Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
I've been critical of this share since this the deal was signed a year ago - the deal that was supposed to finallise everything, but didn't.
Paradoxically I must say that today's news on Anglo is - for me - the best news there's been since then. I feel marginally more optimistic, despite yet another s/p fall.
There was talk a while back that Glencore were in the frame for a takeover. So might there be a bidding war? And if so, might the winner use the spare change to mop up the small fry?
The best outcome for Arc is surely a complete sale. Does this bid make it more likely? I think, yes. At the very least it puts a spotlight on major copper producers and the worldwide squeeze on deposits.
Another possibility is that a midtier supplier might wish to attach itself to the coattails of a major, whether BHP, Glencore or some other, by buying the 30% share (or, more accurately, the 66% of 30%).
If any of this happens, a takeout price would be nowhere near as high as we could have got years ago when the Exclusivity Agreement was signed - thanks, Schirnding.
But we must be thankful for small mercies which may come our way.
Hi Adw198, welcome and best of luck with your investment.
However for me as a longterm holder, Arc has been pretty disastrous, with s/p depreciation really since the Anglo exclusivity agreement was signed back in 2020.
I once hoped for an s/p in double figures. This seems unlikely this decade, but it may reach 3/4 which would be good for you at your entry level.
The JV is sound. The problem is the Arc BoD - their greed, incompetence and misinformation. You yourself point our a new wrinkle. Anglo surely must have plans ready for the drilling season which is imminent. So where is the 'rich news flow' that Schirnding promised after the JV was signed?
The fear is that even if value does accrete, Schirnding will somehow blow it for retail holders.
[ Love to be proved wrong - we can but wait and hope. ]
Once again, best wishes
"As a result of the cancellation of ... shares, each shareholders' percentage shareholding will increase ..." RNS, today 10:01 AM
What?
Shares before issue : 1,232,318,465
Shares after issue : 1,467,807,345
Dilution : 16%
Buyback : 22,539,747
Appreciation : 1.5%
Just who does this moron thinks he's kidding? Do the maths, Schirnding.
On another board, I referenced Monty Python's Black Knight. All his limbs are lopped off, but he still keeps coming. "It's only a flesh wound, come back, you cowards ..."
For AVO, we've seen employee tribunal rulings, ADAM dissolved, now this Mabey group's winding up order.
Nothing serious, you almost hear them saying, just another month ...
An RNS which - as someone pointed out below - is pretty much a copy-and-paste of earlier RNS's.
However, the RNS of 02 Jan did state in addition that Swiss subsidiary ADAM had been granted a reprieve from creditors until 20 Mar 24. The Swiss link below (IWant, 10:24) indicates that this time limit is up, and that ADAM has been liquidated.
Is anyone clear on whether AVO actually has a functioning future if it no longer owns ADAM?
Two excellent articles on the problems on AIM from Charles Archer. Find here (or on Twitter, #ARCM) :
https://investingstrategy.co.uk/financial-news/is-the-aim-market-an-unregulated-mess/ (Nov 23)
https://investingstrategy.co.uk/financial-news/is-the-small-cap-market-broken/ (Mar 24)
There is a core of unscrupulous directors who have shafted their companies. But the main problem, he convincingly argues, is that regulator FCA does not - err - regulate. And it's not just companies who escape scrutiny, but also NOMADs and market makers.
In the November article he lists - chillingly - firms once praised to the skies - which then went bust. See his examples Dog Star Minerals or JPH (names changed).
The March article puts ARC's ultra-low issue price in perspective. It's not the first.
(Similar problems also affects the main market of course. The stream of companies leaving London for New York is becoming a torrent.)
So, the company in its wisdom issued new shares to buy back old shares.
Shares prior to issue: 1,232,318,465
Issued shares: 235,488,880 - Percentage: 19.1%
New Total: 1,467,807,345
Shares cancelled: 22,539,746 - Percentage: 1.8% (I had estimated 2.5%)
Adjusted new total : 1,445,267,599 (My calc)
Adjusted new total : 1,446,014,263 (RNS)
I.e. They ssued 19.1% to buy back 1.8%.
Wow. Is this all part of that deal of the century?
Come on AVO. Time to put up or shut up.
I'm not a royalist, but I've always admired a certain you-know-who for her quiet dignity. She - and Britain - deserve better.
Sort out your funding and get the cancer treatment technology out there. Or liquidate, sell the patents, and let others complete the task sooner rather than later. We, the shareholders, may lose out. But at least those with this dreadful disease may reap the benefit.
They, and we, have waited too long. It's time to wrap this up.
Incidentally, the enthusiasts have been saying the s/p should shoot up once the drilling schedule is released. But hang on, shouldn't it be ready by now?
The rainy season ends within a month. Surely Anglo have prepped teams, booked equipment, laid on transport, decided on timetables and next steps. So what gives?
Thing is, Anglo won't say anything for our benefit.
So who's going to provide that exciting news flow? We're waiting ...
Jeremiah99, let me just say, my analysis was not 100% correct.
The value of the 'entity' - i.e. ARC Minerals Ltd - was NOT the same before and after the issue. Of course its value rose by the amount of cash raised.
Nevertheless, there is a sense that we, the retail shareholders, are being shafted by the 'själviska jäklar' who run the company.
With greatest respect Jeremiah99, some may see it slightly differently.
Assume actual dilution is 16%.
Your share of the company increased from (J's shares ) / (Total shares) to (J's shares x 1.25 ) / (Total shares x 1.16) - an increase of 1.078, or about 8 percent.
So some might argue that roughly 2 shares out of every 3 you bought went merely to keep your relative shareholding the same as what it was before.
That is, only 1 in 3 of the shares you bought actually increased your relative ownership of the company.
Each of these 'new value' shares therefore cost about 3 x 1.8p. At 5.4p perhaps not such a bargain.
As our Swedish teacher friends may say of the BoD, fusk rövhål ...
The number of new shares : 235,488,880
New total : 1,467,807,345
Previous total : 1,232,318,465
Increase / Dilution : 19.1%
Interest previously held by Lärarnas Riksförbund (Teacher's Pension Fund) 5%
Shall we assume half had already been sold on the open market? 2.5%
If we assume remaining 2.5% is bought back and then cancelled, that still leaves dilution of 16.6%
Hardly sweetens the pill ...
New investors might wish to ask, do these guys really have the time to manage the company you co-own?
Other interests ...
Nick Von Schirnding
Consultant Apollo Global Management LLC
Director JANGADA MINES PLC
Chairman FODERE TITANIUM LIMITED
Chairman Metals Exploration PLC
Brian McMaster
Executive Chairman Harvest Minerals Ltd.
Executive Chairman Jangada Mines Plc
marketscreener.com also states 'He is also on the board of 8 other companies'.
Rémy Welschinger
MANAGING DIRECTOR VIRIDIAN LITHIUM
Non Executive Director Infinity Lithium
Managing Director LIMEHOUSE CAPITAL
Non Exectuive Director Firering Strategic Mineral
Absolutely devastating critique of Arc.
See SharePickers podcast with guest John Meyer :
https://audioboom.com/posts/8474024-john-meyer-on-copper-lithium-atlantic-lithium-savannah-res-cornish-metals-jangada-mines-ar
(11nm:40s -17m:40s)
'complete shambles', '[don't] know how to run a mining company', ' ... self-serving directors that just don’t understand the junior markets'.
Crucially, 'all they’re interested in is promoting their other businesses'. He singles out Brian McMaster who runs (fails to run) Jangada mines.
The only bright spot, Meyer suggests, is that Anglo are running the show. But even Anglo must be wondering what's going on.
Truly sorry to ruin your weekends.
Does anyone think there's any mileage in the idea of setting up an activist investor group? More common in the US, I know. I don't know whether it's feasible on AIM.
The aims would be to put pressure on board wrt issues such as: avoidance of 'mis-statements' (or lying to put it less charitably); director remuneration (tying it to share price); greater clarity on strategy/execution (they divested non-core assets three years back, now they want to buy new ones/who's running the JV); fees (e.g. Rothschilds); tighter control of target setting/deadlines/messaging; participation in future issues; (at the extreme) non-exec seat on the board if malpractice can be proved.
The 'mis-statements' are the most serious issue; '30% not 20%'; 'weeks not months'; 'no need for a raise'; etc. See DG's post below.
There would be a cost in setting it up, not least legal fees. And I guess it's complicated by the fact that many of us own our shares through nominee accounts on trading platforms.
Another option might conceivably be for the group to contact the Zambian Ministry of Mines. They want to clean up their act so as to attract foreign capital. If there are suspicions that ARC are sailing close to the wind on corporate governance, they might not be too pleased.
Anyone with the legal expertise to say whether this might work?
Sorry, Diamond's absolutely right.
The BoD have raped the company and betrayed ordinary shareholders.
It may come good one day, but that's years away - new investors, take note. And what might BoD do to sabotage it even if it happens?
If in doubt, look at the value destruction year by year in my earlier message.
Like DiamondG, a sniff of 4p and that's it for me.
Very sad.
"hopefully the sp will move up soon." Err ... what???
23-Mar-21 7.40
13-May-21 6.00
09-Jun-21 5.50
28-Jun-21 5.00
08-Jul-21 4.89
27-Jul-21 3.75
02-Nov-21 3.01
06-Dec-21 2.55
10-May-22 4.50
14-Jun-22 4.00
23-Jun-22 3.53
30-Aug-22 3.04
28-Sep-23 2.81
28-Feb-24 2.26
11-Mar-24 1.88