Sapan Ghai, CCO at Sovereign Metals, discusses their superior graphite test results. Watch the video here.
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"As stated in the Target's Statement dated 4 March 2024 (Target's Statement) and confirmed in the Supplementary Target's Statement dated 18 March 2024 the IBC unanimously recommends that shareholders DO NOT ACCEPT the Goldway Offer. The IBC continues to hold this view. Since the IBC made its recommendation that shareholders DO NOT ACCEPT the Goldway Offer, Goldway has attempted to discredit the IBC's recommendation, including by publication of Goldway's second supplementary bidder's statement dated 14 March 2024 (Second Supplementary Bidder's Statement). The IBC believes it is important to respond to the various statements and opinions made by Goldway in its Second Supplementary Bidder's Statement, and accordingly makes the following comments:"
https://www.mcmining.co.za/all-categories?task=download.send&id=1816:independent-board-committees-response-to-goldways-second-supplementary-bidders-statement&catid=112
It's interesting to read in the report that if a higher rival bid does emerge, and the consortium does not match or exceed it, the consortium is bound to accept the higher offer for all of its holding. This lends itself to a 'white knight' scenario and hopefully a bidding war...
"If a higher rival bid emerges, and the Joint Bidders do not match it, they will be required to accept the higher rival bid for their entire joint holding As detailed in Section 4 of our Report, under RG 9, if a higher rival bid emerges during the Offer Period, and the Bidder Parties’ do not increase the Offer Consideration to be equal to, or greater than the consideration offered under the higher rival bid within the required seven day period, the Bidder Parties’ are required to accept the higher rival bid in respect of all the MC Mining shares held by the Bidder Parties at that time and will not be able to reject the higher rival bid. "
Source: Page 45 https://www.mcmining.co.za/all-categories?task=download.send&id=1814:supplementary-targets-statement-18mar2024&catid=112
The Independent Board Committee (IBC) continues to unanimously recommend that Shareholders DO NOT ACCEPT the Takeover Offer.
Shareholders are encouraged to read the Supplementary Target’s Statement in its entirety, and discuss it with their legal, financial and professional advisers.
BDO, the Independent Expert, has concluded that the Offer is NEITHER FAIR NOR REASONABLE to Shareholders.
The Independent Expert has assessed the value of a Target Share prior to the Offer (on a controlling interest basis) to be in the range of A$0.214 to A$0.356, with a preferred value of A$0.285 per Target Share.
Source:
https://www.mcmining.co.za/all-categories?task=download.send&id=1815:supplementary-targets-statement-in-response-to-the-off-market-takeover-bid-do-not-accept&catid=112
https://www.mcmining.co.za/all-categories?task=download.send&id=1814:supplementary-targets-statement-18mar2024&catid=112
As long as the money is going to the building of the infrastructure at Makhado.
MC Mining interim loss widens as coal prices tank and costs balloon
MC Mining hit by soaring costs in first half.
Not great reading, let's see what their report brings.
the latest proposal values the equity of mc mining between a$69.3m ($45.8m) and a$81.5m.
australian coal mining company mc mining has received a non-binding, off-market cash buyout proposal from vulcan resources, at an indicative price range of a$0.17–a$0.20 a share.
the proposal values the equity of mc mining between a$69.3m and a$81.5m.
it is higher than goldway capital investments’ a$0.16 takeover bid, which valued mc mining’s capital at a$65.3m.
last week, mc mining called on its shareholders to dismiss goldway’s proposal.
mc mining’s independent board committee (ibc) has reiterated this call again, while stressing that there is no guarantee a formal bid will be made by vulcan or what the terms of such an offer might be.
vulcan’s offer is subject to several standard conditions, including a thorough due diligence process.
ibc chairman k****tso mosehla said: “the ibc will evaluate the indicative terms of the proposal letter, including taking advice from its financial and australian and south african legal advisors, adelaide equity partners as financial advisor, k&l gates as australian legal advisors and falcon & hume as south african legal advisors.
“mc mining remains committed to keeping shareholders appraised of developments and intends to make a further announcement when more complete and definitive details are received.”
vulcan operates the moatize coal mine, the largest operating steelmaking coking coal mine in mozambique and africa.
meanwhile, mc mining is known for its greater soutpansberg projects, which produce coking and thermal coal, as well as its makhado hard coking coal project. both of these are in the limpopo province of south africa.
the company’s uitkomst colliery in south africa’s kwazulu-natal province produces metallurgical and thermal coal, while its vele colliery in the limpopo province produces semi-soft coking and thermal coal.
source: https://www.mining-technology.com/news/vulcan-makes-takeover-bid/?cf-view
I don’t think we are done here yet with bids coming in.
"(Alliance News) - MC Mining Ltd on Monday again urged its shareholders to reject a takeover offer from Goldway Capital Investments Ltd.
The Western Australia-based coal miner in South Africa owns Uitkomst Colliery, an operating metallurgical and thermal coal mine, and Makhado project, an exploration and evaluation asset.
The company said on Monday it had released its formal target's statement following the 0.16 Australian dollar cent cash off-market takeover bid by Goldway.
Goldway, a special purpose vehicle incorporated in Hong Kong, launched an off-market takeover bid early last month. It offered 16 Australian dollar cents for all shares the consortium of joint-bidders do not own.
As of Friday, the consortium held a 65.6% stake in MC Mining, up from 64.3%.
MC Mining said the target's statement sets out the independent board Committee's formal response to the offer. The board has said to its shareholders, "do not accept".
The company had said last month the offer is subject to a minimum acceptance condition that Goldway receives acceptances in respect of at least 50.1% of the shares not held by Goldway and the joint bidders.
In practical terms, this means that the joint bidders must be interested in or acquire relevant interests in at least 82.19% of the total shares on issue before any offer consideration will be paid to any MC Mining shareholders who have accepted the offer, and before Goldway can act on any intention to delist MC Mining.
Goldway has said the offer values MC Mining's capital at around AUD65.3 million, equating to GBP33.8 million or ZAR803 million. It has an enterprise value of around AUD75.5 million.
In December, MC Mining had received a revised takeover offer, which was first made by Senosi Group Investment Holdings Pty Ltd and Dendocept Pty Ltd in early November.
Late in December, Senosi and Dendocept indicated that they intended to acquire all shares that they do not own for a cash price of 16 cents per share. Their offer is on behalf of shareholders with a 64% stake.
MC Mining shares closed at 0.14 Australian cents in Sydney on Monday. They were down 3.5% at 7.00 pence in London, but rose 1.1% to ZAR1.82 in Johannesburg.
By Artwell Dlamini, Alliance News reporter"
https://www.morningstar.co.uk/uk/news/AN_1709559889672257800/mc-mining-tells-shareholders-to-refuse-goldway-takeover.aspx
hi all,
i bought some shares about 3 years ago looking to capitalise on covid and doubled up with the rights issue.
i’m happy to see that the board is rejecting this rubbish offer but i’ve done some research on hostile takeovers ( not much, but went through what i could find online) and i have a couple concerns
1- mc mining wants more capital from us because goldway is holding up business. they know we don’t have too much cash to wait around so what stops them from sweating us for months on end with this stupid takeover bid. by the end of it all, the value of the shares could be 80 cents. arrggg.
2 - these hostile takeovers don’t usually result in large premiums - especially if the first bid is shyte, i have seen a standard average revised bid of 20 % over what was originally offered eg cadbury was one of those but i did find another one where the bidder just screwed up target and eventually got the price they wanted.
3 - i’m concerned that goldway fraudsters can wheel and deal with big corporates like the idc. the idc may look to this as an opportunity to get cash out by converting shares to equity and getting paid r1.9 say, per share is perhaps something they would consider because they want out from this investment ? i could b wrong. if these things happen, dilution is also a side issue.
4 - it seems like people like gomwe aren’t hurt with their share options because a ‘change of management’ means his options vest ? maybe i interpreted this incorrectly but seems like people walk home with pockets lined. i don’t trust them like i did last year. i also think there’s a ton of asian deals happening thanks to brics and that’s why they want to take this off market ( so they fund it with whatever dodgy means necessary)
5 - if they get 75 percent they can change the constitution m, kick out the existing board members and screw everyone who is still standing.
the only positive i noted was that we can take them to court ( asx) if the sale isn’t fair value. that means a whole bunch of us much team up ( 10%) and someone must be willing to lead the charge to apply to the courts to stop this nonsense. i hope every shareholder considers this as an option for this daylight fraud.
i really really want to believe that this board is really independent and really gives a **** but i feel like these anc placements had political motives i know nothing about.
they all came to the company together - red flag. gomwe had it considered in his employment contract for example. maybe i’m paranoid ?
i’m not selling so they can kiss my @ss, but i maybe left with 80 cents, a requirement for capital from individuals like me, and according to what i read, a convenient delay of 8 months after compulsory takeover before i even receive a cent.
i had such faith and i’m not ready to let this go but we need to be on our toes as shareholders and we need a lawyer it seems to protect us jointly if this deal co
"Further to MC Mining’s Independent Board Committee last week recommending that shareholders not accept a takeover offer from Goldway Capital Investment, MC Mining has released its formal target statement in response to the offer.
In the statement, the IBC reiterates its concerns that the A$0.16 apiece takeover offer for all shares Goldway does not own is opportunistic and does not provide an appropriate premium for control.
It also does not appear to be value-adding for MC Mining’s assets and projects, the IBC states.
The IBC has commissioned an independent expert’s report, which is being prepared by BDO Corporate Finance and SRK Consulting Australasia, as independent technical specialists.
MC Mining expects the report will be finalised by March 18."
Source: https://www.miningweekly.com/article/mc-mining-commissions-independent-report-to-further-investigate-goldway-offer-2024-03-04
https://www.mcmining.co.za/all-categories?task=download.send&id=1806:goldway-off-market-takeover-offer-statement-29feb2024&catid=112
https://www.mcmining.co.za/all-categories?task=download.send&id=1807:targets-statement-in-response-to-the-off-market-takeover-bid-do-not-accept&catid=112
It should start moving north soon enough now this is all getting cleared up. Or a much improved offer.
Tennyson appraisal was over £1.20. even if we get half that..... which we will not..... offer of ? 8p is an insult.
Absolutely. I have not been on here since 2012 to take this offer
i just feel there is too much potential here. and the takeover offer is an opportunistic **** take
I would like some info on the early extraction of coal at makhado, hopefully in half year results, then I will make my decision 80/20 against at the present time.
Hi,
I put a substantial investment into mcm on the back of doing well in tga and then doubled up on the placement a few years ago at 13p. I do not intend to be selling when the business is on the threshold of where the latest management team have taken the business.
Not selling. I am prepared to hold out for at least the 'sum of the parts' Tennyson valuation @ 21p (page 5 of report, link below)
https://www.mcmining.co.za/all-categories?task=download.send&id=1773:tennyson-equity-research-reportl-mc-mining&catid=107
I am keeping mine
It is not a vote, as far as I am aware. You just need to state if you are willing to sell.
Has anyone voted yes to sell shares? I’m holding onto mine.
I rather risk losing all than take this low ball offer. They have been manipulating this share price for years with the end goal of a takeover. I have already lost 80% value since I first bought a good couple of years ago. I will not give them the satisfaction. I am not moving for less than 0.4 . Now they try to paint this crappy picture below to try and scare us.
Cash Offer for MCM Shareholders
Goldway represents a group of shareholders who together own 64.30% of MC Mining's issued shares. This group has been the primary source of funding for MC Mining's capital raising efforts over the last decade, aimed at turning its exploration and development projects into operational assets. Despite these investments, MC Mining has not achieved operational profitability, and its main projects are still under development. This comes at a time when funding for coal projects is decreasing due to a global shift away from fossil fuels and specific challenges faced by coal mines in South Africa, including logistical issues.
Goldway is making a cash offer of A$0.16 for each share without any brokerage fees or additional costs. The cash offer gives shareholders a chance to cash out their shares at a higher value. MC Mining is heavily in debt, consistently spends more cash than it earns, and has very little cash available. Without this offer, it's very likely the company will have to raise more capital in a way that could lower the value of its shares just to stay afloat. The company currently cannot finance its assets to become profitable. This offer provides MC Mining shareholders an opportunity to sell their shares for cash, avoiding the significant risk of future value loss
Hopefully they'll put some meat on the bones regarding early coal extraction soon. I remember seeing a very impressive computer generated simulation of makhado quite some time ago but never made it to the website or the public domain
Saying the takeover bid is unsuccessful where then. Having a board working together hasn't enabled MC Mining to get the funding required, a disjointed company isn't going to be that appealing.
Hopefully the early extraction of coal is achievable to boost funds and all concerned join forces if not could get very messy, drawn out and unproductive.
No doubt Goldway manipulated this lower for their low ball offer. Hopefully everyone here can see that and reject the offer.
Yet more misleading BS from you!
There is no "certain move towards delisting". In fact, the bid requires more than 50% of the TARGET shares to be successful, which is highly unlikely!
You have once again again tried to highlight misinformation and highlight shareholders to sell. I once again highlight your suspicious behaviour since you joined lse.co.uk on the day the indicative bid was published.