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Hi AIMtodeath and thank you for your response.
I take on board the free carry element on the July 2019 BKT DFS. I hadn't picked up on that previously. Their 24th Oct 2018 DFS ($895m) didn't mention that the free carry was included but the very same figure is employed in the 2019 'enhanced' version indicating it was considered all along.
That aside the key point here is that the inclusion of and agreement to a free carry element is not a fundamental reason to 'optimise' the DFS and spend c. 6 months and counting to complete it. It is a paperwork element whose affects ACP needs to communicate to the market as and when it is agreed. BKT clearly appreciated that it was going to be 16% because the finalisation of their deal has not led to any further changes to their July 2019 DFS.
As for what is going on with ACP right now I have generated a thread that can be read here. For me, its FEED study led which in turn generates the final EPC price and likely concludes the inputs to the optimised DFS. That may well come with added modules or a speedier expansion. Or it may simply refine the costs and bring them up to date so that finance can be agreed against current pricing. This includes both basket prices and plants/build costs.
Most important of all is as painful as it has become it is all happening and will come when it is ready. Matt Bull's 7.85m share purchase helped confirm that. So it's about patience because once the first element hits interest in ACP will return and a solid re-rate should then begin to take hold.
https://twitter.com/BigBiteNow/status/1509441384566169601?s=20&t=5cwWIbrcbwsnLQqP1fbsCg
BBN however BKT 'already' factored 16% free carry into their enhanced and previous DFS' so the figures wouldn't change.
They are the only company I have seen that did that in advance.
So the DFS will change with the insertion of this free carry as ownership WILL change the economics of ACPs holding. However, other factors especially basket price increases should offset sufficiently.
Yes putting 16% in shouldn't take much mathematical prowess but if you have enchanced the DFS (I assume it has had some interesting changes or wouldn't have taken this long) you might as well wait until the final piece of jigsaw is in place before releasing.
Couple of buttons must of broke on the computer so 16% can’t be tapped into the DFS spreadsheet ……joke, in more ways than one.
In that case any ideas why the enhanced DFS could be taking so long to be finalised?
Morning everyone,
I saw the comment regarding ACP's 'optimised' DFS and wanted to challenge the thought process.
Optimisation in itself reflects an enhanced DFS as opposed to a brand new DFS and therefore process.
Blackrock Mining conducted the same process. Completing it in July 2019. Their enhancement brought about a 4th module driven by additional demand from off-take partners. They then commenced initial free carry discussions with the Tanzanian government in April 2020. So well after their final DFS was completed.
The DFS is what it is a document to determine the value of the overall project. The ownership is a separate matter.
My view only.
https://blackrockmining.com.au/tanzania-initiates-formal-free-carry-interest-negotiations/
SJ I B&I every year and can confirm what AIM says you lose a handful of shares not worth worrying about. I'm with ii and always found the process relatively painless - the only thing I found is doing it online they take days after 6th April to execute which can be frustrating if news lands so I've tended to hurry them up a bit and pay £50 for the privilege to get it done over phone on a day of my choosing. Theory being bedding the extra shares is worth more than the extra fee you pay. But on spread it has been as AIM said very minimal difference in price between sell and buy certainly a shedload less than doing it manually.
FWIW I'm looking to B&I £100k of ACP across 5 ISAs on 6th April+. My long term target being around 20p that should be £400k+ in years to come.
GLA
Hi Dan.
In my experience most of what you say is correct.
If you are not rebuying the shares in an ISA. Either manually or via an auto process (see my query in spread used earlier).
The one key issue for CGT is though that 30 day rule...
Beware of that. In that yes you can re purchase outside an ISA within 30 days. BUT HMRC won't allow you to in effect "rebaseline" your CGT position for the rebought shares..
The shares you buy within 30 days, when you later sell them will be matched at the price you bought the first lot for, for CGT purposes... This was introduced to stop people rebaselineing ( within the CGT allowance ) at the end of each tax year ..
So if much later you declare a section 104 holding with a simple share average as your CGT baseline when you subsequently sell a chunk of your shares. HMRC may ask you to break it down, and if you sold and rebought any of these within 30 days to "reset" your average higher (in affect). You may be in for a tax suprise.... As they will use the older lower average for those shares rebought within or up to 30 days...... Hence you pay more CGT than you had hoped...TBA...!
That's my experience of the 30 day rule fyi.
Not tax advice either, but be careful...
Cheers.
Cheers AIM.
Seems like the bottom line is, both from experience here and elsewhere (where I had also raised a similar query), that as suspected if done in house within a single broker for you. Then the fees for usual spread when done manually doesn't get applied if it is largish. So in effect one pays a far more nominal fee for an auto move from trading to ISA accounts etc
Thanks for the confirmation. Suspect this info will be useful in the next few weeks to a few.
Cheers.
No expert (please comment) but as regards to B@B of shares near tax tear end - DYOR but personally believe Capital Gains Tax Allowance is £12.3K. Absolutely no advice intended;
1. Review your own portfolio.
2. WRT CGT PA allowance - maybe opportunity to rebase any shares in profit to offset any crystallised losses on other shares in the tax year?
3. Downside -you need to individually check out tax regulations, but think(?) you need a gap of 30 days before you reinvest in same/similar type of share.
4. How the HMRC check this - don't know?
5. Warning - any finance decision should not be taken based on tax consequence's.
No expert, any comment's most welcome and please correct me if above assumptions are wrong.
B&I within your own provider should be utterly painless. You always see a sell first right at the bottom of the spread and then a buy seconds later for peanuts more. So example 4.2 and 4.215, both appear as sells. So you lose a handful at most. Moving from a share account to another provider of an ISA you'd have to do yourself. But even at today's circ 3.5% the savings on the profit would far out way the 3.5%
I wanted to just ask about the Spread here, and how it's utilised for a B&I if people have experience ?
E.G.
So it's very wide theoretically from 4.2 to 4.5 say now. That's 7% odd.
In truth looking at the rough trading later today it's actually 4.21 to 4.36 ish. That's still 3.5% though.
I have a few of my ACP outside of a couple of ISAs. Usually after 6/4 I each year manually sell some stocks, wait for the 2 day clear, then xfer in and out of my broker and rebuy. Say 3-4 days in total for all monies, clear, request, in/out & buy.
But have read that B&I, while losing a few shares via one way commission inevitably. Doesn't generally seem to suffer the published spread to the usual quoted trading degree...?
Anyone experienced in this (Wasa etc)... As 7% seems a bit steep, even 3.5% loss a bit high if you are shifting the limit to multiple ISAs?
Or is that the price to pay V 4 days "risk" out of the market manually, but under one's own control etc....
Q than, is really, does B&I really use the AIM often exaggerated spreads, or is it slicker than that. Any experiences... Ta.
Cheers.
Looking at all these 69 buys, I think people are being starved of a whole lot more.
https://twitter.com/TheMarketBullAU/status/1509098888518516742?t=UyHrF_-03sGTIn2uhmQPuA&s=19
ACP and Gov need to agree and sign Tanzania free carry. That free carry when confirmed needs fed into DFS.... So until that is in writing dfs completion waits.
Is the Tanzanian government holding up the final dfs?
But neither can he..... That's the point! You want something to happen that can't happen. Don't blame a company or its CEO about the speed at which an African country Gov acts.... The same negotiating team that was used by BKT is on the case, so they are familiar with the process and those involved, ACP is using the leverage that it can already.
I would AIM but I’m not a very experienced CEO of a company sitting on a major resource, I’m just a measly investor…
Do they have phones in Tanzania AIM ? The speed at which they work I thought they still used pigeons.
Someone working hard to get our share price lower. Lots of small sells does the trick usually. Mixed in with a few biggish ones seems to be working
News but be coming !
I'm by no means certain that we will get the block listing update. They only have to update the market every six months 17th December was the last mandatory update. We also didn't get any update at the beginning of January, February or March. In my view they want to keep warrant holders in the dark as to what has been exercised/lapsed. With the April warrants due by the end of next month I think this silence will continue. After April I'm expecting a warrant update and the newsflow to start. One thing is certain this is a compelling investment currently and after the optimised DFS I'm expecting it to be even more so.
Get on the phone see how you get on pushing the tanzania Gov into a decision and doing their paperwork......
I expect the blocklisting RNS on Friday, at a minimum.
Silence suits me fine, I need to get £100k of these beauties into the 5 ISAs and would really prefer sub 5p...... hoping MB can hold off another couple of weeks (he's done well so far ;)
Another week of silence? It's certainly looking that way...
If you want to sell you need plenty of prospecting ground to lengthen mine life as a sweetener
Think it was Ecograf.... Our neighbours but reasonably pants economics for their mine.
ATD - some interesting points covered there:
1. Existing/additional prospecting licences - Personally, would call this "covering" your bases scenario, but suggest good management as potentially shows long term intent.
2. I find your comment about going "downstream" intriguing. DYOR - and could be wrong, but vaguely remember MB in an interview with Money Sponge(?) about 9 months ago, where another company was mentioned wrt processing more in house (ex China). Just personal opinion and only minor comment made, but MB already seamed aware. All I'm saying is that it twigged my interest to invest in this company.
Anyway, any feedback most welcome. Hope you've all had a good weekend.