G79 (ASX) Ann: Strategic Investor, Equity Placement &amp; JV Partner for Caula

Originally posted by Alx1924 ↑

It seriously amazes me how a fantastic scoping study like the one released resulted in an SP slide !!
I believe this was the catalyst that forced our MD to sell 40% of the project for $3.5M. I mean, if market cap is
so low, how can you possibly ask for more? Running out of money and Arena doing what they did, your hand is forced.

The market simply didn't respond.If it had responded, i think they would have opted for a CR at much higher prices. I believe they didnt expect this to happen and then Arena, opportunistically, come up with that demand.

I have a feeling Arena were trying to " pinch" the project for peanuts.

Nonetheless, the project is still alive with an NPV of around 450M instead of 900M, still ok in my opinion and room for us to get something in return.

If Bernard manages to bring phase 1 into production, we are safe.
Question is, will he remain?
Out of everyone, he has the least responsibility for where we are. He delivered a brilliant scoping study and keeping the ship afloat.

He now needs to deliver an offtake partner that will also contribute towards the plant.

MC does not show the value here. Just hoping that it doesnt fall apart.

As it stands, i will be extremely happy if i get a return on my investment at around 30c, happy to wait. No point in selling now.

All in my opinion.

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I don't think you can write off BO's actions here. He was the one dealing with Arena (or at should have been) and he was the one that negotiated the deal that means NXE loses half of their assets and control for $3.5 million. He also sold off the ruby assets for next to nothing too. All of the other public companies he has run have been a disaster for the shareholders.

As for the scoping study it didn't matter how positive it was because its absence was not the reason the SP is in the toilet. The problem has been since the auction fiasco last year the board. The market has zero trust in the board and no positive news will change this.

I hope things do turn out for the best for the shareholders, but with Arena demanding $5.1 million and commencing legal action to get it I can't see an outcome that does not end in administration.