The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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The delay may be purely regulatory/legal process taking its time. RTOs can take several months I read. Main thing is copper remains buoyant, Minto is in production with ramp up of capacity planned, ready buyer of concentrate in Sumitomo and the step out drilling has commenced. Investors move in herds. When/if the value emerges, buyers will come in. Until then it’s an orphan holding 11% of an op that’s obscure as regards profitability. Imho only. DYOR.
I’m hoping minto ipo has been delayed and Pere sp is pricing this short term disappointment in hence recent lull.
If it’s not that reason there’s probably a bigger concern so hoping it’s simply all down to a delay.
Can any fellow Pere holders honestly say they would be that surprised or disappointed given the markets treatment of “risk” since may?
Would seem like common sense/good management to hold off floating in these conditions and if there is any other reason to value approx 10% of a 200 million enterprise at approx 5 million I can’t fathom it.
Scratching my head a bit to be honest. Won’t sell but equally can’t stomach adding more right now even though value looks obvious to a mug like me
Why's there been no further news about the IPO? Wasn't it meant to close in July?
@Rower - perhaps you're the one who originally made the fake posts about that individual? the stupidity of people on these boards is incredible. One lunatic even claimed that he was a german guy called Thomas that worked in a sweat shop like in the Wolf of Wall Street... such is the imagination of people on these boards.
Perhaps I should of got your permission before posting here? Sorry - you're stuck with me!
I'd become interested here if the IPO listing was off and Minto was developed by PERE. One thing I just realised is that Minto was due to be be listed on the Venture exchange. I originally thought it was the TSX. Curious why they went down that route.
Thanks, that wasn't showing when I posted yesterday evening, agree it's a CT.
Atb
See delayed trade at 1819hrs last night.
See 1819hrs delayed trade last night....
Looks more likely a sell at that price.
Just imo.
What makes you suggest it's a buy? I'm not anti pere or anyone, just curious as to logic on the buy part.
I hope it was of course.
More likely a cross trade to be fair.
1730hrs - 1.3m delayed BUY at 5.47p
Oh here we go... Its our old friend FireAnt. I remember THAT post about you FireAnt. And so does everyone else. So jog along, you have no interest here.
@Deacs1970: "I'm expecting the next stage in PERE post Minto, was always the plan to use Minto as a stepping stone for bigger things and no reason to doubt this is still not the case."
I hope you're right. I originally invested in Pere, because of Gati and the opportunity which was presented, but I sold out when I no longer understood the strategy after the Minto IPO announcement. With Total BS being spouted from a certain channel, I had to change my username, to avoid fuc*wits continually posting lies and ****e, including some Lemmings on this channel.
In retrospect, everything I thought would happen - did happen and I was happy to get out when I did. I might buy some more once the Lemmings drive the price down.
What would that mean for holders.
11% of Minto shares either sold or shared out minus Gatis loans etc.
Not sure I would agree, but can understand the logic and thoughts, I'm expecting the next stage in PERE post Minto, was always the plan to use Minto as a stepping stone for bigger things and no reason to doubt this is still not the case.
@Jackbal: The price action here has always been hard to follow. Minto itself is great, but I've taken a small position here (again) due to the CEO's skin in the game.
Canadian mining companies have not done well lately though and it's not necessarily the best time for an IPO. I'm also a bit skeptical about the market realising the full value of PERE's Minto ownership. I think it's more likely that PERE will be wound down once Minto is up an running on its own. I see that as a possible 'out'.
Me too. Crazy to sell now with Minto IPO around the corner.
I am still adding at these levels. ATB
Minto is a producing asset, aiming for 20ktpa Cu. Alongside that cash flow, there is explorer/developer upside. Sumitomo would not partner with a minnow if it didn’t fit strategically long term. The gold stream is likely to be renegotiated (it was last year for 12 months). A fully funded drill program is underway. Minto has plans to expand production and work has been ongoing, be it adding electrical capacity, ventilation or resource expansion. The copper price drop may have affected sentiment. All in costs in recent PEA were 2.65$/lb, comfortably in cash at current Cu prices. Great grades in Copper Keel drilling program done last year. Also whether we retain that 11% interest, is the question. Based on what we know, I have kept adding. Always possible the market knows something we don’t. Not long to find out. Good luck all.
Wondering if IPO postponement?
Don’t have any evidence but the price action is odd and I wouldn’t be too disappointed as sentiment is very weak and not great for Ipo’s. Holding off could be wise..
Canetoad I’m intrigued as to how/why the market will value Pere post minto float. Hypothetically they could sell roughly half position and totally underwrite current mcap with cash and still own 5% ish.
I don’t think they will sell any at the float as the convertibles were issued to avoid equity dilution in minto but does make a mockery of pembridge mcap.
If ceo wasn’t skin heavy I’d be concerned at recent price drop but more interested in adding on any further weakness due to his position and recent activity..
I guess it could be up to 100% upside after today's episode. But it all depends on what level of interest there is in the Minto listing and what discount to NAV the market will apply to owning the Minto shares within Pembridge.
If the IPO goes well and they achieve $200M CAD valuation, that would give a NAV of £13m for Pembridges's 11% holding. It's not clear what discount the market is going to apply to those shares being held by Pembridge though, nor is it clear how the market is going to value the IPO. e.g. the market has limited interest in Rambler Metals & Mining which is the closest comparison to Minto. Although Minto is very clearly, significantly more viable than Rambler.
My guess is that Gati knows something that we don't or else he wouldn't have the balls to invest so much of his own money.
My gut says that there could be ~50% upside at the moment, unless the Minto listing goes ballistic. Maybe I'll take a small punt.
Gati Al-Jebouri, Chief Executive Officer and Chairman of the Board of Pembridge said:
"This go-public RTO represents the next chapter in the Minto story and an opportunity for new investors to get involved in a growing business. Minto's value has been shown by the recently published NI 43-101 Preliminary Economic Assessment Technical Report, which confirms an 8 year life of mine with potential for further extension. At current copper prices the economic model prepared as part of the NI 43-101 PEA, supports the expected market capitalization of Minto Metals of more than CAD$200 million after the capital raise. Good progress has already been made at Minto and the RTO and associated Minto capital raise will help achieve the further expansion of the mine life, thus revealing the full value of the mine. I strongly believe having 100% of the Minto mine listed on a public exchange should help remove the current disconnect between the Pembridge share price and the materially higher underlying value of Minto."
The Private Placement is expected to close in July 2021 and the RTO is expected to be completed in the third quarter of 2021 and final application for the listing of the Resulting Issuer shares on the TSXV will be submitted immediately thereafter. The common shares of the Resulting Issuer will commence trading shortly after the application has been approved.
ATB to you too sir.
Bring on the IPO and hopefully an effective value peg
Nice one Jb. ATB
Likewise Mullins!
Trying to stay disciplined with cash but couldn’t resist when mcap moved under 6 mill…