Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Money turns up with his first EQT post on Friday (presumably having bought what he thought was a cheap entry) and then starts abusing posters who have been here for 2 years about trying to create a cheaper way entry….
Were you hoping for that 20% bounce Mike?? Oooops. For the record I believe only the most illiquid small caps (sub £10m and maybe only 0.25% share cap traded daily) can be influenced by a BB such as this.
Problem here is 2 fold at the moment in my opinion. Firstly the number of RNS waffle (lots of “how” which is immaterial and does not merit an RNS but not a enough “what” and “when” which tends to me far more material to sp)
Secondly and more significantly there is now serious doubts over the BoD ability, integrity or both. You can have the best idea in the world but it will not make you rich with poor execution. If Apple had been run by poor business men do you think we would know what an iPad is today?
Mike you are half right. When I sold at 0.75 I did stay close to the stock thinking a 0.45 would bring me back but I did not buy last week largely because of point 2 above (point 1 was already known.).
I think rather than looking for cheap entry I would now prefer to pay a small premium but for it to E because significant progress has been made and the BoD have begun to recover their reputation.
ATB
Thanks Glengarth
As a side note I have just had my reply from Shishir who for me, like with everyone else, has confirmed there will be no placing at current levels of SP.
He also say that by turning the bottom line to green should mean no distressed placings are required (I guess they will be able to cover costs but would still consider placings in a stronger environment to accelerate growth?)
He finishes by saying they will look at how they communicate this in the full public domain....
Hopefully sooner rather than later (my words not his!!)
I am feeling a little stupid here... Is there a difference between TPA (Tonnes per annum?) and Metric Tonnes?
I ask because I believe we are already up to capacity 12000TPA and we are waiting to complete the 18000TPA to get us to 30000....
So if TPA is the same as MT and we are at 12000TPA why didn't we produce 3000 metric tonnes in the last quarter? No one seemed bothered we didn't so I am thinking I am missing something?
Thanks
Reason I ask
Against better judgement I did today - Very nervous that this could be another DDDD where every 10p drop was met with incredulity. However we have no loans and have revenue so logically unless so huge underhand activity is occurring this should not be possible to go to admin.
On the flipside Avact had a similar SP decline from 250p down to 40p with some setbacks but nothing to justify that gap. I lost my nerve averaging down at around 60-70p. When almost equally as innocuously it rerated back towards 120p it hurt that I had to wait until 70p until my cheapest trade was in profit.
TGR is on more solid foundations than either of these (from what we know). At some point we are all going to be robbed or a huge day after day rerate will occur. Please let it be the latter.
By my calcs the next placing will be sometime next January at ).25p and then again in July 23 at 0.125p.... and so on.. This definitely appears to be the strategy looking at the last 12 months.
Its not even like they are giving anything exciting up for the money. They have taken 3 bullet points and a load more waffle when they could have simply said "for the day to day operations of the business"
Pretty shocking that they did that video interview where they were so bullish on investment avenues. I wonder if the price dropping to 0.45/0.5 a few weeks ago was forward selling of this? If so then maybe the pain has already been taken.
More worryingly than what is fairly minor dilution is that this tells you they are not imminently about to achieve financial close otherwise you would wait for this to either no longer need the money or raise from a more positive base.
Also, whilst I opened this message with a fairly tongue in cheek comment regarding future placings it is clear there will be more placings after this. Even if things were going to plan they were forecasting to "reduce EBITDA loss this FY" and £3m will not last for long. Just have to hope the next raise is after a series of positive news releases and therefore at a better price than this one.
Interesting Comp909
I had completely missed that the equity price was at the time of drawdown (discounted) rather than at the time of payment. That is certainly a positive and I agree is SP is anywhere near here they would be mad to not pay in shares at such a premium.
Certainly more positive than how I had lazily understood it. Albeit largely because of the terrible sp performance since the drawdown.
What is the date in August EQT need to pay Riverfort? 1st or 31st? If the former then the chances of death spiral finance commencing - at least for a short while. If the latter then still hope of closure before then (we would then hope they choose to pay installment rather than keep cash and issue discounted shares).
Yep. There’s today’s Penny. Just 22 more days to go.
When will these companies learn to do a placing before the market suspects a placing?
Pretty depressing. I had a look at my buy history. Can’t believe I was buying in the 50s thinking I was getting a bargain.
At £1.50 or even £1 you had to factor in the downstream into the investment thesis, I agree.
At 25p You can in my opinion entirely disregard the downstream and value them at upto to 90p on mining alone.
I would caveat that with any trust issues in the board etc as the reason to be cautious... Fundamentals make this a crazy cheap price but d you trust the board to not run a way with your money? Main market listing maybe gives a small bit of confidence but then how have we got an executive chairman - Not good practice.
As you may be able tell from my back and forth - It is a real dilemma on whether to further top up here. Could seem ridiculous in a years time when we are back at 90p but also may seem fool hardy if the rug gets pulled from under us (Based on my distrust of whether there is robust corporate governance here).
As an aside - I emailed IR about a week ago and had no reply.....
I’ve been valuing TGR on it mining business alone for some time now. Has no way of valuing the downstream and it was already so undervalued I had no need to factor it in.
We are so cheap and have been since the sub 60p days.
Salinger also calls out rampers… basically anyone who doesn’t mirror their exact opinions.
I imagine in his/her house only their opinion goes… fun to be around!!
Meanwhile regarding QFI I have been amazed at the sp holding up as time ticks by. Like many non revenue AIM stocks it is a gamble more than an investment. Couple of highly positive RNS’s could double your money - silence or announced delays could see the sp bleed out.
FWIW I have a small amount here having briefly been totally out. Used to be my second biggest holding post the 2.7p placing last year (or was it 2020? - I’ll definitely get picked up on that!!) but I have become significantly more risk adverse.
How much of a hard stop was the 30/06 deadline for phase 1 agreement on Utah? Might this have happened but not material news? It’s possible I suppose…. Sometimes though in this environment when pre revenue and a reputation missing dates I think material or not it is the duty of a business like QFI to keep us fully updated.
Once their balance sheet shows a regular increasing operating profit they can go quiet but not till then thanks.
Barking. I upticked your comment after reading the first line. Will now return and read the rest but just though I would mention.
I genuinely think the market is in for a shock when we announce H1 results. Expect it will be with a modest (vs ly but huge be sp) interim divi as well and at that point we will head back up… albeit not to where we should be.
Obviously all caveated by the risk of Russia making huge advances and further damage to infrastructure.
Glengarth. I think too blasé to blame this on market conditions. The constant bleed out here is way in excess of the market decline even if you take the performance post the delays RNS.
In my opinion it is negligent of the board to not address the share price decline. To NOT be raising equity via a placing may normally not constitute material news but it IS material if the reason why your share price is obliterated is that the market expects a placing.
I am pretty angry and am not prepared to shrug this off as "market conditions"