Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
The market, or what little is left of it, will only take note of Sea Lion once Funding & FID are announced, any other preparations, will be largely ignored.
I corresponded with Sam regarding a US listing and he said they hadn't given it a thought for some time but that if & when the market believes Sea Lion is happening ,then, they would at some future point give it consideration. Which seems a sensible approach to me.
Sam did said Rkh had some sizeable US investors years back but they drifted away along with the declining sp.
IFair play to him, he always gets back to you and addresses any (relevant & realistic)queries holders may have.
I think as US listing ( not OTC ) will be reviewed once revenues start coming in.
Shell are now also looking to bail from the UK market now, it seems everyone is trying to flee it because its totally washed up & so few use it anymore.Its dead !
Higher valuations can be had in the US & that's where a fair number of British companies already are and want to be listed.
Oh, I see, didn't know they were listed on the Over the Counter markets.
Probably have to wait until profits come in, then maybe, they could list on Nadaq or something more respectable than the OTC.
Anyone unsure about just how serious & hungry the Gulf States are about moving into mining and taking market share off China - read the FTs " How Gulf States are putting their money into mining".
Full article available free .
Spike; Firstly, I never said any investor would bail out existing shareholders, so why you said that is difficult to comprehend unless you have not understood my post ?
On the contrary, and in line with the companies statement, I have stated that the vast majority of existing holders, who haven't averaged down or bought the lows, will be pretty much wiped out on any deal.
As for the Gulf States being interested in a half finished low quartile nickel mine, yes, most certainly. The Gulf States are frantically scouring the globe for mining projects to diversify away from fossil fuels. These are facts and you can check online as to the authenticity, you may also wish to have a look at who Glencores largest shareholder is !
As for the £500mln Capex, All projects have capex, so any new investor in any mining project will always have this so I don't understand what point you are trying to make saying it needs hundreds of millions ?
As for bidding war, as I have said, there will be more than one interested party and each party will submit their offer and it may go to a second/third round before the best offer is chosen.
If you think 1p or 0.5p will be the best offer, that's fine, no one is right or wrong until the deal is done and I'm not here to encourage anyone to buy or sell. I am merely sharing my lines of thought with fellow posters.
If I am right and the funding is done at higher than 1p then I shall be rewarded if I am wrong then I lose,simples, I know and accept the risk & quite like the current risk/reward.
I have mailed Big Sam with regards to whether they would consider a US listing.
I think we could benefit from a US listing as the LSE is Dead & Buried.
As everyone knows, the UK market is Dead , many companies are fleeing to the US as more participants & higher valuations can be expected.
We have all seen the pitiful volume for Rkh so would it be better to have a US listing as they are far more welcoming on fossil fuels and there are more participants.
A US listing might be worth considering with the progress that's expected that should put the company on another level.
I do not agree that....'it will be a take it or leave it deal'...as some posters are saying as this assumes there will be only 1 offer !
I put forth that there will almost certainly be more than one interested party and negotiations will be complex, running a series of rounds to whittle down a shortlist to attain the best offers.
To think, as some here do that there will be only one single take it leave it 1p offer is extremely naive. One can reasonably expect a number of offers from the various Gulf States and quite possibly one from Glencores largest shareholder, that's without any financial institutions who can also be expected to tout for business with production being nearer than it was at the first round of funding.
I'm all for criticism of the
company and hearing both the negatives & positives as long as they are relevant as a balanced view is acquired by being objective so I encourage the negative posters to continue putting their side forward and we can debate the pros & cons and we'll see which side was the right one to be on within a few weeks when the interim funding is announced or not as some suggest !
Robdog; Been in this game for 30 years so I know my way around !
Contrary to what you think, the winners will not outnumber the losers on AIM, you can only hope the few winners outperform the many losers.
Now back to hzm, lots to play for here, this could easily double/quadruple in the coming weeks on interim finance and it will rise again on funding.
I've opened some spread bets to average down and can only lose 1.86p on them so my losses can only ever be limited to a very modest amount whilst my upside is incalculable.
The odds look good at 1/2p per point and you will see why over the coming weeks when interim funding is announced.
Nobody's clever in this wild game of chance, the clever ones don't play so there's little reason to gloat if you have gambled on aim.
Rob, you say the 3 cornerstones will have to get wiped out to save the company but why would they bother getting wiped out only to plough many more millions in at a tiny fraction above zero pence ! Why bother....Much better to sell the assets and not commit and risk anymore capital if that be the case !
That way they'd see some return instead of being totally wiped out, no investors will be bothered about saving the company if its going to wipe them out and cost them many more extra millions.
It's Pointless.
Just sell the assets, even distressed, they've got to be worth £250/300 mln to the Saudis/Oman/Uae ect, possibly more if they're bidding against each other.
Settle the liabilities ( £200mln? ) and cornerstones /shareholders may be left with around £50mln, maybe 40p a share ? ( figures unknow)
So what does a cornerstones do ?
Option 1, Lose everything and plough endless more millions ? Wtf would you do that ?
Option 2, Accept a huge haircut but not a total wipeout and invest more millions ! Sensible !
Option 3, Do not put another penny in and sell the assets to the Arabs, Sensible !
Option 1 does not make any sense to a cornerstone ! No need to get wiped out and then plough endless more millions in, thats plain stupid, just sell up and cut the loss, and save yourself £100 or whatever millions.
From a new nvestors point of view, it's basically like being at the initial funding stage as around £500mln is required, just production is nearer this time so arguably a more favourable situation than the first round of funding for any new investor.
The posters who think that funding will be automatically done @ zero or 1p are assuming that every interested party, and there will be more than one, have all stipulated a price of as near to zero as is physically possible or no deal.
I put forth that interested parties (think Gulf States) will be bidding against each other for a piece of or all the pie.
We all know how voraciously the rich Gulf States ( Saudia/UAE/Oman ect are seeking long term mining opportunities to diversify away from fossil fuels so this presents a perfect opportunity for just that as its long term & near term production.
So to think all interested parties will just present offers that result in the cornerstones getting nothing or 1p,is itself, fanciful.
Sure, all offers will result in a negative outcome from £1.50/£1 /50 or even 25p as per companies statement but 5/10 or 15 is possible, obviously the higher the price the less likely it is.
At 4.5p I get my stake back (after increasing my holding recently) and that would be a good result for me. I don't think it's an unreasonable target and I expect to see this price and more on interim funding in a few weeks.
Yes of course, even if a funding package is agreed there is no certainty it will be positive even from the current sp and that's the gamble we take.
If you believe the cornerstones will accept being 100% wiped out and still willing to pump many more millions in then it's definitely best to close out and if you believe that a funding package will not be secured then it's also best to sell out so it all depends on what you believe will happen with regards to funding.
Personally, I think the cornerstones will want more than Zero, or 1p to invest many more millions but that's just my opinion, the deal could as easily be worth zero for existing holders or there could be no deal & a firesale or it could be funded at 5/10/20p.
All scenarios pretty much wipe out existing holders as the company have pointed out unless they've averaged down or bought the lows, which brings more risk but potentially offers a way out without being wiped out.
It's all to play for @ 2p.
The sp could double/quadruple in a few weeks if interim funding is agreed as this would mean that they are confident a deal will be done.
No one will fund the interim if there's no funding package so this will be the big sign and we should know it in a few weeks.
Gentlemen, place yr bets !
That's the point, what's a positive outcome for recent shareholders & those who've averaged down around the lows will be totally different to those holding at £1.50/£1/or 50p !
So Publican stating its going to zero & everyone's getting wiped out is pure scaremongering as he doesn't know the funding price just as none of us do, the company itself included at this point in time.
The man's not even invested, yet spends much of his time here monotonously lecturing everyone on the perils of investing in a high risk junior mining company that's already lost 99% of its value, as though we didn't already know 😆.
He pathetically pretends he's some kind of saviour on a ridiculous mission to help hzm investors cash in their remaining 1% and see the ill of their gambling ways.
Unfortunately, the man doesn't appear to understand the vast majority of us are fully aware we are invested in a high risk AIM junior mining company and we are willing to lose the remaining 1% and punt even more on the outcome being more positive than the 1 or zero pennies he predicts.
The Publican says " People need to read this ...They have stated even if a solution is found current shareholders get nothing "... But they didn't actually say that- they said any deal is unlikely to lead to a positive outcome for existing shareholders!
Now 5p/10/15 or 20p is not a positive outcome for the vast majority of existing shareholders so it's up to each investor to assess what the outcome might be.
I am, for example, betting on an outcome of more than 1penny and I 100% accept & agree that any deal will not be a positive outcome for existing shareholders but that's not to say the funding price will be 1penny , the definition of what isnt a positive outcome for existing shareholders could be anything from £1 to 1p.
Funding could as easily be at 5p or 10/15/20 or who knows what pence.
There's no point the cornerstones doing a deal @ 1p, If that be the case, then they would simply firesale it and not risk anymore capital having been wiped out but I expect a deal to be made at a higher than 1p price based on the projects attractive economics and I have as such been buying over the last few days as have other speculators gambling on a more than 1p outcome.
Looks like it's being bought on the lse @ 2.20 as its up 17% !
Don't give me or anyine financial advice Publican, if people here want financial advice they should seek it from professionals not some sad annoymous poster who spends large parts of his life being a boring repetitive nuisance on a BB that he has no vested interest in !
I an very happy to lose my remaining 1% and posiibly even gamble some more on the outcome being more positive than 1p so please keep your unwanted finacial advice to yourself in future !
Any cheap low ball bids are perhaps wishful thinking as the 5mln mkt cp is irrelevant. Any buyer needs to pay all the outstanding liabilities as well as the $600mlln to bring it to production.
That means they would need to be paying nearer $1 Billlion for this £5mln valued company !