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from Robbing Young!
IMHO AMC as an explorer would never have taken the Kun-Marie project past the TEO/BFS stage before putting a big FOR SALE sign up. The BOD and RY do not and would never get the skills to get funding and move this to production. I thought that a fair value at that stage would be upto a MCAP of £250 million. A x10 of today. That was a dream but would have thought a x5 realistic. A £100 million cash offer at this stage given the current situation would be fair (?).
The problem is that the BOD have taken far too long to get to this stage.
Normally I would agree that the company sells and then buys another prospect, however, with RY’s advancing years I believe he’s just using this as a lifestyle option.
We need a realistic fair value in cash, wind up the company and pay the shareholders.
Roger, you’ve got to keep in mind that sanctions have yet to have full impact on Russia economically and there are various proposals being discussed to reduce reliance on Russian resources going forward. Waiting 12-24 months could mean assets in Russia are even less attractive than they are now.
Unfortunately, we’re in the unfortunate position of either accepting this less than favourable (but still positive) deal or gambling in the hope for a better outcome.
Finally, doesnt matter whether you vote for or against - wont make an iota of difference - we are doomed in this share. C'est la vie , we live and learn
RY & co have demonstrated that they hold shareholders in complete disdain. He would, otherwise, never have agreed to this woeful deal especially that stretches over 10 years, knowing well by the end all the shareholders will exit and take their losses. He could've taken the whole lot at 7p and closed the company. There will no further bidders (as alluded by some). One lesson learnt, never again Russia or china or any other where the word corporate governance is an alien terminology.
Well done RY - you've done us proud. Enjoy retirement with a clear conscience :-)
agree roger65, I say wait and see what happens when the war is over.
Russia's economy will be shattered by sanctions and in need of foreign currency.
Does anyone know how is the vote cascaded to share holders im with Hargreaves will it come from them?
I thought the original offer was just to test the water and there would be a sweetener.
Now this a war in full swing, Spiv obviously thinks he can get us for even less.
I doubt there will be a counter offer from another party. If you watch the Panorama on Abramovich you will know that that is not how it works in Russia.
So many unanswered question, why was Habib ousted? what about the grants, tax breaks and loans? where is the TEO we paid for?
You can call whatever you want Lucando, I have always been 100% transparent with my holding and purchases here.
For clarity, it is presently circa 15m shares at an average of just over 1.7p.
A few years ago I held circa 1.5m @ an average of circa 7p but was fortunate to be in the position to add heavily in the low 1's.
I therefore get the frustration of PIs with higher averages who will lose out if this deal passes, with the adage of high risk, high reward not occurring here.
As for always supporting the BOD, that is simply not true. I have been critical of them and taken action when I felt it appropriate.
But yes, as things stand at the moment I intend to vote yes and hope that a counter bid arrives. My reasoning is as follows.
- The mine plan is due next year and I can't see how we can get to it without a sizeable cash raise, which must be practically impossible now. Missing it would likely lose our licence.
- If a counter offer does not materialize, then it's clear just how little appetite there is for our mine.
As to the future strategy of AMC, It seems a little wooly to me and so I intend to email some questions across in the next day or so.
I am extremely disappointed in the price, but believe the outcome of a no vote and no other bidders would be catastrophic.
Moneymaker - if the curret geo political situation is so damaging to any deal then why not simply wait for anther 6 - 12 months or even 24 months for things to improve and hopefully peace be restored. Markets will correct and adapt to the new situation and then AMC could be sold for more. Why sell now at the worst possible time? Better to shut up shop and just keep the lights on than go for this route.
RY has hardly proved to be trustworthy or capable of taking the proposed funds and creating a success elsewhere! He's a career AIM operator and has imho no intention of ever doing anything other than making himself rich. He's a smoke and mirrors specialist - only he's not even very good at that.
Agreed even
Agrred
Problem is half the $25m will go in the bods pockets.
Not sure but if memory serves me right it's 50% for an outright purchase offer but higher if it's a scheme arrangement, such as has been tabled this morning. I think the higher vote required to approve this deal is 75%. Happy to be corrected.
I think now the deal is out in the open there may well be others who will come to the table as it's not difficult to improve on this deal. Potanin may be watching with interest and now he knows what he's up against, swoop in and offer $75m outright and have it done and dusted in 2 months. He may also want to buy AMC outright - fine by me - and in which case the BOD could not decide how the purchase price was dished out. It would be a straight forward pay out to share holders. Because RY and others don't have large holdings in AMC I think this is why they've agreed to such an appalling plan. It allows them to syphon off chunks of money over a long period of time and distribute the payments how they see fit ie into their own pockets and offer share holders almost nothing. It's AIM and it's a scam. I took my chance buying into this and am of course now regretting it. I should have seen the writing on the wall (in fact i think i did) when the sp only reached 3 - 4p when the original possible deal was announced. If it looks like a rat and smells like a rat then it's most likely ...a rat!
Robin Young in my personal view is a well dodgy wide boy and should be investigated as he's clearly not operating in the interests of share holders and in this RNS is now trying to intimidate share holders into accepting this deal by suggesting AMC can't afford to take it forward without dilution and fund raises. That is probably true but...the deal he has proposed is designed to benefit himself and other Directors over a period of 15 years and circumnavigate the need (or at best minimise) to make payments to ordinary share holders. He hopes for a regular decent payout and that ordinary share holders will give up and sell shares at a loss, which he may well decide to pick up once the sp is well and truly on the floor.
It's a rat. And a big one!
He's on the telegram group supporting the deal. He is a joke, been supportive of the BOD the whole time and never seen a thing wrong despite it staring him and us straight in the face. A dangerous and disingenuous individual. Claims to have over 8 million shares. I call bull**** on that
You’ve got to remember that the the company will have $25m within 10 months of the SPA. That’s a considerable sum to acquire and develop another project elsewhere. AMC cannot and will not take Kun-Manie any further itself. Holding on to it does have a dilutive risk, as the company needs funds to “keep the lights on”. Plus, with the current geo-political issues, Kun-Manie isn’t as attractive as it may have been 6-months ago.
Whilst the structure of the deal isn’t great, it’s still a positive one. You down want to cut your nose off to spite your face by voting down the deal.
I personally won’t be voting as I’m on the fence about it, but I do feel that voting it down poses a high level of risk, just on the pure hope that something better comes along.
As I recall, the BoD never held much in the way of shares, so the possibility to vote this dreadful deal down is definitely there. If we need a new Chief Exec, I'll do it for nothing except the expenses required to get a good deal now for the whole company, rather than an asset sale that keeps snouts in the trough for years at our expense.Tr1ck
'6p sale, dragged over 15 years'
What percentage of the vote is needed to approve this deal?
"a 6p sale, dragged over 10 years" that shareholders may not see a penny of
Roger65, I for once agree with you too :-)
A 'No' vote is probably the best way forward for the PI's, yes the SP may fall further, but can it it fall any further? I mean, even right now, its below 2p, its almost as if the markets don't believe this mornings RNS.
My fear is 'No' goes thru, at that point the shareholders would expect the BOD would to try and fight for a better deal, however, with RY at the helm, what are the chances of that happening?
At worse, it could be back to BAU, draw on the salaries, and drag this saga for another 5-10 years.
Like I have said many times, this is the most inept, useless BOD good for nothing, they should be investigated and class action brought against them.
PS. This is the real reason why the TEO has never seen light of day, numbers in it probably don't justify a 6p sale, dragged over 10 years
Kammy
I sincerely doubt his intentions regarding Amur.
I am voting this deal down, however, that said, I cannot see the deal not going through. I also don't see another deal forthcoming. a lot of time has been spent on this deal. If someone else wanted to buy, they could have approached AMC back in January/ February following the rns on 25.01 when we were told a deal was being worked on!
My opinion only but then again, I have been wrong many times before.
Robin, if you are reading this, which I know you do, just wants to say thanks for ROBBING us!
Please can we NOT have a list OR say the number of shares we hold and what way we vote.
We don't what to let the other side know how many votes they need to vote a yes or a no to go through.
If a 'no' vote went through then the sp would fall further and RY and co would have to go back to the negotiating table and either come up with something much improved or they just go back to what they were doing before ie nothing. Far too much time and effort for them and potential buyers to go through everything again and come back with a slightly better offer as that would most likely be voted down too.
Only have 850k shares but will vote no. Would be happy with an exit price of 4p too. Fell sorry for those with higher averages.