Listen to our latest Investing Matters Podcast episode 'Uncovering opportunities with investment trusts' with The AIC's Richard Stone here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
there are a lot of very ****ed off people on he dgr boards after they have taken out extremely expensive loans to finance the purchase of what’s left of armour after its collapse into administration….
a little detail here is he has used dgrs holdings as collateral against the loans..
dgr stand to lose all 16million dollars of their unsecured loans they owned to armour… which bizarrely mather oversaw as he was a director of both…
no wonder mather wanted to stop spending more money on drilling cascabel and get it monetised.. solg shares are about all dgr has these days..
A little detail here is they have used dgrs holdings as collateral against the loans..
The primary purpose of the Choice facility is to enable DGR to provide funds which DGR has offered to make available by way of loan to the Receivers and/or Administrators of Armour Energy Ltd for the purposes of financing the ongoing trading and operations during the receivership and/or administration of Armour Energy and its subsidiaries.
KEY TERMS OF THE CHOICE FACILITY:
▪ The interest rate is 20% per annum which will be capitalised and payable on the maturity date.
▪ The loan is repayable on 30 November 2024. DGR may repay at the earliest on 14 February 2024 upon payment of an early repayment fee of 50% of the interest attributable to the remaining term.
▪ The loan is secured against DGR assets.
I am always weary when a person starts loaning money to themselves. Not a good sign. GR of PREM did that. The end result is that that person doesn't lose because they end up owning the asset when a default occurs, but the shareholders of the company who borrowed the money gets wiped out. Hence, NM is Armour, and NM is DGR. DGR assets gets passed to Armour in case of a default, and the DGR guys gets wiped out. The only winner is NM who gets DGR's assets at the expense of DGR's shareholders. Not good.
Eloro.
That's what made me smile at novices hoping I lose a fortune on solg.
I have lost a small fortune on dgr. I brought @ 9c.
And mather has royally shafted me ever since.
And while he's still pulling the strings behind the scenes at solg. Nothing will happen.
Believe me, many, many ceo will never deal with a company he's involved in.
Definitely looks dodgy NAL.
However, given that NM now has all of his hopes and dreams tied up with solg, one got to figure that he needs it to come good so that he can walk away with all of DGR's former assets. I think we at solg only need to start worrying when we borrow money from NM instead of a raise or selling the Cornerstone shares. Hence, NM needs a monetization event here. I don't think the Chinese will mind dealing with NM. One thing for sure, Warren isn't happy watching his heavily involved position getting hammered to become an actively interested position.
DGR is clearly in the grasps of death finance and won’t last long. It’s a warning shot; as we’re in the same boat if we can’t stop all expenditure and ride it out
But DGR has a healthy position here so who takes them out might be interesting
1984, I am exasperated by the corporate shenanigans and would love to see an end to the SR and the current uncertainty.
Folks are focused on our copper, but with the price of gold, and solg having 23m oz, this asset might become more attractive than the copper. China is buying gold at an accelerated level. Hopefully, not long to go before we run out of money.
Mather is obviously confident Armour has some value and has devised an ingenious scheme to gain control of the company, but I'm glad I'm not a shareholder in DGR.
Under normal circumstances you'd think this is of no relevance to us, but he appears to have pledged our shares as security, which Choice Investments (owned by the Mass Group, a construction company) would end up owning in November if things go wrong. (Clearly, no agreement exists between us and DGR which prevents them using our shares in this way, although Mather's personal holding may have that restriction).
Mather has a lot at stake and is betting on being able to salvage Armour and simultaneously achieving value here. If his plan goes wrong and we're still an independent company, come November we'll have an added instability to our shareholder base.
Eloro; 'Hopefully, not long to go before we run out of money'. So you actively want people to lose their money, do you? If you're so intent on losing your money, why not sell now and save yourself more angst?
One other thing worth noting. Choice obviously believe the DGR holding here is worth something and, given this is DGR's most important asset, there would have been a lot of discussion around our situation and just how liquid their holding actually is (not very) Wouldn't we all love to know what he told them?
Add, you miss-read what I am saying. Hopefully not long to go before we run out of money....I am saying, hopefully not long to go before we are sold before we run out of money. I am not a turkey voting for Xmas. My fault , I should stated specifically what I was thinking more clearly, without ambiguity.
Eloro, well, no, I didn't mis-read it, but you've now provided clarification. Thanks.
I have expected a reader to ask not long to go for what because I used the word before in that sentence. But I hold up my hands for not being more clear. It was late in the night.
Working from home today.
Incidentally, totally agree with you Add re the machinations at DGR. I am thinking that NM must expect a payday soon for him to have made such a move. I would think that his relationship with Choice should be examined by DGR shareholders. When it comes to money, trust is a rare commodity.
That's a real shame needy, and yet you're a real glutton for punishment here buddy...
He badly needs to get his hands on some liquidity, but this has been the case with DGR for some time. I wonder if this is at the root of his obvious change of mind about our future direction? One moment he was supporting DC with plans to take us to production, the next minute he wasn't.
Mather betting the farm that he will have sufficient cash before November to repay Armour loan...
I wonder why he is so confident???? Imminent corp event here?
Agreed Add, I was perplexed to read that he wanted a sale given his previous objective for us to become a producer. Something definitely caused him to have changed direction so suddenly. That said, we as shareholders need to be extremely vigilant so that we are not sold down the river by self loans which are designed to fail and thereby transfer the assets to the lender at our expense.
BBG, you are a plonker! However, the question is would he benefit more by allowing DGR to default?
He would if he ends up getting the DGR assets in the event of a default.
Actually BBG that’s a good point …. How else would he hope to refund the repayment
DBW, he's taking a massive gamble and appears to have bet the house. At his age this suggests either a huge degree of confidence, or a huge degree of desperation.
He always had confidence but history has shown it has sometimes been misplaced. To be fair he probably hadn’t allowed for a pandemic, increase in interest rates delaying and disrupting things.
I think hope might be a better word than confidence in this case.
If it goes wrong there is a big slice of shares up for grabs in November if we are still here.
this is the link for the loan agreement if you want to read it
https://wcsecure.weblink.com.au/pdf/dgr/02763329.pdf
i picked up on this post on hottcopper and thought it was worth posting here, this is from ****nic on hotcopper
"i think there is an alignment of nm's interests and those of sh at least myself. i perceive the solgold asset a jewel and to be saved at all costs.
the fact that bhp and others want it is enough for me. i've just had bhp knock back a $400m option to develop kalkaroo from havilah resources. i'm sure others will develop it. when i discussed it over christmas in depth, with my brother-in-law, who was an executive with bhp. he said bhp want quality expandable assets of material size. that's what cascable and its leases are. people can say whatever they like to me it's a tier-one asset and will be worth plenty from a 2025 cu price jump likely starting second half 2024."
Bbg. Your theories have to date never produced anything but the opposite. You've spent your life abusing others. And making up ever more unbelievable stories about yourself, and your insider contacts. And the likes of you, are the only reason I'm here, simply to ridicule youve lost the plot ramblings.
You tell us weekly fmg will buy us out.
When the facts are fmg have not dug one hole for many many months. And are in fact in the process of disposing of any tennaments they have.
On top of that fmg paid 800000000 for a nickel mine last year, just before the nickel price collapsed, he is now as we speak winding the mine up.
As are many others.
I think you will find the fmg board reluctant to risk losing another packet on the solg sh** show.
Best you stick to what you know best. Like last week forecasting 1.20 a share.
I rest my case.
Eloro, I’ve said for some time this will be a gold play not a copper asset. The wheels will come off the green rubbish big time in 2024
Electric cars are the new Betamax