I woke up this morning to several emails from P&Ders who seem to think I and Tom Winnifrith ran away during the Mining Maven seminar. This is par for the course with these buffoons who regularly tweet and post blatant lies in an attempt to divert away from the piss poor companies that they are pumping. I stayed to the end and even had a nice ‘robust’ chat with ‘Mr. Jub Cap’. As I’m sure he will attest too. Mr JubCap denied being involved with the pump and dumpers but then again I also denied robbing banks, when I was collared and fronted by Special Branch. The Mkango Resources (LON: MKA) presentation at the MiningMaven seminar, was a baptism of fire for the Company as the video will show.
No doubt their CEO, William Dawes, with several others, including their Jub Cap advisors, who tried to intervene and deflect away from the searching questions Dawes refused to answer, will be sticking pins into a voodoo effigy of myself this morning. I can actually feel a pain in my back as I write….. The show was well run and I must commend Malcolme Palle who had a quiet word with myself and Tom Winnifrith before kick off where we both agreed not to interrupt any of the presentations on the proviso we got to ask questions at the end. A nice touch of diplomacy from Malcolm.
Two other companies presented Conroy Gold (LON: CGNR) and BMR Group (LON: BMR). I was not there for them so will not make any comment other than they were atypical presentations.
The Mkango presentation was nothing other than a rehash of the spurious case for REE in land-locked Malawai. The same story that they’ve touted for five years to our Canadian retail investor cousins who find themselves with a 95% loss having been diluted and consolidated into the dirt and collectively $12,000,000 poorer. Dawes refused to answer virtually every question I put to him on the shocking financial state of the company and the claims in their IPO document that they will not place for 18 months. I asked just where was the $216,000,000 capital expenditure coming from. I asked what was the current cash position of MKA as of today. I might as well have spoken to a brick wall. Mkango refused to answer any of these salient questions. On one point Dawes tried to say that my figures on their current liabilities circa $825,000 as of June 30th 2016 was wrong. Until I pointed out that these were HIS figures on page 12 of their consolidated Interims for the 3 and 6 months ended June 30 2016. As of that time the MKA cash position was becoming parlous, to say the least, with $559K of working capital. With their Q3 results still not out and bearing in mind that we are halfway through Q4 I again asked the company what was their cash position as of today. Yet again they refused to answer. Which is a warning to investors. There’s a placing coming and make no mistake about it. The only reason Mkango are on a promote is to drive up their share-price pre placing. Liabilities by far outstrip dwindling cash in hand as of today, Mkango, if all liabilities were called in would be Bankrupt.
The time constraints on the Q&A session and with TW chomping at the bit to get his two penneth in, meant that many questions I had such as; Why they skipped the Pre Economic Assessment? Where was the cash coming from for the Bankable Feasibility Study? Why were they linking to miningreview articles as genuine independent copy when they were paying for them? Why were they spinning Adamas Intelligence as some kind of world leading organisation when it’s a one man band company operating out of a house in Sudbury Ontario? Their modus operandi of using social media and Pump and Dumpers to ramp the stock and not least why were they trying to say that the infrastructure in one of the poorest countries on the planet was fantastic? When the nearest railway is over 100 kilometres away…. The last company Paladine Energy cratered under the cost of the diesel fuel bill trying to move their uranium cake. Lots of questions and many more to boot will remain unanswered. The truth is that Their licences are sub economic , which is why after 10 years of Dawes running around Malawai not one single institution or major mining outfit has come to the fore.
I did have a chat with several people at the end of the night, including one chap from the MKA board and not least the diminutive JubCap ‘heckler’ girl named Victoria. Who invited me to lunch. Vicky pointed out that JubCap are not a one man band outfit, she being a director. What was most telling was the begrudging acceptance by their advisors that yes in all likelihood Mkango would be raising cash/placing shortly. And when they do place there’s going to be an awful lot of red-faces. So it’s get your cheque book out again the inveterate liar Chris Williams aka ChrisOil.
Welcome to the AIM Casino Mr Dawes you have just met Daniel Levi.