1. Does it absolutely, positively have to be funded in December? Absolutley??? No other alternatives?? You sure???
Any other conditions to be met before the cash has to be paid?
So its dilution or nothing in your view (& must be December). You just keep that point of view & watch from the side lines......
(Not related....... But are you a Carlton supporter by any chance? ...just kidding )
If PEN don't take it up, who will?
PENs prior held leases make them as the standout beneficiary from a economy of scale perspective & segways neatly in the business model PEN was working on, just made their business case that much stronger & robust.....
Do you not think AREVA had the talent to develop? How was this tiny penny dreadful able to twist the arm of the giant Uranium company of Avera's ilk?
Fortunately (for PEN) a series of bad decisions meant Areva had to review it's position on not only Karoo, but many other leases they held around the world.
PEN were in a position to capitalise & did so.
AREVA still happy to hold one hand on the prize by way of the share holding position....Have a READ & see if any alternatives present themselves for Karoo.
Your sounding broken my friend...........then again, the term delectatio morosa comes to mind
2. Are off take agreement in place?
If you were selling your house today, would you take the first offer if your didn't have to???
...Ever heard don't sell the farm............... What purpose will going to contract today make (other than to appease you)?
PEN have sold enough ore to get the end result required (FWIW at a sound level averaged over both contracts)
A savvy business decision to keep moving forward despite the headwinds.
Stage 1 squared away, no debt, no interest to service, hence no need to go to contract at just above margin costs to pay financiers (as we have none), we even sold our premises in Perth & leased it back a number of years ago..another good decision.
Shareholders carrying the burden as equity funded, the best decision in the circumstances & all things continuing to plan will (should) reward the holders. Keep in the back of your mind why are these T20 so keen to part with their funds at the level they have? What are the reward/ whats the trade off..what are they expecting to be a reasonable reward for their risk.
PEN are putting in place the infrastructure in stage 1. All the hard points required to enable a very quick ramp up when the market improves.
Q. For the people out there re NYSE listing. I've only seen this second hand on other stocks that listed overseas (HIN come to mind) & certainly admit not my forté .
Going form memory here (as it was 7 years ago). When dual listed, & a USA entity buys the stock, is that stock taken from the ASX exchange (hence reducing the amount of stock), what happen in the supply/demand equation, when supply is reduced (& no suitable replacements). Price will go....UP? or should I say....PRICE WILL GO UP!!!!!!!!!!
From memory with HIN, 35 HIN shares CDI's converted to one share of common stock tradable on the Nasdaq. This meant the availability of stock on the ASX reduced. Chart attached & a link to the 2008 announcement. I remember there was a hospital that was soaking up shares & moving shares overseas (those shares were never bought back by ASX traders to aussie soil, eventually HIN ceased on the ASX due to low volumes (just none left to sell.) - look at the price on the chart............Just to be clear I am not saying PEN will replicate HIN's chart post USA listing. But non the less note worthy & perhaps another catalyst.
Gus drops some insight in the BRR.
In PEN's case there is 70% held tightly & only 30% in weak hands. $20m today (ie 1/2 of the 30% of the $120 Mcap) would have a savage impact on the number of shares available (to trade) for a USA listed entity that wanted a position in the next USA based, biggest ISR mine to come on line.
(Here's a good case to do a share consolidation - just didn't want to put it in last weeks post ...just didn't want to go there with on another of my theories (FWIW...Gus has mentioned this a number of times in the public forum) so where there's smoke
Consolidation into positive news.....In an environment that embraces the industry (FWIW - HIN traded 30c to 50c & couldn't get over 50c whilst trading in the ASX), stand to bode as good news.
Check out UEC's market cap (yes they only have 92Million shares - just to get that noise out of the way).
A producer with how much resource? How many mines that are approved & permitted & earning how much revenue this year, trades in this USA environment...
(Some home work for you Buc..........not for you Collossus I'll email out later )
M/cap by the way is $290m +/-...................PEN's market cap $120m....
I'll stop there as I will probably write a thesis............................Things that make you go hmmmmmmm ....
PEN Price at posting:
2.3¢ Sentiment: Buy Disclosure: Held
...just kidding
(20min delay)