This steady uptrend is good, we’ve hardly had that though, Nov 1 we opened at 3.7c and here we are at 8.8c - more than double in 6 weeks albeit off a low base. I’m more of a fundamental investor than a technical (charts) investor.
To me, I can understand that 3.7c. We’d been running very low on cash, the last CR was highly discounted, we signed the IDC loan doc however that was probably overshadowed by the same announcement saying the BAI loan would take “a number of months”. Everything just seemed to be taking for ever - but then it turned.
Nov 14 we signed the SWF investment and said we’d start construction when we received the funds
Then we had a cash boost with the exercise of the Director options, adding $1.5m to our account.
Last week we had the SWF funds hitting our account, Construction contract signed & the BAI loan approved subject to the FGC approval.
Charts will tell you we’re in an uptrend, personally I just see these milestones which have enabled construction to start and a clear path as to how we’ll achieve our aims. Most importantly, management are starting to deliver on time.
Each one of the above steps has derisked the investment in Minbos from when we were at 3.7c. Long term holders held the faith and could see the potential, as we ticked off the above steps more investors were happy with the risk levels & came onboard pushing the price up. IMO the bigger buyers will want it to be derisked even more, the IDC CPs satisfied including offtake. They’ll pay more, at the same time having a lower risk level and still get a good return.
I am very happy with my own risk level. Look at all the exploration companies out there, whether lithium, gold or what ever - how many of those will make it through to production? I think statistically about 1 in 50. Minbos only has a few steps to get through to production, to me they are all very low risk, but Africa being Africa will take longer than we’d like. We’ve got a good 2 month window before stage 2 is due to start - I doubt we’ll need anywhere near that time to finalise the BAI + IDC loans.
Of course Biden’s visit with the associated extra funding will go a long way to ensuring our success. He even spent time at Carrinho and the importance of increasing crop yields was at the forefront. Our trials have proved the only way you can increase yields in Angolan soils is firstly by building up Phosphate levels.
I could go on & mention the big tax concessions we will enjoy (we won’t pay tax in Aust being a Mauritius company ), the captive market, GA etc etc
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