Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
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I have 334K shares and I have decided to hold and say NO to this derisory offer
250k no votes from me
Well done. Let’s hope he takes a long look at it
In so many ways it feels like they are trying to get this over and done with before sentiment really shifts back to gold miners and this finally goes on a run. In a month's time the full year's trading update will be released as well as guidance for 2024. Might look a bit too positive to declare $75m EBITDA and production guidance of 105K oz with EBITDA on track for closing in on $100m for 2024. Tough for those headline numbers to derive you a $180m value, eh?
I think a lot of the journalists have clocked off for Christmas. The Investors Chronicle for example did a bumper issue last week and will not be publishing this evening. They may need a nudge.
It would do no harm to nudge them into action. In our fight publicity (of the bad sort for the bidders) will do not harm.
1.325 million NO votes from me
I think most of the main publications will be fully aware of this "situation"
Does anyone have an email address to contact Investors Chronicle? They have written about SHG most recently a Buy recommendation in September and it would seem appropriate for them to comment on this bid.
Dear Questor
I’m contacting you about a share I hold, Shanta Gold (AIM-SHG) and thought you might be interested in some developments that happened today.
In short the company has, without warning, accepted a buyout proposal from a company called ETG. So what you might say, but I think there may be enough peculiarities in the case to pique your attention. They include:
· A premium to the undisturbed share price of 6.5%. This compares to a low of 25% and a high of 80% of the premiums achieve in the main market.
· The reason given for the sudden proposal is a lack of liquidity preventing major shareholders such as Mr Ketan Patel making the statement exiting without “causing a detrimental impact on the share price”. Strange then that he wants to do the opposite
· Complete lack of price discovery. No mention of any market testing conducted by the Board. The company received bids last year but rejected them. No disclosure of the offer price has been made.
· Why has the offer been rushed out without warning just before Xmas. In presentations given by the CEO to shareholders in the last few months he has been adamant that the company was not for sale. What has changed? He has previously announced his resignation but has not actually resigned.
· The Board appears to be completely missing in action. The CEO Eric Zurrin who used to front up all the presentations and shareholder communications is entirely missing in the offer document. Apart from a short message of support, the entire document is fronted by Ketan Patel who, before today, was neither seen nor heard.
· No financial projections have been included in the offer document. However, it is clear that the offer is not overly generous. Using the latest 6 months accounts to June 2023 It is being sold below book value and at 5.6 annualised EPS. However, since then the companies second mine has become fully operational and has even lower AISICs and thus more profitable than the existing mine. Using the latest quarterly release by the company to September 2023 (and which partly reflects the new mine coming on to full production) the offer amounts to less than twice the adjusted EBITDA on an annualised basis.
· The share price until recently has been artificially low as the previous largest holder (Odey AM at 12%) has been a forced seller.
· As mentioned above the entire offer document appears to be written by the Bidco and not SHG’s Board and as such consistently downplays the company’s prospects. Interestingly too, today’s coverage describes the company as struggling. Really? EBITDA more than doubled in the last quarter and cash in the bank. Struggling? I think not!
· And finally ETG Group has not been free of scandal. It recently has been embroiled in Fertilizer imbroglio in Zambia.
So, in short plenty to get your teeth into although I do appreciate it’s Christma
Ownership
General public is 54.4%
institutions 23.8%
Insiders 9.24%
Hedgies 8.3%
Private companies 4.23%
as from simply wallstreet, also notices they have changed their valuation on there from £1.8 a share to 0.03p.... literally changed in the last 48 hours.
''happy to post my synopsis to save you some time''
Would prove useful I think so please do!
Have 170k but might add substantially more.
Make that 6x rns
I also was a Sirius shareholder back then, luckily got it below the offer price accepted but know of the pain of people sold the dream early on. Was a massive blow to many people!
1.75m in total. Shg one of my last AIM holdings. Joke of a market, joke of a regulator. I'll be voting no. Would accept a bid closer to 20p & even that leaves plenty on the table for the acquirer.
I'm with HL and would usually just drop them an email with my voting instructions and requesting a 'CREST reference' as proof that they have actually carried them out.
However HL now have Log in online at www.hl.co.uk
Select ‘view shareholder meetings’ which you’ll find under the link to your secure messages on the right hand side of the screen, please ensure you are accessing this on a computer, as this will not work through the app
Click the ‘give instruction’ link next to the relevant shareholder meeting
Give your vote for the resolutions and hit submit
(Bit early at the moment so nothing in there yet for SHG, however no harm in sending an email in the interim)!
I only hold a paltry 39,100 shares but will be voting NO also!
1.3 million
What do you ready to go. It is going. Great guns. Valuation offered by the recommended offer is less than twice annualised adjusted EBITDA for the latest quarter.
No wonder the pounced when they did.
Also I've contacted Questor (Telegraph) but if anybody else wants to help out by contacting the FT etc happy to post my synopsis to save you some time
And there are so many gold companies with cash (gold fields / galiano springs to mind) that could easily easily snap this up.
who doesnt want a producing company all ready to go ?
Once you've collected these votes think it's worth messaging the company to point out just how much threat there is of this being rejected? Give them food for thought in terms of substantially improving the offer?
Make that 5x rns now
GGG, since the share register lumps all significants together (totalling 57% from memory) and 2 of those are hargreaves and ii, i dont see how you get 40% in private hands.
having said that really not sure where the other 43% comes from either (lots and lots of tiny funds < 3% ?)
if it was PIs and holding 40% this wouldnt have a cats chance in hell but dont think it is quite as clear as that
4x rns reported now keep coming
Agree anything under 20p should be knocked back imho