Contango Share Discussion Threads

[jailbird] 27/3/2023 12:01

I think delays to achieve target milestones to reach production and trust in the CEO are the reasons the market has not taken to this

[bellbottom] 27/3/2023 11:56

Just a reminder of their interim results. All sounds pretty good. But until they start producing and selling, and I have no problems with slight delays, then its a difficult call whether to invest/gamble or sell up as a bad job and move on.


Contango Holdings Plc, a London listed natural resource development company, has announced its results for the six-month period ended 30 November 2022.

Highlights
£7.5 million raised (fundraise) in October 2022 at 6 p to support the Lubu coal project to first metallurgical coal production from 1Q23.
£1 million convertible loan converted at 6p on 5 July 2022 for 16 666 667 ordinary shares.
First offtake signed with AtoZ Investments (Pty) Ltd to purchase 10 000 tpm of washed metallurgical coal produced at Lubu.
Metallurgical coal and coke tests undertaken through installed 1 tph test plant confirmed the excellent quality of coal from Lubu further strengthening Contango's position to complete additional offtake agreements.
Expansion of production strategy to include both thermal coal and coke development scenarios to provide additional near-term high value revenues streams.
Contango's operating subsidiary declared the winner of the 2022 Excellence in Community, Empowerment & Social Impact Award recognising its work at Lubu.
Post period
Memorandum of understanding signed with a leading multi-national company for collaboration across coking coal and manufacture of coke at Lubu.
Award of environmental impact assessment certificate for Lubu recognising the highest environmental standards imposed by Contango at the mine.
Delivery of the Lubu wash plant in early February and assembly ahead of commissioning in March 2023 – capacity to produce 20 000 tpm.
Delivery of surface miner (Wirtgen 2200SM) which has a cutting width of 2200 mm, ideal for selective mining, and can mine up to 500 tph of hard rock and up to 1000 tonnes tph of metallurgical coal.
Laboratory delivered to site in February representing the last of the significant capital items ahead of first production and sales at the end of 1Q23.
Carl Esprey, CEO of Contango Holdings, said: “We expect Contango to transition into cash flow towards the end of the current quarter with first sales of coking coal. Lubu's advancement over recent months has been facilitated by the successful £7.5 million fundraising during the period, which has enabled investment in building mining and processing operations. These development initiatives are now reaching their conclusion, with the wash plant now at site and being assembled ahead of commissioning. Once calibrated and operating efficiently the wash plant is expected to be able to produce 20 000 t of washed coking coal per month which will satisfy its first offtake partner, AtoZ Investments (Pty) Ltd, and also provide sufficient supply to secure further offtakes for our coking coal.

[jailbird] 27/3/2023 11:46

That would not surprise me Co will need capital to tick and invest until cash-flow positive Another dilution , and it is in danger of remaining a penny share status for some time What will be the catalyst for the share price to ever see double figures any time this year ?

[bsg] 27/3/2023 11:26

May be they need more cash?

[festario] 27/3/2023 11:05

Sadly it looks like I was right about this one, and all the others like it. Supposedly close to being cash generative, but no signs of accumulation, quite the opposite, its being dumped buy those who know.

[gaffer73] 24/3/2023 20:17

What's going on with this these days? Is there a problem on site? Where the hell are the sales expected in Q1?

[bsg] 24/3/2023 10:52

oo-er 5 Mill sell.

[puffet] 24/3/2023 10:45

They are cash rich from the placing at 6p so cant see any placing requirements needed, this looks like a distressed seller getting out before year end.

[bellbottom] 24/3/2023 10:44

Not just CGO. A sea of red today across the board.
Confidence generally has been hit by higher inflation and interest rate rise. Stating the bleedin' obvious but even top dollar companies down today.

[bsg] 24/3/2023 10:41

Could be pre-placing selling?

[puffet] 24/3/2023 10:25

Maybe that's the seller done (clutching at straws).

[puffet] 24/3/2023 10:09

This does not make any sense so close to production and the share price is on the floor and falling.

[aimmafia] 24/3/2023 10:08

Not really sure why the sell off. Every single punter is losing money now.

[puffet] 24/3/2023 10:05

Blimey that is 2 large sells at 4.5p :(

[bsg] 24/3/2023 10:03

Looks like some agree with you, this can't just be end of tax year adjustments?

[festario] 24/3/2023 08:32

I've long said that there is something very wrong here. The market continues to discount any notion of imminent revenues and cashflow.

[purchaseatthetop] 22/3/2023 08:36

Certainly they will think themselves very lucky at 4p, even luckier at 3p and think they have won the lottery at 2p until finally it dawns on them…..

[bsg] 22/3/2023 08:35

I think there will be plenty more chances below 5p in the coming months.

[puffet] 21/3/2023 14:00

Congratulations to the lucky ones who managed to pick up shares sub 5p.

[danmart2] 21/3/2023 05:33

The board need to earn trust and investors good will, the only way is demonstrating successful operations, sales and medium term off take agreements.

[festario] 20/3/2023 17:12

It's looking very weak here, for a company supposedly on the eve of being cash generative. Nah, I'm not buying the story

[jailbird] 20/3/2023 12:25

yes that is a better idea....good luck with that.

[sirmark] 20/3/2023 12:20

Or I can simply wait for the revenues to start to hit the bottom line and wait as the share price sores to new highs.

[jailbird] 20/3/2023 11:28

sub 5p!!!

it gets cheaper...time for you to average down AGAIN Sirmark, which is a poor strategy