Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Well you could take the view that if no one comes fwd then this might be the best it gets, and if they dont come fwd (this is capitalism after all) then maybe other companies dont quite believe in the shanta story as has been delivered ?
and there are other equally undervalued gold companies, and i for one, whatever happens hereafter, have no faith in this board so let the chips fall where they may.
and the comment, words to the effect that shanta exists for the local community was a bit worrying to me
I have never seen a company with good prospects agree to a takeover at such a low premium. What was the point in agreeing to the takeover at all?
At current gold prices Shanta is generating approximately $10m free cash flow a quarter. Why are accepting this offer? It does not make sense?
Aim is a sick joke! Aim is a lawless jungle of scammers! Gold is the place to be and Shanta has the best value on Aim yet somehow we're being fleeced by darker forces.
Have no idea how they got the 2 largest shareholders to back this and why nothing from eric ? dont think i have seen an RNS like this without a CEO comment, or has he already left ? do the largest shareholders actually have a clue about value, profits and the potential future gold price ?
AIM is just such a wonderful mkt.
Shanta gold was all set to find its market value in H1 this year. The value was going far higher than 13.5p 100,000 ounces sold at say $1950 an ounce = $195,000,000 income with gross profit of around $45M after tax easy. This alone was going to drive up the enterprise value by around 3p a share. Centamin was heading for 16p.
The company is up for sale. Ketal wants to sell his shares. This will be a lively share come January. Bidco reserves the right to pursue takeover so they may expect some bidding on the table from elsewhere.
Mind games. Maybe this ridiculous price might have had a chance 6 months ago but obviously not now.
I don't think this company will get sold for 141 when its going to produce 100,000 oz at around 2000 dollars, just doesnt make sense. i think this is the beginning and a vote in favour is far from guaranteed.
amazing, the advisers say the recommendation is "fair and reasonable", what a wonderful world when the rules are in place that actually means nothing and it allows the financial industry and very rich people to continue to make decisions that allow them to get richer. doesn't matter whether AIM or other exchange the financial rules written for all businesses was done many years ago and its no surprise the "system" continues to grind the money out from you and me
They have been working on this for six months. Shanta and ETG signed a confidentiality agreement on 29 June 2023. Not sure why it took so long to arrange the bid - perhaps sorting out the necessary borrowing for Bidco was the constraint.
A lot of nonsense in the announcement about not being able to raise money at a suitable price to fund expansion going forward. Perhaps the lawyers should have watched Eric’s last few webinars where he has been absolutely adamant that there would be no placing. I see also they are citing the 16% free carry and VAT receivables as negatives whereas Eric has always pointed to positive outcomes on these.
Ah well, there you are my buy is showing as a sell. Still that's a few more to vote against this derisory offer.
Agreed the buy/sell info is rubbish - LSE is showing over 6,500,000 sold and only 35,000 bought - I really don't think so.
And the way those "offers" from the chinese were handled last year, was never sure if they were ever formal offers or not.
I paid 17.8p for my Shanta shares. I will vote against for what its worth.
If this does go ahead there will be a severe reputation hit by certain people in this company, could you ever invest again ?
its not the end of the world as there are trillions of undervalued commods companies, and i'll be avoiding AIM as much as possible
and lets be honest shanta has NEVER traded properly.
Not sure when this is happening?? There's something about the 22nd in the RNS are they trying to get this through while the larger investors are driving home for Christmas.
I don't think I realised that Luke Leslie had left to setup Key Carbon back in his native Canada and who should be on the board but none other than Mr Zurrin!
I guess this has been known about for a year, but what I don't get is why Eric has stayed on and didn't just bail out at the end of the third quarter. Am I being naive to think that he has been trying to organise other parties to prepare a counter offer? I struggle to think that he is on board with all of this.
Think that a lot of these "sells" may well be buys. When testing the market with intention to possibly top slice earlier I instead ending up buying some more at 12.99.
My understanding is that if a major shareholder wants to exit, the company would do the rounds of the merchant banks and this process would bring in say 4 or 5 bidders. I cannot believe this has happened as we have such a low ball offer on the table. The company is probably running at around 4 to 5 million profit a month and almost debt free. I won’t be selling.
Eeasal. There are SO many better options out there!
Try Lithium - it's the future.......
(*´;ェ;`*)
They’ll issue the takeover papers / votes in January, I’d have thought? If a counter offer is coming it would need to pre-empt this, surely? That’s been my experience with counter offers, which is limited, granted.
Ridiculous! There must be a lot of simple minded sellers out there! For my sins I'm an avid following of the UK stockmarket and the premium to the undisturbed price is way smaller than the average. I'll be back shortly with some analysis.
In the meantime if you fancy hanging tough and snapping up some shares with the intention of voting against this opportunistic bid, do so whilst the price give you in effect a cost free option (even allowing for the interest you would have earned otherwise)
Why would we find out within ten days, have I misunderstood the timelines here?
13.08 buy and 12.92 to sell. makes no sense Should be 13.65 buy and 13.5 sell.
Cant see eric doing another meetme webcast somehow.......i would pay for that this morning, oh there would be some questions.
Agreed, the more I think about this, for a paltry £200m / 20p per share you get NLGM, Singida and WK, and a tiny amount of debt that’s got to be worth a Mid-Tier’s time?
If not we will find out in the next 10 business days or so, a counter offer will have to be quick.
Yes small minded PIs selling below 13.5p - the typical rainbow chasers. You have a guaranteed ~4% profit from but more importantly, a secured free bet on a higher bid coming in. You may as well put your safe money in here rather than a savings account, but let those guys chase their inevitable 95% loss on the next pump and dump
Yes, I think Eric’s position here is curious. He has said that his Shanta shares are his biggest asset and he has worked for a decade to acquire them. He does not appear to be overtly accepting the offer (it seems that Sustainable Capital and Lombard are selling out). I can’t understand why he would sell out at 13.5p unless he is being forced or is involved in the new vehicle (but I would expect that to be disclosed).