Asa Resource Share Discussion Threads

[blueball] 19/12/2016 20:56

stay in cash.

[mr macgregor] 19/12/2016 20:42

More likely there's an issue with feed to the smelter and they've had to bring forward re-deepening of Trojan, changing plans announced at the end of September. Due to this change they've had to get agreement from the bond holders to a moratorium on the repayments as they're strapped for cash. They're committed to the smelter, hence a big roll of the dice.
I'm not convinced the smelter is on schedule which is supposed to complete by 31st March 2017 but is still around 71% finished, same as reported last month. It was first due March 2015, then March 2016 so another deferral wouldn't be a surprise.

[mreasygoing] 19/12/2016 20:14

Yep. A distinct possibility.

[casabella2] 19/12/2016 19:31

Not an expert and have read the rns several times but cannot see where ASA,who have turned a loss year on year into a profit should have a share price that falls neck end of 15%.Looks to me like the share price has been dropped down to allow a big buyer in.

[the stigologist] 19/12/2016 13:00

It's on a tear down juju?

[juju44] 19/12/2016 12:14

Net 6 million buys and we are down 10% . Reality check required

[the stigologist] 19/12/2016 12:11

In reality it will cause chaos (e.g. Gaddafi/Saddam etc)

In share price unreality market may see it as positive initially

[bogeybazaar] 19/12/2016 12:05

I came in here years ago at 2.95p, so I got a little over excited a few weeks ago when I thought we were soon going to soar north of that in short order! On a sensible note, I do wonder whether Mugabe's eventual farewell whenver that might be would in the short term make the business environment even wobblier or usher in a huge wave of optimism?

[the stigologist] 19/12/2016 11:10

These sort of falls happen because the investor base has become 'too positive'/bullish so even good news is taken badly.

We saw this with lots of ignorant mug punters on here claiming a 1% rise in nickel prices was a 'tear'

[mreasygoing] 19/12/2016 10:59

Be patient mate. The mark down doesn't reflect what is actually going on. The company has enough funds to complete work next year which should then release the value of the assets.

[bogeybazaar] 19/12/2016 10:29

This is a bit of a disappointing over-reaction to the RSN. It's not as if the BoD said 'Right, tea break's over, back on yer 'eads, did they now?

[juju44] 19/12/2016 10:12

1 million sales drop it 15% and 5 million buys lift it 5% - who are they kidding

[mreasygoing] 19/12/2016 09:47

The mm's mark this down and present an early Christmas present as they cannot see the underlying value.

[juju44] 19/12/2016 09:41

Here comes the cavalry

[juju44] 19/12/2016 09:23

Yep - keep the faith

[mreasygoing] 19/12/2016 09:22

Mind reader ;-)

[mreasygoing] 19/12/2016 09:21

Nice results. Top Up opportunity under 2p. I've added some more. Mm's have no idea. This could finish in positive territory today.

[juju44] 19/12/2016 09:21

Management are doing the right things . Of course there will be bumps along the way but compared with 2 years ago ASA now looks like a much more professional outfit , profitable and with a load of growing assets with huge potential

Profit taking and sell on the news share price generated falls are as expected. Fall on low volume provides a top up opportunity .

[redtrend] 19/12/2016 08:52

The cash position is no doubt a concern, but the Nickel price has increased substantially since Sept '16. We're coming to the end of a major period of Capex spend across BNC, Freda and Zani.

If more cash is required just to get to completion, I would prefer more debt if I'm honest rather than cash call. As soon as smelter is on-line, 65% of spot becomes 85%. Capex requirements are significantly reduced as completion of re-deepening is small outlay of 5m (less than 25% of smelter costs). USD 5m to increase Life of Mine by 5yrs and increasing feed output is a bargain. I did not realise the redeepening project would increase Life of Mine by so much.

As ever guess all depends on spot price...

[jailbird] 19/12/2016 08:39

Yes I am with the few that cash is needed to meets costs for reasons stated above.ASA Gold will need to listed as s separate entity and cash raised as part of a new listing.I think they will raise some cash or increase debt on the back of improving Nickel prices and now the Co is in profit

[casabella2] 19/12/2016 08:36

RNS didn't look that bad to be honest.

[redtrend] 19/12/2016 08:28

This was cash position Sept '16 with major spend on Smelter and Nickel at 9-10K/tn, yet still managing to make a profit. They have not needed to make a cash call in 5 months since and Nickel is now 11K/tn. It's clear where the cash to fund the Capex is coming from.

The pre-feasibility study is awaiting final approval and they already ordered equip for gravity plant - to order equipment Board must obviously think final approval is a formality.

Funny to see across various mining company threads people go from ultra bullish to ultra bearish. To go from stating this was a 20 bagger to a hard sell in space of few months is quite something

[mr macgregor] 19/12/2016 08:17

Are you expecting another rescue cash call cynical1? They're already loaded with debt and I don't think it would be advisable to take on more. They did warn previously about smelter electricity costs so I can understand the need for capex to increase Bindura production and therefore smelter feed. I'm just not sure where the capex cash is coming from.

[thecynical1] 19/12/2016 08:07

a post from someone with a positive outlook on life..........

[juju44] 19/12/2016 08:06

Solid progress. They are pushing it in the right direction