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I agree with your comment but this is where I wonder why dont they just buy us shareholders out and take the company private. Such a low market cap yet huge potential.
ALiatAtTheTop - The SP doesn't matter to the two major shareholders as they are not interested in selling. They will get their loans to the company repaid with a hefty bonus and then they'll be getting £15m - £20m a year in dividend payments for what could be the rest of their lives if gold is found in the remaining 85% of the land bank.
The clever ones will com on and oh I buy a car .... deception it’s not a company to be run for private investors it s a big player company a candy man company best wishes tom th few and sorry again gor private investors like me60000 and nothing
Well I hope you feel better later
If any wiser heads can prove me wrong the share price will explode or double or triple in this year show me the details as I have no money to invest but come on you would have stuck it in Ggp wishbone even bitcoin if you had money .... I love the company I’ve lived in the Philippines but it’s so disappointing
Dad a metals holder I am terribly disappointed in the boards optimism let alone the company someone is making huge moneys here ..... not me some gold miners with nothing drawn from the ground are multi-pals inn-share price and it will continue ... why I don’t know there are other forces working here that’s not going to make private investors....rich...... so much promise but not for the small investor ok say I’m wrong then keep buying shares and see your returns my 60000 shares worth a curry dinner good hunting
I'd be happy that i'm getting all the cake and eating it over the next 3-4years - the cherry on top would be the exploration of further areas - extending the mine life and potentially paying a dividend in time.
Well at least gold is flying today
If you were a major shareholder also holding all the debt, would you prefer to collect interest payments on the debt, or to have the debt repaid asap (at which point your shareholding would be worth around five times as much)?
HawaiifiveO - I've been saying that since the debt restructure was finalised but it's seems most posters have been blinded by their own imaginary rainbows.
MTL will not be posting any major profits until the debt is repaid. That is the sole reason for the SP being where it is.
I can only assume the market does not like the debt repayment schedule, whilst it is transparent, not in default and no longer at penal interest rates, it is still pretty onerous.
In a nutshell the main benefactors are the major shareholders who can determine policy and get repaid whilst receiving a interest rate most folks can only dream about in the current near zero rate environment. Latterly when the debt is down they can then benefit via a rerate on their large stock positions. It's a win win situation.
Given recent operational improvements, under normal circumstances, it would be likely a company such as MTL could refinance with a bank at a lower rate + a mix of equity but of course the major shareholders would not allow that in my view.
The share price defies belief given the improvements but something is holding a re-rate back, it has to be the debt situation IMO.
Shinfalls - We currently sit below 2p.
Yes I expect steady mining improvements going forward through 2021.
Gold hasn't been above $2000 per oz since August and is still currently retreating so that's a no.
I expect the MTL to be paying approx £15m per quarter in debt payments. The interest on the Mezzanine facility will be £2.5m for this quarter and that will grow each quarter until the Senior Facility is fully repaid. As the answers to questions 1 & 2 balance each other out I do not see the debt repayments accelerating.
7seven7 - Yes, when the debt is repaid the potential will then start to be realised.
Agreed, I've owned these for over two years but have only felt comfortable holding since the suspension ended. Currently feels ridiculously undervalued and long term potential looks amazing.
You’re probably right, but that gives us a chance to accumulate more on each wave.
Trading opportunities each quarter until the debt is repaid. I expect the SP to retrace to 1.9-1.8p.
Groundhog Day for a few years.
What are people expecting for the price over the next few months? Do people expect it to drift lower again to 1.7/1.8 range? Or when news is digested front the turnaround have a new mean of 2.5-3? I guess I shouldn't be concerned as am a long term holder however being human I would like to top up at the right time. Spread is slightly annoying atm for a big top up.