Some basic basics.... in the way of some NMR positives.
1) Market cap (undiluted) still about $25 million at 5.9 cent close.
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2) Class B Performance Shares still a long way off?
They will need an inferred resource (up from inferred) to comply. Even at 5 cents (15 day VWAP) average - I believe that would mean "only" an extra 30 million shares - so minimal dilution. Gotta pay something for an indicated resource. If we see 10 cents - all the better for holders.
Bit more drilling before these come into play.
See Prospectus for Performance Share Issue details in section 6...
3) Class C Performance Shares - may also be some time in the distance - the higher the price at that stage - the less dilution of NMR (though not so great for directors holding amount - as they will get less shares!).
Limpopo 70% "buy-in" needs to be complete to justify issue - and I believe this is not the focus - as I cannot find any mention of this in recent announcements.
"Worst come to worst" and they announce Class C tomorrow (not likely one would imagine), that's only about 20 million extra shares? (1,000,000 class C's / (0.85 x 0.049)
Not bad dilution (approx 4%) - and NMR will be firmly holding yet another asset.
4) Some oppies getting close - if they can get some cash from this then NMR may fund drilling for a little while more without direct cap raising - with their minimal cash burn.
Dilution effect is minimal on conversion of oppies. Not bad at all.
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See DJC estimate of oppie money (bottom of page 17)....
Having spoken to Chris on several occasions via phone and email - I have more and more confidence in them getting this thing happening every day. Very genuine people it seems.
Very much DYOR / make your own opinion on this matter of course!!
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6) NMR actively looking for partners to accelerate dragging value from the Takatokwane project.
"Once the scoping study is completed and Nimrodel has defined its future path, it will look to bring on a partner to assist in developing the project."
This will add value quicker and allow focus to also shift to the many other project NMR has on the cards. I am sure that NMR will not "sell out" for peanuts. They are set to benefit here - and there is no urgency to give any thing away - at all.
I very much like the links to Indian JV partner TRIPROP, and also to Mr Zuks (major NMR share holder) with his African / Great Britain and Chinese connections.
Who knows what may pan out.
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7) News news new due - and company sounding positive.
Fundamentals looking very sound.
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8) Botswana coal road map update due soon
"Mason said the turning point for Botswana’s coal industry will be the outcome of the government’s coal resource roadmap. An update is due out January next year."
“It’s really going to be the dynamic that puts Botswana firmly at the forefront of most people’s minds,” Mason said."
9) New year here and all eyes open - a lot of NMR news came prior holidays and wind-down of 2011.
Effects of Gabs / London roadshow may now be seen.
Cape Town / Hong Kong next stop.
From last link...
“We’ve just popped up out of nowhere and said 4.23 billion tonnes. People have gone where have you come from and how have you done that,” Nimrodel managing director Chris Mason told HighGrade Coal.
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DYOR
Just a few ideas to ponder - many more in past posts by all.
bsh
NMR Price at posting:
5.9¢ Sentiment: LT Buy Disclosure: Held
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