Member Info for TheMoss

Simple question. Why should it go up to 7p?

Time will tell. If you all end up millionaires I'll be very happy for you. Best of luck.

I raised a genuine concern about the ability to raise finance and the post disappeared in minutes.

Of he could just have a genuine interest in the stock and might be interested in buying it should the circumstances be favourable.
As for not issuing the figures it's not exactly an annual report of a set of accounts we are talking about. Production is probably calculated daily. How long does it take to add up a few figures.
It's totally pathetic to see an opinion you don't agree with and instead of articulating an alternative viewpoint to make accusations of paid ramping and deramping.
Who do you think is paying for this deramping? So you think deramping is causing the price to call and not the failure to secure finance.

I think it also has another haircut coming. The last lender walked away when it found that government rules meant it couldn't create a charge over the mine in the event of non payment. It's how lenders work especially with large sums of money.
I can't believe any lender will make such a loan without such a charge.
The alternatives are persuade the government to change its stance and make ownership of the mine transferable, have a share issue or encourage a takeover of the company.
The first is by far the best choice but changing government policy isn't easy although you do have the lever of preventing job loses. The other two would not be good for shareholders.
This will probably get deleted for deramping but it's genuinely how I see it.

So you lend £10m and if things work out you get your money back plus the agreed interest. If things don't work out you get a load of cut price shares in a failed mining company. Can't see it.

The main problem isn't the drill results it's that he is unable to offer any security for a loan.
It's like someone going to the bank asking for a loan secured against his house and then telling them it's a council house.

Don't care what anyone buys just answering I am a goldbuyers question. Might still buy Gcat if they sort the finances out

Without the finance the risk has just increased. I was going to buy some of these yesterday but then I heard that the finance was not on place. It reminded me of Sirius Minerals who had a great project that was bought by Anglo American really cheaply because Sirius couldn't come up with the cash.. I'd rather pay more when the finance is in place
The second issue is they said finance was in place and it wasn't. I don't mind problems. I struggle with misleading statements.
So I bought Thor Exploration instead.

Would have thought they were getting a bit short of cash.

I don't think there has been a large increase in demand because they typically issue an RNS for quite small new orders.

Because they're burning money at £1m a month and the timing and certainty of them turning cash flow positive is problematical. I wouldn't loan cash even at 8% and with the risk free share option. Too risky.

All he said was what we already knew. There are dodgy people about who have evil intent and Kromek feel they have the answers. This might be true but even if it is can they make a profit out of providing the answers.
Looking at the amount going into intangible assets I think a lot of it is still blue sky research. If they survive the next six months without a cash call I might change my opinion.

Probably keeping cash in case it's needed on new open cast.

You just have to look at Sirius minerals. Anglo American got the wordsmith mine very cheap because Sirius was desperate for cash. An interesting question would be how receptive shareholders would be to further fundraising?

I suppose any takeover price would depend on their cash position. They need to look after their cash or they are sitting ducks. I feel the next six months are important. They need to be cash flow positive

I don't think it will be too long before we find out. They have got two million. They have been burning cash at £1m a month. If it's things as normal they will need to raise cash in the next six month. Let's hope it isn't the case.

I bought some when COVID was rampant. The story was we have this scanner all ready to go we just need cash to put it into production. They got the cash but I'm not seeing these scanners. Again they are coming out with bullish stories immediately followed by a cash raise. Who is making this loan?
All I see is rapid cash burn, ever increasing intangible assets and high stock levels. They also make an announcement for orders received that should be normal every day business.
I sold my shares for a small loss. Not good but on reflection it was a great decision.

There is an article in the Investors Chronicle on Kromek. The front page headline on the same issue reads "Spotting the warning signs - How Investors can avoid the next big accounting scandal". Having read both articles I would be worried.

A lot of expenditure is also being capitalised. From memory there is something like £30 m on the balance sheet as intangible assets. The true value is very subjective. Too risky with more downside than upside.
Covid isn't such a big issue as it was. They need a better business plan focusing on what is going to provide long term profits.