Met ME and other director AH at meeting yesterday 11AM.
Iron Mike
As per your request to put what I found out "in simple terms"
I stress this is my impression only and anyone reading it needs to do their own research.
ME genuine bloke who really does know about coal.
He was obviously very disappointed at the price set for the shares in the cap raising, but in the end, given market conditions the time constaints involved had no other choise. .................................... Obviously more work needs to be done on the leases... JORC etc...We all know about that.
But he does seem very confident they have: A/ Good quality coal B/ Lots of it C/ Just below surface, so cheap to extract.
He genuinly believes they will become a coal miner.
So all this is good ............................... Some of the other threads have made various comments about the cap rising. I agree with much of what has been said. But nobody predicted mid year when all this was being planned the way the latest GFC/Europe etc would unfold.
We now know now this is the worst imaginable time for a small cap miner to be raising money.
CEO have to deal with the realities of the present market and had no choice but to price the issue at 50C to ensure its success. They were also delayed along the way by the ASX in doing the consolidation and few other things which I won't go into detail about here.
But YES they do need to strengthen the board as IMHO AH is a lightweight who, as their man in the office, should have had all this sorted out long ago.
Bottom line for me.
Still lots of potential.
Will it remain above 50 cents after relisting ?
Who know.
But they will have the capital to continue, and once the drilling etc starts, interest will pick up.
Also in April next year, the options will be exercised raining a further $1.5 Mill
Should have JORC statement and the project "derisked" in the next 12 to 18 months.
Caveat emptor
Bendigo
CEO Price at posting:
4.2¢ Sentiment: LT Buy Disclosure: Held
