The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
I asked my accountant about how HMRC will look on the new shares in sandstorm. They will not see it as closing out he old position and opening a new one so capital gains wont be due automatically once the shares are transferred. There is extra tax liabilities when holding us sharers though so more tax will be paid compared to just selling shares on AIM. That's was his understanding. worth a call to your accountant especially if you have a large holding.
I think you have it wrong on the currency Fulmar. Any increase in the pound would devalue any current investment from a UK perspective. Currently a $5000 holding would equate to £3,855.79 @ current rate of 1.29675. If that were to go to 1.5 $5000 would be worth £3,333.33.
Fulmar29 - I would be very careful about saying we cant lose. If it is a no vote by a significant margin and sandstorm walk away and no other bid comes in this stock will drop significantly. It would be a shorters dream and could even see it going back to the 30s before bouncing back There is always risk and its wise to never underestimate it. I do expect a yes vote even though I think its a low offer. Sold a little to take advantage of cap gains exemption but still hoping for a positive outcome.
They didn't mention much about Burundi at all to be honest. Obviously the state has a 10% interest in their operation but nothing about the ongoing crisis of government there. My concern is the current govt is not recognised internationally and is very much on bad terms with the UN. I would predict sanctions in the near future but who knows if that would affect rainbow as sanctions tend to target individuals nowadays. As for as timeline they were indicating end of the year.
I was at the presentation last night and was very impressed. I have bought a small holding today. The major problem obviously is location. Burundi is a basket case and that's putting it lightly
regardd the increase in the resource. The 5-10% was referring to increase in main zone. He did caveat that a separate new large main zone discovery would be a significant increase in resource.
Not too much to report. Apparently sandstorms original offer was lower and it was negotiated higher to where it is. Glen is hands off and leaving it up to shareholders to decide although he did say the BOD deems it a "fair offer". I asked about why not wait until pfs and he said the timetable is driven by sandstorm so not up to them. He was quite upfront and honest in my opinion. Said main resource would probably increase by only 5-10% so not worth paying the £150k or so to have it released officially as markets had probably already factored it. Did say they were suprised the market didn't value hm higher. Also that sand matron were only interested in the whole company not just hot maden
Just got here. No sign of glen or Eric. Not sure who is running this event but they are playing music for for a funeral here. Surely you would want a more positive atmosphere.
@ ludeck. Thanks for that. Does clear up a question I had for this evening.
I will also be attending tonight. I doubt we will learn anything new new but there are a few points I would like clarification on. Hopefully not a wasted evening.
If sand went for a takeover would the deal have to be all cash instead of a part share conversion? That would explain why they would want to merge instead of taking over.
Who is going to the proactive investor evening tomorrow night?
Me and a few other friends together have about 100k shares. We will be voting no.
I think people looking at sands share price decline over 5 years are Being a bit blind to the market conditions. How many gold/mining stocks aren't down massively to where they were 5 yrs ago. The recent trading has been disappointing but obviously that is understandable die to poor market reaction to takeover and short selling
I have a few issues with the deal as it stands but one major one. As a shareholder in Marina I would really like to know if GP and ER would be happy with this deal if they were not becoming directors in sandstorm and have a nice job lined up. I very much doubt it!!! I do feel we are getting shafted a bit here. No consideration of the other assets and why would they as to GP and ER they still have their interest in them. I have followed sandstorm for a while and think they are actually are very good company so in a bubble I would have no problem holding SAND shares. They picked up some fantastic royalty streams during the tough gold market a few years ago and Frank Curzio has mentioned them positively on his podcast before. The problem for us Uk investors is that I think the currency risk outweighs the positives in the share. I don't think Long term the pound will lose much more value but could significantly increase over the next 5 yrs or so compared to the dollar. So this makes the share swap part of this deal rather unattractive to me All just my opinion of course.