Oriole Resources Share Discussion Threads

[twodegrees] 08/8/2023 08:23

The company need to put out a statement about the car crash they have created. At the end of month one they need to explain how they decided that not going to the open market was seen as a poor choice, when in fact they might not have enough cash each month to meet the needs to function properly. Up until June, I was a supporter and kept buying on the strength of how well the company was doing and the signals for the future. What an idiot I was.

[observer007] 08/8/2023 07:17

So if I read this correctly the first month VWAP will be established from 7th August over 20 days to the 28th, around .11p if the share price stays at current levels.

So ORR will receive under 50% of the the suggested £73k a month in month one, hardly a good start when the monthly burn is circa £45k.

If this was replicated across the full 24 months it means they would have issued 933m shares to receive circa £600k equal to a placing well under 0.07p.

Where is the incentive for new buyers therefore?

[thecoyone] 07/8/2023 23:38

Why should management worry, remember there are 5 of them, taking a cool £500k a year in salary and perks.

This will go below .10p shortly, how the hell can this illiquid microcap absorb Lanstead selling 30+ million shares a month for the next 24 months which they WILL DO.

BOD are clueless.

[twodegrees] 07/8/2023 16:02

What a disaster. Management would have been better raising through a normal placing even if the price was to fall. This way of working has now caused carnage. Any good news going forward is not going to move this because of doubts about how the board have handled this current placing . We have been well and truly fleeced.

[geotrav] 07/8/2023 14:03

What news are you expecting?

[willo] 07/8/2023 12:51

Admission was supposed to be today, but no news as yet...

[1bond] 04/8/2023 09:11

This is not death spiral in the classic sense. Lanstead are not selling shares each month in order for the company to receive funds. I agree with nico115, that there is no chance of the company receiving 1.7m, as the shares need to trade at the benchmark price 0.25 or above every month for that to happen. If they did the Lanstead deal at the current price, there would have been a reasonable chance of receiving the full proceeds over 24 months. The premium is misleading and ridiculous. Lets hope they don't need the full £1.7m to survive

[willo] 03/8/2023 22:55

Maybe the BOD didn't have a choice?

What I do agree with you on is in relation to the presentation of this. Trying to spin it as a placing at a premium is just appalling!

[nico115] 03/8/2023 17:35

You can spin it any way you wish Buy the BOD have f####d it big time Eileen obv doesn't understand a death spiral She will when these half again and they get 300k and not 1.7m pds!!Wow I'm in disbelief and to write 0.25 is a base case and 0.19p the placing premium price How can the Fca allow this ? It's basically lying ..in my opinion putting that rns out should be a jailable offence as it's trying to mislead investors I won't buy one more share here as this BOD have NO IDEA the financial repercussions of this death death spiral

[browngirl] 03/8/2023 13:49

oh dear ! Tim is a baffoon

[roberth176] 03/8/2023 12:54

Placing coming

[terminator101] 03/8/2023 09:16

"Great explanations". Hilarious. He hasn't got a scooby doo how this arrangement works. And the fact that he can only find two previous examples means he's not that well researched. Go look at VRS or RRR for starters. Lanstead take zero capital risk. They were given millions of shares and will sell them every month and give the proceeds to the company after extracting their fees. It's like constant placings for the next two years and they literally just sell them into the market. If there's no liquidity which is likely because Orr is a pile of excrement then the share price tanks and they have to sell even more shares to generate the same revenue next time.

[geotrav] 02/8/2023 18:29

Some really good explanations on LSE fro ‘Slowly Slowly’. Worth a read for those who think they know what’s going on, but are simply repeating unresearched commentary.

[terminator101] 02/8/2023 17:20

I love death spiral finance. Plus this one has all the messages the gerbils want to hear about "premium price" "strategic investor" to dress it up. And married to such a pile of lifestyle pish too. Lovely.

[willo] 02/8/2023 12:13

Lanstead sell shares every day during the VWAP calculation period to raise the money to make the payment that is required. All they need to worry about is ensuring that their sales match the vwap. So month 1 for example they will sell roughly 39m shares; assume the vwap is 0.13, their sales will realise £50,700. They will be obliged to pay Oriole £73,625 * 0.13 / 0.2533 or £37,786. They make a risk free profit of £13k. They have no interest in being long term shareholders of the company.

Unless there are naturally buyers in the market to absorb their sales, the laws of supply and demand result in the share price falling. This is why it is called a death spiral.

[nico115] 02/8/2023 11:25

You really think they are paying 0.19p?Have you ever seen a death spiral before ?To create liquidity and sell shares they will need to drive the price lower .Take a look at Lanstead deals ..90 pct fall over the 3 month period For me this is an awful deal Shocked Eileen would agree to it as she has skin in the game At 0.06 we raise 600k ..madness Let's hope that doesn't happen

[geotrav] 02/8/2023 11:05

Why would Lanstead want to sell their shares at a lower price than they pledged?

[nico115] 02/8/2023 10:50

But why not wait until Lanstead start selling as they will need the shares lower to sell?

[stockriser] 02/8/2023 09:05

Just dipped my toe in with £2k at 0.1162p

GLA SR

[nico115] 02/8/2023 08:45

Eileen carr invests 200k at 0.17Then allows Lanstead to whack the shares !!They will only raise 800k at this price and shares won't rally on any news !!

[induna123] 02/8/2023 08:40

that's the problem with these small mining stocks, they hay be sitting on a great asset but always need funding, ie dilution for shareholders to realise the asset.

[trotterstrading] 01/8/2023 13:59

A lot of AIM CEO's are clueless to the impact of this type of finance to the their SP, naive at best

[geotrav] 01/8/2023 11:25

Seems like a better deal than a raise at todays markets discount levels.

[geotrav] 01/8/2023 11:24

From share price Angel:
Conclusion: Despite continued challenging conditions in equity markets, Oriole has successfully agreed terms with Lanstead to support their strategy going forward. The team continues their discussions with project-level financing partners to advance the Eastern CLP following encouraging high-grade gold samples, warranting drilling. The Company is also currently completing local-level technical studies at the Bibemi project, which holds a 304koz JORC MRE. This should enable them to further de-risk Bibemi, offering an entry point for JV partners to take the asset towards production.

[nico115] 01/8/2023 08:47

And Claire invested 195k at 0.17 and then agrees to a death spiral ? Wow