Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
The SP is now 0.45
That is the reality of investor sentiment in UFO. Its not that 'we' (a minority) are right here, and everyone else is wrong and it should be worth far more.
People have been saying that for ages
They said it was crazy for people to check out at 1.2, then 1.0, then 0.8, then 0.6 etc etc
Meanwhile the SP continues to decline while we have 2 extra mouths to feed in terms of directors
Too many people here are emotionally attached to the SP and dont look it like investors. There was a whole rash of big PIs I know who sold out around 1.0 and they look remarkably prescient now.
Somethings can indeed be predicted easily- over a year ago one big PI I know online sold out in the low 1s and warned me Mexico would fail and the SP would continue to decline to 0.5. At the same time it was being said with certainty on here that we had reached the bottom.
There is a disconnect between what you see here and the wider non-LSE UFO market as per the SP.
The declining SP of this company speaks for itself- I rest my case.
Never been a fan of all the posts here not directly related to UFO. Some random youtuber who has some theory about the price of X or Y. Its spamming and is one of the main reasons I dont spend a lot of time here.
It also shows that the usual rampers have nothing to say about the company itself- which is a reflection of poor sentiment
In this case though, re-opening of China could be really helpful to us. still a lot of elderly unvaccinated there though, they may roll back at any time.
wents, spot on.
Problem is this bb is too skewed towards ramping but the rest of the market is more probing- you only have to look at the ever declining SP. When it fell before 1 and people were saying it was the bottom, then 0.8, then 0.6, then 0.4...could go a lot lower.
You cant even say BBG is a good geologist due to failures of drilling programmes we have had.
A poor geologist and a poor CEO who has not invested that much in the company itself.
okay- that explains it. they must have been desperate.
1) increase salaries to pay out for our 2 new guys
2) uncertainty over AA deal
3) uncertainty if we would fund the AA deal with further dilutional placings
4) the BOD continuing to hide the updated assays and mineral resource update from last drills
5) the failure of UFO in Mexico due to BBG thinking he knew more than the lads at a midcap, Capstone
There is a big world out of LSE bbs and those investors tend to be less rampastic and more probing. This bb is a bit of an echo chamber where confirmation bias exudes.
I forgot to add a couple of other red flags
A while back they changed their twitter so you could not see what other people had written. This was a period where we had a news hiatus and the SP was continuing to slide. Its since been reversed- but a company that indulges in this sort of censorship should worry anyone.
BBG blaming the local drilling company for the suboptimal drill samples in Mexico. We must have spent quite a bit of money on the Mexico turkey.
Lastly, they have kept quiet about the Phase 4 drilling results which they MUST have by now along with an updated JORC resource. I simply dont believe they dont have them.
I think Ive covered everything
The last RNS mentioned talks with other companies for the other concessions. I think thats the way forward. We dont want to spend £££ proving up Brockman, EH/Munni Munni etc. Its not just the money- its the time also. I would be happy to see some sort of partnership- even if it means we get less money at the end. I think there needs to be a reality check among some posters. I recall some talking about 10-20p etc. Id be happy to give up 'equity' in partnerships and be on 4 or 5p.
This was all supposed to be a dead cert. Hard to imagine that Max was saying- 2 years ago- when we were at 1.5- that this was a last chance saloon to get on UFO before the prize rocketed. Then there was- we will rerate after X, Y or Z...never happened. How ridiculous does all that sound now?
Sorry this message is a bit disjointed as im rushing for work.
I've been communicating for a while with the BOD (via the EA of Mark Cuthbert) as you know- I absolutely dont trust them at all. Here are some points to consider.
Ive been digging around every contact I can get to in mining in Perth. NOONE thinks its realitsic that UFO can be in production by 1st half of 2023. The fact they are now saying '2023', rather than '1st half' is an admission to that. People I have spoken to (who work for far more experienced and succsessful firms) are saying early 2024 in a best case scenario.
Rather than come out and make an honest direct statement- they are quietly shifing the goal post- which is in poor practise and is another red flag about those who run the company.
Questions still are there for me. Why didnt BBG spend more of his £250k salary on shares for UFO? Why are the others not putting in more money? Red flags, red flags.
The way BBG was essentially demoted after the Mexico debacle and replaced by 'Rod' who apparently just 'approached' UFO all seems a bit shady to me. I have asked the BOD several times now- if they will publish how much money was spent on the failed Mexico campaign- and they have refused to say so. Remember- a respectable midtier mining company had already said Donovan was a dud- but BBG and his cheerleaders on LSE- thought they knew better.
Remember when we had also been told that Mexico was in government shudown 2 years ago- when it was not. And remember that BBG had let slip that they knew the initial results of 1st round of DSO drill a while before the RNS released- after I had threatened to report them to the regulatory authorities.
Then there are other things- like the inexicorable delay in the 2nd EH silver assays.
Personally- I would have preferred we stick to our Iron and Silver. The PGM will need a lot of drilling and proving up.
Just be very careful and remember that LSE is an echo chamber. People did not even pick up that the 60 day exclusive period had not started yet. This is a forum for people to ramp each other rather than anything else. Anything critical gets shot down. It was quite a few months ago that I had been told by people in the industry that there was no chance that UFO would get going by 1st half of 2020 but I knew how it would be received here so kept silent- now the reality of this supposed 'sure horse' is changing a little.
Tread carefully everyone. Remember that LSE is an echo chamber.
Sorry It wasnt supposed to come out in one big block of text like that
Lets forget about Mexico and focus on Oz. EVen if there WAS something promising in Mexico- the resouces needed to prove it up would have stretched and diluted us further.
Im not going to be reveal everything that has been communicated between UFO and myself over the last few year or so and I'm not under grand delusions that I have been instrumental into BBG stepping down. I know there are people here who seem like some cult followers of him but If I were to summarise the points I had raised to Mark (cuthbert):1) I did question several times the suitability of BBG as CEO, 'likeable character' doesnt quite tick the box. I pointed out that he has a technical background, rather than a commercial/management one. As such, I feel there was tendency to not think like a businessman. There are plenty of technical people who have done well as CEOs of junior miners but I dont feel BBG quite fits that billing. I know I was one of the ones probing Mexico but I always said we should just be clear and say we are going focus on Oz rather than making [unfounded] claims that there had been a shutdown in the Mexican Mines ministry.I recall those who were hyping up Donovan even after Capstone (they know who they are)- it always smacked upon me as arrogance (and naiveity) those who thought BBG knew more than the technical boffs it a circal £1bn mid tier company. There was arrogance on his side also in this respect - 'I feel that Capstone didnt do it right' etc. I hope those bb members will temper their proclamations in future.And no, I dont believe that they have *just* got the assays back. The turnover time in that part of Mexico is abou3 or 4 weeks and we waiting maybe 10 weeks? Same thing with EH 2nd assays- it was already well longer than the maximim range for Western Australia. I questioned why UFO keep on having these delays which are not consistent with local turnaround times. We alrea2) I also pointed out that BBG has been deflecting the failure on the local mining contractor when he was there at the time of the initial samples being collected. Seems he is scapegoating them when he was the one who planned the drilling. I asked them how much money we spent in Mexico (I havent received a reply to that yet). Remeber Hanock Phase '3.5' ended up the same way- that is more money. 3) I questioned whether it was right to be purchasing further sites- the Vivash and the PGM at Munni munni. I questioned if they were more BBG pet projects rather than projects of someone thinking like the CEO of a junior miner with limited funds. Im hoping that Mexico has taught them a lesson in this respect. We arent Rio Tinto. We have Hancocok which we still havent fully proven up and if we go into production- will requite a lot of our attention, we have Brockman- vast site, we have EH- those 3 are more than enough for us if you look at other companies our size. 4) I do continue to question him at the lack of directors buys which for me is somewhat worrisome. Knowing UFO- they always seem to be able to 'magically' come up with good RNS after bad ones s
Hope you have all been doing well
Just some thoughts and updates
1) A while back I told Alien Metals that there would be significant PI unrest if they tried to issue any more placings without a significant advancement on Han**** or EHs. I knew when they issued the RNS with news of samples being sent out to potential buyers etc that this was to head off a further dilution of shares then came the Vivash gorge purchase.
2) I think the BOD need to reign in further purchases- the PMG and now Vivash. We already have plenty on our plate for a small company. I think this is a case of a CEO with a technical (rather than commercial) background getting a bit overexcited and not thinking of the financial implications. The BOD must ensure that we dont gather a collection of vanity pet projects that will become very expensive to prove up so erode some of the gains we make with advancements in the DSO.
3) Mexico- I think BBG is being rather shady blaming the drilling contractor for the quality of work. It was HIM that planned the Mexican drilling programme. He was also on site when the initial samples were brought out. Im going to see if I can contact the local company and find out what they think about being blamed. And again, another significant delay in results in a country where people are getting assays back in a few weeks. Even in Oz, UFO were getting assays above the normal COVID era time range. Remember the first Han**** assays when I caught out BBG for saying that he had seen the initial assays for the DSO (when no RNS had been issued)? Or when he said that the Mexican mine ministry was in 'shutdown'? It would be foolish and naive to put that type of trust in a total stranger in any case so I dont quite get the deification of BBG here.
4) I still dont see anyway near enough Director buys. What they have bought in last 2 years is 'small fry'. Perhaps they would be more prudent if they had more skin in the game so wouldnt want to see endless placings for new projects.
5) would be interesting to start looking at re-creating an investors block again- 5% of stock is all that is needed to have a seat at the table so to speak. Most big PIs I know have sold out when the SP continued to crash last year. Just something to keep in mind
6) regardng the wider macroeconomic and global situation. I think its really hard to know what will happen. A lot will depend on what happens in Ukraine. It could go any way. What will be will be. I wouldnt lose too much sleep over it. Never been a fan of the specualitve posts here about silver prices etc. You gain nothing from it.
Ive emailed Mark this morning so lets what the response is. They usually come back to me within a few days.
Hope you are all having a good summer in any case
Regarding EH- I wonder if they were in discussion with a 3rd party which were fruitless so they eventually just released the results?
Its been said before- but next 1-2 months will really be defining for this company.
Personally, I would have been happy to focus time and money on our DSO and EH so we start earning money before doing more drilling elsewhere but lets see where this takes us.
I1) I never did get a response from the company to confirm that noone had seen the final EH assay results. That is after asking several times. They could have easily said 'no'. As mentioned before- even considering the delays in WA labs- this was way beyond even the upper end of the timeframe
2) I expressed my disappointment at yet another suboptimal mining campaign, this time in Mexico. We dont have time nor money to be burning. Rainy season begins in a few months in Mexico- i was hoping we would have been able to do a Phase 2 before then and get some sort of JV based on that. If you recall, the last round of drilling in Han****- what I would call 'Phase 3.5' was also beset with problems and they drilled less than they wanted. Out of all my AIM miner holdings- 2 suboptimal mining campaigns- both have been with UFO. As CEO and CTD, that is something that BBG has to take the can for.
3) I again reminded the BOD that the current SP would be an excellent point of entry for them to show confidence in the company by putting their money where their mouths are
4) Lastly, I warned that there will be a PI revolt if there are future attempts to raise more money by placings in future without any significant development in one or more of the projects and a recovery of the SP- and by significant I meant a JV or similar.
@wents,
how did you get 7 individual projects?
Id count Mexico as 1 continuum
Max: You stated "Get on board before it’s too late" when QBT was 3.95p, now it's 1.85p.
He did
You also said people need to get on board before its too late at the time the Capstone deal was signed off. We were around 1.9 then. It was 18 months ago. We are now at 1/3 the SP that you claimed was a last chance saloon.
You also claimed I was deramping before the great Donovan 2 assays came out- then a few days after, Capstone announced they were pulling out.
So I wouldnt be pointing fingers at others in terms of failed predictions.
A lot of speculation but it could be anyone really. Especially if the 'missing' assays are even half as good.
Notice how even Zak Mir didnt ask BBG about it. Its not a secret that these interviews are not like a news show interviews (though some forum members seem to think so)- they are pre-selected tailored questions. UFO have likely asked inerviewers not to ask about EH assays.
Not sure Rio would be interested. They are a huge company and UFO are about to start next phase drilling in May so we wont get the assays back for a while. I suspect they will want to see that at the very least before they would commit. If you remember- most of our JORC is inferred, and the next round of drilling will help to upgrade it to an indicated level. Rio wont be in any rush.
But yeah- we need cash somewhere- our current cash burn must be very very high.