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I’d much rather see new posters ask questions than idiotic comments and misleading statements like we have had to endure previously. But just maybe make things a little clearer please RR..
The SFR collar facility is quite complex and shows how astute the MTR team are in not only the process but also having the calibre of contacts to facilitate such a deal. If you look back through RNS and fine the initial collar agreement and then look for an interview around the same time MM explains a little in layman’s. I have contacted the BoD and asked other well informed investors about certain bits but a lot of the finer details are quite frankly too complex to really understand. But essentially they are taking a loan against the shares while at the same time keeping exposure to the potential upside and limiting downside risk. It’ll be interesting to see how they play things, we may just see a roll over of the expiring collars.
Nothing is agreed with SFR ref the price. The NSR is the NSR, it is 2% and includes both copper and silver, there are a few bits in the web which explain what and how the NSR is calculated and if you look at respeculator on Twitter they have posted their workings - the NSR in just A4 could potentially equal our current market cap.
No gold in the Bots tenements - so far anyway. And don’t expect to see any, copper and silver though yes. One of SFRs hits had fantastic silver grades and the neighbours to the north have actually sold their silver credits. No reason why MTR couldn’t split the silver and copper NSR if it suited.
Please keep researching as there is so much to this company.
Thanks Charaxinae,
I was mulling over sending a similar message. RR I think that's good advice. I would add you should take some time to go through the comments posted by in particular Hydrogen, DaisyRoots, Taylot, Forest but also all others over the past couple of months and you will learn a lot about MTR, their active and passive investments, the KCB etc etc and answer many of your own questions and be able to contribute in a more valuable way to this pretty knowledgeable BB. Good luck with your research.
RR I'm all for learning about financial markets, a large part my job is teaching people about this subject but I'm afraid I can't bring myself to do it on a high risk investment bulletin board. Your questions and statements are all over the place, friendly suggestion keep it to the point. If you want to learn about derivatives check out this course : https://www.fitchlearning.com/investment-advice-diploma/derivatives
RR I don’t understand your second paragraph. If you are talking about the price of the derivatives used for the collar that would be a conversation between MTR, the Investment Bank and the underwriters.
Two common capital market securities include stocks and bonds. ... Derivatives derive their value from an underlying asset such as currencies, commodities, bonds and stocks.
Do you think MT have agreed a share price based on the copper price ?
I can see a large amount of gold in those Sandfire mines too.
Fingers crossed.
Let’s just hope these Cobre aux results from KCB are decent.
I’ve had a look at previous core drill results and it’s fairly positive from the KCB section of core drill tests.
They are only referencing the equity derivative financing that they have, not option trading activities on SFR. Simply put they've borrowed money against their direct shareholding in Sandfire, the lender will have used derivatives to hedge their risk. Either way keep in mind MTR is an investment company so it would be well within its rights to option trade if it thought it was an interesting trade.
I am learning !
“Derivative” describes the the put and call collar used on the ISDA facility. This protects MTRs risk. MTR own physical stock.
When they say derivative.
Do they mean that they are getting a discount on SF shares?
My only thoughts are I personally don’t want MT to ride of the back of SF.
It needs to find its own path, otherwise why not just by Sandfire direct and receive a dividend.
Check out the thread from the 17th on this board as well. Some commentary on this subject already.
You've miss read the RNS, take another look:
Metal Tiger plc (AIM: MTR, ASX: MTR), the AIM and ASX listed investor in natural resources opportunities, announces that, further to its announcement of 14 December 2021, it has disposed of, in aggregate, 185,000 shares in Sandfire Resources Limited (“Sandfire”) (“Sandfire Shares”) at an average price of A$6.57 per Sandfire share.
Following these disposals, Metal Tiger is interested in 7,812,057 Sandfire Shares representing approximately 1.9% of Sandfire’s issued share capital. As previously announced, 2,842,667 of the Sandfire Shares held by the Company are subject to an equity derivative financing arrangement with a global investment bank.
Quick Question !Metal Tiger are selling 1.5 million shares and buying 7 million Sandfire shares through a investment arm.Are they buying at a discounted rate due too the volume and the original investment agreement?