Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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A gold miner may not have been taken back but they did take back a property in Sakhalin from either BP or Shell back in mid 2000s. They were however given a fair price for the asset.
Extract 'In contrast, attaining 100% control in a
takeover requires acceptances from at least 90% of the shares
subject to the offer (so as to be entitled to compulsorily acquire the
remaining shares) and attaining 100% control in a scheme of
arrangement requires approval from a majority in number
representing at least 75% in value of those target shareholders
who vote on the scheme (together with the court's approval) (see '
www careyolsen com/sites/default/files/Public%20mergers%20and%20acquisitions%20in%20Jersey%20overview.pdf
Yes they should and I'm not happy, just received the HGM letter regarding the take-over. Really unhappy about it.
It is the companies BOD to act in the best interests of ALL the shareholders, not just in the interests of a potential bidder. The BOD should disregard a threat made by any party in relation to its dividend policy. The Interim dividend is related to profits up to 30 June 20 {before any offer approach}, Fortiana appear to want to take credit for HGM profits from 31st March 20 without paying for it.
Thanks that's much clearer, so a static price here for at least 8 weeks and maybe end of year.
I think that results in leave a token amount here and move the rest. Shame about that.
Good luck all.
Thanks
As you say Au may base itself at this price but I think will continue to increase
My opinion on price taken from a few prognosticators such as
https://www.tfmetalsreport.com/blog/10291/silverdoctors
with FED policy setting negative real rates will be primary driver for price.
Also Ag price is really spectacular. This is where many years of price manipulation is ending, anyone looking at eg 5year Ag price can see results.
I have some exposure to both through Silver Wheaton , WPM on TSX royalty co's are doing very well.
I expected though,best growth to come from from smaller producers like HGM which has been a favourite of mine.
good luck all
Aventinus,
The RNS talks about the take-over happening in 2020 Q4.
That is Oct 1st to Dec 31st, so that is a minimum of 8 weeks.
The real question is how long will it take before we know whats happening?
As you say cannot lose on the price but could I be getting gains from another share when AU has gone through 2K?
Anyone been here before? Does this process normally resolve or clarify quickly or will this just flatline for weeks /months?
thanks
I think it would have been well over £3 before the offer, even £3.50, I find if difficult to accept (though I must) that our fellow shareholder that RNSed his selling didn't know of the offer (he's a Billionaire close associate of Roman A and associates according to information on the net).
Fortuitous coincidence for our buyer, only thing I can think of is it helped cap the SP.
IMO this should be £4 for a take out, it surprises me our big shareholders think £3 is OK.
This share would have risen to £3.50+ by now without this strange bid in place
All other miners flying today HOC is up 13 % at £3.15 a share. They were 80p not so long ago.
I think the stage is set for an activist investor to take a stake here. I think we could be in for the worlds most painful slow rally to £3.10 here.
Its not unusual to see a stock trading at a slight premium to a bid although its a bit different in this case. We can but hope the offer falls through.
yes where to go now.. I have some POLY.. at least it is already Russian owned so not likely to be 'repatriated'. I have some CEY.. I looked to buy more but look where they are ...Egypt??.. All ready for another Arab Spring or Autumn? The Muslim Brotherhood was elected in 2012..later overthrown by the current bloke..
There are these?
https://www.royalmint.com/invest/bullion/bullion-coins/gold-coins/sovereign-2020-gold-coin/
For sure, it’s a gamble. But it’s an interesting each-way bet underpinned by an offer at 300p per share. If the bid goes ahead, shareholders are looking at being taken out at 300p. However, they are yet to know what the acquirers intend to do with the business and there is also the possibility of an increase in the offer.
Should the Russian authorities block the bid, then the stock price is underpinned by the sharp rise in Gold prices from the point at which the bid was made (US$1958 per oz). If the deal falls through, I think it’s unlikely that the stock will fall in value. So, in my view, there seems little point in selling at a discount to the bid price.
Yeah we are now well behind in such engineering. compare
https://www.youtube.com/watch?v=l-U7s6KpKwg
to HS2 and weep.
Appreciate this offer is not quite being considered objectively.
Even the man on the street when offered 300p for giving them (currently c. 292p) for a week or two would probably see owning a slice of a gold mine on the lower end of the AISC scale (pre +2k gold! ) worth more than 8p. HGM aint a prospector and their form, this bid is a hard sell at the premium 'offered' looks a a bit bent to me.
Current plan for me is to ride out, appreciate its an opportunity cost on bailing elsewhere less questionable board decisions, but the current HGM even at 300 has a capped valuation, and if falls thru (unlikely) would anticipate a significant raise on the gold. Price, I've avg in for 200 so not much downside plus the hope of getting a gold mine not 8p at the end.... Have I missed something?
Think this is unlikely to move now up or down what to do with gold supercharged ? I think I should sell up and buy CEY or POLY for the divi was hoping it would rise back to £3 but with all the big boys selling not much chance for a while. Petropavlovsk is too risky at the moment for me Pure Gold not producing yet Greatland not even mining only drilling Pan Africa Covid risk in South Africa Sol gold , TSG and AAZ possibilities but already in them.But with gold heading north at breakneck speed I need to move on.
Couldnt help but notice in the Zero Hedge piece '''.. in 2015, China pledged to invest $5.8 billion in the construction of the Moscow-Kazan High Speed Railway. The railway will be extended to China, connecting the two countries through Kazakhstan. The total cost of the Moscow-Kazan high speed railroad project is $21.4 billion.'' Driving distance from Kazan to Moscow is 809 kilometers (503 miles)
AND HOW MUCH IS HSR2 costing us??
''The government initially estimated that HS2 would cost £37.5bn in 2009 prices.''
The latest estimate from HS2 Ltd – the non-departmental public body responsible for building the line – found that the cost of HS2 is likely to be between £72.1bn and £78.4bn in 2015 prices. The cost of HS2 has increased in real terms, faster than increases in economy-wide prices.''
''Lord Berkeley, the deputy chair of the independent Oakervee review into HS2, published a dissenting report which argued that the final costs of HS2 will rise again, this time up to £110bn (2015 prices).''
https://www.instituteforgovernment.org.uk/explainers/high-speed-2-costs
That £100bn figure is a rounded number, but precision on costs has never been a hallmark of HS2. When approval was granted in 2010, the budget was put at £30bn. That quickly become £43bn.
Every escalation in costs has dented the economic case for HS2 – £106bn equates to an astonishing £307m per mile to build 345 miles of high-speed track. https://www.theguardian.com/uk-news/2020/feb/03/at-307m-per-mile-of-track-can-the-cost-of-hs2-be-justified
And our politicians say Russia..''Tom Tugendhat MP, the chair of the foreign affairs select committee, has said the Russian state has been “taken hostage by a mafia gang”. CityAM
Well their mafia could learn a thing or two from our mafia!
PS ''Classified US-UK trade documents were “stolen” from former trade minister Liam Fox’s email account by Russian hackers, according to reports. ''.. He probably left them on the bus..
No wonder we are getting the shaft from Russia!
I would suggest that whether it is legal or not is irrelevant!
The entire BoD is in Fortiana's pocket. If Fortiana request them not to issue any dividends in that period, then no dividends will be paid. Remember Fortiana have yet to appoint a new board, if and when they complete their takeover. Any director opposing them is guaranteed to not be considered.
Stating that any dividends paid will reduce the offer price will I am sure persuade some shareholders that there is little point hanging on, but I am not sure that it is illegal to insert such a clause. I am sure that I have seen similar statements in other takeovers. However, these wee formal offers. Fortiana have not made a formal offer yet, so they may not have the right to apply this price reduction until they do.
However, as I said - it is extremely unlikely that the current board will oppose Fortiana.
https://www.kitco.com/charts/livegold.html
2,005.40 Bid
2,006.40 Ask
High: 2,010.50
Low: 1,968.80
+27.70 +1.40%
The buyer has said they will reduce any offer by any amount paid in dividends before the deal completes.
I suspect that is not legal not legal to reduce their offer if a dividend is paid, they have to offer the same price for the shares as those that have already sold.
Of course I'm no expert but perhaps they've stated that intent at the outset to crush any expectations (no reason to hold) - but supposedly they have no control over the company and the offer is mandatory at the maximum already paid and if not happy they can withdraw their interest. Also could their statement be considered a coercion to sell and recent sellers intimidated ?
From RNS "· If any dividend or other distribution is authorised, declared, made or paid in respect of Highland Gold Shares on or after the date of this Announcement, Fortiana reserves the right to reduce the offer consideration by the aggregate amount of such dividend or other distribution."
Hi
I tend to agree with your view on the russian economy vs the prevalent"disaster movie" theme commonly pushed out.
I just spotted this link this AM and may be of interest to both
https://www.zerohedge.com/economics/shaping-eurasia-russia-china-bilateral-trade-and-cooperation
as a PS I'm really ****ed off with this takeover idea as I see the potential for this share in particular to be great. The difference of Au selling price is about 25% higher and all going to the bottom line.
They will likely throw what they can at this to keep it down so the takeover looks good value. Be interesting to see them hold it if POG rallies much above $2000 !
What are you talking about ? Trading is normal, someone is mopping up the cheap shares being dumped - 2.5%+ upside will be seem as a good low risk option to park some funds by some IIs I suspect.
Is trading suspended for a takeover ??