Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Would seem to be a relatively easy solution here, fix the issues surrounding the share price and put an agreement in place that when the share price hits X price then X number of shares are returned to the company from his holdings to repay the loan in full.
Win-Win as Lekan is happy because his shares have tripled in value from today, company is happy because a) it has recovered the loan & b) Lekan has reduced his stake in Lekoil Cayman.
Despite what is quite a confrontational move (going on TV to discuss) he did strike quite a concilatory tone towards the end of the conversaiton.
I actually think this is a really sensible play by GJ & team - judge & FCA trying to be Investment Directors suggesting raising capital etc - well GJ opens this back up to the market company loses 50% of value & GJ can illustrate that these same shareholders are not going to be willing to put any money into the company until the scheme is passed.
It's not for the court to even decide if it's fair, only if it's legal and usually ok stuff like this the criteria are;
Is it reasonable to assume all creditors will have known about the scheme and their ability vote?
Are the options laid out clear and true (i.e. can someone voting know exactly what they are voting for)
The only way I can see the courts could intervene here is if they feel that the threat of administration / liquidation I'm the event of a no vote is realistic and without the FCA making strong representations on that point I don't see how they can get involved.
All IMO, DYOR
If you're holding more of this than you're truly comfortable with then sell a little and know that you brought your average down on the rest.
This to me looks like either a leak of good news, or a pump and dump exercise by the MM's to give some a boost on their way out - I hope it's the former and that would make more sense to me as we are waiting for news on re-start of lending!
GL whatever you go with
Very well put.
I think a good chunk of us would have obviously preferred to see a JB & GC double act take charge but the vote took place and that's not what panned out.
Since then it's difficult to find fault with the businesses approach here, the new CEO is clearly concerned about shareholder relations and wanting to get holders back on board with the business which can only bode well for the future.
Yes I bought in last week, ahead of the JB announcement on Friday, had Amigo on my watchlist for sometime, kicked myself at not getting in sooner and thought (foolishly) that if JB and board could find middle ground and move forward amicably there was a few quid to be made as I believe I'm the business and estimated that this ongoing, public disagreement between board and founder had taken the SP well south of where it ought to be, even with the complaints.
For the record I'd like to see JB return and for GC to be retained, I think JB's vision and determination when counter balanced by a pragmatic and accountable board is a huge asset for the Amigo business.
Despite that I do find his actions slightly puzzling and whilst he said he was selling down his shares I think theres a sensible point where he could say I'm holding at 9.99%.
I read a few twitter comments from him where he said that he made this decision/claim at the time as he was so confident the vote would go his way that it didn't matter, very much an "I'll eat my hat" moment.
Like I've said I think he's a good guy with the best intentions, I just worry that the board with all their resources can slow box this and pull obstacles out of nowhere to slow down and frustrate the whole process, equally they will have been using Influence with II's which the previous vote suggests JB may not yield!
I do give him credit but having a good idea and working tirelessly to make it a success is a very different skillset to navigating the snake pit of corporate finances, can you explain to me the logic of continuing to sell down his shares below the 10% threshold when he needs votes to pass his proposed motions?
I do agree on his intentions however tabling a motion for an EGM and then having to pull one of the motions a day later reeks of naivety, these conversations are ironed out and foreseen well in advance by professionals.
JB's heart might be in the right place but you have to be a bit sharper and a bit more cunning to succeed in the world of finance and corporate, easy for the "nice guy" to come last.
Those who are sceptical look at Sirius minerals, every investor who got involved was right that it was a world class asset to get behind and would hold huge value but they all got shafted when it came to the cap raise failing, followed by the reduced price buy-out and the BOD got cushty jobs at Anglo!
The sad reality is that generally PI's are at the very bottom of business priority list and certainly well below BOD renumeration and future prospects, my worry is that James will get played too well here with the II's and fall short.
It's also ridiculous to sell down your shares (below the 9.9% in the agreement) when you need thevotes to carry your motions.
I've been following this share for a little while and I would advise caution here.
Clearly from the previous actions the General is a well connected, crafty individual - Mozambique law is reigning supreme over anything coming out of the British Courts and the Foreign Office has bigger fish to fry than trying to help Pathfinder and it's shareholders - so it's very much a game on the general's terms.
The new report providing a hugely increased assessment of value in the licence area is also concerning, feels to me like the general pulling more strings, increase the value of the licence so that in the event of any agreement coming to effect PFP pay more in any settlement to hand over control.
Unfortunately the only path I see here is;
Agreement with the general at a price based on the new assessment
Huge Cap raising to buy-out the general (& possibly the Chinese entity)
A further re-assessment of the value and feasibility of the licence, devaluing the asset
Umpteen feasibilities
More cap raises whilst this is ongoing
Who knows the share price could increase during this process but I just feel to see a path to a successful operation here, so would caution any new investors getting involved.
Jumped out today at 141. Got in at 42p on the basis that once the DOJ case settled these would bounce - must admit settlement was a bit higher than I anticipated but equally the 7 year period to pay eases the burden and allows then to redeploy some of their cash.
Best if luck to all still in.
They said they are going to have £40m more in cash at the end of their FY 2021 than they will at the end of their FY 2020, even building in a fairly colossal fall off in rents in 2020 due to COVID.
Basically it's them saying they aren't going to run out of cash, it's great news but to be honest cash hasn't been the major issue here, debt covenant tests (particularly Loan to Value ratios) is the big issue - however for what it's worth I think the lenders will be forced by market conditions to waive the LTV tests.
Hi Charlking,
It's because the MD#5 inter-coastal trading line crossed through the FPR-65 Moving 43.333 inter-day average costs.
Speculators are buying now because they think that if the current level can hold at this level for a week or more then that would mean then the 60 day inter-company spatial adjusted for costs and profit moving average is averaged against the 15 year historical bond yield curve for Gov't backed Japanese Yen equities this will go into the stratosphere because the upside will be clear.
Hope that helps.
Hi CDF,
Many years ago when I started out I lost a fortune on a share which was putting out fantastic financial reports which turned out to be fairly tales - I don't say for a minute that's happening here but I made a golden rule never to "average down" and buy more shares at a lower rate. Plenty do it but as a novice that saves and has saved me on many occasions.
I'm a holder here at 5p so I want and believe the company will do well but the net debt here makes this a high risk trade.
There's obviously plenty of shares out there which people expect to come out of the current general slump well, one I would recommend looking at is PLUS 500 (PLUS), no net debt, good cash reserves and having a great time of it currently with the volatility - BUT never invest a share purely off the back of a bulletin board comment & always do your own research!
I still can't believe this is only £10.70 after that announcement!
We all know this level of volatility can't go on forever but if it lasts till end of June Plus could make £500m in H1 2020 by then, almost half market cap.
No debt, great cash generation, solid divi policy this is my favourite share, I made a golden rule a few years ago never to double up after getting burned and I nearly broke it when this dropped to 800p a few weeks back but chickened out, if we see 10p again I'm going to have to break it!