CK you make it sound like they have got nothing and are simply a placement machine. This is not true, I will outline this years progress, of which you can see, funds raised have gone into investments and CAN be accounted for. This is not to say I agree, IMO they should have kept cash on hand! Furthermore, I did NOT like the fact that the chairman said failure to do the rights issue could be "fatal" for CVI, almost sounded like a threat.
That being said, you cannot deny that they have invested in mammoth proportions into very BIG projects in diamonds, copper and oil. You may not like their style of money gathering via placements. However, every company does things differently, it could be much much worse, they could be $1 billion in debt right now, and where do you think they would go if that was the case?
Not alot of cash at the moment, however I believe the cash will start flowing in when diamond production starts next year. I am not ramping and have significant bias against MS, but just wished to clarify your comments on sicking the 'cops' onto CVI which is a tad outrageous to be frank.
I only think it fair in this environment (when atleast THREE major countries are in recession right now) that people be a little bit courteous towards shareholders and pull their heads in, as the negative repetitive thumping can quite easily be transferred to many other stocks on the ASX. You also cannot say people who read this forum aren't influenced. Shareholders are down more than you could dream but hope for a recovery like many others in other stocks. Continuous high horse snide spankings of the company by ex holders doesn't help holders, it may in fact only help the wretched short sellers. Hope you can understand.
History of major events in placements and funding for CVI 2008 for CK.
11/1/08-2000000 at 23.5 cents
announced increased holding in fortitude from approx 3mil shares to 6 mil shares 29/1/08-4000000 at 15 cents
1/2/08-5000000 at 15 cents for working capital in west africa 13/2/08 750000 placed at 19.5 cents for marketing promotional material in uSA 18/2/08 5000000 AT 15 CENTS for working capital in west africa 4th March-refinery purchase in West Africa announced. 5th March-announces it transferred its longonju and ucua licence areas to fortitude in exchange for 15 mil fortitude shares, (total fortitude holding now 40% or 22 mil)
5/3/08 7.5mil shares placed at 17.5 cents for working capital in Angola 12/3/08 CVI announces aurum geos has drilled first of 24 exploration drill holes holes at Catabola March 18-Diamond update-Luachisse more advanced,drilling could start end 2008, GLOBAL to manage funding the start-up. cvi, endiama, Canzar discussing early cash flow.
20/3/08 5 mil placed at 11 cents for working capital in angola.
22/5/08 75 mil shares placed at 22.2 cents to global (16.5 mil$ paid to pensador, which was subsequently terminated, as a result Cityview is negotiating a $14 mil credit in CanZar diamonds, which is on top of the 10% net profit interest in Canzar's diamond concessions already held. Remember 250 tonne per hour production plants due to be installed in 2009)
September 11 (d day) proposed $150 million placement to Europeans at 20 cents per share for an oil refinery that will be ramped up to 100k bpd *note the term 'conditional contract'. Rest of the money to debt secured against the refinery itself until it is cashflow positive(2010). Chairmans address states negotiations are nearing success and should be concluded in the first week of December.
22/09/08 20 mil shares placed at 10 cents for working capital in Perth and to increase stake in fortitude minerals (Note in September update released days later, that CVI's holding in fortitude had gone from 40% to 46%)
7/11/08 (711 has got it!) THE biggie, entitlement issue, 498 mil shares @ 1.25 cents, a 1 for 1 rights issue, fully underwritten by pinnacle, and only available to Australian residents.
Now Ive probably missed stuff as it's getting late, however as you can see most placements have gone into investments in working capital, fortitude, Canzar etc and have not simply vanished. Holders can testiment to this as the balance sheets of such unlisted companies and flowcharts of projects/ contracts have been witnessed personally.
CVI Price at posting:
1.1¢ Sentiment: None Disclosure: Held
