Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.
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ZaZo73
What its worth, we would also still have the value of the shares that we still hold in AMC
...so you will be simply voting yes to this "giveaway deal" in hope that you will get (maybe) some sort of dividend payment(s) spread across multiply years without really knowing mechanics behind them :-o
The war may have contributed towards a fire sale, however, the war cannot be the reason behind sale structure?
Had RY come out and said, look, under the current circumstance and for the foreseeable future we're going to struggle to sell the asset for the best price, therefore we propose selling it $105m, and the proceeds will be paid out as a special dividend, shareholders would walk away with 6p...period.
Under the proposed structure, shareholders have not been given any guarantees how the proceeds will be used to enhance shareholder value, there will always be jam tomorrow. My guess, by accepting the sales deal/structure, the BOD will have good 5 years plus playing with our money, going by their track record by year 6 they will achieved nothing of substance, but along those 5 torturous years they will have rewarded themselves handsome salaries at our expense.
In simple, the deal on the table is for sole benefit of the BOD, furthermore, its deliberately designed to alienate the shareholders. I think the RNS was designed to decimate the SP and its proving that way. I think the BOD are hoping PI's will exist in numbers, shares get gobbled up by UNKNOW to breach the 30% threshold, at which point a YES vote becomes the automatic winner and Bingo. The BOD get to live and plunder the sales proceeds for the next 10-15 years.
The SP is heading towards first tranche of the sales proceeds.....around 1.10p? ish
and
''Western companies are pulling out of Russia and field work will be extremely difficult to get signed off''. What field work??
''Westerners are advised against travel to Russia''. id be surprised if any of the bod have spent much time in Russia over the last few years anyway.
''Clearly unable to raise cash in future and apparent complexities behind the deal''. See into the future can you?
''Additionally, in order to move Kun-Manie into a development and production phase, significant further investment is required to be made, including significant expenditure on infrastructure and access roads and there is no guarantee that Amur will be able to source and execute financing agreements to meet this required spend given the current volatile market. This also complicated the execution of this transaction'' None of this is new, or immediate.
@CT will you be going to the GM on the 25th ?
AMC has managed to transfer enough cash into Russia to get to the end of next month as per RNS. This will have been an extremely difficult task considering the ever increasing sanctions.
Western companies are pulling out of Russia and field work will be extremely difficult to get signed off.
Westerners are advised against travel to Russia.
An additional level of complexity and will obstruct a more favorable offer being approved as per RNS
Completion of the Transaction requires the approval by a newly created Russian Federation government commission per Order 81 dated 1 March 2022 (which specifically addresses change of control of western held assets) and the consent of the Federal Antimonopoly Service of Russia.
AMCs legal advisor has quit
Clearly unable to raise cash in future and apparent complexities behind the deal.
Additionally, in order to move Kun-Manie into a development and production phase, significant further investment is required to be made, including significant expenditure on infrastructure and access roads and there is no guarantee that Amur will be able to source and execute financing agreements to meet this required spend given the current volatile market. This also complicated the execution of this transaction
People might want to consider that the reason behind the staged receipts is to allow the funds to flow without being stopped by sanctions.
I will be casting my Yes vote on Monday and hoping that a 2nd bidder emerges this week.
This is the reply I had from my broker:-
Many thanks for your message. As your shares are held in a Nominee account, your name does not appear on the share register. You would therefore be unable to just turn up at a meeting as they would not have you on their list. Please therefore always contact us prior to any meetings you wish to attend so that we can arrange the necessary for you. Please note that we require no later than around 6 business days notice prior to the meeting, to ensure that we have sufficient time to arrange your request.
You are able to vote beforehand by providing us with your votes by secure message, or vote in person at the meeting. I would be grateful if you could confirm by return message if you wish for us to arrange your attendance, which will allow you entry into the meeting and the ability to vote your shares.
"Anybody who thinks PIs have any power here or that RY does at the negotiating table is deluded"
Just like you were deluded saying AMC would be sold for a minimum of £0.70 PS
That’s right Crazytowner the BOD have done a fantastic job in creating value for us ever so humble PI’s. Now off you go and make your boss a cup of tea. Know your place man.
Rover62 yes we have to have a fire sale because as we all know wars go on for ever.
No money coming out of this deal for me as a share holder either way, so i'll vote NO.
Facts of the matter is very simple
* RY has zero credit
* BOD has zero credit
* RY/BOD have delivered zero shareholder value
* RY/BOD have decimated SP and shareholder value
* RY/BOD have missed endless self-imposed deadlines
* The holy grail, AKA TEO, paid for by the shareholders, not published and not likely to be published
* RY/BOD have demonstrated their desire to self serve, and self protection, with totally disregard towards the
shareholders.
The above is a just a shortlist of RY and the BOD's stellar performance over the years. So, bearing that in mind, do we shareholders want this bunch of good for nothing, self serving crooks to manage the sales proceeds over the next 10 years?
Answers on a postage stamp please
Kammy
No guarantees!
A 4p cash offer now I would take. I always thought Kun-Marie would be sold but after TEO/BFS. Yes current situation dictate that a fire sale occurs, but these terms suck.
Like other posters have said I believe the buyer will be buying as many share on off they can at these prices. I wouldn’t be surprised if they pass the 30% threshold before the EGM. I would not have thought they would have paid much more than 3p so would only have to pay that to get the company. Cheaper than the offer.
We have been told what the plan is to do with the money.
You mention failing to learn from history, well, if we use NRR as an example, it returned 25% return on capital within 9 months. From an investment perspective, this was a positive outcome delivered by the BOD
Rover62
i think they realise something is better than nothing, even prior when a deal came in before ukraine war, may have had better deal now it seems any deal is better than nothing.
I dont think anyone will invest in this co, it will basically be a cash shell
CT ……. trouble is it’s actually 15 years with our fingers crossed and not 10 !
OTL
I keep reading the RNS because I can’t believe what I’m reading and expect by some miracle it will change. Alias it won’t!
All I read is that after the transaction the company will have £16 million in the bank with a promise of another £8 million in a year. Or 1.15p and 0.57p per share.
Then after 4 years another £20 million or 1.4p per share.
So value of the company after 4 years just 3p per share.
I won’t add the bits after as many will not be here but pushing up daisies.
As for buying an asset, we’ll I don’t believe they will be able to get an asset with a potential value of £40 billion for £16 million.
I'm also with ii and have voted in the past. You will need to subscribe to voting & information services first, then you will be able to vote from the Voting mailbox.
From the Portfolio go to Tools=> Voting Mailbox => Preferences => Subscribe to voting & information services
Kheldar,
You got it right!
If we're not going to get anything, we should make sure this useless Bod, especially RY, doesn't. The proposal is demeaning. The offer is an insult. RY continuing to get his salary and pension paid. Shareholders getting virtually nothing, and he will be left with millions of our money for him to play with. He's using the Ukraine conflict as an excuse to ++++ us over.
If the deal goes through this Will be one of the only cash shells in the market that’s already got quite a bit of funding behind it, the ~$20m cash it should have = about 1.1p / share.
2/2
I strongly suspect PIs still have the ability to prevent this deal but motivation to actually cast a no vote (if they decide that is their wish) will likely be key.
If I were the purchaser I would try to create the impressions that this is a take it or leave it deal, and that the vote is a given - it'll be yes anyway/the lowly pi is powerless, you'll get more from selling the shares now than you'll ever get from KM sale once discont factors applied uncertainties factored in.
Maybe, the more accumulation that occurs the sweeter the deal will get as they are increasingly paying themselves, however, any 'playing along for now' with this in mind is a very dangerous game, imo, it would need a on-side motivated board (2b shares max issue - (>25% backup)), an attentive register analysis and shareholder organisation/cooperation - not apparent for amc.
Relative to voting yes a no vote outcome is more unknown.
Relative to anytime in the last five years this seems the (up there at least) absolute worst time to sell KM.
The down side from the offer to zero is much much smaller compared to the upside from the offer to potential future proceeds from KM (from a future sale or otherwise) therefore risk reward dictates a no from me.
The idea of 7p all cash was a no from me, anchoring me to 105 usd with these terms won't change my mind to a yes if 7p all cash suddenly appeared as real later, btw. Happy to wait for more, don't know if that is right or wrong tho obviously. Upside vs downside viewpoint whilst considering knowns and unknowns.
Obviously these 'knowns' are what I think I know so please correct if I'm wrong. Very open to hearing views why a yes vote is in fact the way to go.
AIMO ATB
1/2
Just recoding my personal thought process, I tried to take a step back and be holistic....
Timing is important in investing
Just because amur is vulnerable due to the current geopolitical situation and an entity is attempting to leverage the situation, doesn't mean shareholders should choose this time to press the sell button with a yes vote.
Look at the precise timing of this offer - at a time of extreme fear in wider markets.
RY from 17.34 mins (below link) explains cost of mine plan to be in range of 300k to 1m usd this would seem to be well within affordability of amur based on most recent cash balance. Have read chat here and elsewhere that we can't complete mine plan due to lack of funds and that that would lead to license loss - this view point doesn't seem to stack up against RY statements/cash levels in amur (post sale of CHL/NRR for >6m usd)?
https://youtu.be/GlCA0vKi0_Y
I think it is important to understand what amur owns - one of very few known/advanced large scale Ni sulphide deposits in the world, at a time when consensus is for very near future very high industrial demand for materials produced from such deposits.
Discoving such a thing is very rare, advancing such a thing to where KM now sits is very time and capital intense and happening to have ownership of such a thing at the upturn of a commodity cycle where Ni & Cu are expected (many gigafactories already, more coming) to see positive demand shifts is a great position to be in.
I also think its important to realise both what we do not know, when will Russia/Ukraine situation ease significantly/end, how many shares the purchaser already controls, how much of any funds raised would actually get to SHs, what the reaction to a no vote would be.
&
What we do know (from articles) 75% of votes that are actually cast are needed for sale to happen (- I suspect purchasers success at present would rely on some non-voting), once sold KM is gone, once yes vote wins everything is out of our hands, if the sale is voted against we keep KM and have a chance to get better deal later (week later or 1 yr or 5 yrs), this is a time at which KM is valued by industry at the very low point of a range of fair value (& that FV was calculated at nickel prices much lower than now and a little goes along way with Ni price sensitivity), time value of money is an increasingly signifcant consideration due to very high inflation, cash balances are sufficient for amur to wait this situation out for quite a while yet, the likely buyer was always more likely to be non-western so current/prolonged western sanctions/attitude change has less effect on eventual sale/funding etc, current sanctioning doesn't include amur, there is current interest in acquiring KM and this was the case before the war too, the hard sell is being put forward by some to vote yes, Russia/Ukraine unrest will ease at some point, we get to find out the reaction to a no vote only if a no vote wins.
AIMO
Am not desperate as believe the majority of posters / holders are sensible and understand the position AMC are in.
A few months ago we were probably looking at a substantially better return and receipt structure of which we'd have all walked away fairly content. The Ukraine invasion has changed everything and does not look like resolving anytime soon. AMC are now out of time.
As an investor, it is about protecting capital. Those saying they would rather lose the lot than fund RYs salary for the next 10 years does not make sense to me. If it was not RY, it would simply be somebody else getting paid.
In number terms, $105m, less say $5m salary over the next 10 years = $100m.
Throwing away $100m because you don't like where the $5m is going is not a good investment strategy