Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Unless a counter offer comes along from another interested party, AMA's price should move in tandem with Perseus. But...if the Perseus share price moves above the warrant strike price of A$0.44 then am I right in thinking the AMA share price should move exponentially higher?
Perseus SP up 8.2% overnight so I would expect that to be fully reflected here today.
SP is slipping a bit. Not sure why as this is below the Perseus Offer. Maybe just some UK investors deciding they don't want to participate as it'll be an overseas listing and exiting. Should reverse back up to around 14p (around the t/o offer) in next few weeks.
http://www.bnn.ca/Video/player.aspx?vid=824487 Gold @ $8,000
Thanks thats very helpful and indeed very encouraging I think for Amara shareholders prepared to take a long term view.
I thought I would get some feedback on this from Katharine Sutton Head of Investor Relations at Amara Mining. Always responds to questions quickly, email directly ir@amaramining.com Perseus have hedged 127,000oz of gold over the next 2 years, which is approximately one third of their production. If the gold price stays at its current level or goes down, one third of their production will be sold at a higher price than the spot price (an average gold price of $1,280/oz). If the gold price goes above $1,280, then 70% of their production will still achieve the spot gold price. Perseus take a conservative approach to managing their company and the hedgebook is a way of ensuring their costs are covered, however this hedgebook does not affect the deal with Amara. The rationale for the deal is that Perseus has cash (A$100m), a cash generative mine (Edikan) and an experienced operating team but limited growth and Amara has strong growth potential through its Yaoure Gold Project. Through debt and cash from Edikan, Perseus expect to be able to build Yaoure without raising further equity, which will transform the company into a mid-tier producer with 400-500koz/annum production. Hope this helps.
Your 'logic' so called is absurd. They are not making 'losses'. They are showing prudence and locking in gains. They are not losing anything. If you were to apply your 'logic' it would be the same as you taking a profit on a share trade and then calling it a loss if the sp subsequently rose.
Your a clown mate. Sell if your not happy go elsewhere
Ah I wondered when you were going to pipe up!..........the comment which you made a on Monday......."They haven't hedged what hasn't come out of the ground".............if that's not utter rubbish then I don't know what is. You were derided not just by me but a lot of other posters as well. The fact of the matter is although Amara have a world class mine, and I don't deny that, it is going to cost between £300,000000 and £400,000000 to get this up and running, FACT!. Can you see anybody pushing down the door with that kind of money? Amara certainly cannot do it as they have max £70,000000!. When you have something sensible to say say it, until then.......
What utter crap you talk.
I am not going to go into this further least to say the significance is lost on you if you cannot fathom the outcome, the logic will apply to ama not perseus
What silly logic you use. Their aisc are well below $1000 so they are in profit. Quite prudent to hedge some production
....not looking forward to Monday mornings opening shot!
Now that gold is trading above 1276 Perseus's hedging comes into play as this is the price at which they forward sold 121,000 ounces.......as from now they are incurring losses......I did warn everybody!.......the deal might not look so rosy on Monday now as I am sure I am not the only one who has noticed this.....mm's will have noticed it as well. The good thing is that a counter bid might come....(MIGHT........!)
http://www.sharesmagazine.co.uk/articles/bid-battle-for-amara-mining/#.VtfuA_mLRpg Mining boss expects counter bid after approach from Perseus The boss of Amara Mining (AMA:AIM) tells Shares that a rival takeover offer toPerseus Mining’s (PRU:ASX) approach (29 Feb) is plausible. ‘It would surprise me if someone else doesn’t come along,’ he says. ‘(Yaoure) is such a tremendous asset. ‘We’ve had the data room open on Yaoure for a long time, and lots of people have done due diligence.’ ‘The industry has surprised me over the last 12 months, in terms of the reticence of people to do deals,’ he says. ‘Maybe we will be the first to ring the M&A bell for West African mining.’ Amara had originally tried to attract a strategic partner to help bring Yaoure into production. McGloin says market conditions had made it difficult for such a deal to proceed. He says the company could have continued to raise money by issuing new shares, but this wouldn’t have pleased existing investors. ‘I had offers on money on the table but there would have been horrendous dilution.’ Yaoure is a very large gold deposit in Cote d’Ivoire with highly attractive project economics. The sticking point has been the $334 million to $447 million cost to build the mine, far in excess of Amara’s $70 million (£50.4 million) market cap. Perseus Mining looks a decent fit for Amara, as it should have cash flow in a few years’ time to help fund development of Yaoure. The company is upgrading its Edikan gold mine in Ghana which will eat into its existing cash pile over the next few years, yet the project should start to generate a big increase in cash from 2018. The risk to UK shareholders is that Perseus decides to cancel the AIM quote, as its shares already trade in Australia and Canada. McGloin says Perseus is giving ‘serious consideration’ to the UK listing, given that African assets are well understood by UK investors. Amara shareholders would own approximately 35% of the enlarged business or 45% if you factor in warrants that come with the deal. Perseus has offered 0.68 new shares and 0.34 new warrants per Amara share. The latter entitles the holder to subscribe for one share at $0.44 per share for a period of 36 months. Perseus’ shares fell 10.8% to $0.37 on the announcement.
On the huge amount of sell side volume ? No drop in price.
Probably not today dibs. Next week. Any Gold miner looks like a solid investment at the mo with the opportunity for strong medium to long returns. Bull run back to highs looks set in coming yeats with global outlook.
Gold has stormed through all resistance levels. $1300 today? (if NFP suits)
Price is solid. Bull run on the cards. Looking really good here.
for a good rise here -- got an awful long way to go. Definitely worth holding on to some of these. There still may be a fall back on gold but it will only serve to turbo charge the rise when it comes.
Gold now highest since Feb 11 spike.
closing in on the Feb 11 high. Looks like we might get a breakout very soon. Excellent. :D
verified with their broker about their eligibility for the shares and warrants as a UK shareholder and how everything will work? Appendix II of the merger RNS has details about the warrants.
I bought in in early 2013 and have averaged down to 15.1 so I'm absolutely on the cusp. I sold INTQ for a huge profit on Monday and nearly put all of it in here at 13.1, I'm really miffed I didn't now. There's shed loads to be made here in the long run.
In August 2014, there was some big spikes, and a lot of buyers came in around 23/25...I have been holding for 4 years and averaging down...I'm at 16p now, so happy days...