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NMC Health… Indian involvement… fraud… sent monies to India via their related company that did money transfers. Shareholders lost the lost, company went bust, creditors took over.
Spade - “If my aunty had balls, she’d be my uncle” !
Remind me to tell you the one about my Auntie Sheila if we get the opportunity to meet at some knees-up celebrating our new found wealth sometime in the near future.
Lend a billion at a decent rate - mmmm I tink I know someone who would do that.
Colossi.
I doubt it’ll come to blows between the colossae of the mining worlds.
Https://www.proactiveinvestors.co.uk/companies/news/13364/northern-star-resources-swoops-on-paulsens-gold-mine-16305.html
It’s been done before and it’s been posted before,although most are and were already well aware. Achieving the “tall order” is what the “heavyweight board” are here for.
While we wait, just for fun in the first paragraph substitute Greatland Gold for Northern Star and Telfer for Paulsens and imagine. You may say I’m a dreamer but I’m not the only one.
GLA
However you look at it, any immediate challenge for Greatland, whatever might occur around Newmont divestment, is getting to mining, with the means to process the ore and get cash in to support mine development and exploration.
Thanks Speedy!
Was just concerned that we may be forced to give up some of our holding (after my parents' prior experience with certain Utility Companies).
I was also invested in a company called Essa Oil & Gas (some years back now) whereby the owners (the billionaire Ruia Brothers) initially IPO'd the company at north of £5 only to force shareholders to sell their shares back to them at around 40p some years later, having intentionally driven the price down over that period.
Many (including institutional investors) lost a fortune (I made a a modest profit of £400 having been late to the party) but as such I will never invest in anything with Indian involvement again (even more so after the recent sh8t show at Shanta Gold, where investors have basically been robbed, as all engineered by Ketan Patel!!)
Hi Culpepper. Just looking to the future. ATB Speedy
Hi Charter. HELLO, HELlo, HEllo, Hello. ATB Speedy
I wouldn’t worry about it. Greatland potentially are looking at fund raising, not spending in the foreseeable future on buybacks and dividends.
I think there's an echo on this board, lol! :)
Hi Matty. The stock purchased in a buy back are from open market, no one is forced to sell. Buying back reduces the stock in circulation therefor increasing value whilst reducing stock available to buyers so also increasing price asked. Some would argue "what about my divis?" My stance on dividends is no thank you. Divis only give you your own money back and reduce Co value. Divis to me are showing that a Co has run out of ways to spend profits so has reached max potential. If income is needed just sell a few shares is my view. ATB Speedy
Matty,
The company appoints a broker to buy them back in the open market, not from you or me. They will announce it via an RNs that they're commencing a buyback of "£XXXX" amount and the broker will fill that order over a period of months or even a year.
If the shares are held in treasury then it won't have any effect on the sp. If the shares are cancelled it will increase the value of shares outstanding my the requisite amount.
Have a look at some of the bigger FTSE 100 companies, they do it all the time.
Also, it cuts down on admin costs and increases dividends going forward to shareholders (if dividends are in payment).
Hope that helps.
Rex
Sorry to appear somewhat dumb, but how does a 'share buy back' work'?
In the event of one taking place are we then forced to relinquish some of our current shares at the price offered and how does that impact upon the overall value of that holding?
I know that when I was much younger my parents would often complain that it seemed that whenever one of their stocks dropped in price it started to appear that they were then forced to sell some of their shares for less than they might be worth in the future (Utility companies mainly from memory).
Thanks in advance.
Hi SAS. I have seen many many Cos fail due to too much debt. Taking loans with discounted rates only to be sent into insolvency when higher rates make servicing impossible. This is not really a problem for GGP, if debt is the route, as the loan should only be short term, but best to be cautious.
Higher rates are a headwind for the POG but there are so many other tailwinds that the direction for the POG is much higher from here. ATB Speedy
On price of gold, one might consider that the original bank prospective lenders, also subject to FS criteria, required some gold price hedging to protect repayments. I can easily imagine similar requirements for more cash from them. It should not prove onerous during full production.
Morning Speedie, I concur with what you say regarding the POG, and hopefully making greater profits once producing. But what I was disagreeing with, was your mention of possible interest rate rises, which of course would burden us if they were to ever happen.
All I was trying to say was that even if they did increase, then just as folk shop about for a cheaper mortgage deal, then so do businesses, or at least they will try to negotiate with their current lender a better deal. Upto now I don’t know the terms of which the borrowing was undertaken, whether it was at a fixed or variable rate, but one thing I do know, is, if the POG remains at this price or as you and many believe, goes onto new ATH’s, then it shouldn’t really make any difference if the interest rate does increase a couple of percentage points, as gold will have risen a whole lot more.
Hope that clears up why I posted what I did. It wasn’t because I was having a dig, as for the many post you write I agree with. It was just your mentioning of possible interest rate rises continuing, that I took umbrage at.
ATB
It’s pretty apparent that a good result for acquisitions and up to 100% capex for more than the market cap for a company with no cash to speak of and no income, would be to get the cash and pay for it after commercial production occurs. It’s maybe a tall order.
The ‘heavyweight’ board has work to do.
Hi SAS. You need to screw your neck back in. This is just a debate about the possible funding routes that SD could take and at no time are we painting a bleak picture. I am convinced that gold is going higher thereby increasing profits when producing but we are not yet producing and will need funds to buy back the farm. Not much else to discuss at the moment while we wait for news. ATB Speedy
Newmont are an example, mentioned in Q and A’s. Reduce debt by these divestments, and improve shareholders eps by 1bn. dollar buyback ( though I think that latter may still be under review )
Share buy backs are a multi faceted tactic.
It reduces the number of shares in issue. This should recalculate the value by spreading the same market cap over a lesser number of shares.
It uses some profit that would otherwise be available for dividends/investment in the business. This is tempered by the expected increase in value of the remaining shares.
I do not have enough knowledge to gauge if there is any tax benefit (or cost) to the company, but for PI's it will exchange some (taxable) dividend income for (only taxable if realised) capital gains.
It may have an effect on liquidity. Assuming that the II's generally see buybacks as positive and hold onto (even increase) their holdings, then the buybacks have to come from the market, thereby reducing the number of shares in the (more liquid) pool of private investors. This, in turn, can feed into increased value. Of course, if the company can negotiate a block purchase from an II, then this may well increase liquidity and reduce value.
Consideration should be given for a consolidation before a buyback scheme is implemented.
Generally, I would love a defined buyback scheme being introduced. it would encourage me to (at least) hold and likely to increase my holding.
Can’t see the fuss. Authorities renewed at AGMs. Won’t have anything to do with terms on which any funding is raised, though there for later use if appropriate. In passing, it’s about the only way shareholders can own a bigger slice of the company without buying more shares - something Mr. Day may have been alluding to at one of the town halls which I think caused minor confusion on here.
Further to my previous. Before the naysayers get in with their doom and gloom.
I indicated that the SP should increase as the buyback is performed in order to reflect the increasing share proportional holding for the same MCAP. I do recognise that as the cash is reduce to perform the buyback then the MCAP should also reduce and therefore, the buyback should be SP neutral.
However, the buyback will likely reduce free float and therefore improve strength of demand abd it will also improve the future dividend per share..
ATB RA
Sorry "by dumping " 😲
China is the big buyer of gold right now buy dumping US debt and buying gold .
As long as gold continues to climb or stay at these levels , then Greatland's share price will catch up at some point 👉 👈 ! I'm holding right the way though this journey ! Good luck folks 👍 DYOR etc., etc..
https://www.fxstreet.com/analysis/china-is-dumping-us-treasuries-and-buying-gold-202404212302