Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
@cringsing
Excellent and well argued advice from @GG (my thanks too George!). He really is to be commended for his generosity of time and knowledge.
Another very detailed, highly informed and well argued comment was posted by Scot126, on another BB, on 05/3/2020 at 13:55. It is well worth studying in depth.
You and I (and many like us) are extremely fortunate to be able to benefit from the knowledge and experience they freely share (with no ulterior motive) with us.
Moneymaker
Just nicked out of IRON into PANR for a short term punt (I'm heavily into PANR for the long haul as my lifieline after AMER). You may want to have a quick shufty at the stock: I think there is a good short term opportunity - but the long term seems stunning. However - need I say it (you're a skilled investor after all!) - PLEASE DYOR!!!
I am in IRON for a small short term punt. My reason for taking this position is an unshakeable belief in GC's greed and total disdain for PIs and their financial wellbeing (I write as a former long-term holder of Amerisur - another GC company - which was recently sold for 50% of its value, providing GC and his cronies with a small fortune in options whilst, at the same time, royally shafting the PIs).
Observing that GC is into IRON for significantly more than the current share price, I have hopped on for the ride, confident that he will do whatever is necessary to line his own pockets, regardless of the outcome for private shareholders.
Caveat emptor!
I offloaded a substantial (for me) holding in Amer, just before Christmas.
As a LTH from the Chaco days, it would be an understatement to say I was dismayed by the dismal performance of , and ultimate betrayal by, the BoD.
Although not normally a vindictive bloke, I REALLY hope that this action stuffs GC and JW in the most comprehensive way - I'm thinking where the cat got the thermometer!
HNY to all fellow sufferers and my grateful thanks to those fine minds and wise heads that have informed and enlightened me over the years. I wish you all well.
Your comment reinforces the proposition that neither Clarke nor Wardle should EVER be trusted with the stewardship of a listed company again.
In the unlikely event that there is a City blacklist, they should feature prominently, and permanently on it.
Mathurin,
I concur with your sentiments; but I think you are seriously economical with your adjectives describing Clark. I would add fundamentally untrustworthy, self serving and ultimately proven to be totally unsuited to future corporate office.
All the best for the future to fellow Amerisur victims.
I have been a holder since the Chaco days and have a significant (for me) holding in Amersur.
I cannot subscribe to the view that the Bod have acted in the best interests of the shareholders - quite the contrary!
Forgive my naivity (there are far wiser and more experienced heads on this board than mine), but I also cannot believe that, having apparently either consistently misled shareholders, for a number of years, as to the value of the company's assets/prospects, they can blithely now claim that the valuation of 19.21p per share is fair - and disappear into the sunset, uncensured and scot-free, with their pockets bulging from the generous options they awarded themselves.
Consequently, my view is that this deal is highly suspect.
Posters on another board have recommended PIs to report their concerns to the FCA, which I have followed (text available if required - feel free to message me) or even funding a class action against the board (highly unlikely).
My questions, therefore, are this:
1. Are the FCA totally uninterested in policing the AIM - have they no interest in protecting small investors, or do they really function as a robust regulator?
2. If enough concerns are raised by disgruntled PIs, would the FCA investigate and, if necessary, potentailly unpick the deal (as has been suggested elsewhere)?
3. Or are we just content to be meekly accept our fate and shuffle off like lambs to the slaughter?
In closing, my sincere thanks to the wise heads that have freely shared their knowledge and experience.
Gambling Addict. Thank you for following this up with the FCA.
Their response really makes you question whether they serve any useful purpose in protecting the interests of investors
Has anyone followed Lucypoop's suggestion (over on ADVFN) to email the FCA, questioning the suspicious behaviours of the BoD?
Simple copy and paste.
It's a long shot but if enough conerns are formally registered, then perhaps they will be prompted to closley scrutinise the deal.
If this offer goes through, then the price is crystallised. If the offer fails, and everyone walks away, then we live to fight another day, even if the SP retreats to 12p!
Don't forget the SP was walked down from 20p to 12p due to RH dripping vast numbers of shares into the market.
I reiterate that it is essential not to lose sight of the fundamentals:
Amer is producing at over 6,400 bopd.
We have significant infrastructure ownership.
Between the estimated value of the CPO-5, Platanillo, OBA, Oxy carry, and cash, the net asset value of Amerisur is roughly US$670 million. The Geo offer vales the company at US$315 million - an implied discount of over 50%.
And when you dial in the $60m cash balance, the offer is actually worth 16p a share !!!
gettingpoorer
You are, of course, entitled to your opinion and I apologise if my comment caused distress. I suppose, in the present febrile atmosphere I am deeply suspicious of posts on BBs that appear to undermine the battle ahead, that some of us are prepared to join (if there is to be one!).
If my decsion was to cash in my chips, I would simply get on with it and dispose of my holding without further public comment - but that's just my way, and I should, perhaps, be more accommodating of others' ways. Peace!
Then just move on gettingpoorer and save your keyboard time
Then leave the rest of us it.
Mathurin
Totally disagree.
In a nutshell, the PIs are being stiffed!
The net asset value of Amerisur roughly comes to the neighbourhood of US$670 million. By paying US$315 million, GeoPark gains the control of assets at an implied discount of over 50%.
And when you strip out the $60m cash balance, the offer is actually worth 16p a share !!!
Certainly GC and NH must go (particularly after strongly recommending 'no action' from PIs whilst they negotiated a sell out) - but JW could surely be induced to remain to develop what still, fundamentally remains a very sound company with outstanding protential. Why ever would you move on from that? IIs please take note!
Duncando
Please email moneylender@gmx.com with the number of shares you own.
Superdad.
Thank you for the courtesy of your response
Unfortunately, I no longer share your belief, or confidence, in the Board – quite the contrary!
Much of their “considerable stake in the company” has been acquired by means of – in the view of many investors - over-generous share options; and some key players apparently have little ‘skin in the game’.
Nor do I share your faith in “trusting ‘experts’ to determine the fate of my investments” over considering the views of well informed and experienced investors on this , and other, BBs. I have paid the price of trusting experts!
It is important to remember that this is not a distress / fire sale!
Amerisur is producing at over 6,400 bopd and has significant infrastructure ownership. Between the estimated value of the CPO-5, Platanillo, OBA, Oxy carry, and cash, the net asset value of Amerisur roughly comes to the neighbourhood of US$670 million. By paying US$315 million, GeoPark gains the control of assets at an implied discount of over 50%.
And when you strip out the $60m cash balance, the offer is actually worth 16p a share.
There seems little doubt that ONGC have been deliberately dragging their heels on COP-5 – with the consequent negative impact on the SP - and the reason for this could be a post-sale redistribution of assets.
To quote the CEO of GeoPark “"GeoPark and ONGC…the operator of the CPO-5 block, have a long term strategic alliance to acquire a portfolio of projects across Latin America. ONGC brings significant operating knowledge and expertise to the CPO-5 project. "
https://www.geo-park.com/files/releases/GeoPark_Announces_Amerisur_Acquisition__Final_002_EN_1.pdf
You go on to say: “What you are doing is voting down and probably removing the board.
Who will then run the company and how will you realise more value than the best offer anyone has given for the company?”.
I really find it hard to believe that the Board, which has a long established history of enlightened self interest, would walk away and forego any share awards that are performance related. Just doesn’t run true to form!
I also find it hard to believe that a group of IIs, faced with a potential 2x – 5x relatively short-term ROI could not recruit an effective team to effectively manage and fully exploit this outstanding investment opportunity. In fact, given the appalling operational track record of the current management, a change would be highly desirable.
I therefore strongly urge all investors – and I include IIs who may be reading this - to support ML’s campaign and ensure that this lamentable offer is robustly rejected, so that we can, in time, realise the full value of our investment.
Superdad,
I bow to your significant City experience but I would, respectfully, put this point to you.
You say "if you vote it down the Board will resign and the shares will plummet.", and that could wll be the case (bearing in mind that some have invested their own funds, so they may reconsider that optiion).
But if we support the bid, then we crystalise the value of our investments at, what some well informed and highly respected posters consider to be, substantailly below their true value.
Alternatively, if we vote against the offer - which I intend doing - we continue to remain invested in a debt free, cash rich, company with high value assets in a low cost oil producing area. The shares may well plummet but, if we are to believe the data, this will only be a relatively short term (for LTIs) phenomenon and, as a long term investor in Amer, I am in for the long haul. I would therefore strongly urge all PI's (and any IIs that may be reading this) to support ML's campaign and robustly oppose the bid.