Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
Looks like more and more PIs are just selling at losses to get rid of this share off their portfolio. I can see why but will remain here until the lie of the land becomes clearer, this could be a mistake if they try a placing etc but like a lot here my losses on paper are so much another dip won't make too much difference. Obviously that makes it a lot harder for the SP to get anywhere near my avg. but have waited this long another 6-9 months shouldn't be too much bother.
Joe please thoroughly read RNS(s) when they come out:
Key developments in the quarter
· On 20 January Vela subscribed £49,000 for 700,000 shares in Ethernity Networks Limited, half of which it sold almost immediately at a profit of £600.
It really is a crappy share to be in isn't it! We are not valued on our assets but mainly on our BoD incompetance, which is ironic as there could be £4m put back into the coffers for them to spend. Really not sure how this will play out. Personally I think we should leave the £4m in the shares for Murphy and let them try and grow our investment!
Agree Dave. No way should they have put that £250k into Tribe and left the cash balance in the position it is. Whilst there is some truth in the fact that some of the companies are valued lower than they perhaps should be, that doesn't offer them an excuse. They watched MODE go from 80p down to liquidation without mitigating any losses. There is no guarantee they will be able to raise the required funds if they did try and raise either.
Just had a closer look at the cash balance etc. Not sure how they work all this out but as far as I can see:
Balance on 31st Dec £864,000
Bought shares in Ethernity (-£49,000) Running Balance - £815,000
Sold half for £600 profit (+£25,000) Running Balance - £840,100
Sold 150k shares in KNB (+£5,000) Running Balance - £845,100
Subscribed more share in ENSI (-£125,000) Running Balance - £720,100
Sold some shares in ENSI (+£114,000) Running Balance - £834,100
According to the recent RNS we had a cash balance of - £721,000, are the running costs of the company really c.£37,700 per month to account for the shortfall in the balance or have I missed something?
Secondly we have a current cash balance of £50k which if we take the balance from 31st March (£721,000) and take into account the recent investments and disposals:
£721,000
Purchase of PUT option (-£400,000) Running Balance - £321,000
Disposal of KNB shares (+£7,750) and ENSI (+£8,970) Running Balance - £337,720
Investment in Tribe (-£250,000) Running Balance - £87,720
As stated in the RNS our cash balance is £50,000. Judging by the shortfall in both balances this £50k will not last long at all.
Just to add some facts here. Even if Jimmy is right and the IPO goes ahead this week and our investment goes up 30% that would mean our holding in Aeristech will be £455,000. Whilst that would be great an extra £105k is hardly enough to move the SP too much considering they announced a PUT option which would add over £1m profit to VELA and that hasn't moved the SP too much!
It's over, just need the auditors to confirm it to put everyone out of their misery. Rememebr this from the fundraise last year:
The Loan Notes are unsecured, have a coupon of 8% and will be convertible into Mode's Ordinary Shares at a price equal to the lower of (i) 90% of the average mid-market price for the period of 5 Business Days prior to conversion; and (b) 10p. To the extent not converted, the Loan Notes will be repaid after 12 months. Investors in the Loan Notes will also be issued with one warrant for every Loan Note held ("Warrants"). The Warrants are exercisable into Mode's Ordinary Shares for a period of two years from issuance at a price per share of £0.20.
No where near all the loan notes were converted, i think last check there was nearly £1.5m left to convert. So that means these loan notes are due for repayment in July. They surely have no way of paying these loan notes especially as there is zero income and they still have employees/directors being paid.
A miracle is needed that's for sure.
We shall see, fingers crossed this one comes good. Interesting that we have spent out £400k for the put option and another £250k on this investment so £650k in the last couple of months. If we had circa £900k in the bank then we have £250k left so I doubt we will see any more investments until we capitalise on the put option
Agreed Bouncer. The update will literally be along the lines of :
The value of the investments dropped by x% mainly due to the ENSI placing which we subscribed to. Cash balances (hopefully) increased to £900kish.
Developments since last quarter - we have signed a put option blah blah.
Don't be expecting any new news in the update, the cash balance is what i am most looking forward to hearing.
Just to reiterate the quarterly update will not hold good news, the value of the investments will have fallen which we all know about. What we are intrigued to see is any relevant news since the quarter and the cash balance at the end of March.