||ORD NPV (DI)
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Real-Time news about Georgian Min. (London Stock Exchange): 0 recent articles
Agree completely about the interview, and I am not a very happy holder at present. I could guarantee two things to decimate a share price:
1. Changing ones mind, or changing a deadline regarding production.
2. Going for a share consolidation.
Noricum has managed to find both. Added to this there are no timelines for getting into production so shareholders immediately start thinking about dilution (although he did say they weren't looking for money at present). This doesn't of course mean that they won't come back to the market in a few months.
They may be getting agreements on contract mining and processing in place, but until they show some progress on the ground there seems no rush to go out and buy more.
Not a convincing performance.|
|noirua: 604 - Noricum Gold / Georgian Mining Corporation and Chris Bailey on easyJet
Greg Kuenzel, Managing Director of Noricum Gold #NMG soon to be the Georgian Mining Corporation #GEO answers private investor questions.
Greg Kuenzel reminded me of a situation I was in many years ago. These people kept asking me questions I did not want to be asked and would not ask me any I wanted to be asked. So it was a situation of waffling away and everyone knowing that was what I was doing. Fortunately, rescued by the Chairman as time ran out.
He new didn't he, that the share price crashed because of delay in delivering ore and drilling costs, overheads etc., eating away at the cash. Even when ore is delivered it will take some time before cash rolls in and wages, fuel and hire costs will be a problem.
What now, cash raising and who from. It will most likely be a discounted share price to raise at least $1 million more.
Is there a way out? - , as said before, bring in another party to take a stake and fund part of the cost.
There is only one truth, it's the whole truth. Shareholders have doubts about what was said by dithering Greg Kuenzel, in this podcast, and don't quite buy the non-delivery of surface ore as there is better copper/gold deeper.
The shareprice plunged further...
The real spread is very wide as MMs are defensive - shares might still be worth 30p or much less on a big delay to reap the cash. Copper at 0.5% - 1% and gold at 0.5 grammes to 5 grammes per tonne was said but not as confidently and excitedly as one might have expected.
Maybe the new results promised in the next few weeks, few means 2 or maybe 3, may bring in exciting results. Perhaps Greg was just caught out by the questions or a cold or influenza was coming on - OK Greg, we just wait for great results from drilling in the next few weeks and the shareprice up to 20p or indeed more.|
|parsons4: How quickly sentiment has turned. They have to do some form of financing but the market cap is very low for the reserves. I for one will sit this out even though the pain is worsening with the share price fall. We are back to the last fundraising price !!!!|
|noirua: Obvious that uncertainty over cash raising has put pressure on the share price. Difficult to work out whether the fall has gone below true value and will cause the company to raise funds by other means.
Maybe there are takeover plans on the cards or more likely a further partner to help race to production. This might well surprise with share issued at 0.14p or 14p after consolidation, with further options issued to the partner at 14p.
Confidence has dropped but the massive resource remains on NMG's jointly owned ground in Georgia.|
|noirua: The Directors have resolved to re-organise the Company's share capital by combining all of the Existing Ordinary Shares on the basis of one new ordinary share of no par value ('New Ordinary Share') for every 100 Existing Ordinary Shares, such shares having the same rights and being subject to the same restrictions as the Existing Ordinary Shares as set out in the Articles of the Company ('Consolidation').
Post Consolidation, the number of New Ordinary Shares is expected to be 47,924,853 New Ordinary Shares. The last day for dealing in the Existing Ordinary Shares on AIM is expected to be 5 October 2016.
The Company is also proposing to change its name to "Georgian Mining Corporation". The Board believes that this name better reflects the Company's focus of operations.
|noirua: Uncertainty is building here as an income stream looks further and further away. Even if ore is delivered the company appears to have retracted the statement of payment on delivery. It is more realistically payment on gold produced and that looks as if cash delivery to the company is some way down the line.
The third quarter ends on September 30th and should have confirmed ore deliveries, though the previous announcement shows the deeper copper gold ore is looking to be delivered later. How much later?
There is still a big upside if the company's directors can get a good agreement together or are able to bring in another partner to put up cash for a stake in the Georgian assets in the ground.
Share price is probably as low as it will go around 0.11p - 0.12p.|
|mostyn: As a holder "near term" hopefully means before they need to raise any further money. They don't have much in the cash column, but they do have plenty in trade receivables assuming this is reasonably readily available. I would guess the current level of the share price is down to disappointment with the RNS signalling delayed production (and a potentially very much bigger resource), together with no clarity on timescales, and with probably needless fears over fundraising.|
|oilbuy: Uncertain where the market is taking the share price. As you said deviating from the original objective. A lot of investors in for the cash generation clearly disappointed and concerned going forward with the certain possibility of dilution.|
|mostyn: This is all about expectation at the moment. Production was expected within the next couple of months and now it isn't. There may not be further dilution but the market clearly doesn't believe this. Directors talk about increasing shareholder value, but most boards seem to have little idea of what drives a share price. There is very much a timing issue as to when this "value" is created if the company has to issue large numbers of shares to develop a particular prospect. What this generally means is that the trajectory of a share price rise (if it does actually rise) is much slower than it would otherwise be.
I still hold a couple of oil stocks where they have had to issue so many shares ("to create shareholder value") that I am down over 90%. Fortunately I did sell the bulk to take a much smaller hit. I'm not saying that Noricum will be affected in this way as the price of gold is rising nicely, but dilution can be a real killer.|
|noirua: News would have been greeted better by the market had they delayed the announcement and cash raising to after ore was delivered and a cash payment received.
Just like Hummingbird Resources, this cash raising may hold the share price back as nearly producers are not viewed as well as producers not requiring new funds.|
Georgian Min. share price data is direct from the London Stock Exchange