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Thank you for your reply staylong, at least it’s not just me thinking the same. I’ve been driving myself insane thinking what have I missed, de rampers haven’t even given one explanation to why they believe this company is worth nil.
The way I see it SPMP is in the best place at the moment, the last update we had was that the plant was producing and selling up to 50% capacity and that was going to be ramped up to 100% by March 2021.
I’m no expert but the value of the plant has to be well over £200m minus £50m debt - TSTR 16% = £24m
Our market cap = £2m
Absolute minimum SP here of 18p on this basis.
No further funding needed IMO.
I don't think you are missing anything SL. A lot of people held TSTR in ISAs as indeed I did and will be forced to change this on delisting because delisted shares are not allowed to be held in ISAs. Fortunately for me I have been able to buy back at a lower price and might yet add a few more on Monday - but I agree we may have a long wait to see a return.
The current share price is because the sells far outweigh the buys. As moon keep telling everyone, Odey management had to sell part of their holdings that were held in SIPP’s etc. On top of this a lot of the minority investors had to do the same. The MM’s were obviously informed of all the stock that needed to be sold and immediately brought the price down. Many investors then panicked and sold their shares as they were convinced that it would go down to nothing. Then we also have investors that don’t want to be invested in a private company and possibly have their money tied up for what could be a long time. And regarding buyers, there are very few people that actually understand the opportunity here. I think that I understand it more than most and even I am asking myself am I missing something here.
But I really don’t think I am, I believe that this is a rare opportunity to make a serious amount of money. He who dares wins.
It also noted that SPMP was currently in technical default of its current banking facility arrangements with Bank Nizwa and Al Aziz Bank, as the most recent repayment obligation had not yet been met.
The short term funding arrangements being negotiated were intended to remedy that default.
“As part of the current SPMP facility arrangements, on 15 March 2018 each shareholder in SPMP entered into a conditional completion guarantee in favour of Bank Nizwa and Al Aziz Bank,” Tri-Star explained.
“Tri-Star’s obligation under the guarantee amounts to 40% of SPMP’s liabilities outstanding to these two banks, which currently stands at approximately $30m out of a total owed of approximately $75m.
“Tri-Star’s obligations under the guarantee fall away once commercial production of SPMP’s facility in Oman has been achieved.”
The Tri-Star board said it believed that to be the case, as it had been informed by SPMP that commercial grade antimony had been produced, with commercial grade gold dore also produced and sold.
“The guarantee will be formally discharged once an independent consultant certifies to the banks that commercial production has been successfully started.”
At 1121 GMT, shares in Tri-Star Resources were down 59.1% at 14.11p.
Having read this statement, SPMP has now produced commercial grade product. This would confirm that TSTR sp value should now be higher then 14.11p?
To me this share price seems too good to be true, I’m try to work out every outcome but the reality it we own 16.3% of a successful working plant worth well over £150m?
I would be grateful if anyone who disagrees with this could detail how the current share price can be justified?
https://timesofoman.com/article/joel-montgomery-appointed-ceo-of-spmp
It sounds like our 16.3% of SPMP is in a pretty good situation if you ask me..Muscat: SPMP (Strategic & Precious Metals Processing) Board of Directors announced the appointment of Joel Montgomery as Chief Executive Officer as from November 1, 2020. Chief Operating Officer and Executive Committee member since September 2018, Joel Montgomery has been acting CEO since February 2020 following the departure of the previous CEO. The plant in Sohar has recently reached several important milestones, including the successful production and sale of 500t of antimony and gold doré. Sheikh Nasser Al Harthy, chair of the Board, said, “On behalf of the Board, I salute the work accomplished by Joel Montgomery and the team at SPMP over this difficult period to position the business for success. We wish Joel all the best in his new role.”The appointment marks a new chapter for SPMP as it embarks on an ambitious production ramp-up programme. SPMP has recently completed the restructuring of its long-term debt and secured the additional shareholder funding required to achieve full capacity at its Sohar facility. With the appointment of Joel Montgomery, the Board of Directors confirms the Company’s strategic ambition of becoming a leader in antimony production. Joel Montgomery, 46, is a seasoned mining professional with 23 years of experience in the mineral processing and manufacturing industries. A Canadian trained mechanical engineer with a master’s degree from Queen’s University, Joel has held various senior operational, maintenance and engineering roles throughout his career. Prior to joining SPMP in 2018, Joel spent 12 years with the Vale Copper Nickel Operations in Canada and 6 years with General Electric. Joel has served on several boards and volunteer organisations.SPMP is aligned with Oman’s strategy to provide job opportunities for Omanis and has progressively increased its Omanisation rate since inception to reach 42 per cent, with 6 per cent females, exceeding the minimum 15 per cent Omanisation requirement for a freezone company before 100 per cent production.Link..https://timesofoman.com/article/joel-montgomery-appointed-ceo-of-spmpThe more I look into TSTR the more confident I am this is a success story for us investors.
I think the idea that Odey would (willingly) sell down to 49% (at an enormous loss) to make it more attractive for someone else to buy out the company seems ridiculous. Why on earth would he voluntarily give up control?
On the other hand his strategy isn't very clear here. And more importantly, what are the rules forcing him to sell part of his holding (it's been stated that it's due to the delisting but I have seen no proof). Is he going to be forced to liquidate most/all of his holdings? Again surely not - he voted for delisting, so it must be in his interest/match his strategy! If votong for delisting meant he would be forced to sell most/all of his holdings, why would he have done so - he has enough money that he could have easily increased his loan to TriStar by £1M to tide them over.?
Games are being played now.. wish I could just not look until Wednesday.
Well done to anyone who bought in today absolute bargain in my opinion.
16.3% of a company that has invested £150m+ and currently working at 50% capacity expected to be 100% by March 2021.
All because we’ve volunteered to remove from AIM due to wasted cost/time.
30p+ only 30 days ago with fundamentals exactly the same.
Possible buy out in place..
Someone please tell me the catch!!?
Definite disconnect between SP and company value... maybe a correction next week? :)
So based on our current market cap it means that SPMP is worth around 10 million. Not bad considering 216 million has been invested so far.
Foxglove you need to take out a space in the link for it to be posted here
Bought £100 on the bell at 1.45 on a complete punt that it might spike again before Thursday.
Do you remember when I said people were nuts buying this at 5p as it's about to delist?
Yeah. See. Hope I saved one or two from losing big.
Wonder what they are saying at 1.69p, which is the offer price just now? :) Probably... buy a shed-load... and wait!!
Surprised there’s no buys over £5k? Or are they going to appear later!
We all know how quickly this can move north, hold tight investors!
As the board said at 30p the removal from AIM is in the best interest of us shareholders..
No - she’s sold hers when I sold. Dad’s number would have been redistributed now I guess. I’ll check about the email and let you know. ????
Its not for everyone, but in Jan 2020 I calculated that shares at full production would be worth 68p, this was for 40%, we now have 16.3% = 27.71p. Other than delisting there has been nothing to erode the assets of TSTR, don't forget we also have a sizeable antimony prospect in Canada which is valued at NIL in the books and cost £3.3m. I would anticipate that once SPMP are in full production dividends will be paid which may be more than todays SP. Delisting is a Ball ache but really is an opportunity that I am more than happy to take.
https://**************RmOMHhqSILnlX-q747GsFQ
Does your mum still hold the shares? If not she won't need the info. I lost a lot of my contacts but i have found your dads mobile ending 539, but can't find yours. Th email I have is w******p*****@-----.com
https://www.youtube.com/watch?v=iEtQeoTpf-g&feature=emb_logo
Years ago I had around 11m of these before consolidation and haven't bothered since. I see they are being delisted next thursday, so why are people buying when its going to be taken private? or is this a stupid question
@Krispy: I think mum does. I don’t personally. You have my number I think. ? I can send you my email by WhatsApp.
@Fox: No sir. Not for a while. But always check in on you lot.
Keep positive people.
Just MM’s playing games for now.. I’ve never been a fan of AIM anyway, we all know the true value of these shares.
Hold.
When a company voluntarily delists, it may not be for negative reasons. This may occur when a company goes private—its shares have been bought out, potentially by a private equity firm, and it could be a sign of good things to come for the company.
I’m going to attempt to try and switch off for the weekend, looking forward to next week.
Enjoy your weekends!
Wassattjunior,
Do you still monitor your dads email, I have something to send you?
Not seeing 46% on ii - more like 25%