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It would be up to the company mgmt whether they wanted to disburse it as dividends or invest it in other projects.
I suppose they could just rip us off by paying themselves massive mgmt bonuses, but then nobody here today would ever invest in anything PC and his board ever do again.
If the CS project got sold for a one off big payment, so no ongoing royalties, what would that mean for us share holders?
The company would be in a strange position of having had a one off large payment made to it but it wouldn't be generating any ongoing income so I am not sure the Share price would react.
Would the shareholders be due a large portion of that large payment as a dividend?
I think there is a good possibility for the sale of the CS Project. This fits with the exploration / project approach of the company and PC's modus operandi.
The below scenario isn't too far fetched..
In terms of a buyer, there will be cement producers giving security of supply serious consideration. When the Pozzolan was produced as a by-product of coal power, there was a regenerative supply, presumably prices were stable, and little risk of a competitor securing all the supply (buying a power station?).
However, as supply moves to mine origin, it becomes possible to own and control the supply of this vital component. A Cement producer could purchase a mine (e.g. CS project); providing continuity of supply for their operations and limiting supply options for their competitors.
Commence bidding war for the mine - no company want's to be at the mercy of a competitor.
Yeah but that doesn't help BSG to keep the share price down so that he can pick up more shares.
What ever the markets assessment of the company's value, if it becomes an acquisition target there is no reason to think it would be acquired at a discount, quite the contrary.
Whatever happens we'll not see the full value, we'll get stitched up somewhere down the line.
Just to add, the mine plan does not include the pozzolan in northern main zone, North East zone and western tuff zone. Arguably they could double the mine life.
If this had to go to shareholders for a sale i'm afraid PC may be up against getting a yes vote for it as there's quite a few of these shares held in very tight hands, that's quite a few that'd happily wait for the site to come to full fruition....myself included. IMO
Lets say the sp was 0.5p no way someone would shell out 5p. It would be something like 60% over closing price on ... date.
Would a sale have to go to a share holder vote?
0.4p was what it could be sold for 'just' with the permits. It would be disappointing, I agree. But offers >100% of current sp are rare.
My house is with half a million quid but I wouldn't sell it for £250k even though £250k is not to be sniffed at.
Obvious deramper wind up merchant.
You aren't a realist at all if you honestly think that the mcap would be £13m unless you think it will all collapse and never mine anything.
Your 'valuation' isn't even equal to a single years profit margin on a 27 year mine. You don't really believe that 0.4p is a realistic valuation of the company once the mine is upon and running, you are just talking it down.
£910k is not to be sniffed at. He could continue with the other projects on his books.
"the company has no history of bringing products to production, it’s therefore never tried selling any product to buyers, establishing contracts, meeting demand, fulfilling orders" - a sale might be more realistic, but the price goes up once each risk is overcome. 'not having a past history of establishing contracts' doesn't matter once you actually have a contract, for example.
0.4p. is an MCAP of £13m. PC owns 7%. Do you think he'd sell up to sail off into the sunset for £910,000?
If that is all that was on offer, if I was him, I'd do my best to take it to production and payout all profits as dividends. £770k per annum for PC.
I'm no deramper, just a realist.
I haven't seen many offers >100% of current price. I know the current sp could change but a lot is priced in already permits etc. A little more to come when the pass the final date. Of course offtake agreements etc will make a large difference. If we don't get that far it will go for a song. IMO.
Is BSG4 the most obvious deramper around or what?
6p to 0.4p in less than an hour!
Probably an offer of 0.4p would be made (and accepted). Massive disappointment all round ...
I love the big numbers, but…as JonJB and Safe say, the company has no history of bringing products to production, it’s therefore never tried selling any product to buyers, establishing contracts, meeting demand, fulfilling orders and all its eggs are in this basket. There are no other sites up and running to divert things too and from. Does that not imply a takeover is more likely and 1-2p is way more realistic?
PC, and family, are the biggest shareholders aren't they? I am sure he is pretty focused on shareholder value, well I hope he is anyway.
I wish PC would just sell the CS Project, as he has clearly demonstrated that he does not know how to negotiate finance deals other than to sell pi's out on give away placings, and he has not secured even one off take agreement. Several agreements should have been ready to pen as soon as the licence approvals were granted. Either deliver now or sell - we have waited long enough without shareholder value being realised. Remember that -to deliver shareholder value, which I believe you have been promising for many years now.If you need help to deliver, then recruit now !! Do not let this golden opportunity slip through your fingers and drift back into years of obscurity.