Woodburne Sq Share Discussion Threads

[xcap] 16/3/2012 14:33

JoJo agreed, I said in my very early posts re dilution that placing at 10p + would be more than ok

marab you are right: engelo post 790 and your response (i think from memory) post 791 or 792)

edit: I was referring to normal monthly overhead cashburn, but by the looks of things that appears to be minimal

[marab] 16/3/2012 14:23

From the pre AGM circular, 'Distinct operating subsidiaries will be created and
organized along specific mineral class.'

Unless I am getting confused (a very real possibility) was there not some talk here earlier about money being raised through those companies being invested in rather than through WSAG. The idea being that WSAG would help companies like Graphmada to raise funds. I can't remember whether it was in some other document or whether someone had been talking to one of the directors at the AGM.

[jojo_jo] 16/3/2012 14:05

xcap, I don't personally see any issues with cash-burn at Graphmada. With only 15% (or even 30%+) held it shouldn't impact us, and if margins are ieo 65%, which looks likely, there should be a cashflow surplus. I reckon our part of the bargain is on the sales and marketing front. We have at least one ready made customer in Evraz, and probably a few battery makers on the hook for the better quality stuff. Graphene is a bit downstream atm. It looks like a 'dream deal', which is why I'll be happy to see them convert BRDY/Silver into a bigger stake.
We may get a little dilution at some point, although with a money man like Bogolyubov (who part-owns PrivatBank), they may opt for a private loan, bank finance or loan-notes. If they take the placing route, I think they'll wait until we're at 12p/15p, and perhaps place at 10p/12p, which nobody could complain about.
I don't see them needing much, for any assets costing up to £20m in aggregate. If they can repeat the bargain buy achieved with Graphmada they could get £200m worth of assets for their money. Once accreted, we'll have a £220m company. This won't happen overnight, but can see it in a couple of years.
A bit of wishful thinking mixed in there of course, but then I'm a holder!
IMPO/DYOR.

Good on you engelo, keep us posted on your thoughts.

[xcap] 16/3/2012 13:16

thanks in advance engelo

[xcap] 16/3/2012 12:24

JoJo, I have to admit that the Graphmada deal is a "cracker". To get a 15% interest in an operation about to kick off production in a couple of months in a critical resource which is set to growth is outstanding management work . Usually the find includes an asset months, if not years away from adding value, requiring drilling, PFS then BFS, resulting in massive dilution.
My biggest concern is cash burn.
I would far far prefer to be patient (and believe me if I can do it anyone can)and let this single asset grow in value over the next 2 quarters then dive into another acquisition which is too remote (I don't mean geographically) and with any real added value being only visible beyond 2014 for example. I absolutely detest dilution. The test of a sound and quality management Board is to growth value with minimum dilution, takes bags of patience because the BoD are always going to be pressurized by shareholders and institutions to 'do the next deal' . IF (as there is no doubt a lot of work to be done) we can realise the the promise Graphmada offers, our well researched value forecasts should come good by Q3. At which point we should be able to raise capital @ 12p-15p = minimal dilution. The board and shareholders have done really well to re-position the company and its prospects, it would be a real shame to throw this unique position away with an ill thought out acquisition.
ALl imho.

[marab] 16/3/2012 12:19

knowsleyman1 - good to see the scars from DXR are fading :)

engelo - so we now know that they are back from Madagascar. Look forward to your full report (best hand writing please).

[hellisreal] 16/3/2012 12:10

Thx engelo

[engelo] 16/3/2012 11:57

Had a short but very amicable talk with GS on the pbone this morning. No 'inside info' as expected but some helpful background, all positive imo.

New ticker formalities complete. Expect to RHS this either later to-day or Monday, but likely will contain no additional information.

Tight for time right now but will write up some notes later on to-day.

[jojo_jo] 16/3/2012 11:37

Never really noticed before, but the inclusion of 'Global' in the new name is interesting. I know they are clearly intending global investment activity, but it could equally indicate the forthcoming inclusion of Consmin's Armenian partner Global Gold, which has always been a theory.
They are obviously planning more and bigger things than Graphmada (which is certainly a brilliant start). Once the pieces start falling into place there will be a stampede for shares.
IMPO/DYOR.

[xcap] 16/3/2012 11:36

K1, the price will tick up if someone buys or sells above 4.5p provided the MMs don't open the spread further, that's my understanding?

[knowsleyman1] 16/3/2012 11:33

Just sold one of my lesser performing stocks and just added 69,283 @4.42p.

It has not moved the price at all.

[erbullion] 16/3/2012 10:31

marab, thanks

[marab] 16/3/2012 09:41

erbullion - we don't know yet, but I don't see it being to long before the change in epic.

[erbullion] 16/3/2012 09:05

ro5enberg new here, when is name change happening?

[gurp] 16/3/2012 08:44

xcap .....in the Game store (gmg)?
profits eventually coming here

[ddav] 16/3/2012 08:43

Notice 200k rolling about late, crafty!

[xcap] 16/3/2012 07:56

another eventful day no doubt in store

[engelo] 16/3/2012 01:27

Rosenberg: was being tongue in cheek as I'm sure you appreciated. Thought relieved doh/odhs who hadn't kept up to date were the only ones who could logically sell, but there's plenty of share price manipulation going on as well I've no doubt. MMs are genuinely finding it difficult to make a market atm imo, so keep comfortable with a nice wide spread and periodic buying and selling freezes.

You've made a very good summary and fully in agreement with it. No ramping needed!

[ro5enberg] 16/3/2012 00:29

Not sure who won the battle, if there was a battle, but a nice healthy day as far as the share price was concerned..

With such a minuscule market cap, there is now only way the value can go and that is much higher.

Not sure many participants have picked up the fact we now have some new hard hitting directors and a new strategy backed by some big names. The realisation will set in once name change to Stratmin Global Resources Plc becomes official and then we will start receiving some serious news and with it broader awareness. The current name has a certain stigma no doubt that prevents potential investors from taking a closer look at the game changing events here.

Having said that, I anticipate a continuation of the current uptrend here in anticipation of the above.

Rest assured that Jeff Marvin is not here to look after a company with such a tiny market cap and instead is here to create a company worth a few hundred million on behalf of Mr B.

Based on publicly available information, most on this thread, we should have a baseline value of over 15 million and geared up to move higher awaiting news.

This equates to a share price of around 25p.

No ramp intended.

[engelo] 15/3/2012 21:00

Well got to hand it to the disgruntled old holders (or old disgruntled holders if there's a difference) who won the battle to-day ;-)

However there will be plenty of chances soon for Bogu's team to retaliate. Abro's team (that's Chelsea not ZOL yet) have shown the way.....

Seriously must be some friendly rivalry there (Jojo found the connection a while back!).

[jojo_jo] 15/3/2012 18:50

Hellisreal, I know who you are now... yoda.

[hellisreal] 15/3/2012 16:39

Nice climb in the last few days we've had.

[jojo_jo] 15/3/2012 14:28

Looks ready to tick back up (I think?).

[ddav] 15/3/2012 13:59

sells being hoovered up by 200k buyer!

[jojo_jo] 15/3/2012 13:49

Thanks TT... me too!