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Watch the price move! IMHO
Good assessment of the risk reward:
https://theoakbloke.substack.com/p/paying-premim-prices-for-first-class
"That gets us to a £12.2m valuation across the top 4 properties alone."
"It’s true £270k is a small amount, but that, and its loan, keeps the lights on for 8 months more. A lot can happen in 8 months.
Other asset sales and further exploration for starters.
"
That's over 5 times current mc.
Risky yes, but the potential upside is high from here
Does the sale of two insignificant licences prove up their business model? Will this be worth more than 3p on re-listing?
There does appear to be a emphasis of JV's or outright sale of projects in the AR today, that has to be good news moving forward. Creating shareholder value.
Great week for FCM , the future is looking positive. GLA
Https://x.com/DrRyanDLong/status/1801245586999353539
First Class Metals PLC LSE:FCM FRA:WN9 has sold the McKellar & Enable properties to the Seventy Ninth Resources (79th Group) for £270,000. Alongside this, the 79th Group has also provided a £230,000 loan while it continues to progress further due diligence over some of First Class Metals' other assets.
The sale of two projects not only brings in some much-needed funds into First Class Metals, it also validates its early-stage exploration incubator strategy. This strategy sees it advances assets up the value curve before monetising them to generate cash flow without dilution to the share structure.
Both the loan and the proceeds from the asset sale will be used for general working capital and to advance First Class Metals' other exploration projects. The secured loan has a 12-month term and has a 15% interest rate with repayment on 25 May 2025, the loan is not convertible.
Thoughts
With funding secured First Class Metals should now be in a position to file its full-year 2023 accounts and recommence trading. With the shares re-trading, we would expect to see the company continue to rapidly advance its exploration projects located in Ontario, Canada.
Very nice update. Gives cash for this year, we have an ongoing relationship with 79, and the macro situation is improving alll the time.
It is a big positive, I am not disappointed with the amounts etc or the assets they have sold.
This looks a decent move, got rid of two assets which I do not think would be a major focus going forwards, recently bought two more for considerable less and have the 'core' portfolio intact with no dilution and £500k coming into the bank.
Company got around $500,000 from canadian grants and exploration tax rebates earlier this year so all in all I see this to be a positive.
Maybe next sale is larger asset? Company performing with the job in hand
I guess that's enough money for this year's exploration programme.
While it’s quiet,
Had a thought on another angle. could the board have instructed RPG not to complete/ publish in order to suspend SP while negotiations are ongoing with 79 group. Would stop any major fluctuations on Speculation / leaks. I notice that they are both Northwest based not far from each other as the crow flies . Just pondering while the boredom continues.
Sorry brought back memories an old Dad joke from when I was a kid
That’s what the monkey said when he got his tail cut 😁
Won't be long now
Now at 6 weeks and no update I suggest someone was telling porkies , or being generous imitating a politician 😁 how near is near ?
From the RNs “The Company's auditor, Royce Peeling Green Limited ("RPG"), has advised the Company that the audit process is near completion however it could not be finalised by the 30 April 2024 deadline.”
Another X post today
https://x.com/FirstClassMetal/status/1800457259673112796
I would say the communication looking back over the RNS's for two years has been exemplary, everything that's happened has been communicated and shareholders have been well and truly kept in the loop for all aspects of the business.
This suspension is now at the stage that I would like an update but to state the BOD are not communicative when you can clearly see the output from official channels and PR media is a tad off the mark
Something needs to be announced here in short order, because it feels like investors are being treated like mushrooms, which is rather poor. I would not have expected such uncommunicative leadership from a spin off from the POW stable- GMET and POW are quite the opposite in their attitudes towards investors. Very disappointing BoD and leadership here imo.
My own thought is it might be to do with previous financial adviser , ( see Jan 24 RNS) Don’t quote me as I can’t find it but I seem to remember changed as poor advice from previous adviser around allocation of shares, anyway something needs to happen soon as current share loan deals run out 30th June and need AGM to allocate replacement shares
I've thought that from day one.
My guess, and that's all it is I'm not privy to anything, is that I think because FCM has no income and doesn't have sufficient cash reserves to see it through the next (now current financial year) the auditors will have refused to sign the accounts as a going concern. The board do not wish to accept accounts without this so have suspended and we will remain suspended until such times as something is sold, to somebody. If and when a deal is done, and we know negotiations are, or were, on going, we will get an announcement of a deal, followed by accounts and then resumed trading in very quick succession.
Just my take.
Tweet by PALM this morning.
Demand for Canadian resources at a scale never been seen before.
https://x.com/PantherMetals/status/1800090023301148870
In respect of the suspension/auditor delays, FCM are still posting on X, the last commentary was they are working on it.
Agreed, after nearly 6 weeks its beginning to look more like auditors found something and can't sign off as opposed to just ran out of time to finalise audit. We need to update to give shareholders an idea of what we're dealing with delay or something more?
An update wouldn't go amiss!
What is the cash burn here, thought it was quite modest…
Just spotted a twitter item, reply to a chap called postie, He asks when will he able to buy shares again and Marc from FCM says hang on a little as he and James knowles are on it. That is not an exact copy of the conversation but it appears that there is hope. Have a look on Twitter .