Member Info for Tornadotony

I read it and I saw Tariq in a red paratrooper beret at Arnhem in a bridge to far and could see him at the radio and asking where is the infantry of small nanoco share holders. The reply he got was that the hot boys had sold off and it was the really tough investor brigade that was left. The LOAM army on one side of the bridge was 3 times bigger then Tariq forces and insider brigadiers were of similar strength. There appears little chance of a break through was the message Tariq got.

More seriously the disaster was revealing plans of the new board which the enemy could read and block all the next strategic moves. To make matters worse hard evidence of positioning was required, but relied on some greater fool to properly source it, but they are now busy blaming it all on the faulty equipment.

God knows what Tariq will do next, but he may have made to many miscalculations. He put Nanoco in the public eye, but he is now in it himself. The only option he has as an alternative is submitting evidence to authorities if he has any. The second is a plan B which works out better than plan A that blind sided a lot of small Nanoco investors. Tony

hear not here in previous!

Sharky
AAZ and Shanta have followed each other over the past 12 months. AAZ has run hot which it tends to do so but it can be volatile on the downside. The liquidity issue is a problem with 115M shares and quite a bit is held by the owners/Directors. I have swapped out of AAZ after doing really well for several years to rebuild a new position in Centamin. I have kept cash position in case we see 90-95p again. My personal view is that we will get a retreat for the following reason that all concern events this year.

1. The production guidance is on the low side for GEOs. At 1700 gold this would be around 85p. The high gold price is helping to give some cover to say around 111p.
2. USA recession has not appeared yet and that has helped keep copper prices high as well hence the proximity of the current price.
3. The company arrangement on 50% copper provision is to high if gold is going down in production and copper is going higher in the mix.
4. The company is spending a lot on a South American explorer and we await to here when they will become a producer.
5. Overall it is the finances for this year that may disappoint although adequate to maintain a dividend.

If gold is peaking over the next week or so AAZ is putting a top in the chart and is declining. Production in both Centamin and Shanta in particular is set to rise sharply in Q3. AAZ may win Q1 but over the year other miners will share the limelight.

For investors longer term AAZ does have a good 2024 with delivery of the ZAFAR copper/gold mine.

Looks like they have experienced a lot of rain. (In some ways that is good).

29th March 2021
Brian Tenner, Chief Executive Officer of Nanoco Group plc, said:
"Our lawsuit against Samsung for the alleged wilful infringement of Nanoco's IP is progressing well and we are pleased that a trial date has been set for October 2021. We are also pleased with the initial indications arising from last week's hearing and will review the final written report when it is received. Although there can be no certainty as to the outcome, the Samsung litigation could result in a very substantial settlement in our favour."
Share price around 22.5p
28th June 2021
We have always needed to win both the IPRs and the trial to achieve a successful outcome to the litigation process. The welcome support of our major shareholders, while the IPRs and the Court process both remain fully underwritten by the third party litigation funder, allows us to manage the additional time until the trial. Our confidence in the robustness and credibility of Nanoco's patents to lead to a successful outcome to the IPRs and the litigation remains unchanged."
Share price around 22.3p

13th October 2021
Meeting Investor presentation 19.8p closing share price.
17th May 2022
"Nanoco has overcome the first of two major hurdles in the litigation, the validity of our IP. As a result, our confidence in this case has increased further. While there is still much to be done, successfully overcoming this hurdle allows a straight run in to a trial later in 2022. A favourable trial outcome should then deliver a substantial inflection point for Nanoco's prospects and shareholder value."
Share price 35p.
7th June 2022
Repeated shorter version with trial date set.
Share price 33p.
Share raise 8 June 2022 at 37p
19th August
"We must not be complacent as the trial still awaits and its outcome is uncertain. However, the recent events noted above have added to the strength of our belief and confidence in our case. We continue to focus and work industriously towards a favourable outcome to the trial and a substantial inflection point for Nanoco's prospects and shareholder value."
Share price was 44.6p
The range between 20th August to 5th of January 2023 was 34-44p for the most part.

From all of the above we are missing the inflection uplift in just having a settlement. The share price is below any hope of a legal settlement in favour of Nanoco. Any real dispute folk have is all about 6 January and beyond as the comments in the earlier RNS material is what counts.

Bao happy for you to add mine to yours Tony.

My questions;

1. In the event of the company being approached to be taken over will a bid situation be declared and would shareholders be informed and the company awaited any final offers to be received and if they were higher than book value we could vote upon it.

2. Has the company reviewed the Runcorn production model competitiveness against other companies taking production in-house. For example manufacturing sensors in California by ST may be more or less expensive than at Runcorn and has sensitivity analysis identified as still being more profitable having Nanoco as an external contractor. Will UK Government provide some support with inward investment from ST to create manufacturing jobs in Runcorn.

Gold was $1713 an ounce on 8th November, 2022 and Centamin rose to 97p handle and pushed higher as the rally arose. Gold is $1972. So the company making 67% more profit is at the same price. The pound is valued higher against USD since then but nothing to justify the anomaly. The question is will gold drop $260 per ounce in the near future.

The issue at point 15, puts Brian Tenner and his CFO in a serious situation. The Chairman in response through his inclusion in the RNS today has not left the two of them out to dry. The Pallas letter identifies the 6th January RNS as being a cause of benefits to preferred parties. What are the chances of someone having mobile phone evidence collected on 5th of January attributed to those who issued that RNS. Any whistle blower would need to be close enough to acquire it at sender or receiver locations. Then such a person would need to reach out to someone like Tariq Hamoodi rather then go to authorities themselves.

The company has not covered themselves in glory and could at least apologise for what happened with the original rushed out RNS and accept some loss of benefits for staff responsible for it. Rewarding someone for their mistakes in business is not a good precedent for the remainder of Nanoco staff.

If Brian Tenner marches around like a hair shirt in the coming days, everybody will want him out. If he is very precise, very transparent about the events and admits any mistakes he made and honest enough about what he did not know, then it becomes more on the future prospects and how well thought through the discussion is, what it entails and the risks carried with it.

Tony

The key paragraph in Pallas letter is at 15 and they will need to deal with it in the presentations in the coming 48 hours and Tariq requires evidence to back up that point. Secondly where is LOAM after the RNS. Such a statement should be backed with some buying from them.

it instead of I

Troublesome

No I was not a slight on northern people of UK. I was catching up on the happy valley TV drama last night and was depicting whether Nanoco were trying to emulate one of their episodes. Tony

Nanoco another happy valley northern adventure where we await to see if it is stupidity, bandit behaviour or nothing at all.

I am not sure that it would be possible to underdo an agreement made with Samsung.

The letter written by Pallas forces the Board to become transparent about everything. It gives a chance for previous agreements on financing and bonus payments to be renegotiated to reflect the outcome of the settlement to the benefit of the company. It would mean the CFO and CEO would have a high targets to deliver in the coming year against transformational commentary. It would mean some changes to the board to enhance such future outcomes. It would elevate governance and communication standards to a far higher professional level. It would provide LOAM to demonstrate new found confidence in the company and buy upwardly on the share price with it. Tariq should be invited on the Board as a shareholders representative.

The other issue was briefing at legal costs as around £10M and they end up at $60M. This is what messed up all my modelling of the risk. I had the figure on $30M maximum if early settlement was reached.

If Board members have done as written in that letter, the only way to counter it is not to take any money on bonus arising from the Samsung settlement and gradually depart They would also agree on having a scientific and advisory board with some of the suggested names coming into the company. If they have not done as in the letter complete transparency in the response is required on discussions with analysts and all shareholders.

If the preferred shareholders on the loan pay back 90% of what they got as extra for financing the litigation, it would put out one of the fires on reputation. If the Chairman fires the CFO and CEO and accepts say 3 of the Board appointments suggested it may resolve the second issue. Other points raised could be argued against. LOAM should buy back the stock and support the company to help end this mess.

We can probably expect a lot of manipulation of precious metal prices on the 28th by USA open and close.
I remain 50% in Centamin at a price I am comfortable with. Cash in the portfolio was reduced from 35% to 28% to build up Centamin now in 3rd place overall in my portfolio and i expect it to go into second place. Plenty of fire power if it gets ugly and enough on if everything goes to blazes in a hand basket and gold and the miners take off.

A part of me thinks $1800 ounce last year is the new $1980 per ounce as real inflation is certainly happening in the UK. If central bankers, politicians and the media said it was daylight outside, I would draw the curtains expecting it to be night time. The whole system stinks to high heaven as it appears to only serve a select few. The values of hard work, rewarding innovation and intelligence and those in positions of responsibility acting with integrity feel like a by-gone era of decades ago.
For those in the UK clocks go forward an hour tonight and I wish everyone the best as we head into Spring. Tony

This is interesting as well. Published a few hours ago.
https://www.nasdaq.com/articles/metals-nickel-surges-as-inventories-slide-and-speculators-wade-in

I should warn folks that China sponsors some media output that is located within Indonesian based sources. The purpose is to deliver low metal prices for Chinese consumption. Truth is probable in the middle of both articles.
Tony

HH here is the check list

https://www.forbes.com/sites/lizryan/2015/03/08/five-signs-your-ceo-is-incompetent/?sh=9cfb27e52521