I dont see increasing the retail float making any difference. When the ML was issued something in the order of 30m shares where traded and the sp went from around 5c to 19c so there was no issue with the retail float then. From that point if MDA had been delivered in a reasonable time things would be very different IMO. The market has simply lost interest and probably only sees more delays with the people moving. It has to be said very little information has been given regarding the compo to be paid and if there is any push back against moving. Do they have a right of appeal, I dont know? Also without clarity on funding to at least phase 1 production I dont see why anyone would invest.
Without further clarity I see no hope of a CR being successful unless the top 2 shareholders agree to participate, to date they have not bought or sold a single share for some time to the best of my knowledge.
I am concerned that the short term funding has been out of Bo Tans pocket once more, if the top 2 had chipped in $5m even at a low sp of 5c it would have given the project financial stability and the sp would have improved IMO.
I am not sure how much they will need to finance the move of the people and sign the construction contracts but I dont see phase 1 requiring less than $75 -$100m AUD (total project cost is around $200m US or $300m AUD) , inflation in Malawi at the beginning of the year was over 20% so things are not getting any cheaper. With a market cap of $25m AUD I think the size of the retail float is the least of their problems.
It is still my intention to buy back the shares I sold once financial clarity has been given.
Good luck
GBE Price at posting:
5.0¢ Sentiment: None Disclosure: Held
