Mila Resources Share Discussion Threads

[hedgehog 100] 14/9/2019 15:31

Thanks Cudmore.

As it's five and a half months since the interim results, we could well be due a MILA update on progress towards a RTO.

29th Mar 2019 7:00 am RNS Mila Resources Plc - Interim Results
" ... We recently mutually terminated a proposed reverse takeover of Capital Metals Limited, however we continue to see a strong flow of potential Acquisition opportunities. The Board of Directors, together with the Company's advisers, are constantly evaluating these opportunities to ensure that we secure and execute the right transaction.
I look forward to reporting our progress to you over the coming the months. ... "


This is a main market investment shell, valued at just £383K. at its current share price of 1.65p, and with £573K. of cash at the interim period end (interim results 29.3.19).

Any hint of a deal could see an even stronger rerating back upwards.


Warren Buffett: "The stock market is a device for transferring money from the impatient to the patient."

[cudmore] 08/9/2019 14:18

Great post hedgehog.

All the doubters will come running for stock when it’s too late. Get in now for the massive gains potential coming here imho.

[hedgehog 100] 01/9/2019 12:18

Another good example of a large rise at the time of a RTO is 88-bagger MCAP-QPP.

QPP (Quindell Portfolio) was a RTO into the shell company Mission Capital (MCAP), which more than 6-bagged because of the RTO:




And QPP itself then more than thirteen-bagged (allowing for a fifteen into one consolidation), to a market cap. of over two billion pounds, and eyeing the FTSE 100:





So in aggregate, MCAP-QPP was an eighty eight bagger, making it another fine example of shell-RTO 'multibagging a multibagger'.

A very fat return: or rather, a 'two fat ladies' return!

[hedgehog 100] 01/9/2019 11:58

A large rise at the time of a RTO (reverse takeover) of a shell is commonplace, because it is the RTO which adds the real value to a shell.

Which is why the best time to buy such a share is often shortly before a RTO, or at least shortly afterwards, as the timing of the former can be difficult to determine.


A good example is 65-bagger ROE-MAR.

From the RTO of Roeford Properties (ROE) by housebuilder Mar City (MAR) in late 2010.

ROE: from the mid 2010 low of 0.235p (equivalent to 2.35p, post-consolidation) rose to 2p in late 2010 (equivalent to 20p, post-consolidation): 8.51-bagger



Notice the huge rise at the time of the RTO.

MAR: rose from 20p in late 2010 to 154p in spring 2014: 7.7-bagger



= A combined 65.53 bagger.

[hedgehog 100] 01/9/2019 11:15

Computercoders,

The last interim loss was £104.65K., but in March this year the number of directors was reduced from three to two, which will save money.

Like all shells, this is speculative, because you can't be certain of what you're going to get.
But at least here the valuation is very low, which magnifies the upside in the event of a deal.
The stockmarket listing itself has a significant value, and MILA should currently be worth far more to an unlisted company wishing to float than its current market cap. of just £359.6K. (at 1.55p).

Valuation is a key shell criteria for me, and another is the chance of a deal in the near-term.
A near-term deal here looks to be very possible, though obviously there are no guarantees.


29/03/2019 07:00 UK Regulatory (RNS & others) Mila Resources PLC Interim Results
" ... Financial Review
For the half year to 31 December 2018, the Company reports a net loss of GBP104,650 (2017: GBP124,732). During the six-month period to 31 December 2018, the Company continued its strict financial discipline, incurring a net operating cash outflow of GBP128,350 (GBP2017: GBP120,645). The Company held cash at 31 December 2018 of GBP573,200 (2017: GBP811,389) ..."



19/03/2019 17:15 UK Regulatory (RNS & others) Mila Resources PLC Capital Metals Transaction Update & Board Changes
" ... Following the termination of talks with CML, Mr George Donne and Mr Anthony Eastman, both Executive Directors of Mila Resources, have informed the Company of their intention to step down from the Board with immediate effect. The Company would like to thank them for their hard work since the establishment of Mila Resources in 2015.
A search for a replacement has commenced and a further announcement will be made in due course.
Mila Resources maintains a healthy cash position and has agreed for certain due diligence costs, incurred during the intended transaction with CML, to be reimbursed by CML upon a listing of CML. The Company will now look for a new transaction with the intention of identifying a suitable opportunity in the near term. The Company would like to thank shareholders for their patience and looks forward to updating them in due course upon the identification of a suitable transaction."



26/03/2019 16:45 UK Regulatory (RNS & others) Mila Resources PLC Board Appointment
"Mila Resources plc, the London Stock Exchange listed investment company, is pleased to announce that Mr. Lee Daniels has joined the Board as a Non-Executive Director with immediate effect.
Mr. Daniels is an experienced qualified accountant (Australian Certified Practicing Accountant). He has worked in London over the last two decades and has held senior finance roles with HSBC (Global Markets), Credit Suisse, ABN AMRO (Wholesale Markets) and LTSB(Group) (Distressed Debt Division). He has an established track record in Finance and Accounting, Change Management, Project Evaluation & Financial Modelling. Most recently, in the last few years, he has been working in the Oil and Gas industry for a public E&P company.
Commenting on the new appointment, Mark Stephenson, Director, said: "We are delighted to welcome Lee to the Board, his wealth of experience will be invaluable in helping to identify and execute a suitable investment." ..."

[computercoders] 01/9/2019 08:58

What's cash burn rate? Can we work out cash over last few periods to calculate?

[computercoders] 01/9/2019 08:21

Thank you Hedgehog

[hedgehog 100] 31/8/2019 11:35

"So these are due to be suspended are thry if they don't find a company to reverse into?"

Computercoders,

MILA won't reverse in anything, because it is the shell: it is looking for an unlisted company that can reverse into MILA.

And one of the advantages of MILA's main-market listing, as opposed to being on AIM, is that it can't be suspended or delisted for failing to complete a RTO in time.

In contrast, AIM shells are subject to much stricter rules, (especially those that have not raised the minimum £6M. required to qualify as an "investing company"), which can result in them being suspended and then delisted if they don't complete a RTO in time (just 6 months & 12 months respectively).

[computercoders] 30/8/2019 19:12

So these are due to be suspended are thry if they don't find a company to reverse into?

[hedgehog 100] 29/8/2019 19:17

21-Aug-19 10:19:30 2.20 1,175,712 Buy* 1.50 1.80 25.87k
27-Aug-19 08:34:12 2.40 -1,173,712 Buy* 1.50 1.90 -28.17k


Computercoders,

The shares concerned were held for under three trading days, which isn't long.

But this episode does show how tightly this stock is held, and how quickly it can move.

In my opinion the biggest gains here are still to come, and the recent rise to nearly 3p intraday is a precursor to that.

The similarities here to MMO near its low are striking.

And incidentally, I tipped MMO at 1.875p, on my RTO thread, and within barely a year it had 25-bagged to nearly 50p. -

Hedgehog 100 8 Dec '15 - 19:44 - 745 of 940 Edit
"A memo that MMO is looking oversold: valued at under a third of a million pounds, barely half of MMO's last reported cash:
Mercom Oil Sands (MMO) 1.875p market cap. £0.32M. ... "

[computercoders] 29/8/2019 18:26

So what's the conclusion to this attempted pump and dump? Someone bought £25k then sold a few days later for a trade? Everyone assumed tr1 coming..no tr1 required because it's bought and sold pretty quickly?

[hedgehog 100] 29/8/2019 13:46

Thanks for the correction gents: 2.4p is of course 20% higher than 2p, not 40% higher.
(I've amended my above post to avoid confusion.)

Well done dplewis & computercoders.
(I was wondering who would be the first to spot the error!)

[computercoders] 29/8/2019 07:27

I do worry about some of you sometimes :S

[computercoders] 29/8/2019 07:27

20% higher

[dplewis1] 29/8/2019 07:16

2.4p is 40% higher than 2p..??

[hedgehog 100] 28/8/2019 18:55

I wouldn't call 2.4p just over 2p: it's 40% of the way to 3p.

The buyer bought for 2.2p, and sold for 2.4p: on 1,175,712 shares that's a profit before costs of £2.35K. in a week.

Well done I say on a successful trade.

So successful in fact that they may well be back for a second go!

The market cap. at 1.8p is £417K., with strong cash backing, and news likely to be imminent.

[dave4545] 28/8/2019 17:26

So the buy that caused the pump and dump sold for just over 0.2p..timber

[hedgehog 100] 28/8/2019 15:58

As it's five months tomorrow since the interim results, we could well be due a MILA update on progress towards a RTO.

29/03/2019 07:00 UK Regulatory (RNS & others) Mila Resources PLC Interim Results
" ... We recently mutually terminated a proposed reverse takeover of Capital Metals Limited, however we continue to see a strong flow of potential Acquisition opportunities. The Board of Directors, together with the Company's advisers, are constantly evaluating these opportunities to ensure that we secure and execute the right transaction.
I look forward to reporting our progress to you over the coming the months. ... "



This is a main market investment shell, valued at just £417K. at its current share price of 1.8p, and with £573K. of cash at the interim period end (interim results 29.3.19).

Any hint of a deal could see an even stronger rerating back upwards.

[hedgehog 100] 28/8/2019 15:45

In February 2016 a similar shell to MILA, MMO (which became MCC), announced a similar strategy switch from resources to fintech, and the share price multibagged virtually overnight.
And within a year it had more than 20-bagged.

"Mercom Oil Sands Plc Notice of AGM
08/02/2016 5:50pm
UK Regulatory (RNS & others)
The Board of Mercom confirms that it has today posted a circular to shareholders convening an annual general meeting to be held at 85 Richmond St W, Toronto, ON M5H 2C9, Canada at 10:00 a.m. (EST) on 3 March 2016.
The meeting will consider resolutions to approve, amongst other things, amendments to the Company's investing policy and a change of the Company's name to Mercom Capital Plc. ..."

[hedgehog 100] 28/8/2019 15:36

From MILA's website:

"A NEW APPROACH TO MINING
Focused on Delivering High-Value Mining Opportunities"



But interestingly, MILA's interim results statement revealed that it was expanding its remit to include other sectors too:

29/03/2019 07:00 UK Regulatory (RNS & others) Mila Resources PLC Interim Results
" ... Outlook
The appetite for listing on the London Standard List is currently appealing to many domestic and international private companies. Mila's current existing investment strategy is to broaden its horizons. Evaluating opportunities across a range of sectors, the company believes will lead to a more efficient process of identifying suitable candidates.
On behalf of the board
Mark Stephenson
Director
29 March 2019 ... "



This could be a good move, given that much of the mining sector is in the doldrums
( ... although that does at least depress mining sector RTO target valuations, and makes the RTO route more attractive if the IPO route is partially drying up).

The expansion could well include the technology sector.


And this reminds me of former natural resources shell Alexander David Investments, which was RTOed by Tizania Life Sciences (TILS), and 20-bagged from its RTO price within barely a year. -

From "THE TIMES", 20th. May 2014:

"Private punters also took an interest in biotechnology minnows. One, Tiziana Life Sciences, named Napoleone Ferrera as chairman of its "scientific advisory board". His research is credited with leading to the development of Avastin and Lucentis, two of the world's bestselling drugs. The developer of breast cancer drugs made its debut on AIM last month when it reversed into the shell of Alexander David Investments, originally intended to be a natural resources investment vehicle, to gain its London listing. Shares placed then at 12p each by Beaufort Securities rose a further 2 1/2p to 28 1/2p, a record, in brisk trading."

[dplewis1] 28/8/2019 15:03

Great shout ITK69..still waiting for that bounce. A bit like RLD which I assume you still hold..or are you too busy ramping MTMY now to realise you've had another shocker?

[intheknow69] 28/8/2019 11:37

Get ready for the TR1 to land....then the fun will begin. Getting anything under 2p will be gone in a flash.

Hope you bought on the dip DPlewis!

[dplewis1] 28/8/2019 10:28

Cuds you've got a bit quiet again..are you still trying to remove that spike from your foot?