RE: FOMO29 Mar 2022 19:49
Good spot CK.
Offsetting your valid cautionary point , there is the possibility the share price will respond well to further good drilling results from above and below surface at SC and from UD/CarnBrea and news of mine de-watering. Hopefully the resource will expand considerably, increasing the valuation and likely market cap. The current £40.5m raise will take us a long way, and if the share price responds to good news, the further £60.75m from warrant conversion at 27p per share should cover the majority of future capital needs for SC. The rest £20-30m? may then come from project finance /debt not another equity raise.
The market capitalisation will hopefully be driven by the NPV of the what can come out of the ground less the cost of extracting it, all multiplied by the probability of that happening. Whilst it seems we are going to have more shares to divide into that market cap, the probability of having a mining business, at all, has increased very considerably by news of the possible financial and operational involvement of VBR/Sir M Davis. If someone like that puts in £25m we should have considerable confidence the company is going to succeed.
If shareholders approve the transaction, then CUSN has got a year from the meeting to come up with sufficient good news (which may include a further rise in the tin price) so that the placees who will be locked in for 12 months will want to buy more, using their warrants, rather than sell out.
Given management's achievements to date, (look at the share price graph over the last 12 months) I am optimistic on that front.
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