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No, they are the smart ones because they got a nice deal. Unfortunately their bellies are full and the existing shareholder base just saw a ton of shares issued after a large decline. Why would that be viewed as such a positive thing? I am not saying it is a terrible thing (that depends on how they use the money) just that it is not something that would make the market go nuts even in good times. Have they stated why they need this money?
Define successful.
Financing is a necessity and a successful one has the best terms and the least kicker all the while being taken nearer to market high periods vs. lows. Then again I don't like anything about RAY so I am not the most unbiased. I think they are shady as anything on the boards at this time. (Well, the whole PON.V thing may have been worse.)
Atacama is fast asleep right now. Zero market recognition. That is probably the biggest risk factor for the company. If nobody cares fundamentals mean diddly.
Uhhm, why?
Did you look at the fees collected for that placement and the terms? There is a full warrant with each unit and the units are pretty close to current price. I don't see anything market moving there.
I bet it is high. Things got a little overheated again and I think the shorts piled in for a summer correction. The smart ones are doing pretty good so far. Just like clockwork I suppose. I just don't see risking a short in something like KCL though which could halt at any time on a JV or buyout. Seems like better targets available.
Atacama Minerals (AAM.V) article
This one is starting to gain a little more attention. The article does not place much emphasis on the nitrate side of the business but based on the information I posted previously that part could be the hidden gem of the operation.
http://www.themarkettraders.com/content/atacama-minerals-world-class-industrial-minerals-company
That is the nature of bull market corrections. The bottom drops out when the buyers get tired. Nothing has changed except the emotion of the moment. One day this one halts just like Anglo did.
RAY was never on my list due to their games before potash and connections with unsavory types. They did catch the ambulance here though and that probably makes it for them in this bull. Generally speaking I am not sure any of the pure exploration plays will attract attention beyond speculators. There are still some good plays out there with reasonable prospects through. I forgot Atacama in my previous post. They are really setup well to boom if this cycle lasts. They are getting no attention though and that worries me for the market as a whole. When the speculative fluff that will almost assuredly never mine anything but Howe Street pockets blasts off and companies with a reasonable chance of good cash flow garner no interest, I think the game players are the ones in charge. The only way you win is if you guess the playbook.
I am down to KCL and some quality Aussies that have not run. I took by FOS off the table a short while ago. It was also a great trade.
No kidding.
Been in this thing since late in the ISX Resources run so not quite a 10 bagger for me but I can see it from here. This has been a fantastic ride. I wonder if there is another KCL out there in the current crop of juniors. Honestly I look at them and they all look like wannabes. The closest I see right now is STB on the ASX. RWD is a better stock but has gone up 5x so some of that goodness is now baked in. Anybody want to comment on the merit of low priced juniors?
Thanks EF - NM
Earthfarm - OT - WCP.AX
I don't know if you know this one but my broker friend in Australia mentioned it to me today. They are buying up the phophate rights to DYL's Georgina Basin tenement and have some connections to Gutnick and Legend. I took a small punt on it as it seems to be flying mostly under the radar. Many of the also ran stocks announcing phophate are taking a real pop but this one did less so.
Atacama
Done a little DD on this one and like what I see. This could be the sleeper in the sector at the moment (exploration plays aside as I don't think they have as much to offer.)
Here are some back of napkin figures. Anybody add anything or point out errors?
-Startup in a little over 2 years
-Plant cost $60M (so the figures from their Feb 2008 presentation on capex were wrong)
-Production rates ~70K tonnes per year
-Recent potassium nitrate contracts at $1K/Ton
-(No mention of costs but from reading the information it seems the feedstock for the nitrate is the brine left over from Iodine recovery so mining through to this point is already paid for by the currently profitable and expanding iodine sales.The nitrate output only became possible after the agitated leach plant replaced the heap leach. This was all done withing the constraints of iodine sales so those costs are born by current revenues. The additional cost will be transport of the brines to evaporative ponds, the construction of those ponds, the construction of the nitrate processing plant, processing at the same, and then packaging.)
-At a ridiculously conservative cost of $900 per ton they would have revenue/year of $7M off this project. That would take 10 years to pay back the plant costs.
-At a still conservative but middle ground estimate of $450 per ton costs the revenue/year would be $38.5M and the mine would pay back in less than 2 years
-At a very aggressive but possible cost of $150 per ton the revenue/year would be $59.5M and the plant would be paid back in about 14 months.
SPROTT ASSETT MANAGEMENT TAKES $2 MILLION PLACEMENT IN SOUTH BOULDER MINES LTD
South Boulder Mines (ASX Code: STB) is pleased to announce the details of a capital raising which will raise AUD $2 million via a placement of 6.4 million shares at an issue price of 31 cents. The funds raised will be used to advance the company’s move into the exploration for potash and phosphorous “fertilizer” minerals and advancement of the Duketon Project.
The placement consists of two tranches, “Tranche 1” of 4.3 million shares with a 1 for 2 free attached 2 year option with an exercise price of 50 cents raising approximately AUD $1.3 million immediately. The second tranche “Tranche 2” will require shareholder approval and will consist of 2.1 million shares with a 1 for 2 free attached 2 year option with an exercise price of 50 cents raising approximately AUD $0.7 million.
South Boulder Mines welcomes the support of Sprott Asset Management (“Sprott”) in participating in the issue.
Integral Wealth Limited (Toronto) acted as Lead Manager to the Placement.
Yours faithfully
Dennis Wilkins
Company Secretary South Boulder Mines Ltd. ABN 56 097 904 302
133 - 135 Edward Street, Perth, WA 6000
PO Box 8355, Perth Business Centre, WA 6849
Phone: (08) 9227 1144 Fax: (08) 9328 8302
Website: www.southbouldermines.com.au
E-mail: southboulder@southbouldermines.com.au
Agreed. I took $8.12 for my remaining. Was a fantastic trade. Added to KCL.
Sage advice, no doubt. Unfortunately I just have some trader's blood in me. I just can't stay put fully in these things. I always try to maintain a good core if I believe but honestly I did not think much of MAK. I see the case in Reward and in hindsight see some of the case for MAK but not nearly as much. I think I underestimated phosphate a bit though. I doubt MAK will come down enough for me but that is OK. Live and learn.
I had this one and sold too soon. They are pricey now though. I guess an off take agreement can do that for you.
Holding FOS.V, STB.AX, and SMD.AX. If MAK.AX would ever come down I might buy some but I have a psychological aversion to paying $2.50 for a stock I owned at $.30. I gotta get over that some day.
Reward is a beautiful sight.
Seems they are about to go roadshow too which should be very interesting. I am not trading that one any more and actually added a few shares after the title announcement. I have traded around STB.AX and relieved myself of a few shares yesterday at $.295 that were purchased at $.18. Would like them back but only if they come down a bit. Also playing SMD.AX but it is purely spec trash at the moment. KCL and RWD are cores for me and I am not trading any at the moment. If they get beaten up over the summer I will buy trading shares for each.
Everything else is fair game right now in my book.
Yup. That completes the stinky trifecta.
These guys are first order crooks. You can make money playing with crooks but best to remember that they will take yours just as surely as the next guys. I take a wide berth on anything they are involved in.
Out LGDI
Good trade. BOT them distressed and selling the scoping euphoria. Nice double+. Anybody want to comment on valuation here? My calcs show market cap around $375 million at the moment. Not cheap even with a nice asset.
Reward is lagging a bit. Strange as I think it is the far better choice but maybe I am missing something. Still not sure I have seen as bullish a fundamental setup as Reward has. Still plenty happy with my average price in the low $.60's (even after doing a couple of post announcement adds) but thinking it should be over $2.00 based on the market.
Well, there is a real asset there but the shell that they rolled it into raises eyebrows. I am not sure I would leave Gutnick in the room with my wallet or my daughter either. Still the asset play is real and there is name recognition so it is a reasonable punt.
The risks are real and I have a few questions about the choice of listing vehicles but seemingly worth a smaller punt. I have made a few trades around it already. This is the kind you take out for a burger and movie. Not the marrying kind.
OT - CO
Yowza. Nice move today. I own FOS as well. Add LGDI, STB.AX, and SMD.AX.
Mmmm. Yes I have noticed. I like to separate the wheat from the chaff at this point in a run. I did take a minor punt on MAN and CAJ though. RAY has too much baggage for my taste.
Uhgg, here we go from the front page...
The Legacy Potash Project positions Potash One as one of the very few junior public companies with current Potash permits, 43-101 compliant resources and active work programs in the Saskatchewan Potash basin.
So take it up with the company. Is your only beef that they didn't do the drilling? I personally don't care. What I care about is which prospect is backed by the most advanced resource and the best management. Hint: it ain't Raytec.
Again, take it up with KCL, I am sure they will recognize that you know better than they do and will change the wording of their home page to suit RAY. After all it is all about RAY isn't it?
Uhmmm, better call KCL and have them correct the second paragraph on their home page then. Rookie mistake I am sure but an old pro like you can set them straight.
Ah so, just warrants granted.
No, they just wait until the price corrects and grant themselves oppies. Not just the stinkers though but they are the worst of the offenders. I also don't mind a bit of insider selling into rises but don't like to see bigger sales on the open market all at once. That is ham fisted and shows little regard for the shareholder. Find someone to take the shares from you if the stock is hot and make the disposition private. That keeps the share price buoyant. We all know the routine.
Check Canadian Insider, looks like at least one insider used that as an exit point.
That is exactly the point. I got my core much, much lower and am happy with it. When folks are throwing their shares away because the exit door looks too small I will help them out. Obliging sort no?
I am in the process of placing my final bets. Little more KCL today. Looking at others.
Yup, rinse and repeat. Time to top up the tank is coming if you believe. Do you believe?
And without the stigma of uranium. And with a unique deposit that no other junior can match (SOP with evaporation recovery.) And safely located within a country that is 100% import dependent on the material. Is there another undeveloped resource of this nature right now? I am hesitant to get this bullish because it usually ends badly. This one seems unique though.
Some interesting information on links. Looks like some big goings on down under. I dropped the boys at Reward a line today and suggested some kind of a North American listing. I doubt I am the first to suggest it but hopefully another voice will add to the urgency. Don't mistake my comments on dilution either, I think that is weighing on other's minds. Personally speaking I think that Reward might be the best setup I have seen in the last 5 years. I am still not that impressed with MAK and think it has just caught the markets fancy. AGP and KCL are very good as well but I still think that Reward's potential at this stage beats them out. My biggest question with Reward is where do I pick to add more.
Price action was a little disappointing but I am OK with that. I read the details of the deal and it may be that the markets worry about that oppy overhang and the dreaded dilution word. That is terribly short sighted if it is the case though as opex will require money and the native holders were sure to get theirs. This project is a peach and something that is truly unique IMO. I am a buyer if it settles back from here.
Quite possibly the best fundamental story on either continent. I am long got a little longer today and will get even longer if it settles back.
Oh yes, I see that. I am pretty long but got cute and tried to take a trading opportunity and never put the shares back on. I will buy a good announcement though as Reward is truly a unique opportunity as you say. I think it could double from where it is and still be a good value. STB went up big on big, big volume yesterday too. I think that may be an indication that the cat is out of the bag. What say you?
Like UTUC?