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He won't open himself up to criminal action, he's not stupid. Doesn't mean he can't screw you legally.
I agree that this needs funding and its the only reason I have any hope this will not remain suspended however, Tang's track record of showing no integrity and no respect to shareholders along with this strange funding issue smells fishy.
Can't say I would welcome a buy out at a time when the company is on its knees with zero working capital and (currently) no funding options. Even if a very generous Chinese investor wanted it and was kind enough to offer a 50% premium on today's share price we get just over 4p.... Great.
I hope I am very wrong.
-------Unless power china buy out GCM---
-Hasina needs that licence back under Bangla ownership, or at least not owned by GCM, as the locals have always resisted "foreigners".
---With it's involvement in projects across the country, China has been accepted as "part of Bangla", and a JV between Power China and GOB would be easily sold to the people without a fight.
Unless Power China buy out GCM - option 3
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Some very interesting points - will try to address.
First investment should be about risk analysis / assesment and this is what we should all try to do. Also reason why they say do not invest more than you can lose.
Now to points -
What if funding not sorted out in 3 weeks? this is possible of course (even if we give little bit extra time) but size of funding is not large and is covered by last Polo Drawdown.
Mr Tang acting on behalf of GCM (in position of CEO) ask for drawdown from POLO (where he is Executive Chairman).
If this is denied then must ask on what ground and then will look like he deliberately put company into default whivh open him up to criminal action.
I think funding could be thru placement anyway as header say.
Second point about temporary suspension becoming permanent - again all possible and again apply risk assesment. GCM will still need free access to capital markets which is more limited if company delisted.
Again all fair point for discussion but reasons there why I do not think this is case & comfortable with investment at critical political shift developing.
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WiseOwlspeak
"Imagine what will happen on share suspension lifting after around 3 weeks"
Imagine what will happen if the funding has not been sorted with in the next 3 weeks
Yes, my biggest worry to. Who loses out if he takes it private - just us shareholders.
Definitely more than meets the eye here but o donāt doubt for a minute the fact that he gives a to55 about any of us.
I am a very very long term holder here so wrote this off years ago which is why I still have my holding.
There is a lot of positivity about the suspension so I am posting this as a word if caution about Tang, he is not an honourable business man and can't be trusted. He delisted Polo resources, made out like it was a temporary suspension and then has completely ignored shareholders since. If you need any evidence try and contact them, you will not get a reply, this leaves all the shareholders with their shares but no way to trade.
Tang is in charge of both companies, but there is a problem with the release of money? Seems unlikely.
I would love for this to be the time for GCM and its too late to do anything about it now anyway but if you think Tang gives two sheets about us shareholders you are massively mistaken, he will screw you if it benefits him. This is not my opinion, he has done it before and its fact.
With Mr Tang position in both GCM & Polo it is not big issue to transfer last Drawdown amount when Tang made this decision in first place.
What a placing will do is give company more flexibility with timeframe & keep last Drawdown in place.
Why 1-2p?
Could also be at premium but usually placings at discount and helps us to keep realistic expectations.
With unfolding political situation and critical foreign reserve state do not see this as problem for uptrending price.
Investors had time before suspension to exit with 23% drop and stability next day. Ones who are left look like they are well research (or benefit from good research - thank you Mr Searcher & others) so will understand upside / price trajectory.
Very happy I already have my stock holding and do not need to try to build up on suspension lifting. IF price dips for any reason do not think I am alone in trying to increase this holding level.
Should be exciting time for this stock & it's shareholders in 2024.
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The Ā£300k is a relatively small amount .....there should be no issue whatsoever in raising this sum if so required.. I would pay a large fraction of this myself if the terms were favourable!
Gla
Someone just mentioned a left field option over on the other place. If there were any ridiculous conditions to getting the money from the Polo drawdown, maybe Tang or Dyani will put the Ā£300,000 up. If they were to give themselves a really low option price of 1-1.5p they could get 20-30 million shares on the cheap. Until any official news it wouldnāt be classed as inside trading. Good luck everyone and a Happy New Year.
On the 3rd March 2022 in an RNS this is what was said regarding the Polo loan:
ā Loan Facility Amendment
The Company has, as part of the proposed subscription, agreed to amend the terms of the loan facility provided by Polo Resources Limited (the "Facility") of which, as announced on 26 March 2021, there is Ā£300,000 of the initial Ā£3.5 million facility remaining undrawn. The lender may request conversion by the issuance of new ordinary shares in the Company at 5.14 pence per share (being the Issue Price) subject to any necessary regulatory approvals. All other terms of the agreement remain unchanged.
Related party transactions
The participation of Polo in the Subscription and the amendment of the Loan Facility, constitutes related party transactions pursuant to the AIM Rules for Companies. The Directors (excluding Datuk Michael Tang), having consulted with the Company's nominated adviser, WH Ireland Limited, consider the terms of the Subscription and amendment of the Loan Agreement, to be fair and reasonable insofar as the Company's shareholders are concerned.ā
As Tang is a party to both sides of that transaction it would be very questionable behaviour if he didnāt advance the money from Polo as has happened for years.
Note the current conversion price is 5.14p which was reduced from 11p which was the conversion rate in 2020. I would speculate that Tang wants to again lower the conversion rate and the rapidly rising share price that could have quickly risen to 5p put a spanner in the works. The announcement of an imminent suspension did cause a pull back in the sp but probably not to the extent he imagined.I think Polo are obligated to provide the money requested. My guess is we will not have to wait too long before Polo advances the money but the 5.14p conversion rate will be decreased on some pretext.
Mr Quader tells 'big porkies' - what about the 10,000 BNP activists jailed for just asking for a properly conducted, un-rigged election which is fair and unbiased.......
We all hope so Rodders.....
Yes great work Searcher, some good finds.----As you say MUD, being talked about all the time now, and not just "own coal " in general, but specifically Open Pit at Phulbari.
----But the best bit of the lot, is that it is not being contradicted by Hasina.
-She was in the area last week, addressing a rally. If she was ever going to say "no open pit mining, your farm land will not be mined"----then was the time to say it---but she didn't.
-Her silence is the most positive thing ive read.
-Happy new year all.
-Next year we could all be ---- ect ect
Messages being sent from London to conduct assassinations, says Quader
https://www.newagebd.net/article/221553/messages-being-sent-from-london-to-conduct-assassinations-says-quader
Nice find Searcher.
āOpen pit mining is the only real optionā
Itās being talked about so much more now - finally and thankfully.
āSince the yield from underground mining is extremely low, and Bangladesh has few coalfields, open-pit mining is the only real option to meet the coal demand.ā
Depending on imported coal for 50% of the 2030 electricity generation is ambitious and risky. Experts have warned that without huge investments in coal receiving and handling facilities not more than 3000-4000 MW of coal fired power plants based on imported coal is possible. Coal prices are low at the present time as a result of the collapse in oil prices. It is true that domestic coal would be more expensive than the imported coal at the present price. But one must remember that such low oil prices cannot prevail for a long time. Therefore, attention must be paid to mining coal.
āSince the yield from underground mining is extremely low, and Bangladesh has few coalfields, open-pit mining is the only real option to meet the coal demandā
What about the cost of such an import based strategy? First is the infrastructure building cost. Depending on the size of the regasification terminal, the cost would exceed 4-5 billion dollars. The cost of the coal receiving facilities will also exceed 4-5 billion dollars and the oil receiving terminal plus inland oil, gas and coal infrastructure will amount to another 4-5 billion dollars. Therefore, a total of 12-15 billion dollars will be required for building the infrastructure. Then the cost of purchasing the fuels shown in the Table 3 must be added. If 2000 MMcfd of LNG, 4 million tons of LPG, 8 million tons of oil and 50 million tons of coal per year is imported, the total expense on account of purchasing fuels will easily cross 25 billion dollars.
āCoal
With regard to developing coal resources, no progress has been made. Coal mining appears to be bogged down. Bangladesh is blessed with one of the finest quality coal. Not only is it low in sulphur, but also a good portion of it is the high value coking coal. If open pit mining is employed, more than 90% of the reserves can be extracted. Even 50% of our known reserves will allow 10,000 MW to be generated for over 20 years.
Regarding importing coal Government should have at least started work on coal receiving facilities a long time back. Without good port facilities there is no possibility of building more than 5000 MW of coal-fired power plants. At the present moment three joint ventures and 2 private coal based power plants are at various stages of implementation. The total generating capacity of these 5 power plants is more than 6500 MW. Since all are based on imported coal, the challenges are significant. Three major hurdles can be anticipated, namely:
1. Timely financing
2. Construction of coal receiving facilities
3. Coal purchase contracts
If building coal-fired power plant based on imported coal is a challenge for BPDB having all government support at all levels, how difficult would it be for a private company?ā
At present coal is used mainly by brick kilns. The Boropukuria coalmine produces about 1 million tons of coal, which is mainly used for power generation. The total consumption is around 4 million tons. For the proposed 15,000 MW of coal fired power plants approximately 45 million tons of coal will be required. Along with coal for brick production, which is projected to increase to 5 million tons, the total coal requirement will be 50 million tons.
The increase in oil demand will not be as large as gas or coal demands because it has been assumed that the growth of the CNG sub-sector will continue unabated.
https://ep-bd.com/view/details/anniversary/OA%3D%3D/title?q=energy-challenges-in-2030
You make a decision to base energy policy on coal imports but when you can't pay for them......?
Economic REALITY is best way to explore this - not what do we think Hasina is feeling? type of approach.
Bangladesh credit rating has already been downgraded in May.
"Foreign currency reserves are vital to a nations's economic well-being. WITHOUT ADEQUATE RESERVES, A COUNTRY MAY BE UNABLE TO PAY FOR CRITICAL IMPORTS, SUCH AS CRUDE OIL, OR SERVICE ITS EXTERNAL DEBT".
"Bangladesh's Forex reserve plunged to $19 bn on Tuesday (article from Nov 10 2023) because of the higher import payments.
And there are NO SIGNS THAT THE RESERVE WILL REBOUND IN THE SHORT TERM as the factors behind the decline are still in play" (source: thedailystar.net).
Again what any poster think about Hasina mindset is not what I base investment on - it is what I see as inevitable path for country to follow.
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Yes it is.
Itās a good time to check out for a few weeks though. GL all holding, itās is make or break time. Weāve placed our eggs alongside the big boys, where they go, we go!
Can't hear you....... Lol
ā¦stupid question but is the board still active during suspension?