Member Info for Daisan

Nope. The net cash comes to just under $14m as at end March by my calculation (obviously including all of the sale revenue assuming it goes through!). So slightly less than £10m. Let's say £9m taking out the other 5% and a bit of wriggle room!

Of course it is not a done deal. Nobody has said it is and yes there is cash burn which will continue to erode the cash if/when the deal occurs. When I calculated the net cash assuming the deal is done I got £10m including the cash burn up to now but not including another 6 months. Each month burns another $200k. I know and most others I am sure know as well. OSU owns almost 95%. I am not going to quibble about the 5%. Those are the facts as I see them. Not sure what the argument is here. I think we all know what the situation is and you apply a discount to this dependent on your confidence of the deal taking place.

Orsu should get pretty much all of the cash from the sale. If you add the sale cash to the $4.7m cash as at Dec 15 you will get the 5p per share but it does require the sale to go through. I don't see any of the conditions as being particularly difficult to achieve so don't see these as an impediment. But the delay to cash and the delisting from AIM is certainly suggesting a discount should be applied. At the moment this is bigger than I would have expected

5p in cash is still available for 1.8p!

Has he been banned? There was always something tragi-comical about his posting. What it lacked in quality it certainly made up for in quantity. You have to be thick skinned to post on these boards, particularly if you present a view contrary to the prevailing wisdom.

By my calcs it is a little more cash than that. Closer to £10m. But the point remains. I think 3.5p is fair.

Hello.

OSU is traded more on the TSX but there is not as much in it as you might think. I think the average on AIM is about 230k shares whereas on the TSX it is about 300k shares. Personally I rate the TSX much more highly as an exchange. They certainly appear to be more knowledgeable about their miners.

Ironic, Yes the total mcap is around £4m now. But in terms of assets it had about $4.5m before the deal so total current assets, assuming all the deal goes through, will be about £10m. So you are paying £4m for £10m. There is also a gold asset (very early stage) that they are looking to sell. This valuation gives that a value of -£6m.

I don't think you were likely to get $100m for Karchiga but it was certainly worth, in theory, $20-30m. You never know, perhaps somebody else will come in and offer more! Kazakhmys, where are you?

Let's face it, I should imagine that pretty much everyone considered Karchiga to be worth more than they are selling it for. I certainly did. The buyers are getting something with an NPV of $150m for less than $10m. An absolutely cracking deal for them. It is only because the share price here has been so depressed that the deal has such a transforming effect. All things considered though it is the right thing to do to drive any sort of value. I suspect that the board realised that funding was going to remain difficult for some time.

Doubt it.

... given the price of gold looks to be pretty strong at the moment and that the gold miners on the US stock market have gone bonkers, the price of gold miners on the LSE/AIM are pretty muted. If you look at the mining sector a number of the biggest fallers are actually gold related - KRS, CRND, AAZ and NMG. You would expect then to be performing well at this point.

Encouragingly low number of posts at the moment. Usually this kind of situation will be building up to a crescendo as borne out by the number of posts on this bb. Low number still at the moment suggests that people still haven't taken notice of this yet. Should be interesting to see what happens this afternoon.

Assuming all of the transaction takes place, by my calculations Orsu should have cash of about $14m or £10m. Plus the gold asset. Or over 3 times current mc.

It's intercompany debt. All within the same parent company so Orsu are getting the whole amount.

OK. Thought so. Your figures are slightly higher than I have in my head. In fact I have your number but in $.

This is one of those few occasions where cancellation from AIM is not the disaster it usually seems. There is still an outlet on the TSX. This is clearly making people think twice about investing. As a result of this deal their potential cash assets must be over 5 times the current MC.

Can you share your calculation Phoebus? Does it include the cash from this deal as I make the cash position after this deal way higher than that

Because it already has twice its market capitalisation in cash and looks like it is going to get another four times. So it will have a lot of cash compared to mc. What are they going to do with it? My preference would be to return it to shareholders (at least a substantial part of it) but I suspect they will look to pick up some assets on the cheap. Lots to play for though