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Boohoo grows own cotton to counter Xinjiang misgivings
Laura Onita
BOOHOO will produce its own sustainable cotton as Western concerns grow about the mass production of the plant in Xinjiang.

John Lyttle, chief executive of the online fast fashion firm, revealed that the company has planted its own crop in ****stan, which it plans to harvest in the first half of next year.

Its first crop will yield about 2,000 tons, which will go into Boohoo’s supply chain and be used to create “millions” of garments for its leisurewear and denim ranges. The company said the move will allow it “complete traceability” on the source of its cotton.

The initiative follows widespread reports of human rights abuses in the Xinjiang region of north-west China, affecting Uyghurs and other ethnic minorities over many years.

Boohoo has denied using products made with forced labour in the region following an investigation by the business, energy and industrial strategy committee. The retailer said it did “not knowingly source any yarn or fabric” from the region, as MPs questioned auditing processes at the business following a row over working conditions at its Leicester supply chain.

Boohoo plans to publish a list of its global suppliers in September.

I got a disappointing 271 BEG shares on the Primary Bid offer. This was my 25th PB purchase, the better ones I have kept and added to. Some went for a small profit, some a small loss. A couple did really well.

You need to be quick, a loud notification on your phone helps. Offers tend to come through just before the market opens or after it closes. Quick research is essential, no prevarication, a yes/no decision and get your debit card out. Theres little point going large, allocations are often small and it just ties your cash up,. Avoid Investment trusts.

I will add to BEG, but one of the PB drawbacks is that the balance return is not always rapid. Primary Bid is run by Jarvis Securities (JIM.L), they also have the share dealing site x-o.com. I switched my ISA and Nominee from H&L to X-O, deals are just £5.95 with no other charges. On the downside the website is basic, but at least they answer their phones.

Just to clarify, I am aware Beg is AIM, therefore not all costs apply.
Cost savings are a factor to be taken into account when buying PB placings, (just preempting the more pedantic readers)

Interesting Primary Bid offer, existing shareholders will be happy there is no dilution. New investors have no dealing costs and no stamp to pay and there's no spread. Take that into account and there is a 1.5p to 2.5p per share saving depending on whom their broker is. Only downside is that there is not much incentive in the pricing and the placing might not be that successful. Although it is of course a good addition to the portfolio of the longer term investor.

Primary Bid is a good way of buying shares with no cost, (no £20 fee). The problem arises when the issuing company provided too little shares for us punters. Its out of the hands of PB who are only the supplier of whats available. But, they could close it down quicker or they could set a minimum number of shares rather than pro-rata. I got 461 shares and will probably have to wait three days for the balance to arrive back in my bank account. Primary Bid is owned by Jarvis Securities (JIM), who run x-o.co.uk share dealing, who have a no charge Nominee/ISA accounts and a £5.95 dealing charge, which is handy when you've only got 461 blooming shares!

I've bought into several Primary Bid bids, Taylor Wimpey. Croda, Diploma, Essentra, Shantra, Ricardo, I3E and several others. The number of shares available is sometimes limited, but if you avoid the Investment Trusts, it's quite rewarding, (not always). Buying without any fees, no stamp duty and no spread, certainly helps.
It occurred to me Jarvis must be receiving some pretty hefty fees for all these deals.
Also, I have used the x-o dealing platform for many years, but switched to H & L . I like a dabble in shares, but also like the ease of funds, (which x-o don't do). Although the H&L website is all bells and whistles, the fees soon mount up and the dealing charges are double x-o's, so I moving back and having a little dabble in JIM.

Last week an IAG share was trading around £2.
On Monday the "Excluding Nil Paid Rights" kicked in, the price fell accordingly to around 135p.
That was because IAG shareholders became the owners of the right to buy a IAG share for €0.92 ( 82-85p)
Tomorrow (17th) you will see that you own IAG shares and IAGN (nil paid rights).
IAGN will begin trading tomorrow, so you can sell (or buy) them.
If you keep them, you will have to pay €0.92 ( 82-85p) per IAG share to your broker.
If you sell them, IAGN is currently around 70p, you are roughly back to your £2 a share you had last week.
But, the the IAGN price may well fall tomorrow as there will be more available to trade, (currently grey trading).

The current IAG share price is likely to remain around its current price for the time as there will be a lot more of them around.
What I wonder, is if the price of €0.92 will be set in pence or allowed to bob up and down with the currency.
Tomorrow will tell.
Don't prevaricate for too long, shareholders must act before the 25th, a week on Friday.

Its not equal at the moment, IAGN is presently 78p, but that's the grey market and almost 100% sellers.
I would expect to see it around 54/55p when trading commences.

Found it - Rights Issue EPIC is IAGN
Its on LSE, but very few other brokers. Not sure if its grey trading or not.
The question will be, is the IGAN price plus the Rights Issue price, higher or lower than the IAG price.

Thanks for the prompt reply, I don't hold any IAG shares, was just looking to buy the rights and exercise them. A "slightly" cheaper way of getting a holding. They usually commence trading as the shares become ex-rights, but I cannot find anything online. I read the RNS, I think the 25th is the closing date.

Are the Nil Paid Rights trading yet? Anyone know what their EPIC / Ticker is?

Barrick results out today - comment on Acacia - Discussions between the Government of Tanzania and Barrick concerning the proposed framework agreement for Acacia Mining plc's operations in Tanzania have been constructive and continue to progress. Detailed legal agreements concerning the implementation of the conceptual framework are now being drafted. Barrick has continued to engage with independent directors of Acacia during this process, and Acacia is supporting Barrick in its ongoing discussions. We continue to target the first half of 2018 for the completion of a detailed proposal for review by Acacia. Under the proposed framework agreement, economic benefits generated by Acacia's operations would be split with the Government of Tanzania on a 50/50 basis. The Government's portion would be delivered primarily in the form of royalties, taxes, and a 16 percent free carried interest in Acacia's Tanzanian operations, in line with the country's new mining law.

Barrick results out today - comment on Acacia - Discussions between the Government of Tanzania and Barrick concerning the proposed framework agreement for Acacia Mining plc's operations in Tanzania have been constructive and continue to progress. Detailed legal agreements concerning the implementation of the conceptual framework are now being drafted. Barrick has continued to engage with independent directors of Acacia during this process, and Acacia is supporting Barrick in its ongoing discussions. We continue to target the first half of 2018 for the completion of a detailed proposal for review by Acacia. Under the proposed framework agreement, economic benefits generated by Acacia's operations would be split with the Government of Tanzania on a 50/50 basis. The Government's portion would be delivered primarily in the form of royalties, taxes, and a 16 percent free carried interest in Acacia's Tanzanian operations, in line with the country's new mining law.

I think your both right, the article says it was up 29% on last weeks close on Tuesday. But the current price on the DSE is back to 4400tzs https://www.dse.co.tz/profile-company/130 Possibly, all will be revealed tomorrow (or not)

Interesting articles. A very minor snippet of information - Acacia appear to have ended their share price listing on BBC CeeFax.

Barrick to report first quarter results 23rd April 18 Not quite "mid 2018", but a possible date for an update

The reason for the fall today might be the following broker downgrade - I don't agree, there is still an intrinsic worth of about 240p a share and the resolution 'mid 2018' is not too far away. But the following does cause a furrowed brow... Berenberg initiated coverage on African gold miner Acacia Mining, with its analysts hitting the Tanzanian-focussed outfit with a 'sell' rating. The investment bank's analysts said the cost for Acacia of continuing to operate made investment in the company a "risky trade", as the collapse of the group's relationship with the government of Tanzania is likely to lead to a $300m cash payment and 16% equity stake in the mines. Considering the possible valuation scenarios relating to the resolution of the government's ban on concentrate exports, the analysts felt posed an "asymmetric risk to the downside". "The dispute and the ongoing negotiation between Barrick Gold, Acacia and the Tanzanian government encompasses a $190bn tax claim, a $170m VAT receivable (owed to Acacia) and the concentrate export ban, including the ~$240m of net value of concentrates sat waiting for export. "We feel there is a fundamental distrust between the government and the company (enough to make considering a sale of the assets worthwhile), and that the government is, therefore, looking to guarantee a greater share of the economic value of the mines," wrote analyst Michael Stoner. In addition to the sell rating, Berenberg issued Acacia with a 140p target price, saying the stock sits in the upper end of its 31p-167p valuation range, which implies 80% downside and only 20% upside from current levels. "A case of asymmetric risk needs to be skewed to the upside when considering trades with this level of uncertainty."

Response to Media Speculation In light of recent media speculation, the Company confirms that, in response to a number of expressions of potential interest from Chinese counter-parties, it has commenced a process to explore the value to the Company of the sale of a stake in some or all of its Tanzanian operations. The Company is engaging with a small number of potential investors, the process remains at a very early stage and there can be no certainty that an agreement will be reached. Acacia continues to support the ongoing negotiations between the Government of Tanzania and Barrick Gold Corporation, Acacia's majority shareholder, in seeking to identify a detailed proposal to present to Acacia for review. Acacia remains committed to shareholder value and evaluates all opportunities against strict strategic and financial criteria and any transaction will be pursued only if it is determined by Acacia's Board to be in the best interests of all shareholders. The Company confirms that it has not received an approach from any third parties to acquire shares in the Company.

I don't think Acacia acceptance is relevant, Barrick Gold's (63% owner of Acacia) acceptance is more to the point. As Barrick were trying to 'offload' before the Tanzanian fiasco, I suspect only the price will be an issue. It does make you wonder if the Chinese and the Tanzanian Government have some sort of understanding. The Chinese have made many infrastructure improvements across Africa.

There are 169 pages in the supplemental report, with many references to Acacia, but nothing I can find new. A short quote.... "Proposed Framework for Acacia Operations in Tanzania and the Increase to Income Tax Related Contingent Liabilities in Tanzania The terms of the Proposed Framework for Acacia Mining Operations in Tanzania were announced on October 19, 2017. The Proposed Framework indicates that in support of ongoing efforts to resolve outstanding tax claims, Acacia would make a payment of $300 million to the Government of Tanzania, on terms to be settled by a working group. A tax provision of $128 million had been recorded prior to December 31, 2016 in respect of tax disputes related to Acacia. Of this amount, $70 million was recorded in 2016. In the third quarter of 2017, an additional amount of $172 million was recorded as current tax expense." see Barrick's web site for more