Member Info for chris137

My average was very low, I don't need cheaper shares. I need more information to make a better decision with. Without that, it is pure gambling.

Discussing things others you don't agree with is healthy. Much healthier than sticking your fingers in your ears and insulting them.

You pay your money, you take your chance.

I have answered this. What I hold is immaterial but I still hold a small amount, in a SIPP that I have decided to keep. I can't access the money for 20 years so I can wait to mine it ourselves if needs be. Being able/willing to hold these for 3-4 years is a good hedge against no deal.

Non-binding offers and no deal, no fee do not guarantee a deal. If the bidders are playing hardball with the price, EUA are well within their rights to say "Thanks, but no thanks." No deal, no fee means saying no costs EUA nothing.

Sounds stupid doesn't it shezer?

Of course, as they are under 1%, they can be sold anonymously at any point. SP hits 29p later this week, shares sold. No deal RNS Monday, shares hit 10p.

It's not an impossible scenario, is it?

CJ, that depends on wether you think Veles International are a fund or a broker, acting on behalf of someone that Alexei knows. Veles Capital have funds, Veles International do not appear to.

They may show up on the II holdings lists, they may not.

Given he was Chief Investment Officer at Summa, he would have known.

Regardless of it all, this is not a 100% dead cert share to put your life savings into. No share ever is.

Depends how far along the FSP is. The 7m doesn't make much difference.

There are just a lot of weird things with that deal. II due diligence is never urgently done, so I find the explanation of an urgent cash call a bit weak.

TBH, none of us know and I don't think we'll ever find out what has actually happened. All we know is that somebody else has those shares and can do what they like with them.

mjs, whoever has the shares now holds under 1%. This means they do not need to notify the Takeover Panel or RNS any buys or sells.

If the BOD knew he needed money, they have 7m tucked away from the placing at 22p. They could have bought his shares or given him a loan, avoiding all this mess and confusion.

Whatever happened was the least best option for concluding it, from our point of view anyway.

Buyontop, put your critical thinking cap on and consider why 0.99% of the entire company could be significant?

It is a heck of a hedge. 0.99% of the entire company.

We do have to consider the negatives though. I get shot down and called an idiot for trying to discuss them openly. Fair enough. Without the potential negatives, we don't have a balanced board and you end up with people lumping their entire life savings on a seemingly 100% dead cert.

Mjs, no offence taken. The situation at SXX was totally different, I absolutely agree.

The only comparison is that PIs know next to nothing at the best of times. We know less than most so all we can do is speculate, the majority of which will be wrong.

Belstaff, another good point.

That comes down to who you think knows more about the deal, Alexei or Veles. We can speculate but nobody knows the answer to that. Personally I think they were sold to a client, using Veles as a broker.

pardariff, in the event of no deal his remaining shares and options are not worth a lot. It's a simple hedge, take some money now, for whatever reason, in case it goes wrong. That is the simplest answer. That is why the market is reacting the way it is today.

Sammm, reason and logic is not your strong point I see so you crack on with the insults.

At the end of the day, it is your money. Make your own choice having carefully considered all options.

Use some critical thinking guys.

Alexei doing that tells us one of three things :

1. It's not happening any time soon and he does urgently need £8m.
2. He either thinks it is not going ahead at all or is going to be less than 29p.
3. Something else is going on.

Pick your option. All valid. As with everything else here we do not have enough information to make an informed choice. We're not investing, this is purely gambling. Our gamble is simple, will it sell and if so, will it sell for more than we bought it at.

sammm,

Would you sell something now for £8m that will be worth £45m in 3 weeks time? Or would you take a loan out on that asset?

I'd take the loan. I'd even pay 50% interest.

Very fair point Funky. I've given you a recommend for that.

The point I was trying to make is that buyers will pay the very minimum they think they can get away with. I'm sure EUA want $4b, NN want to pay $800m. From there it's a battle of nerve and will. Given then metals are in a bubble, by the time the mine is running they might be worth a lot less. It's a very complex deal.

Given the lack of information we have, the only concrete value we have is that Alexei reckons 29p is good value for his shares. Whatever his reason for selling, the man is not stupid.

No problem B1ll. Thanks for clearing that up. I share your view. There is loads of BS from both sides on here.

DORE, you are correct.

FLYB was valued at 16p, taken out two months later for 1p.
SXX was valued at 24p, taken out 9 months later for 5p.

Takeovers with a 500% premium are surprisingly rare. The argument here is that nobody knows the actual value so the SP is irrelevant. All those guesses are equally good & bad, anyone promising £1 a share etc... is simply plucking a number out of the air.

B1ll, you are entitled to your opinion.

I just don't share the view that a random bunch of people with very little official knowledge of a resource can accurately value it. Those numbers are pure guesswork, with additional bias added it based on what people dream of having.

sammm, the current SP disagrees with your conclusion.