Member Info for TheMoss

Does anyone know why this went up 10% today?

Legalwolf Could you explain the funding to me? Originally they needed £10 to run the mine at it's full potential but the original lender pulled out. They got a 8% £1m loan from a different lender which was secured against the mine. It's safe for the lender because the mine has got to be worth more than £1m.
But £1m isn't £10m which they need. However they can't offer the mine as security and they are aiming to do it without being dilutive. I just can't understand how this works. The lender is being asked for £10m. He is risking more than the shareholders whose current stake is about £4m. If it works out the lender gets a simple percentage interest but the shareholder stake will double, triple or more. Why would anyone lend?
I'm sure it's only a matter of time before I'm accused of deramping and the post disappears. However I have no intention of buying at this point in time.

The only constructive conversation at the moment is the likelihood of getting a finance package, where it's likely to come from and how much it is likely to cost in terms of dilution and amount.
All this talk of ramping and deramping is people expressing opposing opinions and is only short term in nature as it will be proved or disapproved by the facts.

Elton John? Must buy some shares. Might get an invite.

They have renegotiated their loan over a longer period in the last couple of weeks. I see it as a big positive. If the present mine has a longer life, the second mine is operating and the loans are paid off the share price should increase substantially over a two year time frame. Clearly things can go wrong like a falling gold price but you would think there is more upside than downside which is why I bought the shares.

Why do you think a finance deal is about to be announced?

Loans to pay off, new mine to get into production and exploration needed to extend life of the current mine. I wouldn't expect a dividend any time soon but I would expect the share price to gradually increase.

You need to go swimming in that river that flows through Cairo but I suppose you're already in denial.

Burying your head in the sand. The way forward. Get on with it.

So Zag Egypt not a great fan of free speech and open debate.

Wise advice Zag Egypt. Thank you.

I'm deramping nothing. I'm just amazed how many people on here can't answer legitimate arguments without trying to discredit the people who are making them. Bury your head in the sand. Am I bothered?

The reason I asked is that I was reading an RNS from Thor Exploration which has just rescheduled its loan. The interest rate is staggering and it's in a much better position to negotiate than GCAT

The amount is clearly a factor in whether they can repay it and how it would affect cash flow.

So if Caracal were to secure this loan what is the annual interest it would be asked to pay?

Revenue is meaningless without a profit. At least they haven't asked for more cash for some while.

So where are all these lenders that were queueing up to replace the previous lender?

There is a big difference between a lender and an investor. The investor accepts the risk and knows he can lose his capital amount. The lender wants a return that compensates him for the effects of inflation and gives him a small income. He does not put his capital at risk and would look for some asset against which the loan can be secured.
That is why the last lender pulled out and why you had to treat claims there were a large number of lenders queuing up to take their place with suspicion.

I was looking at two shares thx and gcat. Fortunately I plumped for thx.

A top bulletin board? I only came on here when someone posted on the Caledonian Mining board saying how this was a far superior share. When I looked at it and said the lack of a finance deal was a problem I was accused of being a paid deramper. My posts kept disappearing.
I'm sure Putin would be happy to give jobs in his propaganda department to some of the people who operate on here
The proof of the pudding is in the eating and as for deramping I've received no cash from anyone and I have no intention of buying any shares