Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Bricks
DB got a bargain price at 12.5 i was told at the time :-)
What we have learned here is that the SP invariably settles for a while at the discounted price...then drops so no one gets a bargain. What really happens is the BOD set a new value on the stock every time they discount a placing. would we now be at 4p if they hadn't placed at 5p when the SP was 9p ? the BOD are driving the SP...down.
Bricks come on do you really think DBA could buy the number of shares that they have received for 5p on the open market at 4.5p the SP would have gone through the roof you only have to see our insanely low volume to realize that - institutions like DBA buy on placements on the cheap they do not buy on the open market.
I may well be wrong T but if they get say £50k in stock at the end of 2022 they get £50k in stock and the price doesnt matter. It only matters if they get £50k in stock at todays price and the SP rises or falls over time..
Oh ok Chrisp….so if 5 p was a bargain price…..4p must be more of a bargain price with ur thinking.
Even on the JSE you can pick up shares now at the bargain bargain price of 4.5p.
So yes if 5p was a bargain price for DB then they must be very happy that had they waited a wee while longer they could have bought for basement bargain price …..lols. Have a nice day.
Highside - but if they all thought the asset was worthless, they wouldn't be taking stock, surely...
Personally, the higher the reward the more incentive they have to make this a success. I don't really have a problem with that when the alternative could be another raise and SP stagnation for the indefinite future...
Bottom line is we need at attract buyers for this stock to move the price
Lets see how the markets judge todays news at 4.30PM
T
"Taking stock instead of pay speaks loads in terms of BOD confidence in the asset"
Only if they take them at todays price or buy them in the market
If not there is no risk in getting £50k wages or £50k worth of stocks ?
If we ignore the fact that we haven't sold the asset yet, this latest RNS can only be good news:
- We are cutting costs (which should delay any immediate funding needs)
- Taking stock instead of pay speaks loads in terms of BOD confidence in the asset.
I'm happy with that, despite being underwater. Might even buy some more and average down.
GLA.
For me this is a positive RNS. From what I have seen directors tend to start to sell when the SP spikes for no reason and they start having there wages paid in shares when they feel that the huge value is not being reflected in the SP.
Bricks I disagree with you on DBA because IMO they were able to buy in at a bargain price of 5p which is the same price we consolidated on 18 months ago and if the SP stays at this price for another 6 months will be a bargain price for the directors. EUA were paid in share for work before the SP went through the roof.
This is the sort of RNS I was hoping for and hopefully there will be more good news on the resources and the possible partner within the next 6 months.
The BOD are increasing their stake in the company which is good news.
LR might as well have kept quiet oh well ill see where we this is in a few months tick tock tick tock
If shed would rather we look for something positive instead of commenting on whats laid before us..... :-) On the plus side today we have an RNS and the price hasn't dropped yet :-) that must be a first :-)
You are not really negating the cash requirement, you are just kicking the can down the road, This consolidated with 33.5m shares in issue. It already has 79m in issue and rising. The bottom line is your % of any payout is diminishing fast and any issue of more shares just speeds it up.
The BOD interests would be just as aligned with shares bought in the market as with additional shares issued.
I agree tsbs given that they have created less than zero value for shareholders I think straight pay cuts would have been more appropriate. Anyway I'm on the road soon so I'll leave the battle to be the most negative poster to the floor :)
It’s all a ploy just to ensure they are positioned prior to the value event. In fact I’m starting to think the value event did not fall through….they just bought time to position themselves better. Think about it…..
Why dont they just pay themselves when they have created shareholder value
that way no money goes out and no dilution occurs because theyve created f*** all
No because you are negating the cash requirement. It also shows a degree of confidence that the shares will have a value to make up their wages in the future and as Numptypi says it does bring them into line with us to an extent. Don't get me wrong I'm not pleased with this RNS but you can't say that paying them in shares isn't saving cash even though there will eventually be a dilutive effect, the extent of which will depend on the performance of the company.
Instead of issuing shares to pay wages which is just diluting us all even further why not use the 50% of wages to buy shares in the market ? I dont see issuing a couple of million more shares as saving anyone any money.
Call me cynical but..
"could potentially generate significant additional value for shareholders"
Surely additional value is in addition to value already created and there has been none.
Placing shares in lieu of wages is the same as placing shares to raise money to pay wages isn't it.?.
Well the ASK has been raised, even if no-one has made a trade... !
Initial thoughts, we wanted for bod and shareholder interests to be more aligned, well we’ve now got it, which is a good start.
Bricks there is no way of knowing exactly now as it will be calculated on the future monthly VWAP.
And thinking out aloud….the value event can now take place as they are both well positioned now whereas before they had little skin in the game. Makes me sick….watch this climb now.
yawn
See what I mean…..we don’t even know how many shares they are being issued in lieu of 50% of their salaries…..pathetic RNS and tbh this SP was most probably kept low so they could get more bang per buck knowing full well that they would do this.
Not the shake up I was hoping for but at least they must believe the shares will be worth something in 2023. The disappointment is that next to nothing is any clearer regarding the nuts and bolts of executing the strategy. Perhaps the only grain of information regarding other projects is that they are described as 'complimentary' which would make sense but even that's only because I am inferring that they might be related to the current project. It's a pretty thin RNS to be honest with more questions than answers again I'm afraid, no comment from the Chairman I notice.