Zeb I've made no secret for a high level of respect for the contribution you've made to the POS threads over many years. As a punter I think my long term focus on this company has come to end and have accepted selling at a significant loss. The loss just isn't the actual money but more galling the opportunity cost of an 8 year association with a company that has done nought but destroy share holder value.
As a share holder since 2014 (8 years) I think it is time to pull up stumps and take my lumps (and some lessons learned from investing in low quality/ speccy resource companies. In my 8 years invested here i've been witness to the numerous false plans and fake restarts as chronicled below.
May 2014 $3.7M placement to bring Windarra into production with ore to be trucked to third party for processing
July 2014 Purchase of Black Swan.
August 2014 Change of plan for Windarra with ore now to be trucked to Black Swan. DIDN'T PROCEED Both Black Swan and Windarra to be back in production within 6 months of final finance. GR Engineering estimate refurb cost for Black Swan at $9.4M.
September 2014 Purchase of Lake Johnson
October 2014 Another pivot with an off take agreement with Nickel West signed for ore a 2 year period for the supply ore from Windarra. DIDN'T PROCEED
October 2014 $30m placement to advance Lake Johnson and Black Swan into production
December 2014 Lake Johnson Restart Feasibility Study announced!.
June 2015 Forget about Black Swan and Windarra as POS announces BFR for Lake Johnson" were going mining" DIDN'T PROCEED
June 2015 So confident in the LJ plan the company agrees to sell Silver Swan to Caneus Minerals
June 2015 No BHP off take happened so now we're back to trucking order from Windarra to Black Swan (again) DIDN"T PROCEED
November 2015 Caneus Minerals don't proceed with the Silver Swan acquisition but fear not..... Announcement to the market in the same month that the company has agreed to an offtake for SS material with Tsingshan for a 2.5 year period. DIDN"T PROCEED
The year 2016 was the go with the switch in focus from nickel to being a lithium explorer with Management writing a record number of non binding MOUs. DIDN'T PROCEED
January 2017 The company sold the rights to the Windarra gold to GTI Resources only for the deal to be terminated in May. DIDN'T PROCEED
2018 saw the company suspended for months from the ASX due to Management incompetence
August 2018 BMM attempt a takeover only to be thwarted by Forest. Company recapitalised with $75M injection of new money
March 2019 We're back to "restarting Black Swan and Silver Swan" DIDN"T PROCEED
March 2020 Discovery of Golden Swan and a new hope is presented to mirror Silver Swan.
August 2020 Rights to acquire Lancefield tailings which lead to a DFS for the gold tailings.
December 2020 $10m placement to accelerate Golden Swan.
2021 The first half of the year where it looked like patience would pay off. A rising share price peaking in July, an underwhelming MRE for Golden Swan was supported by another $22M placement (that's $140m in cap raises since 2014)
Is it fair to say since the last CR the show has progressively turned to custard leading to where we are now? If I had the belief that another few years is all that is needed in order to start enjoying alpha on my investment then I'd be content to let the SP do what it will do; however the constant changes this year are synonymous with previous stop starts as outlined above which leaves me with zero confidence.
POS Price at posting:
4.1¢ Sentiment: Hold Disclosure: Held
(20min delay)