Mila Resources Share Discussion Threads

[lazygun] 25/11/2019 13:32

Ah fair enough
L.

[pilot48] 25/11/2019 11:16

The 2 directors have finance backgrounds so probably sector agnostic.

[pilot48] 25/11/2019 10:00

Given the valuation of the shell and the torrid time companies are having trying to raise cash, perhaps a perfect storm finally of decent opportunities now. Look at C4XD, traded at 40p when it did a 15p placing. Not a typo, 15p. Tough out there.

[hedgehog 100] 24/11/2019 15:05

Lazygun,

Of the three initial directors, two had a resources sector background: George Donne and Anthony Eastman.
These were the two who left in March of this year.

Mark Stephenson doesn't have a resources sector background, and it was he who stayed on.

From MILA's 28.9.16 prospectus:

"The Board

George Donne
George began his career in JP Morgan’s Metals and Mining corporate finance team in London and Johannesburg. He has worked on several of the most significant mining transactions, including advising Billiton Plc on their USD 38 billion merger with BHP Ltd, to create the world’s largest diversified mining company, and the restructuring of Xstrata plc and its listing on the London Stock Exchange. Having left investment banking, he becoming Executive Director of Victoria Oil & Gas Plc, an AIM-quoted E&P company with assets in West Africa and the Former Soviet Union (FSU). Whilst at Victoria, he managed the acquisitions of a number of exploration projects, which were successfully brought into production, and the raising of over USD 150 million in equity and convertible debt. Since leaving Victoria in 2010, George has founded a number of new businesses and is currently a partner of AMV Partners LLP, a specialist mining and energy business development consultancy and a director of Heimdall Energy Solutions Limited, a South America-focused renewable energy developer.

Anthony Eastman

Anthony is a Chartered Accountant (Australian qualified) with a number of years’ experience in financial management and corporate advisory services, primarily in the natural resources sector, along with extensive experience in the public company environment, having been a director and company secretary of a number of ASX and AIM junior mining and oil & gas focused companies. He has previously worked with Ernst & Young and CalEnergy Gas Ltd, a subsidiary of the Berkshire Hathaway Group of Companies in both Australia and the United Kingdom

Mark Stephenson

Mark has over 30 years’ experience of working for stockbrokers in the City of London including the Panmure Gordon, West LB, Blue Oar Securities and NCL Investments – a Smith & Williamson group company. With the development of the AIM market, Mark has utilised his experience in equity, debt and convertibles to develop innovative financing solutions, for small and mid-size companies. In the last three years he has built a liquidity platform in conjunction with several hedge funds, private client brokers and a syndicate of high net worth investors, which has successfully funded smaller companies during this difficult period."




Lee Daniels was appointed as a director in March of this year, and has a mixed background, not strongly resources, and no mention of mining:

"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."



Then you have the company's own statements about what they are looking at, combined with the current mining sector bear market.

[lazygun] 24/11/2019 12:45

The guys running mila are resources sector guy# though aren5 they? What makes you think cqcl might rto into here?

L.

[hedgehog 100] 23/11/2019 14:51

Lazygun,

Still no AGM notice, over three weeks after the final results!

They're required to hold one within six months of their year end of 30th. June 2019.
And they're required to give twenty one days notice of the AGM.

I speculated in post 185 above:
Hedgehog 1004 Nov '19 - 15:37 - 185 of 190
" ... Could it be that they're holding back slightly because of the RTOs they're negotiating?
I.e combining the AGM with the GM which would be required to approve a RTO?"


News must be imminent.

[hedgehog 100] 05/11/2019 19:02

If a company like CQCL RTOed into here, with a valuation of about £100M.+, then MILA wouldn't need to have much of the enlarged equity to have a very handsome return from it's current share price of 1.7p.

E.g. An expanded market cap. of say £100M., with MILA having a 1.5% share of the enlarged equity, would equate to a £1.5M. valuation for MILA: which would equate to 6.4p per share.

MILA floated just over three years ago at 5p per share, raising £1.05M. gross at that s.p.
And I'm sure that the company would love to reward patient long-term shareholders by arranging a RTO at or near that level if at all possible.

[hedgehog 100] 05/11/2019 17:49

A domestic RTO opportunity that is "extremely exciting" raises the possibility that it could be an AI and/or quantum computing company play of some sort.

And the timing would be perfect, with such strong investor enthusiasm for AI stocks, and Google's recent quantum computing breakthrough:

"Google claims 'quantum supremacy' for computer
By Paul Rincon
Science editor, BBC News website
23 October 2019

Google says an advanced computer has achieved "quantum supremacy" for the first time, surpassing the performance of conventional devices.

The technology giant's Sycamore quantum processor was able to perform a specific task in 200 seconds that would take the world's best supercomputers 10,000 years to complete.

Scientists have been working on quantum computers for decades because they promise much faster speeds.

The result appears in Nature journal. ..."




And interestingly, a leading British QC company, Cambridge Quantum Computing Ltd., is working with Google:

"Cambridge Quantum Computing integrates Google’s CIRQ framework into proprietary software stack

Cambridge Quantum Computing (CQC) and Google are pleased to announce collaboration in quantum computing. As part of the collaboration, CQC will utilize the open source CIRQ framework developed by Google and the state-of-the- art 72-qubit “Bristlecone” quantum processor to develop software designed specifically for quantum computers. The potential of such technology is difficult to overstate, promising to revolutionize fields ranging from chemistry to finance, from encryption to AI.

The first stage of the collaboration will focus upon CQC’s proprietary quantum compiler, “t|ket>”, providing efficient optimizing and scheduling for instructions sets that are delivered to the quantum hardware. Just as for conventional “classical” computers, compilers convert programming instructions into operations for the processor. Although Google is developing their own compiler, overriding this with procedures from t|ket> will allow both groups to benchmark and test the system under a variety of conditions, likely providing clues on how to enhance performance in both hardware and software.

CQC CEO Ilyas Khan stated, “We are thrilled that Cambridge Quantum Computing is working with Google and look forward to building on this partnership”.

In parallel with the implementation of t|ket>, CQC is working with Google on a collaboration to help develop tools for quantum chemistry, one of the primary applications of quantum computing. While the chemical properties of a large molecule are very difficult for a classical computer to determine, quantum computers are ideally suited for such calculations. With the help of Google, CQC will continue its development and expertise in this area. Eventually such chemical analysis may produce personalized medicine, in which a drug could be designed for an individual based on their genetic profile, maximizing effectiveness while minimizing side effects.

CQC is headquartered in Cambridge, England but maintains an international presence in the United States, and Hong Kong.

About Cambridge Quantum Computing

Established in 2014, Cambridge Quantum Computing (CQC) is a world leading independent quantum computing company combining expertise in Quantum Information Processing, Quantum Technologies, Artificial Intelligence, Quantum Chemistry, Optimisation and Pattern Recognition. CQC design solutions that will benefit from quantum computing even in its earliest forms.

July 18, 2018"




CQCL has been expanding strongly, and looks ripe for a stockmarket listing.

In view of its progress, and the valuations being awarded in this sector, it could now be worth £100M.+.

[lazygun] 05/11/2019 12:19

Buys coming in at above the bid price now

L.

[lazygun] 04/11/2019 15:43

Maybe.

Could be something, could be nothing, but it could be a possibility.

Think it’s still worth topping up on any price weakness...

L.

[hedgehog 100] 04/11/2019 15:37

MILA's new company report is on its website, but interestingly no notice of AGM has yet been given.

Whereas in previous years the AGM (in London) notice has been given at the same time as the final results. -

30/10/2018 07:00 UK Regulatory (RNS & others)
Mila Resources PLC Publication of Annual Accounts and Notice of AGM

29/09/2017 13:45 UK Regulatory (RNS & others)
Mila Resources PLC Publication of Annual Accounts and Notice of AGM

10/11/2016 14:33 UK Regulatory (RNS & others)
Mila Resources PLC Publication of Annual Accounts and Notice of AGM


Could it be that they're holding back slightly because of the RTOs they're negotiating?
I.e combining the AGM with the GM which would be required to approve a RTO?

This would make sense if possible, and it's another indication that RTO news could well be imminent.

[lazygun] 02/11/2019 11:14

I agree that the silver lining here is that the current board sound like they’re being active.

Guess just got to have faith in them to deliver a decent deal...

L.

[hedgehog 100] 01/11/2019 15:55

"The reduction of investment routes for smaller businesses following the continued uncertainty over Brexit has driven some extremely exciting opportunities towards Mila."

That phrase from yesterday's RNS highlights a paradox of shells.
A period of stockmarket jitters can effectively close down the IPO route for many companies for a while, effectively increasing the opportunities for a good shell ... and that shell's potential valuation.

It sounds like that is happening here, and that there could well be competing businesses vying for MILA's attentions.

Such competition would mean that MILA could take the pick (or picks) of the bunch, and also negotiate a better deal.

I would think-hope that an RTO here would be priced in the 3p to 4p range, and it could potentially be more in the right circumstances.

And of course after the RTO the expanded company will in effect be like a new issue, and as with any good new issue could itself do extremely well going forward ... including a potential big initial premium to the issue price.

[hedgehog 100] 01/11/2019 15:35

Here are some other key phrases from yesterday's RNS:

• "extremely exciting opportunities"
• "at least one of these opportunities"
• "a swift replacement"

The phrase "extremely exciting opportunities" is clearly very bullish, especially from a company that is not known for its hyperbole.

The phrase "at least one of these opportunities" means that multiple acquisitions are potentially on the cards, and also increases the chances that there will at least be something.

And the phrase "a swift replacement" indicates that we shouldn't have to wait long.


A non-resource and domestic RTO should be relatively quicker, cheaper, and simpler to arrange.
Whereas foreign acquisitions obviously increase costs, and resource acquisitions tend to have more complicated due diligence, and risk of abortion.

In addition, two other potential barriers to an RTO don't apply in MILA's case:-
• It's a 'new', 'clean' shell, as opposed to a 'dirty' shell that previously housed another business, which can have left some toxic baggage.
• It's very lowly-valued, including re. cash, so there is no problem of shell overvaluation putting off interested parties.

[hedgehog 100] 01/11/2019 15:17

LG,

Some of the costs are one-offs, relating to the departure of two ex directors.
And I would prefer a situation like MILA, where the shell is spending more to arrange an RTO, than a shell like AUCT which seems to be just sitting on its cash, and nothing seems to be happening.

This following phrase from yesterday's RNS suggests that we could well get something by the end of the current half year, i.e. by 31st. December 2019:
" ... I look forward to reporting our progress to you over the next period. ... "

They've been seriously working on this since the last potential RTO was aborted in March, so as we're now in November enough time has elapsed for something to be announced imminently.

[lazygun] 01/11/2019 00:33

Although they seem to be burning thru cash quite a bit...

Still, undervalued even now, & fairly tightly held stock...


L.

[hedgehog 100] 31/10/2019 18:56

It was a change of investment strategy to focus on technology that triggered YOLO's quadrupling this month to about 10p:

02/10/2019 06:00 UK Regulatory (RNS & others) YOLO Leisure & Technology PLC Placing and Investment Strategy
" ... Investment Strategy
The board of directors has conducted a review of the Company's investment strategy. One outcome of that review is that the board has decided that, in the light of the current market conditions and pipeline opportunities, within the scope of its current investment strategy it should give particular focus to technology opportunities in the fields of big data, machine learning, telematics and the internet of things (IoT). ..."



Similarly, it was MMO's switch to technology that triggered its rapid multibagging (see my post 151 above):

tomboyb 9 Feb '16 - 08:23 - 619 of 627
"In case anyone has missed it - MMO moving to fintech area"


Within a year MMO had more than 20-bagged.

[hedgehog 100] 31/10/2019 18:26

A MILA after hours RNS this evening: they are negotiating some "extremely exciting opportunities" to RTO!

And they have been pursuing a new strategy, looking beyond the resources sector: this will almost certainly include the tech sector!!


31/10/2019 17:00 UKREG Mila Resources PLC Final Results

" ... Highlights

-- Ongoing appraisal of investment targets in regions with strong valuation or cash-flow growth potential

-- Mutually terminated a proposed reverse takeover of Capital Metals Limited
-- Broadening of investment horizons
-- Strong balance sheet position with cash balance at the end of the period
Chairman's Statement

Dear Shareholder

We have pleasure in presenting the financial statements for the year ended 30 June 2019.

Following Mila's re-listing and broadening of its horizons we remain open minded about which industries we might invest in while retaining our key criteria for delivering excellent value for our shareholders. The mutually terminated proposed reverse takeover of Capital Metals Limited, while disappointing, has driven our new strategy which we hope will lead to a swift replacement. The reduction of investment routes for smaller businesses following the continued uncertainty over Brexit has driven some extremely exciting opportunities towards Mila. Negotiations are already well underway on these projects and we hope that at least one of these opportunities can be Mila's first acquisition.

We formed the Company to undertake an acquisition of a controlling interest in a company or business (an "Acquisition"). Any Acquisition is expected to constitute a reverse takeover transaction and consideration for the Acquisition may be in part or in whole in the form of share-based consideration or funded from the Company's existing cash resources or the raising of additional funds.

I look forward to reporting our progress to you over the next period. ... "

[hedgehog 100] 29/10/2019 19:36

The market seems to have a good appetite at the moment for rerating deserving shells.

YOLO have quadrupled this month, to the current share price of 9.9p, market cap. £7.3M.

Interestingly, this has been a sustained rise throughout the month.




And ADA did a similar thing in June, and at it's current share price of 4p (market cap. £3.3M.) has largely held those gains.

[lazygun] 29/10/2019 19:33

Well, u gotta hope that their activities for finding a deal will bear fruit. Meantime, it remains under valued compare pd tonits cash assets

.

[hedgehog 100] 29/10/2019 18:53

Lazygun,

Looks like that sell price drop last week after your buys was just market maker games, to try to trigger sales. Games that didn't work.

There have been ten trades since then: 9 buys, and one sell - the sell being just £325 (for 1.43p).

They must be just about out of stock.

Any good news from MILA and things could get very interesting, especially from this lowly market cap.

[hedgehog 100] 29/10/2019 16:32

MILA is a main market investment shell, valued at just £365K. at its current share price of 1.575p, and with £573K. of cash at the interim period end (interim results 29.3.19).

The renowned shell Concha (CHA) 40-bagged in 2014, to a market cap. of over £100M. at its peak.

CHA had disappointed in 2013, like MILA has to date, but then recovered very strongly.
And there are some similarities to CHA's position in early 2014 with MILA's now.

[farnham] 29/10/2019 15:50

Time to buy apparently

[lazygun] 22/10/2019 10:53

I’ve now got just under 3% of this stock.

Last 2 trades were mine, and they drop the sell price...

Interesting... a bigger sell in the wings perhaps?

L.