Shares are unlikely to have any value", followed by confirmation that they don't.
So, if you want to see what sneaky offers for the assets are being lodged, register as a creditor to get on the administrators' mailing list.
I'm sure there will be plenty of others checking in to tell us how lucky or smart they were to bail out at the right time.
Nat le Roux switches sides as the curtain falls, citing: "unavoidable conflict between the interests of the Company and my personal interest as the major secured creditor".
Today's RNS announces his resignation as SGZ Cononish "heads towards administration".
Tom Winnifrith can't contain himself over at https://tinyurl.com/3d78cxsk
The fat lady cometh. They have had plenty of time to consider their options and it has been clear to some of us for a long time that administration was inevitable. And yet Scotgold are still "considering" it. If they had any other options they would have been bound to say so.
Last week's follow-up:
https://parkswatchscotland.co.uk/2023/10/29/the-crisis-at-the-cononish-goldmine-a-national-park-authority-not-fit-for-purpose/