The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Itssouthere, when it hit 37p it was at the top of the first peak on the Lassande curve, and since then we’ve had the dip. Once production starts we climb towards the second and significantly higher part of the Lassande curve. The steep upward climb towards the second peak should begin post DFS and decision to mine as (thankfully) the construction phase will be relatively short as Telfer is already in situ.
Well I’ve just added at 6.20p and am top heavy on this share. My total average is now 8.05p so aligned with Wyloo. This time next year Haverion will be a few months into production as assuming time line is stuck to and decision to mine is confirmed by end of Q4. I’m baffled as to why the SP is so low as we are only waiting for Newmont acquisition of Newcrest to complete, ASX listing and DFS. On Stockbox a seasoned investor (Charles Moore?) reckons this could be at 28p 2 years from now. Having got this far, funding secured and the worlds number 1 gold producer being the ultimate JV partner, what can go wrong?
There are several companies that have delisted from AIM this year and have had a Matched Bargain Facility with JP Jenkins. Has anyone had experience of using this facility and can you get a decent price? I’m thinking if the Dubai investors were happy to subscribe £1.1m at 2.5p per share less than 3 weeks ago, they would be happy to add at more than the current SP of around 1p. Comments welcome
RNS out, further delay although now very close. I’m happy for them to delay until they can release simultaneously with a positive trading update. Looking like mid September folks where we will also get the half yearly update as well.
On the one hand they make a persuasive case, but on the other if they get this money they might be tempted to loosen the purse strings and be less disciplined in cost control. To vote for or against? It all comes down to trust. Do we trust them to be prudent in exchange for diluting us by nearly 10%? I am a recent shareholder here so hard for me to call this.
The placing shares on 18th August and the directors shares amount to 61.58%. I think Rathbones and Bannick may be out, if so, there is more needed to get 75%, but even so, yes, get buying and vote this down. It’s daylight robbery for existing PIs who have been stripped of significant value, but only if they get the votes
Davey, it is a chat board. It is there for chat, not for being silent. If you don’t like MIRI and therefore by logical extension assume you’re not invested, why are you on this board, chatting?
Davey, the dump was because Odey Fund (which invested in the placing at 3p) was a distressed seller. It has partially recovered because Odey is out and others are snapping up a perceived bargain (perceived because revenues aren’t great but genuine hope and expectation is high) although still under 2p. There is no manipulation P&D going on as you imply. IMO and DYOR
MickR I agree, I bought at 1p yesterday on the basis of the Dubai investors were prepared to pay 2.5p 2 weeks ago then they should be prepared to mop up shares at a price heading more towards 2.5p either before it delists (that assumes the votes are there, but I don’t think that is by any means a done deal) or in the post delisting facility that will be put in place. Even if it turns out I’m stuck with the shares, the company prospects are good as it has just raised £1.1m, there are receivables to come (they have merely been delayed not written off) and in last 2 months new contract wins. For me this is a win win. IMO and DYOR
Lots of good news recently but as stated in the Proactive Investors interview, the cash runway won’t last forever (quote). They will need to borrow or do a share placing to raise more funds to deliver on this good news IMO. I’m on the sidelines watching with interest but will invest when I’m confident the finances are sorted. Accept I may be calling this wrong and could miss out but hey ho!
Agreed, the timing is interesting as I presume they could have done this long before now. But now, with Salistick on the eve of going live retail, they obviously want to buy more shares, hence the Concert Party change. Hopefully this coincides with more good news to come, and given the restricted free float of shares, we get a real boost to the SP back to when we were producing at scale LFTs for Covid. Timing is everything.
Should have read ‘if they have the 75%’ not so they have….. If it does delist, I wonder what price you’d get under the Match Bargain Facility if the new investors were happy to come in at 2.5p? All things considered I do think the SP is too low and a bounce will come IMO
But so they have the 75% and if they do why haven’t they said so? With recent new contract wins, cash to come in from customers (eventually) and cash from the £1.1m placing there is more value than the current SP in the shares IMO.
Thinking about it, if they had the commitment re 75%+ of the votes or were anywhere near it they would have said it in the RNS and provided full details behind the cancellation. I wonder if they are buying up shares on the cheap following the panic selling with a view to later announcing their percentages. It seems to me the delisting is not by any means a done deal and it might be worth waiting before selling (how worse can the SP get?) and see how it pans out. If they can’t delist the SP should bounce back. It may be that that amounts not recovered from customers are more recoverable than we have been led to believe and they want to keep the bounty for themselves. Might be right, might be wrong….z
The RNS gives a reason of cancellation as “AIM no longer sufficiently provides the company with the advantages of providing access to capital” yet they did a fundraising just 2 weeks ago. Disingenuous or what! I wonder whether they have sufficient support for the delisting to secure at least 75% of the votes. The next RNS should reveal more. Awaiting it with interest
I think no news will be good news other than gas prices rocketing up and production increasing. A poor set of financials isn’t really going to do anything for investors morale unless you’re a shorter.
Well the DT isn’t the place to get your tips. Their tip for 2023 was Premier Miton LOL ….
What on earth were they panicking about, as the half year results are looking backwards - it’s historic, but looking forward I see great potential and a 12 month cash runway to deliver it.
Don’t forget the Odey fund was happy to invest at 3p a share at the May 2023 placing, only MIRI unrelated subsequent events caused them to offload. Revenues not great in these half year results but that’s hardly unexpected. The future is bright and the SP should recover from here, looking forward to the presentation later today (which I doubt he’d be doing if it was all doom and gloom).
But they can’t go above 30% otherwise they have to make an offer don’t they? The convertible loan somehow gets them out of the takeover code but buying now in the market surely doesn’t? Bayford is around 28% and Harwood 27% rounded down to nearest whole %