Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

‘Optimism’ at Sula after interim loss increases

By Robert Tyerman

3 July 2015 06:27

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Nick Warrell, chief executive officer of West Africa-focused Sula Iron & Gold (SULA), declares the company ‘looks forward to the remainder of 2015 with optimism’, after losses up 30% to £890,000 in the six months to March, amid encouraging exploration indications for coltan (tantalite), as it awaits gold trenching results from its Ferensola project in Sierra Leone. Sula, which floated on AIM three years ago at 6p and lost a reduced £1.4 million in the year to last September, has seen its shares wither to 1.5p, between a 12-month high of 2.9p and a 0.8p low, amid gloomy iron ore and gold markets, but Warrell, a former Welsh gold mine owner and an honorary Paramount Chief of the local Dinga tribe, insists ‘the company remains on track.’

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Comments

FailedQS

3 July 2015, 06:49

Ah Sula – One of the total dogs in my portfolio……
Nick Warrell is one of those people who is oblivious to what is going on around him, and has a totally different view of everything to the owners of the company, ie the investors like me.
Sula is a perfect example of a “jam tomorrow” company, and is one of the reasons I will never invest in an early stage miner again. I took part in pre-IPO fundraising and the IPO, so I know exactly what was proposed by the Management Team prior to listing, and believe me Warrell has failed consistently on every level. But by god, he knows how to spend cash!! Its looks like uncontrolled spending to me, with the knowledge that he can turn to the market for dilutive share issues whenever he needs more dosh.
The only reason I am still invested (at a huge paper loss) is that I got EIS relief on the IPO shares I subscribed to, worth 1.8p a share, and if i sell before the 3rd anniversdary of listing then I lose that relief (30% = 1.8p per share) With the shared currently at 1.4p to sell, it makes no sense to get out.
Sorry – I don’t share your enthusiasm for this dog.
CPPH

3 July 2015, 08:20

I think you need to give him some credit FAILEDQS. He hasn’t delivered in the most part due to an incredible bear market for the primary commodity. Chuck in an pretty severe Ebola outbreak and its fair to say that things were against SULA. That said he delivered the MRE as promised. Don’t get me wrong, i’m not an uber optimist – i desperately hope there is something in the Coltan but the realist in me thinks its just something to keep them busy whilst the market picks up for the iron ore. My average is a shade over 2p and i suspect if it gets back i’ll jump ship. But you never know they might just surprise us.