RE: My Notes19 Sep 2020 09:11
Wow Trek that is some work you have put in there!
So, if we move up to around 4p that is a 50% SP increase and will take us to around a £7.5 million market cap.
But because of the subsequent flood of new shares coming to market (as SP moves up) due to past capital raising etc, we will probably push over 20 million in market cap at around 4p assuming everyone exercises and converts. Broadly correct?
So, that’s a 4 x market cap increase with only a .5 uplift in SP.
And in my view at £20 million, we will need some decent results from the drilling to push us up further as we are moving out of minnow territory on that market cap. At least we have the cash and will get more in through some of the conversions. The assets are good, let’s hope they are good enough! Love the potential here but the way they have raised capital will hopefully not need to be repeated in such a generous manner when we have the results to enable the BOD to drive a harder bargain in negotiations.
So buying shares around the current price looks like a winner. But as we approach 4p there may be a longer wait for further SP uplift don’t you think?
But with all the cash and the great assets, there is plenty of potential to multi bag if the overall positive trajectory continues. I will hold and add more.