From some investigative work on "X", users have found the name of the associate with Phoenix Global. Who is Phoenix Global Investments Pty Ltd ('Phoenix Global')? They are the ones who "acted as Lead Manager on the Placement and will receive a fee of 6% of the amount raised under the Placement (ex GST). The Company has received a firm commitment from Pheonix for the Placement." source: 20 Feb 2024, ASX:CHK, Cohiba Raises Additional $850,000 Through Placement“Phil: It's very difficult for someone who doesn't have a lot of expertise in the resource sector to start analyzing drilling results, and metallurgical surveys and so forth. How much time did you have to spend working out how it all works before you felt comfortable investing in these companies?”
“Fadi: Funnily enough,
I actually think knowing too much is a hindrance, because if you know too much, then you can go into this kind of analysis paralysis mode, and you know of every tiny little risk that could happen in any mine in the world, and it makes it so much harder to make a decision. For me, it was getting a basic understanding of the particular mineral or metal, what the drilling process looks like, or.Fadi: The exploration process looks like, and basing my understanding of valuations, not on the company itself, but on its peers. So, let me give you an example again. I'm making up figures. Let's say there's a gold stock that has a jork resource of 500,000oz at.Fadi: 1.5 grams per ton.Fadi:
I don't understand how they get to 500,000oz. I don't understand how they analyze drill calls or how they got to 1.5 grams. All I know is the market is saying this stock that has 500,000oz of gold at 1.5 grams per ton has this valuation. Let's just say that valuation is $20 million. If I find a company that is aiming to put out a resource, a jork resource of 500,000oz at, uh. Roughly the same grades. But their market cap is 7 million.Fadi: Right.Fadi:
I know that if they can prove up that resource. There's a two x potential in the stock price.So I don't really try and find out too much about how the metallurgy works. I'm not trying to be a geologist.
I'm, um. Yet to find a successful investor who is a geologist. Because again, they just know all the risks that could happen. And that they can't kind of get their head out of the detail. Just to see the high level.
So you don't need, nor should you want too much expertise. The most important thing is getting set at the right price. Then the drill results will be the drill results.
If you're set at a very low valuation, then there won't be that much downside. Even if the results come back bad. And we've got to understand. Most companies are, uh. Unsuccessful in their mining exploration. I'm not trying to find the next PLS Which, by the way, I did find at two cent and I sold at years ago. So my strategy, and I don't think most people's strategy should be I'm trying to find the next BHP, FMG, et cetera. Because there is so much luck involved in what those companies have achieved. Because what's in the ground is in the ground. You can't change that. And most of the time what's in the ground is not economical. So it's more about managing risk, getting set at a low price.
Then as the market gets excited with some potential good results. And the valuation goes up too much. That's when it's time to exit. Not now. Uh, it's at 100 mil valuation. If they can prove up what BHP has, it'll be worth a billion dollars. No, that's like dream world. And sometimes dreams come true by a bit of luck. But I'd much rather find companies in the sub $10 million market cap range. And sell them when they're between 100 and 200 million. Then I'll let someone else take the risk of can they get that to.Fadi: A billion dollar valuation? Which they could.”
Source: https://www.sharesforbeginners.com/blog/fadi-diab-thegladiatorhc February 8, 2024 [
NOTE, this transcription has many errors presumably from their speech-to-text technology, but nevertheless, this is an exact quote from this website {from their transcription}]
Now I understand why the ASX:CHK Lead Manager on the Placement AND public/investor relations advisor, Phoenix Global Investments Pty Ltd's "Founder"
1 lives in Dubai.
1- https://x.com/TheGladiatorHC?s=20
@
Linebacker11 is this why this stock is in the state that it is? because this stock gives people like this 6% to be their lead manager and "public/investor relations advisor"?
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