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Tygra - If you keep posting nonsense then I will keep replying to correct it and post the truth.
"terrible management team" - who have turned the company around from the brink of bankruptcy and have managed to pay off $68m of the Senior debt over the previous 6 quarters leaving $12m of the Senior debt left to pay.
"the company is failing its shareholders and the price is half what it was last year" - or over double what the share price was just before Darren Bowden was appointed in 2019 (0.45p Dec 21st 2018)
"in my opinion there will be a cash raise for 'other opportunities'" - no resolutions were passed that allow the board to issue shares for anything other than the share incentive scheme.
"You can continue to post your nonsense and put your fingers in your ears as much as you want" - I posted your recommended action back to you and now you declare it as nonsense. So why should we take any further notice of you?
Price you can sell your shares for:
21-Jun-22 10:58:56 1.131 84,658 Sell* 1.10 1.20 957.48 O
21-Jun-22 10:35:03 1.131 77,506 Sell* 1.10 1.20 876.59 O
Again, this is a zombie company with a terrible management team doing nothing to add value or attract a new investor base. You can continue to post your nonsense and put your fingers in your ears as much as you want. The share price is declining and in my opinion there will be a cash raise for 'other opportunities' before any value adding RNS arrives.
My last post on this chat board, I'll come back when the cash raise happens or if there's a value adding RNS that moves the price. You will no doubt reply and state, 'deramper, troll', or some other accusation towards my motives for posting (clue, the company is failing its shareholders and the price is half what it was last year, that's the opposite of adding shareholder value).
Enjoy your echo chamber and goodbye.
Tygra - Following your recommendation regarding the capital reorganisation.
Stage 1.1- SP close June 16th 1.16p
Stage 1.2 - SP close June 17th 1.18p
It would seem that following your reasoning the capital reorganisation was good for the shareholders.
Who'd have thunk it? Oh, only about 98% of the vote.
CFC
Idiot
Ignore whoever Tygra is Lee, nothing but a paid share troll. 20 posts yesterday, 20 plus posts today.
Cutting and pasting the same fingers in ears insults to different posters.
At least Tygra can't be accused of having fingers in ears with all that typing they are doing.
You could be the first trade today Tygra, sell up, low volumes has no effect on the company prospects, it just means those holding shares are happy to hold, it takes a seller to provide shares for a buyer, so we currently have a perfect balance, buying into a gold mine takes patience, at least quarter by quarter, and we get plenty of buying and selling at those points, your zombie remark is off the mark, the company is running perfectly in the back ground, just doesn't need to shout about it every day like you obviously require, perhaps you need to play the AIM shares that promise the earth and have nothing but constant ramping in order to play the swings, good luck with that AMC is one of those, billions of Nickel in the ground, not one ounce in a decade ever comes to fruition, huge swings for traders, but the final nail is going into the coffin soon and absolutelly no chance of shareholders to ever see a profitable company, that's a million miles apart from MTL.
2.071 billion shares in issue and ZERO trades so far today.
I rest my case, this is a zombie company.
All the best
The case for gold to go higher is definitely more likely than lower, you have to use history to make certain determinations, the case of high inflation and higher gold prices has hundreds of years of evidence, and betting against would definitely be a lower probality, MTL have had an amazing turnaround from a disatrous production start, and we all know its slowed the share price growth, but we are back on track, promoting the company would have been better for us as investor interest would have us much higher in the share price stakes, but it wouldn't change the production numbers, so possibly the reason why the company has made so little promotion, the number of shares will remain the same, even if the resolution to have the Nominal share price reduced to 0.01p goes through.
If any fund raising was requested in the future it would have to passed by 75% of the shareholders, and thats unlikely based on feelings, we have the best gold ahead of us and a lower interest rate, tax credits will offset the tax due for many a quarter, so lets all wait for the better times ahead, after all, most here have been here for a long time, and seen dark conditions, yet held firm, the light at the end of the tunnel is shining, long and strong will prevail.
CFC
Sorry I triggered you with a valid opinion based on countless examples of dilutions from companies who restructure their shares. I will vote against it but I have so few shares it won't make much if any difference.
You can now go back to putting your fingers in your ears and blocking out anything that causes you to accept that there are those with opinions that differ from yours.
This company releases no PR, it has sat on a literal producing gold mine at a time when inflation is rampant and gold was momentarily pushing over $2k per ounce. It has over 2 billion shares in issue and on a daily basis there's less than 1 million shares traded.
The only 'secret' here is the fact that MTL exists on the UK AIM where many investors are happy to take big stakes in junior companies in the hope of massive returns. Our BoD seem to care more about looking for 'other opportunities' than paying back the eye watering debt they have saddled us with due to their ineptitude and consistent failure.
Gold could very well collapse, none of us know, all I hear is broken records telling us gold is due a correction etc. You have that Peter Schiff bloke gradually losing the plot because everything he predicts doesn't happen and he can't accept that inflation in general doesn't necessarily translate to inflation in gold. What happened in the past might not happen the same in the future so cheese may become the best store of value, nobody knows.
MTL had the chance to make hay when gold spiked and hit the news, they chose to remain silent. That was a mistake in my opinion. I don't expect us to go anywhere while we have this massive debt regardless of the interest rate drop we are due at some point. The tax burden will increase as the interest decreases. Hopefully they don't go off diluting to fund acquisitions while we are still heavily in debt and basically at risk of debt for equity attacks.
All the best
Tygra - Just vote against resolution 11 and your "secret" placing won't take place if the same number of votes as last year go against it.
That is if you are a shareholder of course.
Morning
I've been in a number of stocks that have conducted consolidations and 'restructures' and the only way to tell whether it's good, bad or ugly is to conduct a simple 2 stage test:
Stage One
1. Check your cash value the day before the proposed amendment in share structure. Note down the £ value on a piece of paper at market close.
2. Check your cash value the day the restructure takes place. Note the £ value on a piece of paper at market close. Is it the same, more, or less than it was the day previous?
Stage 2
1. Pay close attention to the ongoing price for about 30 trading days post restructure. Have you noticed any spikes in volume and large delayed trades appearing? If the answer is yes go directly to point 2 below.
2. The BoD have told major holders there's a placing coming at a significant discount to the current price. Yes this is NOT supposed to happen but it DOES and nothing will ever be done to prevent it (just making that clear before any responses of "that's illegal and can't happen" etc. If that's your view I agree to disagree and won't be arguing the point).
These same large holders will also be the ones to get preferrential access to the forthcoming placing via a bucket shop 'broker' who takes shares and warrants, along with a ridiculously high arrangement fee, for their trouble of taking money for nothing.....sorry, conducting a complicated financial transaction using highly skilled financiers working out of a garage in Slough.
The volume spike you notice will be in a tightly held trading range that doesn't drop the share price, say, 1.05p per share, and then when they have offloaded at 1.05p the placing announcement will miraculously appear stating the company are 'delighted' to be diluting shareholders at a discount and flooding the market with new shares and warrants at a price of 0.8p per share.
I could be wrong, I could be right, or I could be somewhere inbetween. Bottom line, we are going to be the last pup at the bowl and there's 'probably' not going to be much pedigree chum in there.
All the best
Carefree it is always long term for me. if I buy. I think your right these will go down some more
Ahhh okay thanks CarefreeCarry, understand now. Apologies was being a bit slow!
gav0106 - It is just the nominal value that is being changed. That is not the share price that the shares are bought and sold at.
I'd check your maths again if I were you. Both your calculations are wrong.
The maths does not add up from what you say:
6,000,000 x £0.01 = £6000
6,000,000 x £0.001 = £600
We will all be holding the same number of shares at the end of the process. I have 6m shares now and will still have 6m shares.
The nominal value of those shares will be £0.0001 instead of £0.01. The actual value of the shares will not have been affected by the process.
I’m not 100% sure but there was certain share and company regulations that stopped them buying the outstanding shares to own the goldmine.
As I’ve said I need this to come good but I don’t trust these majority shareholders. They have already had over some other huge investors in MTL.
We don’t want them to have an advantage and steel this mine as they’ve already had us over with the cost of the loan...
The major shareholders bought the Bank loan when it would have been cheaper to buy the outstanding shares. They didn't buy the outstanding shares. What does that suggest to you?
---------
The loan had value, the equity was worthless. Subsequent events have borne this out.
Jim - Would you be buying them for a short term gain or would you be holding on to them for the long term?
Either way expect the share price to drift lower for the next couple of quarters as production drops due to the lower grade area being mined. The Board are expecting to make $36m in debt repayments this year and have paid one third of that in the first quarter.
Clearly I got myself mixed up
So, apologies to all, I completely missed the dart board
But should I (I am) be cautious of buying more??
CV7Blue - The only way the major shareholders can get more shares is if they buy them on the open market. That clearly isn't happening.
They tried debt for equity swap but the Board stood up to them and refused.
The major shareholders bought the Bank loan when it would have been cheaper to buy the outstanding shares. They didn't buy the outstanding shares. What does that suggest to you?
The percentages are not going to be adjusted or affected. You will still have your 5m shares.
The major shareholders are very close with there percentage to be able to force through a takeover at a very low price.
All I'm saying are they adjusting to be able to get more of a percentage.
I currently own 5 million have been here from 46p all the way down to 0.05p.
Always had the faith this would come good but then the Candys keep come up with more -hite.
They didn't have to charge the loan rate so high but there again to fund there lifestyle maybe they did....
We will all be holding the same number of shares at the end of the process. I have 6m shares now and will still have 6m shares.
The nominal value of those shares will be £0.0001 instead of £0.01. The actual value of the shares will not have been affected by the process.
There is no share consolidation.
The company wishes to allocate shares to directors via a share incentive scheme and require the shareholders permission to do this. If permission is granted then the company needs to lower the nominal value of the existing shares to be able to legally allocate new shares to directors.
There is no need to raise funds as the company is generating cash and paying off the debt. Approx $12m of Senior debt left to pay from $68m 18 months ago.
CV7Blue - The Board have put this forward for exactly the reasons outlined in the RNS. I have 6m shares now and will still have 6m shares at the end of the process. How does anybody else gain from this when there is absolutely no change to anyone's holdings?
I think Lee is correct - they don't seem to be proposing a share consolidation, just a reduction in nominal value enabling more shares to be issued if the price slips under 1p (hardly encouraging). Conversely they are also looking to create a way of returning capital to shareholders in the future. The question is, which do you think will happen first, a fundraise or a dividend? Not much of a question really.
All long term holders want and need MTL to come good financially.
My fears are that who has put forward this share alteration and why?
There needs to be something in place that if the major shareholders (Candy’s brothers) cannot steal this mine for less than the real valuation.
Over 200 million has been spent so why do these people manipulate this goldmine to suit them.
?????
If I’m reading it correctly, they will still have the same number of shares, with the exception of the 22 million additional shares given to the Directors, but the nominal value will be 100 times smaller, not 1p but 0.01p, thus allowing them to generate new shares at any price above that figure, should they want to create new funds, as in offering new shares at a discount of say 30% to the current price of 1.1p, they could sell new shares at an offer price of 0.8p, that would not be possible if the nominal value is 1p like it is now.
For me, I don’t want them to raise funds through new shares, unless they are offered to all invested, then that would be different, if the money was to save on interest amounts and shorten the debt repayment period, but for new acquisitions, I would say, let’s gets this venture debt free first, then look at buying other business ventures afterwards.
Thoughts please.