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Thanks for the thoughts. This just illustrates why you should not take advice online. I’m sure everyone is right from their personal situations but for me it makes no sense at all. I just raised this so people are aware there may be situations (like mine) where an ISA is preferable.
PS. Let's not forget that, instead of a raising, there is the possibility of divestment of one or more of the tenements to fund new drilling. Until relatively recently I thought that Warrentinna would be sold off to pay for Scally drilling. That could still happen, of course and/or other tenements.
There are options open to us, for sure. DYOR
The real main difference in the Nordic countries I think is the wage gap between what are considered to be low skilled jobs - example cleaner, and highly skilled job - e.g doctor are much lees in many other western countries. This article is quite interesting, and Norway is a very wealthy country with a very healthy sovereign wealth fund created by profits from oil and gas over a long period.
When to invest? I am one of the lucky ones - invested early - and now looking at where this years ISA contributions go.
GGP I think is very low risk and very good value at current levels, but will be a long term play to get maximum gain, I think it will at least grow by 100% in the next 2 years, and potentially 500% or more if we have exploration success again like Haverion - but this will probably be in a longer time frame.
So I have decided to buy some GGP, which I think is a very safe investment - and put some more in my other high risk PM shares - which potentially may have quicker gains - but carry much more risk. Each to their own when and where they decide to invest.
I really regret my caution early last year - when I thought I had staked enough in GGP - but was absolutely convinced by Haverion - with hindsight should have bought more. I bought at 33p - do I think I'll make a loss on those purchases - not at all.
Hi Enrico. I have many associates in Denmark, Sweden and Norway and all of them say the same. Years ago the system worked and most citizens agreed with the level of taxes and the level of public services. Today it is a totally different story and the tax burden on the middle classes is causing major concern. The system in the UK is also a massive burden on the middle classes. In a few more years there will be only the slaves and the uber rich with no middle class. Holding on to a medium sized wealth fund is becoming harder and harder. At the moment physical gold in the form of coins( Brits and Sovs) are is one of the best and most tax efficient ways. ATB Speedy
Just a note to others who maybe worried about hitting your pension life time allowance of £1.073m.
If like me, you had a pension that you had not contributed into since before 2016, you can apply for what is called 2016 Fixed protection. This allows you to get your LTA upto £1.25M.
You will find all the details on the Gov.co.uk website. Apply for fixed protection 2016
You can apply if:
you or your employer have not added to your pension savings since 5 April 2016
you opted out of any workplace schemes by 5 April 2016
You can still apply for fixed protection 2016 if you already have individual protection 2014. Fixed protection 2016 will be dormant until you lose your previous protection. You should tell HMRC in writing when you have lost lifetime allowance protection.
You cannot apply if you have:
fixed protection 2014
If you applied for protection from the 2016 reduction and received a temporary reference number, you must apply online for a permanent reference number.
Hope this helps some of you.
I know this is a problem pretty much everywhere, although some Nordic countries have got it right. Taxes are rather high there but public services are fantastic.
Hi Enrico. I would not mind paying more tax as long as the proceeds are used for the benefit of all and not wasted on madcap schemes benefiting spongers and the uber rich alike. If you are so fond of the system please feel free to pay my share. ATB Speedy
You are lucky with your tax facilities in england, I live in France and there is nowhere you can get any tax relief with shares, just a straight 30% on any capital gains with no allowances. Nowhere to hide either with all the cross border info being swapped. but not complaining what will be will be.
I fully agree, SpadesAspade. I'd love to become a multimillionaire and pay plenty of tax, so that others also share in my good luck. I've never understood those who complain about tax, especially the richer ones who bugger off to Singapore or some small island to hide their wealth and avoid sharing it with those less lucky.
Looking forward to a crazy rise here and over at SNG and BMN, so that my tax bill goes through the roof!
Have a good weekend, everyone!
I agree with SpadeAS and find your approach to AIM shares in SIPPs odd.
- are you letting the tax tail wag the investment dog?
The next generation will thank you for an untouched SIPP if you manage to croak it before age 75.
In the interim I will continue to try and avoid dying, utilise the advantages of ISAs and SIPP contributions offsetting current tax liabilities in a balanced portfolio, safe in the knowledge that at some point in the next few decades I will inevitably wish I'd done the mix differently. Whilst grateful that I'm even in the position to have to consider CGT, ISA and SIPP investment limits and the implications of the SIPP lifetime allowance.
I'm ludicrously lucky. A lot of people wonder when they will be able to have a spare tin of beans in the cupboard.
ChristopeB what a strange thing to say regarding putting pension funds into Aim listed companies.
“ a stratospheric rise will endanger your lifetime allowance”.
And what’s wrong with that ?
I turned my pension pot from £100k to over £1.5M. Am I worried about exceeding the lifetime allowance, certainly not.
Have a good day.
Personally, I have avoided putting pension money in GGP and AIM shares generally. My reasoning is that these shares usually do one of two things over the long term and neither is good for a pension: a share price collapse leaves you with considerably less; and a stratospheric rise will endanger your lifetime allowance. For me, such shares belong in an ISA. Of course, even this may not be safe once potential COVID tax raids kick in but it seems a better bet based on the facts available today. Not advice, just something to think about.
Good post Bamps , hopefully TPOG will be well over $2000 sooner than later . I imagine every $100 on the POG would substantially raise our annual profits ?
What are peoples thoughts on GGP's 100% owned licenses If some turn out to be viable?
Are they going to be offered up to newcrest to do the mining and or processing for a chunky wedge of it?
Hi Gerry, just go for it and look forward to your pension money coming good. It may drop some more but it’s just short term paper loss, it will increase in good time. A few months back in the 30’s, just think how amazing it would be to have an opportunity to buy in at 19p. Good luck with your investment if and when you decide it’s right for you.
After some deliberation, I have voted against the resolutions. Prefer not to see any further dilution but would be happy to participate in a Rights Issue, for a compelling reason. Hoping for news next week of commencement of Juri drilling and further details of the SW programme including the assays of those remaining 4 holes. GLA. Mel
Hi, GerryJo. No one can predict short-term reaction. My view (posted 29 March) on the long-term ramifications:
IS THIS ABOUT A RIGHTS ISSUE OR A PLACING?
This is not about a rights issue. Resolution 4 at the AGM, which was passed, allowed a rights issue.
This might be about an external placing but it doesn't have to be. This just gives the BOD the right to issue shares. They can issue them to a drilling company to pay for drilling. They can issue them to employees in lieu of cash salaries. They can issue them to the shareholders of another company as full or part payment in an acquisition of part or all of the other company. Or they can issue them to an outside investor (a corporation like Newcrest, an institutional investor, or a very wealthy individual) for cold, hard cash.
DOES THIS MEAN THERE WON'T BE A RIGHTS ISSUE?
No. It means if they have a good reason to issue shares at these levels, they can do so quickly without a rights issue or consulting with shareholders.
HOW MUCH CAN THEY ISSUE?
Up to 5% for capital expenses or an acquisition, PLUS up to 5% for general expenses.
WILL THEY USE THIS RIGHT?
They had this right last year and used it to issue some share options. Chances are, they will use it on a small scale. Whether they use it on a larger scale probably depends on the opportunities that arise. The RNS states there is no definite intent to use it at this point in time but obviously, they can foresee situations where it would be useful, and it is something they want in their toolbox.
HOW MUCH COULD IT HURT THE SHARE PRICE?
Well, IF THE AUTHORITY IS USED it's dilution, but it is extremely unlikely to be naked dilution. They aren't going to just give the shares away, they will be getting something for them -- drilling, cash, an acquisition, whatever. So whatever it is should either increase the value of the company or (if used for something like drilling) have the potential to increase the value of the company. So it is unlikely to be significantly negative to the SP -- but it depends on how it is used.
If the full 10% is used, it means that your shares will constitute a reduced percentage of the ownership of the company, by 10%. If a placing for 10% were done and it did absolutely nothing for the value of the company (no acquisition, no cash, nothing), it would reduce the theoretical value of your shares by 10%. That is an extremely unlikely scenario, of course. More likely is it would increase the value of the company between 5-10% and so would have a negligible effect on the value of your shares.
But it's worth remembering that we've just seen the SP drop by 50% in recent weeks, so a potential 2-3% impact from a placing, if it were to happen, rather pales in significance.
WILL TMT SUPPORT THIS?
Yes. I believe it gives the BOD valuable flexibility. Resolution 5 had my support in December and I support this. I trust them enough to trust that they will only do this if it adds significant enough value to justify it
Indeed! Just looking at the current Newcrest step-outs at Havieron, where we already know that we're still open in all directions, and at depth. If any of those hit, all bets are off!
Then, just take into account our other ownerships, when looking at recent assay results from our 'nearology' neighbours! IMHO, we can see the probability of another big hit in the region increasing very rapidly!
As you say Timber .. Havieron will just be the base for GGP but what a base to start from ! The rest will make the company if they hit strikes on 100% owned tenements !
Like you say, its the option to raise funds.
From the AGM RNS:
At this time, the Directors have no current intention of exercising either of these authorities (other than to provide for the previously announced share incentives), but consider the authorities appropriate in order to allow the Company limited flexibility to finance business opportunities and capital requirements should the need arise before the next AGM (December 2021).
If I were in your position, and had read that first sentece ^^^^^^ from the RNS. I'd be thinking, am I really going to hold back on the off chance that they might ( but have no intention to) raise funds at some point, meanwhile the PFS, MRE upgrades, JV's, 100% owned tenemnts, decline...the list goes on, could all push the share price up.... I'd be snapping them up at these prices.
In no way a ramp, just my thoughts.
Its a lot of potential upside to hold back from, when the downside from a raise would probably be negligible (and they have no intentions of doing it)
Yup. those are definite options Jag. I just feel that many GGP investors today are largely 'complacent', for wish of a better word, and are happy to just sit back and watch what happens at Havieron...That's not why I initially invested in GGP. I invested for at least some degree of risk. Sure, Havieron has paid off, for sure, and will continue to do so, but knowing that, I personally want the GGP BOD to expose us to what is necessary risk, to bring even more to the table, hopefully from our 100% owned tenements.
That, IMHO, is an increasing possibility, when you view recent assays in the area, not just from Greatland Gold! Those, largely also backed up by the balls that the likes of GH had, in tagging large areas of the Paterson, just like Havieron.
Worrying about equity raise
For those wavering
From some of my previous posts if you've been following them I pointed out that SE crescent to the west of the Dyke had increased in size from previous results at the top.
This high grade section is very close to the Decline design position, it's the obvious place to remove the sample ore for Telfer to adjust there process train/trains.
What does this mean well from discussions the top 20-30m of this zone will be targeted.
The volume of this is roughly 150x50x30=225,000 cubic metres
Hannams first note used 3.4 specific gravity
Hannams average grade in HGZ =3.8g/t
765,000x3.8 divided by 31.1= 93,472 oz
Plus copper @0.6% = 4,590 t
Allowing for costs say $1,000 per oz revenue
Copper price c $9,000 x 4,590t =$41,310,000
=$134,782,000 possible revenues from the sample tonnage.
Total costs forecasted $1.5bn
SLC operations about 1/4 way down so say around $350m $134m revenues =$216m outstanding
Ggp 30% of shortfall =$64.8m
Conclusion Ggp will need to find after the Feasibility Study around $65m to fund their share of the SLC mining.
From one other posts on revenues from SLC I've worked out revenues from the SLC will be $229m per year for Ggps 30% at 6m tons
An attractive short term loan looks very likely
$65m costs for $229m per annum for 9 years from 2024
Timber.. my thoughts are two fold, either sell the 5% to Newcrest to fund everything else, or when the decision to mine is confirmed the banks would be throwing money at GGP if they needed it ! And that is without any of the other prospects coming good .. if any of them do then the dogs are loose !
Personally I have no issue, whatsoever, with an equity raise! Why would I?
Just in case some investors still don't get it, Greatland Gold is a mineral exploration company, so how do you think that it will finance that exploration?
Sure, there are the current J/V's, but, personally, I ALSO want us to be exploring, beyond that, and further discovering the potential of our 100% owned prospects, especially, in the Paterson region!
Risk/Reward! I love it!