Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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Afternoon shipmates,
Apologies if this has been done to death in the past...my work keeps me from staying up to date with every conversation on this fantastic bb unfortunately.
Say that the bidding parties are only interested in MT as the strategic resource, and subsequently only buy that particular asset (i.e. not the entirety of EUA) - how would that reflect for shareholders? Is the opinion that we would receive a special divi, or would the expense paid for MT simply be reflected in the EUA share price?
As I mused yesterday, I only have a basic understanding of M&A so any insight would be welcome.
Good weekend to all.
The recent announcements have put the option of only selling MT back on the table. This is what I believe the BoD wanted in the first place. They can get a good cash injection and still keep their jobs and hopefully make considerably more money in the future. Selling MT would provide a lot of cash and the BoD would probably choose to put most of it into a special dividend, leaving some for future development. It also provides the opportunity of taking part in cash now and deferring some payment to later. This would provide a larger total amount paid, and would probably be the best for all parties.
I believe that Dimitri would want 50p in cash dividend as he is in at 5p.
3 points I can immediately find that point to a partial sale outcome:
1. "A number of inbound expressions of interest from multiple parties interested in acquiring all of or a stake in its assets", specifically "all of or a stake in" is crucial. The BoD is telling us that some parties are only interested in MT.
2. The role of UBS is defined as "including asset sales or a sale of the Company". Again, EUA directly stating hat some parties are only interested in MT.
3. Finally, quoting CS, "which could result in a sale of assets or the Company".
I think there may be a perception that the sale of the whole company is a certainty - it certainly isn't. We may well face the sale of MT only, and I don't yet fully understand what that would look like for LTHs and the SP. My fear would be that upon announcement of a partial sale, the SP could take a dive as traders pull out - but I don't know, it's just a guess.
Personally, as previously stated, I certainly prefer a whole company sale for cash, not a cash and shares combination nor a sale of a singular asset.
Siblogs, they're just general cavets that are put in just like 'the bod cannot guarantee that this may lead to a sale' (or lines to that affect) just to cover themselves. I personally believe it will be a full company sale, well, that's what I'm hoping for. GL
Or they may sell WK and MT, which would leave the gold tailings project, but as gold price increases the gold tailings projects also starts to look a little more appetising -
"If the Company was to dispose of both of its Assets, then AIM Rule 15 (Fundamental Changes of Business) would apply. Such a disposal would require shareholders' consent, an announcement which contains the information set out in Schedule Four to the AIM Rules; and be accompanied by a circular containing the details of the disposal and convening a general meeting to approve it."
https://www.lse.co.uk/rns/EUA/engagement-with-citic-and-vtb-capital-9jxlv98khqhae4b.html
GLA
Current S.A problems would suggest WK and MT will go imho
GLA
The small and quiet horse, no one mentions -
"SEMENOVSKY TAILINGS PROJECT
The Company has been focussed on developing its two key assets at Monchetundra and West Kytlim through 2019 to date, however maintains an active interest in the non-core Semenovsky Tailings Project, with a view to further developing this interest in due course. In early 2020 a technological test was carried out to determine the applicability of a patented metallurgical process to Semenovsky ores - with positive results. Separately, the Company is considering a further alternative metallurgical process which may be applicable to the tailings at Semenovsky."
Gold price forecast only to rise at the moment.
GLA
Will it challenge palladium, or will palladium stay dominant?
https://www.apmex.com/gold-price
GLA
Gecko - That's a bit out of hand, quite frankly no need to be rude over a genuine question asked on a public bb. We're all here for the same reason.
Cheemap - Thank you, that's good to know.
Mac - Touché on WK. Semenovsky is one that caught my eye, that set me out on this train of thought... would our buyers be interested? I think the SA problems will only be short term (in the grand scheme of things) so unsure how much that would effect the desirability of our current resource, but I do agree it may provide a positive angle at the current time.
Here he comes, the little horse Semenovsky on the outside -
"Total of 3,206 kg of gold in place , 43.2 tonnes of Silver."
https://www.eurasiamining.co.uk/operations/semenovsky
GLA
Very quick maths unless I’ve got it wrong days around $200M of gold alone.
Gecko - Thank you, but not a few face. Been invested here since Nov last year and have been a semi-regular poster on this BB since.
No agenda, the root of this discussion leads to my contemplaton of investing much more here, and consequently significantly raising my average - hence why I asked for some opinions to aid my decision making process.
Low cost and fast to extract as it's tailings, so there's a little value to be added from the project that may have been over looked due to the presence of the all mighty MT asset, and rapidly growing WK producer.
GLA
Sibyle rocking up here with your top 3 insights & then saying if it's only mt sale the sp will collapse indicates to me yer a c**k with no balls.
As for the arrival of Sam & co it was inevitable as they invest based on the riser board, one tree shake will see cry across the bb of "I'M OUT" in an attempt to cause a collapse in sp, best off in a green coffin.
Cal - thanks for your insight.
Wolster - You're clearly a top bloke. Lots of mates I imagine. My earlier use of "I don't know, it's just a guess" counters your unsatisfactory argument.
I'll remind you that the board is for investor discussion, I can't believe I'm having to defend myself while trying to understand and learn about the various possibilities... check my posting history, I've been around here long enough
You clearly haven't as saying the sp will fall on a mt sale when we r 17p = brainless.
Do some research b4 posts about a sp collapse.
Brilliant...