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What do the shareholding directors listed here end up with if the company folds? That might affect how earnestly they're trying to secure new finance.
https://www.scotgoldresources.com/investors/capital-structure/
I have argued with Graham Donaldson aka Tyndrum Boy,aka VFB188 and a few others for over 11 years about sgz and was torn apart by his cohorts who have now gone. He paid £22000 fotrthe first Cononish 'round'.This man put a lot of cash into the company.I ask myself,was he as thick as mince and led by the directors or was he complicit in the end game.
Now theres a thought for ordinary shareholders to bring a claim against those responsible for leading us up the garden path, chances of success 'as close to zero as it is possible to get'
BP you’ve more chance of a free loft conversion from a Dorset donkey than getting you’re money back here my friend. Who would finance this shambles?
I think the "new finance" discussions are already dead. Why qualify them as *highly* unlikely to bear fruit?
It's looking like that for everyone's sake they'd better succeed in securing that new finance.
BP - Ofcom are certainly investigating the BBC based on representations made by our mutual friend.
The FCA Market Integrity Unit and AIM Regulation have acknowledged receipt of all the facts and may have already launched their investigations. Action Fraud (formerly Fraud Squad) have been given all the facts but are unlikely to investigate.
At least one of the prime suspects has fled the country of course - and there is every likelihood that the PLC will no longer exist if/when charges are brought. The directors can still be culpable of course and any indemnity clause they may have in their contract won't cover them for this kind of crime.
"The mine's chief executive, Phil Day, told me that gold extraction would increase. By the year end, the company aimed to be bringing out millions of pounds worth of gold each month.
And in future? New gold mines in the Highlands, perhaps. "The name of the game is to grow, grow, grow," he said.
That was the plan, the goal, the dream.
But in June, Mr Day resigned abruptly."
It's almost looking (allegedly) like he should have written, "The mine's chief executive, Phil Day, lied to me and said that gold extraction would increase........."
Are the authorities investigating? Should they be? Who else was complicit?
https://www.bbc.com/news/uk-scotland-tayside-central-66751000
As I posted on Saturday, '4. Scotgold survives surgery. Why not? I have.'
Thank you for your best wishes.
Now SG needs some best wishes if shareholders are ever to regain their losses. The climate of investment risk is not good, so let's hope for a better outcome than Wilko for the sake of employees at the mine.
I take a crumb of comfort from the review that the geos and BFS writers seem to be credited with getting it right. I have always posted that this project is highly prospective and I am still of that opinion. It appears that the management have for some time been getting it wrong. I still hope that SG can emulate my recovery for the sake of employees and shareholders.
Good luck to SG and regards to all here, R.
I think this part must be noted...
"The outcome of the funding discussions is highly uncertain and if the Company cannot conclude a significant fundraise, it will cast material uncertainty for the Company to continue as a going concern."
But lets be honest. How many times have they raised money and at every turn, it was always to save the business and create great jam tomorrow. Never worked then.
On the TB front. Remember all the big sells since he went MIA. Makes you wonder. He pumped it up then F**ked off when it hit the pan. Won't be a popular man.
Who knows? Past rescues are no guarantee of avoiding catastrophe this time, I guess.
But another disconcerting thing that was noticeable was the word "shareholders" not being used. Who'd look out for their best interests? lol
Wasn't it the serpentine Blair who first used "stakeholders" at every available opportunity.
Is it only the fact that the shares are suspended that's preventing you hoovering up even more, tb? Hugs and kisses.
Perhaps for SGZ Cononish Ltd to continue as a going concern, BP. The chances of Scotgold Resources PLC ever emerging from suspension must be very slim indeed.
You doubting Thomases!!
It's as if you don't believe this: The Company is actively seeking additional financing and discussions are in an advanced stage and, should they materialise, are expected to provide sufficient funding for the Company to continue as a going concern.
The smell of the jam that will be delivered tomorrow wafts o'er the Trossachs, so it does.
George, on this occasion I was hoping to be wrong. I’ve had my losses on this company long ago but feel sorry for those who kept the faith when they had no other options as it’s been a long slow cut. At least I cut quick and got out I suppose.
In terms for the future, if there is one…
It’s not an easy fix for anyone. Covenants with the national park may not be transferable in the same way other assets are. I reckon administration and a pre package deal off the back end of it to a new body. You’ll probably find nlr will either form part of the “buyout” taking his guarantees over, or he will sell up for a bit of cash to a newco. I can’t see enough cash coming into cover debts and make changes so debts may be left behind or restructured.
Either way, shareholders will be shafted.
You are asking the right question BP as the answer points to the masterplan.
The key word is that this is an "unsecured" creditor. In other words, he doesn't get any preferential treatment or cash in the event of administration or liquidation. This leaves his owed cash plus other assets on the table for the benefit of other stakeholders in the likely scenario that Scotgold enters administration. In that event, only secured creditors will get paid (not necessarily in full) while the unsecured creditors, like the retail shareholders, get nothing.
So who are the unsecured creditors who are being paid interest? Some Scotgold directors have provided unsecured loans but they presumably are all singing from the same hymn sheet and therefore unlikely to force an administration, albeit this isn't guaranteed.
The most likely creditor to be causing trouble - and with good reason - is Fern Wealth whose clients provided £3m of loans to Scotgold secured on nothing more than a "parent company guarantee". Such guarantees can be difficult to enforce in cases like this where the lion's share of total company debt is secured on the assets and liquidation of those assets would not leave the parent company with spare funds to pay off the Free Wealth guarantee.
giving the PCG needs to have the requisite capacity to offer the guarantee or else the provisions of the contract will not come into effect and the guarantee will be void and unenforceable. So in these circumstances, a parent company guarantee wouldn't be worth the paper it was written on.
Another, less likely, scenario might be that someone is interested in buying the company but only if it comes with cash in the bank. If that were the case, Scotgold would cease all discretionary spending to get the deal done. But in this event, the suitor would probably not be interested in buying the PLC and its shareholder baggage so it would be a deal more easily done if Scotgold were to undergo a management buyout or some other form of delisting first.
Won't get the mine in my van, totally deflated☹️☹️
Here's one for Mr Spock as I can't follow the logic:
We could pay the creditor but that's deemed not to be in the best interest of all stakeholders.
But if a payment plan is not worked out then there's a material risk of administration.
How can administration possibly be a better option for stakeholders?
---
It's all academic and speculation now anyway - either the company secures new finance or it doesn't. What might potential investors look at?
1. What the last CEO told the world.
2. Where the new CEO is. lol
3. The drill rig that from nowhere became critical.
4. The cash position of the company. ooerrr
5. How the other mines have progressed over the last 12/13 years LOL
6. The management's overall competence. Mr Grimsdale! MR GRIMSDALE.!!
There are more miserable failures of course but I can't be bothered.
On the upside, investors now know that men down't mine behave differently if ladies are present and our PowerPoint slides about ESG are bang up to date with buzzwords and claptrap.
Decisions, decisions.....
''Can I go to the mine and take something to the value of 10K??'' . errm that would be the whole mine.
Can I go to the mine and take something to the value of 10K??
Just asking🙂
Morning folks. Andrew you were right all along. I was hoping you were wrong but as you say it's all over now. It has to be. No point posting here any more. I recently sold half my not too shabby holding and put it into Caledonia mining. They even pay a decent divi year in year out. Our CEO is on that board too.
Sad days I’m afraid, I have been invested in this firm best part of three years. Haven’t posted much on here but occasionally read the comments.
In all honesty I wish I had never heard of the company. What is the state of affairs at the mine currently? Has work in the mine halted ? Who is carrying out the financial review ?
Luckily I only had 2.5 percent of my portfolio invested in this company so it’s not too bad for me for those with larger losses hope you’re ok.
"As for TB, NLR etc. This will haunt them in every future business. I wonder if TB will be propping up the bar in the tyndrum inn this weekend? Or hiding in his attic in dorset. "
Too early to say. NLR has consistently coughed up and hasn't shafted Scotgold shareholders thus far. Quite the opposite - we might well have folded long before now if it hadn't been for him. What will he do this time though?
As for tb though, yes, guilty as sin and lots of people will recognise him after his various media appearances. Awkward.
Problems go back to Richard Grey in my opinion. Too much labour cost at the top, and the choice to buy a plant that was both cheap and nasty. If you can get the thing for a song then the gold is there.
Honestly, It's over. If anyone still believes it isn't, they need their head examined. If finance was available, it would be here by now. If there was a way to economically bring the gold out, it would have happened by now. Remove every bit of debt and this mob still wouldn't be able to make it a success. The mine MAY or may not continue, but it will be in a different incarnation. This stigma will stalk the scottish mining industry for years. The exact opposite of what SGZ promised. Disgusted isn't even the word. I hope they loose the mine and someone with an ounce of honesty takes it over and runs it for the benefit of the local people, shareholders and economy.
This board was never honest, never sincere, and the BOD deserve their losses. Unfortunately, the shareholders and employees don't.
The only consolation I can take tonight is that the mine never had a bigger impact on the local economy than it did.
As for TB, NLR etc. This will haunt them in every future business. I wonder if TB will be propping up the bar in the tyndrum inn this weekend? Or hiding in his attic in dorset.
Tyndrum, Scotland, employees and shareholders all deserve better. Is it time to arrange a get together in tyndrum to show our disgust?
Previous rumours of Scotgold's death were greatly exaggerated although this time they might very shortly come true.
There is never a shortage of people looking to make money and every other time the company has managed to tap into some more money to keep going from the likes of NLR, the American 'Gunslinger', the foundation that something to do with Ian Fleming, Fern Wealth in Switzerland and so on. But this time will the people with money find the company and its management worth investing in given its performance since 2011?
With the price languishing where it is, will the company be able to secure one last round of funding that will finally secure a viable future for the company?
(tb has been contacting people telling them that Warren Buffet flew into Crianlarich International Airport very recently and has been seen at the mine literally with chequebook in hand desperate to be part of the Scotgold success story.)