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Thanks guys for providing that. Your record keeping is impeccable and you deserve success for the effort you put in.
My later top ups at the end of 2021/early 2022 were based on BR being sold and a return being handed out in the form of a cash/share payment similar to the projects you mention. I feel others were of a similar position. I still hope this will be the case and the CB quotes reinforce what I had believed to be the case. If a deal is going to take longer due to reasons previously discussed then that is fine by me. Patience is a virtue they say ............... But at the end I still want a decent payout because that was what implied.
In regard to new projects, the use of the term "risky" is open to interpretation. Manica is an area we know. We have further exploration licenses in the Lachlan Fold. In the current downturn opportunities might arise. But it is becoming a competitive field. And to be honest I would rather put my money in one of Colin's other companies (or 2) than chase new jurisdictions so this is not an anti Colin rant.
Thank you Andy
Also, here is the reported (not from official RNS) details of when kalumbila was sold, seems a better comparison.
>>> LONDON/TORONTO (Reuters) - First Quantum Minerals FM.TOFQM.L has agreed to buy Kiwara Plc KIWA.L in a cash and share deal worth $260 million.
London shares of Kiwara, which owns the Kalumbila copper project in Zambia, jumped 30.2 percent to 68-1/2 pence after the agreed deal was announced. The shares had nearly tripled so far this year before Monday’s news as copper prices recovered.
First Quantum said it had received commitments from shareholders representing 76 percent of Kiwara shares to accept the offer, which has also been recommended by Kiwara’s board.
Under the deal, Kiwara shareholders will receive 0.0085 First Quantum shares and 37.5 pence for every Kiwara share held. First Quantum will issue about 1.9 million shares, which will dilute its shares by about 2.4 percent, according to Reuters data.
The implied value per Kiwara share is 75 pence, a 41.5 percent premium to the closing price of Kiwara on Friday.<<<
So in comparison, with the subsidiary holding company (Prospectore) being bought out, are shareholders expected to see the full 100% share of proceeds of sale returned to them in form of full dividend payment or part divi with the remaining value returned by issue of new shares in the acquiring company?
Whilst retaining all xtract shares held prior to sale?
Bit premature I know but worth the query as have not been through a process like this before as I’m sure many have not either.
Hi Howezap
Perhaps sale 11 years ago of Mankayan by Bezant may provide a precedent - details below. This was never executed, Philippine government banned mining ! But the intent was 50:50 special divi / investing in existing portfolio.
Btw its a different Eureka mentioned - one in Argentina this time.
Extract of deal...
Potential disposal of Mankayan
Under the option agreement, Bezant is to receive a non-refundable, upfront cash
payment of US$7m with a further cash sum of US$63m payable if Gold Fields
exercises the option to acquire the entire issued capital of Asean (a 100%-owned
subsidiary of Bezant). Asean currently holds a 40% interest in the copper/gold
Mankayan Project, which includes an option to acquire the remaining 60%. The
option with Gold Fields is exercisable at any time until 31 January 2013, after which it
will lapse. Gold Fields’ current option on the nearby Far South-East project increases
the likelihood of the option being exercised.
Funds for Eureka and special dividend
The proceeds are expected to be split proportionally 50/50 between work
programmes for the Eureka project and a special dividend to shareholders. At Eureka
the funds received will allow Bezant to initially focus on delineating a JORC/NI 43-101
compliant resource.
A comment at the end of your post flipper had me thinking.
>>I am sure many on here wouldn't want to see money made from a BR sale reinvested in such locations no matter how great the geology.<<
On recollection, in interview Colin has said a couple of things, one being, “I want to do this for the shareholders.” I know that sounds obvious but was more relevant within the context in which it was spoken at the time. Also, “Shareholders would be getting a big fat cheque.” No doubt figuratively speaking, that will be in the form of a big divi payment.
Do any members have any insight into a likely dividend or divi / share split return to shareholders following ‘potential’ sale of BR?
I see how you twist what someone says to make them look silly when that's not what they said att all. Aww small man syndrome, small will y syndrome or are you just lonely? I wish you all the best as it looks like your struggling. Bye for real this time. Good luck.
I meant the market will drop Monday not in the closed period.
I didn't say it will effect xtract and I don't believe it will. Move on, go and try make yourself feel better about your life somewhere else. Bye
Well I'm speculating. I don't know obviously.
I am trying to understand the correlation.
Well if the market devalues in USA with the largest companies with the strongest currency then surely the ftse 100 will drop too on opening?
Also with the us markets dropping I assumed the dollar would weaken against the pound and but it didn't. So does that mean we are in for a larger drop?
The ig market does not exchange no where near the volume that the open market does.
Why do you say that Lucky ?
The drop I mean.
Going to be a big drop in the ftse 100 Monday morning I think. Funny the time difference between the us market and uk market coincide with a 2% drop after the London market closed.
I certainly wouldn’t disagree there flipper at this stage, it would be a little premature until we know what is actually on the table, both in terms of what else is required to make BR saleable and what, where and at what cost these further projects are looking to be.
My reasoning is more toward the overall business model and part of that is a budget ceiling for BR. From the acquisition of the license, there has always been a clear objective to prove up the 2mtCuEq and / or decision to mine to see if AA want to buy it back.
I think also, referring to Bens recollection of the 20-30p comment by CB, it is also an indication that, even back then, they obviously had a certain expectation as to where the resource would sit with a budget needed to achieve that goal with a realistic sale price in mind. Even a timeframe of a sale by end of ‘22 was quoted by CB back then, all shows that there is a clear enough, maybe even a definitive plan, within that overall strategy to grow the company.
To all
It’s remit for growth is to look for assets that meet a certain criteria and that criteria does not involve risky, expensive exploration programmes in unsafe jurisdictions. It’s all in the recent audited report.
It’s where their expertise lies and focus is now.
I’m sure the Colin Bird stable of companies are adequately structured to enable new projects to be taken on along side the existing, without the burden being solely placed on Colin’s shoulders ;-) There is also regional/national/continental risk diversification of assets to consider in the longer term when considering new projects I would think.
Joe
If we did a deal with MMP we could pay half the costs of plant mod and have a higher % of gold share. I'm sure both sides could do the number crunching to work out what the new % could be? I agree its a slightly more complex arrangement but could be done if both parties agreed.
Whatever the new arrangement re cost v profit at mania, I hope we focus on what we know works, in an area we understand and with another company we have been working with.
I kinda agree Andrew, but we won't be spending money on the plant as it doesn't belong to us.
More likely we will put the effort into drilling and understanding that license.....
...... or provide funding to MMP for their plant expansion in return for a Royalty agreement ...... now that would be a confusing quarterly results spreadsheet....
50p over and out !
CB has said many times "If you're looking for Elephants then go and look were Elephants have been found before"
A sensible approach mho.
So why does he need to explore other areas when right under his nose is manica. We know there is a resource there. Only 10% of the licence has been drilled and according to Ed Slowey, CB's Geo, "There is Gold everywhere at manica"
The problem is that it covers all sorts of different mineralisation, Oxide, transition and sulphide. The current plant can only process oxides so why not spend the money on modifying this plant and exploring the other 90% of the licence. CB has said we have the option of 50/50 partnership with MMP with costs split same as profit share ie 50/50.
That seems a much less risk then CB going for another treasure hunt in some other unknown area . Manica would offer very good risk to reward for shareholders.
I suspect CB wont be doing that as that is not sexy enough for him and he really wants the Kudos of another great discovery like Kiwara. He seems happy to take the greater risk for the greater reward esp as time is running out for him.
Lets hope his ego can be satisfied with a big sale of bushranger and the acclaim that that would bring?
And then we can be boring and just develop manica. Or other parts of Bushranger if not all of it sold?
But please no more high risk treasure hunts. Kalengwa is a right off and Eureka has not delivered anything after years of promises.
Howezap "I did read a comment that we should concentrate on what we have and not take on any more. I say, there should always be a business plan.
What do others reckon?"
Normally what you are saying is totally obvious. Of course an exploration company should be taking on new projects. The problem here is that Colin has multiple companies with a vast number of projects and is no longer as young as he would wish. I have shares in other CB companies as others have. Why do I want more of the same ?. Plus investing in a safe country like Oz is completely different to say Zimbabwe which I personally dismiss from past personal experience. I am sure many on here wouldn't want to see money made from a BR sale reinvested in such locations no matter how great the geology.
Yes, it's my fault for believing the only source of our information!! Lol
And it was 20/25/30p why would you skip from 25p to 40p?
Why would I be having a laugh with that comment, it would have been pretty weird for CB not to factor in further license potential when coming up with a forecast valuation would it not?
You say you are no longer naive and maybe I’m wrong to say this but I don’t believe you were at the event where this comment was made so you are believing people on a BB (not saying the people who attended this event aren’t trustworthy) Additionally for someone who isn’t naive and has been invested with CB for some time you prob should have learnt the guy is an optimist
All the best
James
Yes James, I was extremely nieve when I bought xtract share some years ago. I am no longer nieve.
And to say that Colin thought it was for the whole license before another porphyry was discovered??? Have a laugh.
The eternaly optimistic shareholders group I am no longer part of. Thanks Lucky
Hi Cygnus yes I see where you are coming from now, I guess the comment CB had made about sequentially drilling in a phase 3 programme rather than all at once, is indicative of that comment about, ‘sitting on hands’. Particularly of course if AA pass, on their options to buy back in then Xtracts optionality opens up further once again, with cash reserves in bank to get the project potentially over the line and the ability to self fund any further exploration beyond that to build on the resource.
I do believe though, that there will be an overall budget cap for Bushranger, they are not just going to keep spending because they can, not sure to what amount, but I think it will likely be sold before a full phase 3 is completed.
The further small, minimal capital cost, near production ready, safe jurisdiction etc joint ventures they are hopefully going to be reporting on soon that are planned for strategic growth. Will be important toward the long term outlook of Xtract and sound like they could well have the majority of income set aside for them. Although are potentially minimal capital outlay, they still don’t sound cheap. The company are in a stronger position now to be getting on board some of these projects as many more will be finding it increasingly difficult to get the funding without giving to much away in dilution in getting these projects finally to production.
I did read a comment that we should concentrate on what we have and not take on any more. I say, there should always be a business plan.
What do others reckon?
It is worth noting that Australia is a net exporter of energy (coal and gas) and coal remains a significant source of power generation. https://www.energy.gov.au/data/energy-trade.
This helps the Government contain electricity price increases better than European governments.
Australia is also highly invested in switching significantly to renewables and increasing the footprint of the National Grid. This will be highly resource intensive for copper.
Ups and downs!
One other point, with the lower price of Cu and the high price of energy (required to mine the Cu), at this time the resource model will in all likelihood need to use a higher cut-off grade figure than 0.15% leading to a smaller resource. But that will depend on the economic situation at the time the model is signed off.
Sorry to be negative but need to be honest about these things.
howezap,
My comment on 'sitting on hands' was meant to imply that as we are currently self financing we cannot be held to ransom with a low ball offer i.e if we don't take the offer we will suffer dilution etc. Instead, we can threaten to 'sit on our hands' until the right offer come along.
howezap,
My comment on 'sitting on hands' was meant to imply that as we are currently self financing we cannot be held to ransom with a low ball offer i.e if we don't take the offer we will suffer dilution etc. Instead, we can threaten to 'sit on our hands' until the right offer come along.
Lucky
I was at the investor night where CB made the statement, from memory it was along the lines 20,25 or 40 pence after a few whiskeys. My take on this at the time was it was based on what he thought the asset would ultimately be worth not just on the information he had at that time so don’t think it’s fair to say the asset was worth 20/25 now we have found ascot and other targets it should be 20/25 + ascot.
No doubt the USD strength has helped with any dollar conversions, but to just focus on that is naive (in my view) when there have also been numerous headwinds since the investor night e.g. fears of recession, rising interest rates, copper price drop off, wars, huge spike in energy costs, inflation etc etc which none of particularly helps M&A.
End of the day what I’m trying to say is if CB “only” sells all the old prospector assets for 20p id happily buy him a drink despite the fact there has been some frustration on my part along this journey.
Cheers
James
Dollar to pound could go to 1.05 which is 32% extra. 26.4/33/39.6p plus ascot,foot rot and other anomalies. Plus the additional revenue from manica.
Showing everyone this so that when it comes time to sell bushranger, you can look back and see if Colin was telling the truth about 20/25/30p.
I don't want all the additional waiting and drilling for Colin to just get 20p and then say 'I told you so'