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Daisan and SquirtyFlower, thanks for answering my question. Appreciated.
Regarding ISA limits. If someone was fortunate enough to receive dividends of let's say £16,000 in a year inside the ISA wrapper could they still invest £20,000 to the ISA (current year maximum) or, would it be limited to £4,000, i.e. Max ISA contribution less total dividends received?
Anyone know? Cheers.
I've started some basic research into joint stock exchange listings and can't find much in its favour other than the 'party line' that it opens us up to wider investor market and / or gives currency restricted South Africans a chance to invest in their own country. Fair enough but I also found some stuff on why dual listings are not achieving what was stated or intended. Research continues but all this got me thinking:
Someone on the BB recently feared a takeover of BMN at a figure well below what we might eventually achieve. I started musing (an old Corbine pastime) - what if BMN proceed with the joint listing and then at later date when BE is better established, floated it separately as per Afritin but on the SA JSE NOT on the London exchange. To me that would be a bummer if the big prize was deftly floated off before it reached anywhere close to full potential. Hopefully, won't happen or share price significantly higher before such an event.
PB940 Post 14:41
towards the end of the post, SA's Mineral Resources Minister, Gwede Mantashe addresses past wrongs to local black communities through apartheid and how they can be redressed:
“Communities are not going to wait for dividends, they want development in their communities,” Mantashe said.
Interesting. I suspect it's this mindset that's partly fuelling the industrial action at Vametco; to us affluent westerners dividends are relative icing on the cake but harder to sell to a long deprived community for whom dividends (and/or share option schemes) are probably too sophisticated and too long term. It's key that our negotiators understand this if they're to win the respect and cooperation of the strikers.
I dislike the principle of short-selling and consequently I've never even understood how to go about taking a position. However, if I was au fait with shorting and I'd been aware of the Vametco production shutdown prior to or from 5th Sept it would have been very tempting to take a position!
Ouch! South Africa reality check
Hi Ludeck (at 13:19pm), in my view Sojitz would wait for the Mokopane mining licence because it brings certainty (removes risk) that the site can be developed. Without the licence Sojitz's interests would be better served at 15% owners of Vametco ( cash flow certainty) rather than a more general BMN shareholding without Mokopane. Besides, Sojitz are multi-billion dollar organisation and no doubt follow strict guidelines when making their investments. All IMO.
Someone asked yesterday if the currently lower share price might hinder / benefit a Sojitz buyout. Certainly, any agreed purchase price will be based on revenue and profits not on share price; so the somewhat disappointing RNS about production (hence profit) might have reduced the price we pay Sojitz. However, once a price is agreed say £36.5m (oi, no heckling, just a number for sake of illustration) the majority would be paid by issuing shares based probably on an average price prior to agreement. So, if £6.5m was paid in cash that would leave £30m to come from issuing new shares in BMN (they're permitted to up to circa 350m). £30m at 28p per share is 107m shares whereas at 21p per share it's 143m shares. For Sojitz that would mean a larger percentage of BMN for us PIs it means significantly greater dilution. Move the share price higher / lower than 28p / 21p for even wilder results. FWIW I wouldn't be surprised if a draft contract is already in place, signing subject to the Mokopane lining license being granted.
Regardless of where the share price ends up at close today the RNS serves as a reality check to all of us; less than expected ore grades / unexpected workforce and local community unrest - this is the reality of running a mine and processing plant and it reminds me that it's dangerous to listen only to an unconditionally positive take.
Anyway, still a long and strong holder but couldn't help noticing no mention of the strategic buy out of Sojitz' Vametco holding; I still feel it's related to the granting of the mining license at Mokopane. Any thoughts?
Very solid and reassuring RNS. Regarding the Sojitz buy out speculation, which understandably is rooted in the phrase: "....to improve Bushveld's exposure to the underlying cash flows of its assets (US$9.0m) (£6.4 million)"; [from the March '18 placing RNS and repeated at the very end of today's RNS]. This wording has been removed in Fortune's CEO Report today under the heading: "Bushveld Minerals' Post Year End Events" - here, the purpose of the placing is stated as "simplifying Bushveld's organisational and corporate structure;" .
To be fair, it is an abbreviated summary of March's stated reasons but it (knowingly?) avoids reference to gaining 'exposure to underlying cash flows'!
Don't think there's anything odd here but it certainly steers the reader away from Sojitz speculation. I stick with my post from 6 June: Sojitz buy-out / Sojitz taking shares in the greater BMN is dependant on Mokopane mining licence / mining charter.
Maybe Sojitz could qualify as the 'strategic partner' that Fortune is seeking in his 'Mokopane Vanadium Project' section!
"The story of Bushveld Minerals is not yet half told" FM (today's RNS).
Onwards and upwards
Great earlier posts BBN re Eskom. BMN's acquisition of Sojitz' share in Vametco remains speculative. I remember some posters take the view Sojitz will sell and will be paid partly in cash but also in BMN shares - in others words, they'll be part of the larger BMN picture of Mokopane/BE VFRBs et al. Since no progress has been announced I suspect Sojitz might be holding back until either or both Mokopane mining licence is announced and or significant progress with VRFB demo is made. For Sojitz it would make sense to have these two key milestones de-risked. Any thoughts?
WorldGoRound, not sure whether you're peeed off at management/shareprice or enjoying the spoils of your investment but feeling guilty that WTB is bringing our beloved Blighty to its knees. Whatever, highly entertaining and the markets loved it - WTB put on over a quid in response to your post. I reread your prose in the voice of John Cooper Clark and it's even better - more please!
Excellent post ChesireKat, considered, probably accurate and non-hysterical. Please keep posting.
Oh dear. If only Boom were turning a profit there might be the chance of a takeover offer coming in whilst share is suspended. Any chance of this happening? Rather that than coasting along with RP at the wheel.
@BigBiteNow; @NickD; @Alfacomp - Sorry so late in thanking you guys for such insightful and detailed responses to my original posting re Sojitz. Nick, I'd never really considered how their minority share would actually command a lower value and Alfa/BBN it makes perfect sense to me for Sojitz to take a slice of the whole Bushveld game plan rather than just Vametco. BBN your Evraz /Stratcor post was amazing and when I get time I'll read the document you recommended. For a long time I've wanted Sojitz to play a role in BMN, after all, we've all craved II input and Sojitz have been there all the time. Anyway, shouldn't celebrate Sojitz until it's done deal but in would seem a wise strategy for them to get a piece of Mokopane, BE and maybe further enhance their licensing deals. Thanks again, quite reassuring.
Afa & NickD & BBN, I've held and accumulated since early Nov 2013 and believe the story. However, there is one bit I can't grasp, Sojitz: I understand brokers and a key RNS allude to obtaining their share but if all your figures are correct about the profitability / value of Vametco then Sojitz will want full value, surely. In short, if our current MC is virtually all attributable to Vametco then Sojitz' share of Vametco must be worth approx �65m Why would a massive Japanese mineral investor want to part with it for a giveaway price? I sincerely want us to obtain outright control of Vametco but I expect we'd have to pay market price? Welcome your comments
Sunday Times (page 3, business section) report FB launching satellite in 2019 It's a "e-band" high frequency delivering 10gigabits a second (faster than conventional). It states this is to TEST a system, not go live and is aimed at the 3 billion who can't get internet. I can't see why FB couldn't compromise on the specification (for now at least) and take up AVN's Hylas4 capacity. Got to be cheaper than buying their own satellite and gets them running this year. Sales Team - pick up the phone, Zuckerberg is waiting........
Hi BerkampTurn, in reply to Q1) does ITV own its Southbank HQ? My understanding is that ITV fully owns the freehold. It has applied for planning to redevelop and has recently received approval from Lambeth Council [ http://www.london-se1.co.uk/news/view/9526 ] This should and hugely to its assets but I'd prefer them to forgo the vanity of the Southbank location and set up an admin HQ in a cheaper part of London or elsewhere and let / lead the prime site to wealthy company. ~either way, good news but what with property hit by Brexit the timing would have been better a couple of years ago. Iconic Southbank site might appeal as new HQ for Liberty /Virgin Media!
I thought it was interesting that Brian Raven emphasised, for the moment at least, consolidation of the existing business rather than growth via acquisition. Less exciting maybe but there have been significant acquisitions so maybe he's wants to make sure the foundations are sound before building higher; seems sensible to me
wish they would exercise their options now at 5.25p - would send out a massive vote of future confidence!