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Started: LordWales, 9 Nov 2020 09:58
Last post: kenj, 19 Dec 2020 12:44
Just re-read you post LordWales.
You will have problems selling these shares to anyone, if you no longer have the share certificates. I hope you sent them registered and signed for delivery. There are different insurance levels depending on which postage method you selected. If you simply popped them in an envelope with a first class stamp, then the Post Office will take no responsibility at all.
Hopefully they are just delayed in the Christmas rush.
LordWales,
I have never been in this position, but as far as I know, you will need the company to buy them back from you, as there is no market trading HGM shares anymore. I would not expect you will be offered the 300p buy out price though.
Google "how do you sell privately listed shares" as a start. Good luck.
Got application form and sent off to Computershare with share certificate after being told would be accepted ‘a few days late. I rang them on 07/12/2020 and was told they could not locate but I would be contacted when found. I have received email today they cannot find application.
Does anyone know what I can do now?
do you have the contact of that company please
Hi LordWales,
I hope that your application made it in time, as these shares are not tradeable on the market anymore. This board has been dead for a while as most investors had either sold out or accepted the offer, which is why I guess your post went unanswered for over a week. If you find yourself in a similar position in the future, full details of a company's offerings can usually be found on the company's website.
Started: sosopodgy, 20 Oct 2020 15:50
Last post: Jetcom, 21 Oct 2020 11:17
The cancellation of the admission of Highland Gold Shares to trading on AIM will significantly reduce the liquidity and marketability of any Highland Gold Shares in respect of which the Offer has not been accepted. Any remaining Highland Gold Shareholders will become minority shareholders in a majority controlled company and will likely therefore be unable to sell their Highland Gold Shares. There can be no certainty that such minority Highland Gold Shareholders would again be offered an opportunity to sell their Highland Gold Shares on terms which are equivalent to or no less advantageous than those under the Offer.
Settlement of cash consideration
As detailed in the Offer Document, settlement of cash consideration to which any Shareholder is entitled under the Offer will be effected:
· in the case of acceptances received, valid and complete to date, promptly following this announcement; and
· in the case of acceptances received, valid and complete in all respects after this date but whilst the Offer remains open for acceptance, promptly following receipt of such acceptance.
Appears very quiet here. I have accepted the offer too, and now have no idea when the payment will be in my account. Anyone able to offer some news on this please?
Started: gwm121, 2 Sep 2020 12:18
Last post: CHEATED, 17 Oct 2020 12:06
I have accepted their offer. Anybody got a notion about payment date?
Hi Petra I too would welcome any thoughts on what to do. There have been a lot of RNSs concerning what institutional holders are up to. It seems that they may be selling and buying CFDs as a means of benefitting from any further upside.
Deadline is looming, but I'm still undecided and HGM is my biggest holding.
Petra53,
You can sell now for around 299p or wait for the formal offer to buy your shares for 300p, which should be made in the next 2 or 3 weeks.
Alternatively you could choose to keep your shares, and reject the 300p per share offer. However, Fortiana have a controlling interest and look to be after complete control and ownership, and could take the company private later.
See warning below from the original RNS.
"The Condition (which relates to the threshold of acceptances needed for the Offer to become unconditional) is set at not less than 50 per cent.. If the FAS Pre-Condition is satisfied, Fortiana will acquire interests over 40 per cent. of the Highland Gold Shares pursuant to the Acquisition, requiring only a relatively small number of Independent Highland Gold Shareholders to accept the Offer to satisfy the Condition. Fortiana would then have control over the Highland Gold Group and the trading in Highland Gold Shares may become increasingly illiquid. If Fortiana acquires interests in excess of 75 per cent. of the share capital of Highland Gold, Fortiana may seek to terminate the admission of the Highland Gold Shares to trading on AIM, thereby further reducing liquidity."
Any knowledgeable people got any advice on the best way forward, sell or hold. What is likely to happen if you hold onto your shares?
What Now?
Is there any chance of the divi being kept by shareholders not taken off distribution at end? Would we be infomed.
Is this finalized now at £3, or is there a chance of another offer or rejection
If its finished at £3 in the future may as well pay £10 to sell, forgo profit of 294 to 300 (0.5%) and put into a producing gold minor with a good chance of more than this.
Started: kenj, 18 Sep 2020 13:03
Last post: proctalgia, 23 Sep 2020 09:10
price now just over 3 pounds
From yesterdays RNS:
"Fortiana is pleased to announce that, today, FAS has granted regulatory clearance in connection with the Offer. Accordingly, the pre-condition to the Offer has now been satisfied and the offer document containing the terms of the Offer will be posted to Highland Gold Shareholders as soon as practicable and in any event within 28 days of the date of this announcement."
It's now a done deal, which probably explains why the sp has risen in the last couple of days.
Started: gwm121, 10 Sep 2020 09:51
Last post: gwm121, 10 Sep 2020 09:51
highland gold brokers
01534814 202 ... then 01534 847 000
refered to 0871 664 0300
then refered to different compant 01534 814 814 refered to 01534 507 000 and 01534 507 152
these last 3 numbers work, they inform that..
hgm are not declaring a divi this sept oct as last year
the 300p offer will be completed in last quarter 2020
If you hold for this 2 months or so you gain 2 percent.
At present selftrade cant sell any amount on line, but no problem to sell up to 60k by tel.
Shame another offer didnt come in, 300p is lowball imo and u will find it hard to replicate this rising divi
imo poly pur ggp aau fres woth a look
Started: gwm121, 8 Sep 2020 15:03
Last post: gwm121, 8 Sep 2020 15:03
selfrade my brokers said there was nothing on record re taking back divi when 300 paid
sekftrade said 300 due to be paid sometime in last quarter 2020
if held till then present price 294, offer 300, thats 2 percent guaranteed for holding for a couple of months, four times a savings account for a whole year.
Anyone got any better dates of info, and any hard facts that they can take back a divi paid by the company
TrekMadone,
They can cover with their own long position if they wish, but it is just that a bet.
What spread betting Co in its right mind allows a long to be increased at 294 when the t/o is agreed a £3? Madness!
Trek
Started: Auson, 11 Aug 2020 11:41
Last post: Auson, 23 Aug 2020 17:12
ptitbru,
This is only my take / understanding on things. The 50% + shareholder approval for the offer of 300p looks like it has been reached so Fortiana will make the offer for all the shares ( subject to Russian regulatory approval ) They need 75% of shareholders to agree to sell so they can forcibly buy the remaining 25%. If they don't get the 75% and someone wants to throw a spanner in the works I guess then thats when things could get really interesting.
Thank you Auson, Do you except this take over to be successful? I m personally not happy with the offer.
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
Started: ownthingowntime, 19 Aug 2020 16:07
Last post: ownthingowntime, 19 Aug 2020 16:07
I would have very much liked to have held HGM for the long term, and my understanding of the £3 cash offer is that it is just that, an offer, which I could choose not to accept and therefore continue to hold HGM. In making that decision my attention turns to whom I would be getting into bed with in the form of the new controlling shareholder.
RNS 7345U: "Fortiana is a Cyprus registered company majority controlled by Vladislav Sviblov and is part of his wider business interests in the metals and mining industry. Vladislav Sviblov is Chief Executive Officer and majority shareholder of Ozernaya Mining Company which is developing a prominent zinc-lead deposit in the Buryatia region of eastern Siberia in Russia."
Does anyone have any insight into Vladislav Sviblov, good or bad? I'm struggling to find much of a career history for him and have no idea how he came to be so wealthy. The fact that he makes his acquisition as the beneficial owner of a Cypriot vehicle incorporated in 2019 doesn't help to shed any light. Ozernaya Mining Company seems pretty small.
Started: Weredoomed, 15 Aug 2020 22:59
Last post: Weredoomed, 15 Aug 2020 22:59
Started: bleary-eyed, 7 Aug 2020 20:47
Last post: drunkinftl, 11 Aug 2020 17:13
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.
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.
Started: dullard, 5 Aug 2020 10:56
Last post: Aventinus, 7 Aug 2020 10:09
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
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.
Started: Bingobongo, 4 Aug 2020 23:05
Last post: jointhedots, 5 Aug 2020 19:51
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/
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.
Started: jointhedots, 1 Aug 2020 11:36
Last post: Aventinus, 5 Aug 2020 10:59
Yeah we are now well behind in such engineering. compare
https://www.youtube.com/watch?v=l-U7s6KpKwg
to HS2 and weep.
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!
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.
Of course you couldve given those links yesterday I cannot understand anyone accepting a statement made by a commenter without it being backed.
..Katusa sounds desperate..that Kitco piece was 3 months ago.. a lot has happened in 3 months.. the Ffitch report is 4 months old.. The Outlook changes reflect the pressure on banks' financial profiles from the coronavirus outbreak, lower oil prices and the resulting economic downturn.''.
The coronavirus is not as serious in Russia as it is in the US..the oil price has bounced from nigh on $0 to $40..and economic downturn.. the US is in bigger trouble. The US trade decicit has turned down again and is over half a trillion dollars. Why will other nations continue accept US IOUs?
Goldman Sachs..just last week.. ''Goldman Sachs Group Inc. put a spotlight on the suddenly growing concern over inflation in the U.S. by issuing a bold warning Tuesday that the dollar is in danger of losing its status as the world’s reserve currency.
With Congress closing in on another round of fiscal stimulus to shore up the pandemic-ravaged economy, and the Federal Reserve having already swelled its balance sheet by about $2.8 trillion this year, Goldman strategists cautioned that U.S. policy is triggering currency “debasement fears” that could end the dollar’s reign as the dominant force in global foreign-exchange markets.''
For Goldman to even hint at this... is a warning? and a worry because if the dollar is on its way out the death throes will cause big global disrupotion...from relyimng on the dollar. The Russians & Chinese have been de dollarising. I wonder if the Chinese who used to hold trillion+ in US debt have probably been dumping it for quite sometime!
Now as the election nears will Trump stop handing out cash to voters who can't work?
What does Russia need dollars for.. they are not buying anything from the US.. The gold that the Russian government buys is produced in Russia, backing up the currency!
As for Russian Banks if they are in trouble... thats up to their depositors & shareholders! I dont know what responsibility the Russian government has.
''..Russian strength comes from Russian propaganda..'' What Russian propaganda?
Or is this a continuence of Russian meddling in UK elections etc... none of which has been proven..
Maybe you can provide some proof of Russian meddling & propaganda!
Started: jointhedots, 4 Aug 2020 20:04
Last post: kenj, 4 Aug 2020 21:12
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.
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."
Started: drunkinftl, 4 Aug 2020 21:11
Last post: drunkinftl, 4 Aug 2020 21:11
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%
Started: John_james, 4 Aug 2020 09:03
Last post: Auson, 4 Aug 2020 11:45
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 ??
Started: jointhedots, 3 Aug 2020 16:55
Last post: jointhedots, 4 Aug 2020 08:29
kenj - thanks for helping put everyone in the picture and accepting I was not wholly wrong.
Perhaps. I can now explain why I'm labouring this, it's not because I'm hopeful or wearing rosy coloured specs, I agree with you and I think it is almost certain the £3 deal will go through.
However, the key word is "almost sure", I've been in takeover many times in various sectors and unless someone kicks off against it, it simply either fails or sails through if they've got the money - the interesting bit is when a rival bid or someone with a blocking share steps in. Hence my suggestion rushing for the exit door may be a little premature when an offer isn't even on the table and no opinion/advice from a trustworthy source. For me there's no rush
Sorry Jointhedots, much of what you said was right.
Small shareholders cannot be forced to sell, but they would have no further say in how the company is run; Fortiana would have complete control. The shares may well be in limbo and become difficult to trade. And who wants to hold shares with a BoD that is trying to eject it's shareholders and de-list?
Apologies, there were a couple of errors in my last post!
The use of the word MANDATORY refers to Fortiana having to make an offer, not HGM shareholders having to accept it. Indeed it looks like shareholders do not have to accept the 300p offer.
"Fortiana will acquire interests over 40 per cent. of the Highland Gold Shares pursuant to the Acquisition, requiring only a relatively small number of Independent Highland Gold Shareholders to accept the Offer to satisfy the Condition. Fortiana would then have control over the Highland Gold Group and the trading in Highland Gold Shares may become increasingly illiquid. If Fortiana acquires interests in excess of 75 per cent. of the share capital of Highland Gold, Fortiana may seek to terminate the admission of the Highland Gold Shares to trading on AIM, thereby further reducing liquidity."
When STEL was swallowed up by NWF shareholders did not get a vote and many including myself felt robbed. Thankfully we received stock in NWF and I was able to later sell at a premium to the takeover price. This is different of course, I view this as a hostile undertaking with dodgy board backing that makes absolutely no sense with the gold price a couple dollars of $2k/oz.
I think it's highly likely the deal will succeed at this point.
You are right JTD, I do not know everything!
So when I read the RNS saying the directors were selling out to Fortiana, who would then add to their 40% of shares, until they achieved 50%, and then make a mandatory offer of 300p for all the company's shares; I initially did not believe it.
So I did some research, and found that shareholders owning over 50% of a company's stock can indeed do this.
They do not need to put this to a vote, they will by then have over 50%, and they do not need to go to the courts to obtain a scheme of arrangement. The take over code is quite clear, it is likely to be waived through.
Also note the use of the word MANDATORY- Yes that's right, you are not being asked to sell your shares to Fortiana, there is no 75% or 90% approval needed, your shares will be sold as soon as they have their 50%.
Yes they have not made a formal offer yet. That is because with only 40% of the shares, they would have to call an EGM and put it to the vote. They have made it quite clear that over the next few months they will accumulate shares and then strike when they have 50%.
Take off your rose tinted glasses and do what your name says.
Connect the dots and join the dots mean to put various facts and ideas together in order to see the whole picture or to understand something globally.
Started: drunkinftl, 3 Aug 2020 15:58
Last post: drunkinftl, 3 Aug 2020 15:58
3rd Aug 2020 2:49 pm RNS Form 8.3 - Offer for Highland Gold Mining Limited... ??
I have no clue?
Last post: workingstiff, 3 Aug 2020 14:27
I cashed out on Friday morning at 303. If they get below 290 I'll buy back in again. Whether it comes as an offer price of £3, or and offer (share price plus dividend) of £3 there looks to be a bit of free money in it.
I also feel robbed, but cashed out at 2.99. Would I cash out at 2.92? I doubt it. I hope for the rest of my fellow holders that you get a decent offer. £3 right now is robbery. However, this is AIM....
Echo that, Batterseafish - that's about the best alternative I've come up with after this HGM hiatus is concluded. PUR's first 'gold pour' is scheduled for Q4 this year and being in a friendly jurisdiction removes the risk of this sort of 'steal' we're now seeing here...
Although it doesn't yet pay a divd, of course, its potential is considerable with impressive grades being regularly reported to augment their growing resource.
It's fully funded with strong Insto backing, too - another Kirkland in the making? Could well be... sasa.
Try Pure Gold based in Canada - more high grade finds and this could turn into another Kirkland
Hi Workingstiff,
I am holding on for the moment, but I am not sure for how much longer. Truth be told - I feel a bit like a rabbit caught in the headlights. I would love Prosperity to come riding to our rescue, as they have done with POG, but they have under 10% of our shares, and even if they call an EGM, I can't see how they can prevent Fortiana adding to their share holding and gaining the 50% they need to seize control of the company.
What with this and POG (my two biggest holdings) both facing hostile takeovers (as far as the small investors are concerned), where do you go next? HOC and CEY are certainly worth considering, but both are priced rather high at the moment, and I already hold a fair amount of each anyway. TSG looks worth a small punt, but I am certainly not investing large amounts into another Russian miner, especially such a small one.
I can imagine other posters reading this and thinking - what the hell are you moaning about? You have made a good profit, take the money and run. However, I do not wish to day trade. I like to invest for the long term in solid stable companies that offer good growth prospects and / or pay good dividends. Now thanks to the greed of Russian funds and oligarchs, I have to face a major reorganisation of my share portfolio, just when I felt happy with it.
Looks like a few of these funds happy to sell at 298 to 300 on Friday. Also can't see them being too happy with the minimal 4% premium offer price at a time when funds are increasing their allocation to Gold.
Started: ulltaager, 2 Aug 2020 22:20
Last post: sasa43, 3 Aug 2020 11:46
Hi gwm - the mandatory offer for HGM stipulates that if the BoD sanction any divd payment as they were likely to do shortly, then that would be deducted from the 300p cash offer. HGM hasn't yet commented on what they intend to do about that yet, as far as I know...
My best two replacements when we're forced out of this are POLY and the Canadian Pure Gold (quoted on AIM under PUR) fwiw - although POLY are Russian, too, they're in the FTSE100 so that might afford some protection against such shenanigans we're seeing here.
PUR looks particularly interesting at this early stage of its development, sitting right in the middle of Canada's prolific mining belt, Red Lake. Well worth a look - sasa.
The advantage of POLY is... that the Russians already own it..
From my unserstanding of this dividends will be subtracted from the money you get from £3 offer.
Does anyon on this board know about these situations? Seems hgm price is now locked at about 296 pending finalisation of £3 offer, whilst if the gold run continues other go;ldies will rise.....as today.
aau and poly look the best, prices up today
Sasa. any comment?
Like getting towards £5 - that would be better than £3.
kenj,
I guess the hope is an aggressive activist hedge fund who specializes in this type of thing takes a stake ( underwritten by the 300p offer ) and tries to extort more out of the acquirer or holds on for the strong dividend and an improvement in shareprice. With the current outlook on Gold being hugely bullish I can't see why any hedge fund wouldn't be doing this.
An example of such a fund here
www CNBC com/2020/06/14/hedge-fund-elliott-management-shifts-to-elephant-hunting.html
Started: jointhedots, 2 Aug 2020 11:25
Last post: jointhedots, 2 Aug 2020 11:25
I guess the likelihood is it will all go through smoothly for our buyer, but things can fall into a heap easily if other big shareholders put up a fight.
I think the company will cease to exist when the fighting is done, but if someone with some clout decides they won't just roll over to accommodate the buyer then we still have a chance of a better offer.
The Russian sellers would also get the improved offer under takeover rules I suppose they have not actually sold (have they?) just committed irrevocably to sell.
Started: PlanetsAligned, 1 Aug 2020 14:39
Last post: Everlong50, 2 Aug 2020 10:16
I've had a significant holding here for some years and now weighing up options. I also hold some POG and recently sold half my holding in CEY. I'm considering adding more SLP and definitely SOLG which is, in my opinion, a no brainer as a long term investment.
Thanks guys, I will check them out. I looked at POLY a while ago and it was a choice at the time between HGM and POLY. I chose HGM which was trading around 1.80 at the time and added at 2.20, 2.35 and 2.70. It was my first exposure to gold in my portfolio and I’m glad I had it given the broader market turmoil. I’ve also got some CEY (good dividend but limited growth) and SRB (good growth profile and should hit their stride if they can get back to full production). Dartron I think you’re right
Just before this happened I invested in TSG, another Russian gold miner, who are extricating gold and paying dividends. Might be worth a look. I also read an interesting post on HOC saying that some of these countries may start to impose higher windfall taxes on miners (to bail themselves out), so expect more shenanigans. Investing in miners seems like, now the goose is fat the fox is watching.
Hi Planets - you and me both and probably just about everyone else who's in this... The general consensus seems to be that this 'steal' is likely to go through, regardless, sad to say.
The only decent, potential, replacement I've come up with is Polymetal (POLY) - although not quite such a good yielder, its in the FTSE 100 and isn't too expensive, imv. If gold continues to push on, then POLY should continue its good run; hope that helps - sasa.
I would like to think that a counter offer might emerge from somewhere given its a steal at 300p. I’m in two minds whether to hold in the hope that a higher offer materialises (and possible bidding war) or sell in the market and reinvest elsewhere. But where? Are there any other companies with a similar profile to HGM? Forward p/e of 4, >5% dividend yield, able to fund new mines out of FCF and a growing production trend. With this out of my portfolio I’m losing a big chunk of exposure to the POG.
Started: sasa43, 1 Aug 2020 17:01
Last post: sasa43, 1 Aug 2020 17:01
Hi Red - would welcome your views on this RNS out yesterday, if you're still invested here...
I'm quite taken aback by this development, fearing that the buyer of the large minority holdings (40% odd) is trying to gain control of the company on the cheap at the expense of the majority investors by relying on the rules to have to offer the same 300p ps to all the shareholders.
Am even more surprised that the BoD which, in complying with that rule, is actually recommending the offer to all the other shareholders, too; unless there is something seriously amiss with HGM all of a sudden, 300p ps seems well below 'fair value' to me.
Your thoughts? - sasa.