Please excuse my abrupt and curt way of answering questions it's always a pleasure to help genuine investors . As we get closer the AGM along with further news we'll have some down right abusive posters appear throwing doubt , negative posts left right and centre and worst of all attacking regular posters comments . It's worth writing regular posters names down in advance since a share like this will undoubtedly attract both rampers and de-rampers . All to easy to overstretch or sell only to see the share price continue to rise when a BB gets bashed and bounced by those that cannot be named ...... P.S. .. the filter drop down box , up above the box you type your messages in allows you to filter unscrupulous posters . Hover your cursor over it , click on it and enter posters names that get to you , then click filter ..
Spaceman, ah ok, thanks for that... That answers that one then. Excuse the ignorance. Bottom line is that, whatever happens with GOS, I trust Jan to make a call on it in our best interests - not always the case.
I guess it will all come down to whether there is an asset on the horizon around IPO time. Even then, if there's not one close I can still see Jan getting the cash in so it's ready to go if one does crop up - he wants 200,000 oz within 5 years after all. I suspect he doesn't want to be a hostage to GOS' fortunes in the medium/long term.
What might be more interesting is if there is an asset they have their eye on now and the IPO is not coming quick enough.... Wonder if there's a deal to be done earlier with GOS which is win/win allowing xtract to pick up another great asset at a great price, even if xtract give up some value on its GOS holding.
Yes thats a great post, the purchase agreement of our smelter rights was in shares, that was for a reason, perhaps its known that soon an Ipo is on the way, even if not we have an asset worth a large amount of cash, as you said, maybe 10million, that would buy another gold mine and with gold prices set to increase it looks a good direction to sail into. Our small holding in GOS could be seen as a leverage also especially if the share price in GOS dramatically rises then so would XTR, but more violently.
Figures taken from final results 3rd June 2014 all based at 40p a share as quoted for GOS at time of royalty buy back by GOS 19th December 2013 .
Total GOS holding stands at 7,371,365 times 40p equals £2,948,546 with a further 1.5million shares to be issued should GOS list on a stock exchange or other market. That equals XTR holding on listing on a stock exchange 8,871,365 shares times 40p equals £3,548,546 as of 19th December 2013 .
Since GOS shares rose from 12p to 40p in the year to December 2013 there's no reason to assume no further increase has taken place quite the opposite in fact hence as of 12th December 2013 had GOS listed on a stock exchange XTR would have held shares worth £3,548,546 in the company GOS .
With GOS being such a new company backed by major share holders I was hopeful XTR would retain their shares for a dividend which in all likelihood would happen if GOS list on a stock exchange . I do however accept Jan Nelson is a wizard when building companies hence wouldn't be disappointed if our GOS holding is sold prior to the listing since he'd only do it if he thought it worth while . After all he could have demanded payment in cash for our 1% smelter Royalty but chose shares in stead .
GOS has a value as our holding is large and GOS will IPO when the market is chosen and the time is right. As the GOS value is quite high and as there is plenty of talk about other projects JN and CB may be lining up a sale of GOS ahead of an IPO using the funds to buy a further Gold project, book value is circ 2.5 million pre IPO and a further 500k upon IPO. Just a thought but quite possible as funding options are limited.
Good point and in essence it works both ways future GOS share holders may want to buy into XTR to have a slice of GOS on the cheap . After all XTR total market cap is only £9.23 million and on GOS listing on a stock exchange I'd value our 9.1% holding of GOS to be worth at least £10 million .
Spaceman, I am fairly new here as you know, but wouldn't Jan argue that as long as they got a reasonable price for GOS (an IPO would probably signal a reasonable price - it's not the government pricing it after all) he could reinvest the proceeds in another mining project he's in control off and could create even more value. He would probably argue if xtr investors want some exposure to GOS they could always buy in at the IPO.
Fully loaded here now btw and excited by what might come next..
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