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Vii - Would be interested in your thoughts on the sale of this CUSN asset. IMHO possibly an astute move. Whilst to doesn't raise much cash (just C$1million), it allows to exploration and possible development of this asset to be advanced and payback to CUSN. CUSN could own up to 19.99% of the shares.
Northera Resources seem to be a very newly formed private Canadian company, so potentially a larger established operator is behind this. Until they list on TSX-V, we won't know who the major shareholders are but CUSN will have a sizeable holding.
Nickel King could be quite a large asset in terms of nickel production in North America.
From my own research.............
Largest (& only nickel mine in production in USA) is the Eagle Mine, owned by Lundin Mining has about 56,000 t contained Ni.
Largest Canadian mine (Raglan) produces around 20kT Ni per year .
Nickel King's infered/indicated resource is around 164,000 t contained Ni, so it is potentially up there in terms of scale.
A good move, but will be a long while before any potential payback.
Pawgee
Looks very astute imo
Adds possible longevity to intentions of the company as and when tin production running producing cashflow and reverse into other minerals later
Board look to be in for the long haul
Another good sign
whjmflp
Pawgee
I think it has to be viewed through the lens of being one way to provide finance for getting SC into production. Not much cash up front, but perhaps the shareholding, post float, can be used to secure some reasonably priced debt finance. I have no idea as to whether Northera have got a good deal or not. But clearly when finance is tight, CUSN cannot take on more than one big project at a time. As it was in the books at nil, clearly CUSN did not have great expectations for the asset. This way CUSN looks to others to find finance for the nickel project and keeps an exposure.
Surprised this didn’t give a lift of some sort? Some cash (always handy pre production) and a decent interest in the asset going forward.
Does anyone know if someone's got a short out on this? Something is not right judging by how this is reacting to the PEA and today's news.
Any significant shirts would be in box above (over .5%) but there’s none showing, no individual shorts on IG so not a shorting issue
Spell check is crazy = ‘shorts’
Could there possibly be a non disclosed short being activated under the radar?
Doesn’t seem to be shorts, I would guess its Osisko that have an acceptable exit price and are still trying to exit their position without crashing the stock.
“The latest balance sheet data shows that Osisko Development had liabilities of CA$45.8m due within a year, and liabilities of CA$132.9m falling due after that. Offsetting this, it had CA$43.5m in cash and CA$3.95m in receivables that were due within 12 months. So it has liabilities totalling CA$131.3m more than its cash and near-term receivables, combined”
https://simplywall.st/stocks/ca/materials/tsxv-odv/osisko-development-shares/news/is-osisko-development-cveodv-using-debt-in-a-risky-way/amp
It would make sense that they are trying to liquidate assets in order to balance their books but hopefully someone can provide a more accurate insight.
A lot of potential here, Sir Mick Davis knows just about everything within the sector, it’s my belief that you can trust his teams judgement on the future prospects but the impending change of government is probably also having an impact, Labour have stated green policies but a source of nickel is required to produce said technologies,and a homegrown source is even better, thus should stay within that remit.
No Clue Just Random
Worth reviewing a few old posts :- Part 2
17 May 2024 20:14
I could be wrong, but if it is ODV/Barkerville that is selling it is probably because they need cash. They have forecast negative $80m this year i.e. an outflow, and $400m over the next few years as I mentioned in an earlier post. They may need cash to cover their projects, and they may not have cash to contribute towards CUSN's development. They have been in CUSN for a long time 10? years, but have gradually reduced their shareholdings.
If I am right, then I suspect they will be near or perhaps at the end of their selling programme, judging by how many shares above the normal levels have traded this week and what their holding was beforehand.
Alternatively, if as some people think there is a short seller around, we will probably see some scare stories made up when they have completed their short position.
I am thinking the big backers VBR and Lansdowne have cash and are probably keen to increase their exposure. If so, the rumoured short seller may get burnt in a big way. Shorting CUSN with a rising tin price is very risky.
Meanwhile the company have nailed their colours to the mast, so it may be a question of whether you believe them or not. Their standing in the mining industry is such as to command a lot of credibility.
Vii
No Clue Just Random
Worth reviewing a few old posts :- Part 1
21 May 2024 09:07
I agree with you about Vision Blue. If it were them selling we would have seen a TR1 this morning - assuming their shares are held/registered in the UK. And in any case we are a few days off the publication of Q1 figures, which they will have seen through their board representative Mr Trahar. They are insiders at the moment and therefore cannot trade at all. After the results are published and they are no longer insiders, we may well see them buy.
The comment from what appear to be Canadian traders on https://ceo.ca/cusn suggest that the broker is amalgamating buy orders and filling them at intervals, which suggests a single seller based in Canada. It is thought about 100m shares are registered in Canada, so the above average selling last week represents around 40% of the shares held there. To cause a "dump" from a shareholder(s) such as we have seen I think there would have had to have been a negative story emerging in Canada. I am unaware of one. As yet we have not seen any contrived negative stories which tend to accompany shorting activity.
19 May 2024 10:02
We will indeed. It may be that Osisko are finished, but other Canadians are not. We will see. Bear also in mind this is now a development company and will need to raise cash along the way. So to get the "Ten pound note for a pound coin", as I think Pawgee puts it, if all goes well, you may be asked to put in another 50p along the development path. i.e. keep some money back for cash calls over the next 2 years.
18 May 2024 12:13
The link in my post of 17 May 2024 18:26 made it clear what has happened in the past. This looks like a repeat to me. i.e. Osisko's (ODV) subsidiary Barkerville raising cash. A broker's report on Osisko ODV makes clear to expect large cash outflows, so I think ODV is realising some of its investments. It has been invested a long time - 10 years- and may need cash. For their own reasons, they may not want to be identified, as that may exacerbate their position.
Alternatively if this is a shorter at work, to borrow 40m to 50m shares without giving away who you are would take some doing. The number of calls to holders to borrow that amount of stock would be likely to give away who is behind it. Normal form for a shorter would be to establish their short position, then make an argument why the shares are over valued to try to cause them to fall. In the case of CUSN, it clearly is valued at a fraction of its worth at the moment. Furthermore, as the tin price rises there is a geared effect on the value of the company.
Conclusion
It seems to me that is is Osisko/Barkerville that has been selling together with a few other Canadian shareholders who were backers of Richard Williams the CEO who departed end March.
If so, it is outrageous not to have declared their sales. But we know they have form for not doing so.
Perhaps someone should ask for a SEDAR investigation?
I feel we were wrongly informed about the demise of the share price when the PEA news was issued in the RNS. Something is not what it seems. There should be an investigation into this by the company and another RNS issued.
How many months is it going to take to clear this amount of shares?
Thank you VII, sorry if I got you to regurgitate old posts but it’s greatly appreciated. I’m new to the investing journey myself but so far I’ve made a profit in every position I have undertaken. I have been having some extreme beginners luck, I don’t really have any grasp other than the basics yet but I’m planning to learn the intricacies.
Do you think that it’s possible we could see a takeover bid from VBR or Lansdowne? As far as I know VBR are sat on substantial cash reserves
https://www.e-mj.com/leading-developments/vision-blue-resources-raises-650m/
I have not seen anything but positives about the future prospects from VBR.
Hi all. Just catching up here. Re the shorts... To get an idea need to find someone with an Ortex account. This gives a fairly up to date 'stock on loan' figure. This would be one way to find out if there is shorts or leveraged CFDs in play.
The only LSE poster I know that subscribes to ortex is Tillywhiz. I have a good rapport with Mr whiz and previously asked home to look up other stocks. But I no longer have a premium LSE account so can't really reach out to him other than an outright post on HEMO or EUA. It will just look like a cross ramp and attract a load of abuse, so reluctant to do it.
If there are any premium members 🏵️ on cusn they could message him and mention my name... Refer to this post... And Tilly will probably oblige.
ATB LB
No volume in trading today. There is something that's not right here, and we're not getting the full story.
Personally, I think the topic of 'shorts' is overdone when it comes to small cap shares on some boards.
It seems a bit of a default argument when a share is not doing well, or the SP is somehow unexplainable vs where posters feel it should be. Often it is thrown about as an insult thrown at a poster with a negative view.
There is not a great deal of evidence to show that shorts are open - the LSE publishes a daily list of open shorts over (I think) 0.50% and it is virtually impossible for a PI to open a short position. There has been no historical declared open short here from what I can see and anything under the disclosure threshold would have a minimal impact, if any impact at all, imo.
While there may be isolated situations of shorting in the small cap space, and certainly there can be coordinated attacks of a share by a group(s) to short a stock, the question for me would have to be why on earth would anyone want to short a share with a MCAP of
For LSE, read FCA with regard to daily declared open short positions
Not sure what happened with the rest of my post...
A stock with an MCAP of
Ok. I give up. The remainder of my post keeps disappearing. Unless it is my view