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Too cheap dimi! £4 plus on deal with GoT- £5 plus offer price - target £5.75. You know it makes sense.

Additionally $24m impairment charge on sale, $28m legal bills re GoT dispute, exploration costs $13m. Revolving credit facility of $150m. Net Assets $1.18 bn ($2.88 per share + $800m when Buly operational = $1.98 bn or $4.83 per share).

Well - thanks Super. Not read the whole thing yet but seven things jump out at me. 1. Still no direct confirmation to ACA from ABX of terms of the provisional agreement they reached with GoT on 20th February. 2. 521980 oz gold produced at $905 AISC - cash $130 million - 2018 3. 185,800 ounces of gold stockpiled plus 12.1 million pounds of copper and 158,900 ounces of silver value (net of government royalties) of US$247 4. There is no issue with North Mara - incident fully explained 5. International Arbitration continues in the background, should conclude by y/e if no resolution with GoT. 6. Reconfigured Buly mine can produce 300,000 oz gold for next 18 years once agreement reached and 35,000 oz from tailings until then. North Mara 370,000 oz at AISC of $790 2019. Buzwagi 115,000 oz from stockpiles until 2021. 7. Kenya 1.2 million oz declared 12.6 g per tonne.

I am sure I wrote were pandering!

I think the BofE was pandering to the Americans but it can’t be right. It would be very interesting if all Governments repatriated their gold (as I most certainly would) as BofE probably sold it years ago and would need to buy more in the market to replace it. 2018 figures from ACA tomorrow - update on information from Barrick?

I feel the decline is because it had been suggested expansion would be funded by asset finance ie potentially costing say 5% per annum, now we realise it is to be funded by a separate float effectively costing us 50% of the asset. The most important thing is that the development will most likely proceed and we as SHG shareholders will not be asked to pay for it which is obviously good but we will be loosing a large stake in the project.

Good point - I think is is Rule 11 of the Takeover Code but I think it applies when the party concerned or those acting in concert with them previously held 10% or more of the company. The rule can of course be waived by the Takeover Panel if they believe it to be in the best interests of the company.

With apologies to long term investors I am watching this from the sidelines waiting to buy in. I have been waiting for details of RI to be announced but I think I would just have to act if the SP went below £7 no matter what. It is hard to believe that a £350m error could have caused such a fall or (again with apologies) such an opportunity.

God help us both then because you are right.

You have been unhappy for a while P so perhaps an exit will let you get on with other things - seems a pity after all this time but make the decision that is best for you. The stock market is a device for transferring money from the impatient to the patient. – Warren Buffett

I see they raised $1.2 bn for Nevsun purchase so they have ability to raise funds in the market. Just have to wait and see.

Hi Elly, I suppose so as well. Surely the GoT must understand that there will be no significant additional investment within Tanzania until such a time as the situation with ACA is resolved. How much do Zijin have in their war chest, enough to buy 50% of ACA once Barrick have bought up our share? This was what we had originally thought although our expectations changed over time but it could still be possible.

Speculation on North Mara is just a smoke screen - ACA have commented on this and explained the position. Annual Report due on 2/4/19 Hold hard.

Of only limited interest I know but gold broke $1324 (briefly) next target is $1350 and then predicted to hit $1374. Without paper gold futures it would already be over $6000 - if paper traders were made to deliver physical gold then this racket would end over night. Have we reached peak gold? ACA figures this week and perhaps Barrrick will even pass on the details of the deal they agreed with GoT on 20th February?

Nice turn of phrase dimi - picking pennies in front of a steamroller - very apt.

For the record it is worth noting that between the 5th Feb and today (so far) in order to hold the price back it has been necessary for the shorters to sell an additional 1,271,000 shares into the market - taking their position from 0.49% to 0.8%, a total of 3,280,000 shares, these shares will have to be repurchased probably quite soon. I am willing to bet that this covers the vast majority of all share that have actually been sold for ACA. You must decide for yourself if, like me, you believe that this has been the reason why the anticipated news has not had a beneficial affect on the SP. Only 11.5 million shares in private hands, the normal source from which the shorters hope to pick up stock. Is it likely that after all this time Institutional investors are now likely to give in and sell them shares - certainly not. Don’t be fooled - hold hard.

Thanks dimi - situation in BF not improved. Positive comments about management and prospects so might be one to bear in mind for the future.

My favourite Brexit related news is that the conservative central office are breaking with convention and will be putting a rival candidate against John Bercow (speaker) for the next election and are reluctant to promote him to House of Lords. Apparently his constituents can’t stand him and are delighted by the prospect of finally getting rid of him. Almost makes an election worthwhile.

Dimi - May I ask, as you seem to have a good international grasp, what you think or know of Roxgold? They keep coming up in gold news talk - not related to ACA.

Visitor, can I add my compliments on an excellent summary. Sometimes you have to accept the deal on offer as you cannot wait for a better one to come along - most companies have had to do similar things at some point in their history. I am sure SHG will make all haste to get this commitment paid off.

Well I think that is standard contract terms - offer and acceptance. GoT can and apparently have indicated to major shareholder ABX that they would be willing to accept a deal based on the discussions they have had. The law of contract requires the entity concerned ie ACA make the offer as they are the ones that hold the contract. Once ABX finally present the deal to ACA formally they can consider, seek shareholder approval then go back to GoT with offer which has been agreed/negotiated with them in principle - GoT can then formally accept and everything moves forward - nothing at all unusual with that. The important question remains - why are Barrick delaying providing details of the proposed agreement to ACA?