Member Info for BritishPeculeum

SP in free fall today might suggest market is responding to news. Dilution incoming???

GreyGeorge you seem to be very sure that punitive damages exist in the law in England and Wales. Can you cite any references to back that up? Statutory or case law precedents will be helpful. Thanks.

Proximate Cause*

GreyGeorge, my understanding behind the situation in the United States is that states have the right to what are known as ‘Examplary Damages’. In the US, exemplary damages are punitive damages, intended to act as a deterrent against others acting in a similar manner, where it is proven that the defendant has been guilty of oppression, fraud or malice. In the late 1970’s and early 1980’s, it became apparent that big tobacco had enough internal data and evidence to know that smoking tobacco-related products could cause significant harm to human health. It was information that the tobacco industry failed to divulge at that time, and it was that withholding of vital intelligence, which led to the award of $145bn in a class action in the State of Florida in 1994, and the $206bn Tobacco Master Settlement Agreement in 1998, brought by a consortium of 46 states (the case I believe to which you are referring). There have been other notable individual lawsuits since, that have also made exemplary awards, but it should be noted that all of these settlements were primarily punitive damages, because there was little or no loss by proximate cause (ie that the states could prove a demonstrable loss by way of a shortfall in the recovery of tax revenue vs the social cost incurred by the state of smoking).

In England and Wales, the law does not allow for exemplary (punitive) damages as it does in the US. Thus any claim brought by the British Government against big tobacco would have to be limited to a demonstrable financial loss (proximate clause), and I have said previously, it appears that the British Government has collected revenues well in excess of what it costs it annually to service the liability.

Sorry, no ability to edit or delete. You’ve stated it’s from a Telegram post. Thank you.

Fair enough ITD… thanks for sharing that. Which RNS is that taken from?

To put that into context, currently, total taxes (including VAT) account for 82% of the retail price of a packet of cigarettes in the UK (71% hand rolling tobacco; 48% cigars). Total tobacco tax has remained at or above 75% of retail price since 1992.

Tobacco duties are levied on purchases of cigarettes, hand-rolled tobacco, cigars and other forms of tobacco. VAT is then applied to the price of tobacco and UK tobacco duty combined, . In 2024-25 the OBR estimates that tobacco duties will raise £8.8 billion (23-24 £8.8bn; 22-23 £10bn).

In a report from 2021, the pressure group against smoking in Britain, Action against Smoking and Health (ASH), reported that smoking is estimated to cost the NHS £2.5 billion every year, equivalent to 2% of the health service's budget.

GreyGeorge arguably, that’s the reason the British government taxes tobacco sales so heavily; to pay for the burden of the health consequences that the government has to endure. Thus any claim the British Government might bring on big tobacco would have to be limited by the amount of revenue that the Government has enjoyed from the sale of tobacco?

InTooDeep999, you might well be right, but it does not actually say that does it? In fact it doesn’t say anything about where the funds will come from to pay down the coupon.

Yv00 there is a long long way to go on the journey for PXC before it might be cash generative, and thus be the multi-bagger that many have waxed lyrical about on here. The market knows this and is responding accordingly.

As I see it, PXC has dug itself into a bit of a hole both literally and metaphorically-speaking and don’t currently have a way to get out of it. Yes, they have access to the bonds, but they will be subject to conditions precedent, one of which will most likely be that PXC can’t utilise the capital from the bonds to pay the coupon, which will start to accrue from date of drawdown. For that, PXC will therefore need cash from an alternative source, which it doesn’t currently have, and which could be debt, a corporate M and A deal, or a raise. My gut instinct tells me it will end up being the latter of the three. Personally I think that PXC is too early on its journey in the development pipeline, with too many unknown risks, for it to find a sensible or even viable deal from either of the other two options at this stage.

In terms of timing, this could run and run. The Board may well think that the option is in an M and A deal atm, but if that comes to nothing, it’s likely to be a raise that is required to take the prospect further forward. Whether the bond holder is still at the table by the time that all that comes to fruition is anyone’s guess.

DYOR and GLA

A gaming realm of your very own, danny-willo…

Barclays guidance…

https://www.proactiveinvestors.co.uk/companies/news/1058565/reckitt-promotional-push-threatens-sales-as-earnings-loom-1058565.html

Investing in Africa is always eventful, and full of surprises, and requires patience by the shed-load… relax ladies.

RoJo “the suffering is in the expectation…”

This is gas exploration and development in Africa. More specifically, this is gas exploration and development in Africa, that relies on decisions that are in the hands of APT (Zubairs). APT call the shots on the destiny of AEX as I see it, and it has been like that for years. If the Board of APT decide that it’s going to sit this one out for years, until they are satisfied that the conditions are right for THEIR shareholders to develop this puppy out, then, as I see it, so it shall be. Will they be bothered if AEX share price plummets because of no activity? As I see it, probably not. They might even consider it as an opportunity to pick up the remaining shares in AEX for buttons, at a time that suits the Board of APT.

If all of this sounds far too salty for you (and your posts sound like it might be) then why not pack your bags and go on your way, and close the door quietly on your way out?

Or if you decide to stay in, and grow a pair, then I can thoroughly recommend chill pills… and patience pills… and pills that will help you to grow a pair… Afterall this is Africa…

The market knows where this is going… a raise at what? Any advances on 6p? Anyone?

“Widely held belief acquiring a producing mine…”

Based on what, exactly? Certainly nothing that the CFO said in that interview pointed towards that, so what else are you relying on to have that widely held [amongst other rampers] belief?

And then it could be all smoke and mirrors…

Stas20: 100% on the money. Majid would have to go. No trust and confidence would remain in him to lead the Company in that scenario.

Is paying a coupon out of the bond principal a sensible way forwards? Surely there would be cheaper debt available for working capital, based on PFS now being available?

Dilution incoming I would expect here.

I’m not so sure this is an overreaction, more a sobering settling of the froth from the NIU bond raise and the cold light of reality setting in. Despite the bond raise, Issue remains the same with this company: how does it generate income to pay the coupon, when it draws down the bonds when it has no revenue to service the coupon?