Bradda Head Lithium exceeds targets, secures US$3 million royalty and moves closer to production. Watch the video here.
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The issue is not whether it is improper to discharge invoices for fees by issuing shares (which is commendable and done by many listed companies where the payee is prepared to accept shares instead of money) but whether in the case of ECR details of the payee(s) is/are shrouded in secrecy. When on 14th March, ECR announced the second placing under the current management, it also announced the appointment of Axis as a second broker and that it was paying Axis a fee in shares. The payment was termed "Axis shares" and the payment was made for conserving cash. Separately ECR announced that it was making a payment for £25,000 to an advisor (unnamed unlike Axis) in shares for "conserving cash". If one can name one recipient one can name another. I will leave it at that save to say that I am with you Mentalmax..
I am today more interested in whether ECR can create and realise value for shareholders. May I remind readers of the Stock Box interview of MW on 6th June wherein from 8 minutes 30 secs MW talks of Blue Mountain getting anywhere near 80K to 100k ounces of gold and "hopefully we can show investors some gold". We know from MW's tweets this morning that work has started at Blue Mountain. Like other shareholders I hope that the optimism expressed on 6th June is realised by production which might well give ECR a market cap value of £20 m to £30 m hoped for by MW in the 6th June Stock Box interview. GLA
BBN ....Well put !
My thoughts exactly
It could be for any number of things. Public listing, Nomad, broker fees, lawyers/solicitors, tax consultant etc or something else. At this time, it makes sense to pay as many admin costs in shares as possible.
The actions of this BOD have so far been near as damn it 100% shareholder minded. It is not their fault that previous directors diluted shareholders to death and anger over that should left laid to rest. Since they have come on board they have kept dilution to a minimum but they couldn't avoid it entirely. Cash was required to further the assets and in order to deliver a better return for shareholders. In a crappy market, they have managed to get a second raise away at a 70% premium to the first. For a company with no established resource that is one heck of a result and sets a good pattern for future outcomes.
There's nothing wrong with feeling disappointed and angry over past failings but this BOD must be judged on what they have and will deliver. So far it has been very positive such that they deserve our support. If they mess up or change pattern then of course they should be brought to task on it. But in the meantime, if they keep getting such positive deals done then their efforts should be respected through positivity and belief.
Given there is a tax loss in play here and corporate transactions in the offing the above positive pattern is a strong tell as to what is likely coming here.
Ah ok well if that’s the case then I stand corrected RE wording. What fees though?
No, you are misinterpreting the wording.
The fees have nothing to do with paying a company to conserve cash. They are fees that would normally be paid in cash but have instead been paid in shares. Thus "conserving" the business £6,000 which can be used for better things like exploration. This happens in a lot of listed shares where money is tight.
Granted, but it is still a £6k payment (fee) for ‘conserving cash’ - so a company is being employed by ECR to say ‘hands off!’ Every time they want to spend? I don’t get it? - also, while M/N’s own share allocation requires notice of sale for transparency, what’s to stop the £6k worth being flipped and converted to cash ‘off the radar’. It also appears whenever N/M get their shares, which arguably adds to suspicion.
Now I understand this comes across a bit conspiratorial, but the company has forked out a kings ransom in director ‘fees’ over and above while ECR was on the rocks which has left any holder who hasn’t been here for five minutes understandably sceptical of any ‘fee’ which can’t be explained, particularly if it’s for a rather odd expense.
I’m sure they’ll be able to explain it all. Once bitten….
Nick ….I Suspect Looks After Expenditure…..
I trust all investors appreciate that when ECR said this (see below) on 14th June they meant they had paid fees in shares rather than cash to conserve cash resources. It does not mean that they were paying someone to help them conserve cash.
"At the same time, the Company has agreed to issue and allot 2,307,692 new ordinary shares in lieu of £6,000 of fees owed by the Company in order to assist the Company in conserving its cash resources."
Yes they certainly got things going again. BOD still bloated even after AJ’s departure IMO. The paying to conserve cash is a bit smelly atm and needs clarity. If it’s a wheeze then integrity will be lost. Hope it’s not.
There is always room for criticism daramuda but I think you are being overly critical.
As you will know the business world isn't a charity. These guys aren't here to work for free and could easily have given themselves far greater pay packets from the off. £102k is not a big wage for a typical AIM company director. But to then take c. 90% of it in shares spread over the year from the off without any proof that their efforts will pay off demonstrates a full commitment to shareholders and an alignment that says they will do all they can to ensure this is a success for them and me too. How many AIM directors out there can we say that about? Not many at all.
There are plenty of businesses out there with great tech, assets or ideas that constantly let themselves down with the way they raise money and reward themselves. Yet investors still flock to them. Here we have a BOD that has taken limited pay from day one and aligned themselves fully with those who would back them. That is very rare. What we now need to complement that is the assets to perform so that the combined offering of trustworthy and effective management plus great assets can shine through. If they can do that then their approach should be rewarded with a higher valuation than many of their peers.
Before they came in ECR was going nowhere and bleeding shares and cash. It takes time to plug all the holes and set up a new approach and strategy. 9 months is nothing for a mining exploration business that has to work around wet seasons. Slowly but surely progress is being made and the efforts of cash preservation and taking shares have set them up for what are 3 meaningful and dare I say exciting exploration programmes over the remainder of the year.
In addition, they are clearly looking to improve the business through corporate activity. Again I see this as a positive for the company when I know the BOD is fully aligned with me and cash conscious. It means the deals are likely to be positive-
A willingness to hear criticism about our investments is always important but I just can't see the justification for it with ECR. and I trust that the market will start to see what I clearly can as the year further unfolds.
Adam and the team are getting to work
https://x.com/DDS_DocHoliday/status/1804035090424422597?t=cPzH2b5C6s7OrHa2kReqbQ&s=19
Also interview link from yesterday in case you missed it:
https://t.co/xSvWVU4lL4
Morning Daramunda,
I first invested in the PJ days and made a great profit out of the "Itagon spike" before staying away for a couple of years and then re-investing after CB took over..around the 0.6-1 level initially.
And yes I did praise him as he took the SP from 0.6 to in the 4s. When he sadly passed away the SP was double where he took over. I made some good money trading in the 2-2.5 range as it predictably see sawed there about 10 times.
Some commentators criticise CB, however a lot invested in the 3s or 4s with little/no research.
Many criticised him for the "JV talk", however Mike has confirmed that firms did indeed request access to the ECR 'data room' at that time so it has been proved that conversations were had. And CB oversaw the acquisition of the Lolworth licenses which I believe will be the long term company maker.
AH started well , getting the 2nd drill that shareholders were screaming for (but which was actually useless) , but it soon became apparent that he was just using ECR as a vehicle to enable the Hurricane project and his desperation last drilling campaign at Crewick was poor at best.
Mike and Nick took ECR over in a desperate financial state and have steadied the ship.
They have raised £1.2m to steady the ship, and taken (with the rest of the BOD) the vast majority of their salary in shares to align them with shareholders and significantly reduced cash burn , i.e closing the London office).
They have implemented much more rigorous and extensive sampling over Lulworth and Creswick and ran an inexpensive drilling campaign (only c500m of RC) at the latter. I believe the ideal play at Creswick is to get a free ride JV at Creswick due to it's size and the only way for ECR to be able to do this is to build the data set there which they cannot do with no activity.
They have re-evaluated all assets and BM (the one good thing AH achieved) has been identified as a good asset with a small scale production feesability being assessed.
They have spent £6k in shares on a Tax specialist who could realise the company £millions if a path to monetising the tax credits....some have criticised this, but I'm happy as a shareholder for them to spend that (and not in cash) for a potential million+ return.
Initial sampling from Lolworth was excellent and thr REE discovery was a real bonus.
Lolwoth has MASSIVE potential and we have already had discussions with neighbours to the east.
Yes, I'm optimistic on Lolworth and believe that this year will be a huge turning point through Lolworth providing excellent progress.
Mike and Nick have done a great job IMHO since they joined and I have backed this belief by adding over 5m shares since they took over.
Results and deals over the next 12 months will determine if that was a wise decision
Talking Sense - I became a shareholder when Craig Brown was ceo. You could only praise Craig Brown. Likewise when Andrew Haythorpe took over, you praised him and you could not fault him. It is now the same - you can only praise Nick and Mike . If anyone criticises them, you challenge the critic.
They started well. Got a raise away at a discount, sold some surplus assets and dispensed with costly accessories like the former chairman who was taking circa £70,000 pa and the company's office which was clearly surplus to requirements and Nick and Mike have taken a large part of their. remuneration in shares (some at a discounted level) Drilling Davey Road and Kuboid Hill has brought very limited returns and we have a lot of talk talk and tweets . I hope with Queensland talk will be replaced by walk and value will be created starting with production of the "inherited"gold at Blue Mountain. Possibly like you, I have run and managed businesses. I know how to conserve cash but these two have spent tens of thousands in the form of shares to conserve cash and we have no idea who has been employed - why have we not been told? Sorry, but I cannot join you and other sycophants and not criticise. Let us see them justify their £102K pa each take. And I would hope because other shareholders (not just traders) will benefit, the value of Nick and Mike's shares increase upon delivery of value.
Pilot plant.
Bold move - great news.
Well played Ant & Dec.
Struggling to see your point there.
"to conserve cash". What do the board do to conserve cash? £102,000 per annum each (£12,000 of which in cash) .
They take £90k of their salary (£112k is no a large salary in comparison to similar companies) in shares...that conserves cash.
"I was checking out cash in hand as at 31 March earlier "...and?
It was my mistake. I did not have a negative agenda but I am afraid that I will remain negative until Talk Ant and Talk Dec announce something in an RNS that gives shareholders real value. I was checking out cash in hand as at 31 March earlier which took me to the second placing. In that announcement yet more money (in the form of shares) was given to advisors. Part to joint brokers Axis which I can understand and part to unspecified "advisors" "to conserve cash". What do the board do to conserve cash? £102,000 per annum each (£12,000 of which in cash) - I am beginning to question what for, If and I mean IF ECR produce from the 80,000 ounces made available by Blue Mountain's previous owners, you will see me revert to positivity. But then Haythorpe needs credit for acquiring Blue Mountain.
Pilot plant is a sure start eh.........! :)
All the best (and to those looking in........! :()
So they stated in the interview ...A small scale pilot plant is planned for Blue Mountain !!!!!
(Adam is on site within the next 24 hours to start the next stage of exploration there).
That will be music to all those (including me) who have looked for ECR to start to monetise their assets.
Also one of the best analogies I've heard:
It s like the girl walking along the beech in their bikini. Everyone takes more interest when she drops her top.
And ECR are hoping to drop their top and generate more notice soon......lol
Https://t.co/xSvWVU4lL4
All the best (watchin now........! :()
Daramunda : "BBN - I take your point. A shame that was not made clear."
I thought that with the RNS making no mention in any way of any future planned drilling in the Creswick summary , but stating future drilling was planned at Tambo made it clear.
Mind you I don't have a negative agenda here .....lol
Dan, I've seen it alleged that there were leaks from the office that receives RNSs as there are a number of companies that see increased activity the day before.
Obviously I would not concur with that theory (just for any lawyers out there ;-)
I agree with you Mental, a pattern we have seen for some time. We have seen heavy buying the day before a RNS drops, now for the record I'm not suggesting that anybody is giving out nods and winks but it's a little suspicious don't you think?
Afternoon Peeps.........!
and if so mentalmax, for those that didn't......! :()
"For the remainder of 2024, I want to reassure shareholders that, following on
from a very successful period of work in Victoria, they can look forward to
further newsflow as we re-commence our operations in Queensland."
All the best (busy period for ECR.........! :()
So I’m guessing some ‘insiders’ got an RNS nod yesterday and are now selling as it’s just housekeeping news. Serves them right if that’s the case!
Stay over on HE1 ramping matrix ffs 🤦♂️