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eyeguy - agree the risk of maintenance dilution has passed which has enticed me to take a larger position here. However the company will need circa £20m to move forward. This funding route has not been confirmed but dilution is not off the table.
On mcap - plant is dilapidated and it seems breakdown risk and future financing is priced in. Which makes it a visouc circle as placings (if they happen) will bring millions of new shares to total, therefore NPV and share price relation only realised once investment understood and made.
I'm open to sensible opposing views but querying how you are guessing and blindly quoting expected future share prices without any of us knowing how they will fund going forward. I seriously hope you are bang on with your predictions though.
I'm less concerned today than I was yesterday in the short term now ongoing maintenance is funded and I hope CRA continue to stream positive info during Q4.
Eh, financing risk is not gone unless I missed something - How are they paying for the DMS eyeguy?
Mcfirth - I admire your optimism on making mega profit on this, however at your average of 16p I doubt you will ever break even, I hope I am very wrong.<br />Eyeguy - your valuation of 20-30p also seems obscene. What you basing this on, do you understand how much dilution we need for futre CAPEX?<br />This being said, today's RNS was a welcome one and will underpin today's share price a little (in my view only). I have therefore added to my position here. I will add further once Q4 is successful and detail of the DMS funding is clear.
toomuchshine - what news are you expecting in the next two weeks that will send this higher. The only thing that will see a sustained share price increase is positive Q4 production.
Re-rate has begun?????
Share down on the year/month/week and in the red again today... but I admire your optimism.
Thanks Mcfirth, if you see the 1400% rise that is required to get you to break even I will be ecstatic as will most on this board.
Especially those investing at today's prices. Personally I will be happy with a mere 900% rise and then quietly leave out the back door.
However if we do make it through Q4 I will have a more bullish view on this share and may invest on the up and bring the average down somewhat - still not prepared to gamble just yet.
Mcfirth - your quote below - what is your average now on the £100k - must still be at least circa 14p on your trading history? what is your expected sell out price if all remains as is today? i.e double your money and sell at 28p?
Let's also not forget these were trading at 20p+ 2 years ago (in new money terms) before the reverse takeover, Director changes and change of core business.
I sincerely wish good luck to the new investors here.
It is a shame the majority of us existing shareholders need a circa 10 bagger to get anywhere close to break even.
The small bounce today may give some a short term trade opportunity but the fact remains this is still high risk. Do your own research before jumping in and weigh up the risks of current cash flow vs production and likelihood of minor/major equipment failure.
I really hope the plant hangs on for Q4 to help the balance sheet. Still only 4 days in, a long way to go yet.
I will re-emphasise my previous point. This share is not cheap, it is priced based on the ongoing risk of lack of financing and the high likelihood of plant failures which impact production and revenue.<br />Mcfirth, you have been ramping this too hard and you are clearly over leveraged with all your eggs in one basket and need this to rise significantly to break even. Your judgement on this share has been poor as with the rest of us here. This will not bounce any time soon until we see consistent and improved production. Any more failures and a further cash call may be needed. Buyers today are punters at best.<br />I remain very concerned.
Still interested to see how CRA will find £20m without significantly diluting the current shareholders.
For new investors, the upside potential is significant with underpinned IRR at 55% once funding in place.
Will any such placing or call for cash be offered to existing holders though or through large scale investors with further large fees/share options being paid to the brokers just to manage it.
The lack of direction on this continues to concern me.
It would seem to be complete madness to negotiate terms today following a poor period and before hitting current nameplate capacity in Q4 which would naturally increase the MC of the company upon reporting to the market.
On this basis I see the current share price still has a large amount of dilution risk which may put new investors off. Kevin needs to clearly define where is the £20m for DMS coming from and when - with clear milestones, clear strategy and achievable dates.
My preference, park the DMS until early Q1 after delivering better than expected Q4 results.
Price movement (or lack of) clearly disproves your theory that small buys and sells move the price Mcfirth.
This share is simply unloved at present.
My view in balance is that those watching on the sidelines should consider waiting for a decent Q4 in line or exceeding expectations before investing. Wait for this to de-risk a little.
Ragdoll, previous successful trades are great and agree if you have it to lose and enjoy the gamble then why not.
That was my point.
At 59 and rich you can take risks some others here would be more cautious of, myself included.
Presumably you invest for the long term based on fundamentals. Easyjet still fly planes if I am not mistaken.
The fundamentals of CRA have drastically changed since your initial investment and as a result you would be much wealthier had you not invested a penny in ALO/CRA. To not follow your average and then quote this share as cheap seems like poor judgement and to balance your post I think it prudent to highlight to others frequenting this board that CRA at present should not be considered cheap just because the share price has dropped at least 75% since your initial purchase of shares.I therefore ask what you thought of the share price and value of the company when you bought in at levels over 400% above todays close.
As I have previously stated, AIM can burn all, even those with hundreds of successful trades under their belt.
Today, you have no idea how CRA will perform in the next quarter or the reliability of their kit. Detrimental failure is now a foreseeably high risk as we have witnessed.
Enjoy Barcelona.
Spent £250k on an AIM penny stock in long term decline in the later years of your life and you find it hard to know what your average is.
Clearly you are too rich to care and are just gambling your money then. By this admission I should have no worries of you dumping stock any time soon.
"bought very cheaply yesterday" how many times have you thought that already and yet you continue to keep piling in more. This cannot be considered cheap until we have the benefit of hindsight or a solid Q4.
Even then, the upturn may not hit your average due to dilution and performance. I truly hope this is pocket money you are investing and can afford to lose as there are no sure things on AIM as your average will tell you if you figure it out.
Separately, good to see Kevin's video on PI yesterday. Would have liked the presenter to press on the detail of funding and ask some direct questions on Kevin's short/medium/long term views on share holder value, profitability forecasts etc.
Ragdoll - what is your average on your £250k or what is your holding worth today. At those levels you are a significant holder in this company and I would be keen to know your exit strategy if you are willing to share? For me, I will be comfortable once Q4 numbers match expectations before I consider any further investment. Rather try to catch it on the way up and ride proven results than invest in unknown outcome at this stage. As Kevin has highlighted, the current kit is 10 years old and has significant wear and tear. All fixable but comes at down time cost which has put them underwater for July and August and could happen again until they upgrade. This price is only silly cheap for me when we look back in hindsight after a solid Q4, otherwise it is priced correct according to recent performance and future risk which has been/can be below par due to breakdowns. Enjoy your break.
Today's RNS was detrimental to the share price and could drastically alter any advanced finance negotiations meaning increased share holder dilution as more shares are issued to keep this business afloat.
Until the board start generating news that oozes confidence I remain concerned. A lot of recent releases use words that are ambiguous at best.
Let's start seeing some tangible time frames and detail around the DMS that may give new and old shareholders confidence to invest. Expected, anticipated, shortly and soon are no longer acceptable.
All eyes now on Q4 - Kevin needs CRA to exceed expectations to restore confidence so I hope the numbers are achievable and on the conservative side.
Every LTH now wishing they had abandoned ship at 11p relisting price. This is exactly why I do not average down as there is no end to the unexpected bad news flow until it turns a corner and averaging down can leave you over exposed and underwater very quick.
Que a revised lower share price revision from GS for October - longer term TBA depending on the next RNS. I also now worry about the type of funding being agreed for DMS and the future impact on share price - not to mention the ongoing cash flow required to keep running. I see the head count has grown too with one going and two joining - all comes at a cost.
I remain concerned - this downtime was significant and on Kevin's watch - nothing to do with Mark. Where was the strategy/plan B contingency and why was this not a foreseeable risk that was managed.
Time will tell GS, even your price expectations continue to lower as the months roll on. We still have to consider how we are funding DMS in the future.
I am currently failing to see the difference between Mark or Kevin. The share price has been in a long term downtrend under both with no signs of this turning a corner and returning LTH value. Even GS revised pricing has this at an optimistic 15p which is still 25% less than when we de-listed so in no way a result!
Kevin has seen the share price drop 75% against suspension price since relisting and has pulled the proposed preferential placing with LTH's pre-suspension in favour of doing deals with the market. If Mark is so bad why is he even still around - clearly Kevin thinks otherwise or is just as clueless.
15p would see me lose a real chunk on this dog but I would be happy to sell at that to be out without a major nose bleed. I also despair at the posters stating this is a real buying opportunity - why? -because its cheaper than it was last week or last month? - trust me, the same will apply next week, the week after that, the week after that... Don't waste your money until this starts rising and holds gains for at least a week before you think about jumping in.
Hj6670 - smart approach. becoming over leveraged to bring an average down in a share that continues to fall makes no sense. I would rather wait until the tide turns and catch it on the way up hanging on the coat tails of the impending arrival of a 'pump & dump' squad. I really expect this could be transformational but the funding and dilution at very low rates has always been a concern - another 60m shares coming online next week if I am not mistaken will likely put further downward pressure on the current SP. I will take a view in October but continue to monitor closely.
I have considered averaging down further but then I review why I invested the amount I did in the first place and then further consider if I feel comfortable taking further exposure in a share that has not delivered against general expectations.
From my personal experience, averaging down has been a poor solution/gamble to a poor investment. I have averaged down once here since re-listing but will not risk any further investment.
Good luck to you and thank you for your comments. I'm pleased to see I am not the only holder becoming frustrated with the lack of SP linked progress.