After some heavy research into the area, I decided to enter with a small parcel. The reason for this is not because of the resources they have, rather it's my concerns about management. Some things don't add up when it comes to management and their attitude towards Letlhakane.
First thing is that they claim that uranium is their priority, yet they fail to properly give us a clear project outline, instead, focusing on regurgitating presentations. I checked their website to see if they have a project outline detailed, instead, I was fed with fluff about their acid research to lower costs. There wasn't any info about whether they wanted the company to head into any uranium ETFs to get some of that fund money, especially with only around $4mil in the bank or less now, since they still have their nickel-cobalt project. Which is quite unsustainable, especially with 2 projects. I am predicting a CR early next year.
There is also the case with the previous CEO resigning once the mining licence was attained. Why was that? Why would the CEO resign right after such a significant milestone in the company, especially with how much resources are in the ground, the potential profits and bonuses from mining it? They haven't replaced the CEO, which indicates to me, that they are quite content with what they have achieved and have no intentions to actually bring the project to life. This could be one of the main reasons why big shot investors aren't hopping onto this bandwagon, is because management can't actually add value, because without mining the uranium, it is quite useless sitting in the ground.
Also, Botswana may be a mining nation, but it is predominantly a Diamond producer. A 2016 article, states that if the mining licence is granted A-cap will be the first uranium mine in Botswana. This can be an issue, as the lack of infrastructure and experience from workers with regards to uranium, will hinder the company's prospects.
Finally, they claim that they wish to begin producing when the spot price reaches a profitable level. Which I may believe is sooner rather than later. So shouldn't management begin preparing for production as soon as possible by beginning construction and completing DFS. To set them up from production as soon as possible rather than wait for the price to hit profitable levels before moving their hands? Most uranium companies right now are moving as quickly as possible towards production, whilst, I am baffled at the slow progress at A-cap.
I am not trying to downramp, but, I wish to understand A-cap management's questionable decisions so far regarding Letlhakane.
