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Every company has to issue risk statements.
Of course they need more funds for expansion.
But where those finds come from is not defined.
Could be from cash flow:
"With the Company seeing increasing production from the smelter during the first half of 2023 the outlook is extremely positive".
" In addition the Company expects to rapidly increase production and revenues as all three furnaces at the smelter reach full production in the first half of 2023, which will see the business operating on a positive cash flow basis."
Could be from Grosvenor:
"The Directors have received reasonable assurances that progress is being made between Grosvenor and its potential funders and is hopeful that an investment by Grosvenor will be completed early in 2023.
Could be from a raise.
Who knows. But to pull out one line is a bit disingenious.
@steven49
I am quite happy that Dennis has cashed in now on the lithium. Compared to other lithium miners, the quantity and quality that KZG have is inferior. And while everyone is working hard to cash in on the meteoric rise in lithium prices and the demand for EV, other fuel technologies are being developed.
A bird in the hand is worth two in the bush.
And now we are very well capitalised to develop the other projects which will likely deliver a much better return.
Er, no. Absolutely relevant here.
And what timing! For all the lovely rumours of a placing potentially causing a mini sell-off (-7% at least) , and then BA absolutely refuting it on Proactive.
As I said deal with facts.
Top up anyone?
I would encourage everyone to look at the facts. The fact are in the RNS, not in the ramblings of bulletin-board posters. The market works in mysterious, some would say nefarious, ways.
One week you could hear rumours that there was going to be a plaything at a much lower price, and a lot of people sell, only to find that the following week and R.N. S is issued to say that funding has been raised with a joint-venture partner, perhaps even with no dilution.
In the meantime, shares have changed hands from the weak holder to the strong holder.
Rinse and repeat.
I am not saying that this is happening here at the moment, but y’all should be mindful that such games get played.
This should answer your question
http://www.alignresearch.co.uk/report-library/
I’m sure you are capable of finding answers to your own questions, be they rhetorical or not!
Pessimism or realism?
How many LTHs have sold?
What evidence do you have for a “sell off”?
Trading history might indicate otherwise.
Perhaps the sp is merely in the range of the last placing?
Yes, this looks like good value IF the smelter deal closes fully.
And on that “if”, I refer the right honourable gentleman to the response I made some moments ago.
@teddy-KGB2
So you are a fan of the cancel culture, with a hint of gaslighting thrown in?
In my view it’s always wise to be open to a variety of views otherwise how do we learn?
To try and discredit a contrary view by calling it the Muppet Show, or referring to people as the “herd” is disingenuous to say the least.
@marc001
As you appear to have only recently jumped in to bed with IRON, and have a 0.3p average, I’m assuming from your posts that you are not aware of all the failed promises over the last few years.
Perhaps your timing is perfect and you don’t need to worry about that as maybe this time, just maybe, the company WILL deliver on all that it has promised to deliver. BUT the reason the likes of me talk about the debt financing package for the smelter NOT being finalised is because this is EXACTLY what has happened with past deals. Promises that signing-off is imminent , and then the deals don’t happen. So our reservations as LTH’s are based on the actual performance of the board.
Many here have much higher averages than 0.3p, partly because of the promises that were made when the SP was 2p, 1.5p, 1p. so there will be a certain amount of frustration expressed on this bb.
I’ve got everything crossed that this time it will all come good.
If you believe and have bought in to the ALL story then you won’t be worried about what is the normal up and down behaviour of a share price.
ALL has had a meteoric rise that typically would be overheated for a while. And yes, the market may play on that somewhat, but that could also be fuelled by the perceived presence of risk. Nothing is ever a dead cert. And in ALL’s case, the risk could well be the mining license.
Now I’m not saying that they won’t get the license (they certainly appear to be making all the right moves) but I’ve been in the markets long enough to have seen many “dead certs” not be a dead cert. No comparison intended, but ask SXX or GKP shareholders how sure they felt about the outcome of their investments. Expect the unexpected.
I still get caught out. My latest bug bear is IRONVELD - over the last 2 or 3 years there have been numerous RNS’s literally stating that funding had been agreed and they were just waiting for the money, only to find out the funder didn’t have the funds! Ok, now funds have been raised, but at huge dilution and a crushed SP which has been a major poke in the eye for my averaging down. And yes, they’ve now announced they’ve acquired a smelter for almost $0 and refurbishing it, but the deal isn’t complete because the debt acquisition part of the deal isn’t finalised. Meaningless words such as “imminent” are now common in RNS so I, and I assume the vast majority of LTHs, just don’t take the RNS’s seriously any more.
So just a cautionary tale, to share experience, and highlight the risk of over commitment in any one share.
Now, when do I buy some ALL?! The 30p level certainly looks interesting in terms of a support level…. if it gets there !
9/12/2022:https://twitter.com/ironveldplc/status/1601150961942142977?s=61&t=4aoEhdcIfnzoJnfI8UcbeA“The Board are also confident that the closing of the FCF acquisition will complete soon.”.Rinse and repeat.“Confident that…will complete soon ”.Ya de ya de ya.Change the record, Martin.Just deliver the deal COMPLETED.
I meant to say that this was NOT my intention to compare the companies! I was merely interested in the thinking behind the large investment prior to a mining license even being applied for. I have my answer!