The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
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.
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
Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) will release its Fourth Quarter 2017 Results on February 14, 2018, followed by a conference call and webcast on February 15 at 8:00 am ET. Fourth Quarter Results Release � February 14, after market close Conference Call and Webcast � February 15, 8:00 am ET Happy Valentine?
CLLN's problems were compounded by the relentless onslaught of Hedge funds. National Grid are currently buying their own shares. The market seems to have a downer on utilities at the moment, possibly influenced by Labours stated policies of Nationalisation. As that relies on them winning an election in 2020 and then implementing (and paying for) the utilities, there's lot of time for reconsideration. I cannot imagine the USA will be very pro John McDonnell running and providing their power. Contemplating a fine for outages caused by a violent unpresidented storm, gives an insight into their mindset.
I don't think you will get the answers you seek in the short term. Remember Magufuli said at an early stage that he wanted ore to be smelted there, he wanted the company on the Tanzanian stock market with a degree of local ownership. Add to that the latest Barrick concessions and a 'mid 2018' resolution and it becomes unlikely there will be a Barrick take up of the Acacia shares it does not own, (I suspect it would love to offload the lot). It could be that they are planning a revamped Acacia, additionally listed in Tanzania, maybe with an element of raising capital, possibly tied in with a new small smelting unit. The incentive might be exploration licences. I reckon this would take the lawyers/advisors/banks about four to six months to put together, say about mid 2018. In the meantime, the SP will probably stay in the 170-195 range with the price of gold, about its worth.
I think it went something like - Barrick/Acacia got a very good deal when they first started in Tanzania. But fair dues, they did stump up the cash to make the mine(s) work. As the years have gone by, the profits have not gone unnoticed. The problem was for the Government had a contract. But contracts are not unbreakable and along came a bold politician who portrayed the big rich mining companies as the baddies and a situation was engineered whereby Tanzania gets a bigger slice of the profits and a lump sum for profits it missed in previous years. The commission to value the ore and the estimated tax bill and the implication of the missing gold bars was a crowbar to arrive at this new deal. The question is, will there be enough profit for Acacia. They make roughly $300 a ounce of gold profit, take the taxes off this and then give a further 16% to the government. Still a profit for Acacia, but how long will that take to balance out the $300m they(or Barrick or both) have got to pay. I wouldn't have thought it would have take 'a long period of time' to get the calculator out, I suspect there's some serious board meetings taking place
I dont think there is tax issue, I dare say the declared accounts are correct. There was a well published admission that Barrack/ Acacica got a very good deal. We may not like it, but John Magufuli had all the aces and has won the hand. Barrick own 63.9% of Acacia, so a shareholder vote may not be a deciding issue, (assuming they have equal voting rights). If it�s the usual 75%, it will just take a couple of big funds to tip the scales. I suspect the Barrick deal is a �fait accompli� and Acacia will have mulled it over this weekend and there will be an RNS in the next couple of days �welcoming a new and exciting future working with the Tanzanian Government�, sic
Its just a matter of looking at this lodgically. Barrack have an agreement with Tanzania, Barrack own a little under two thirds of Acacia. If Barrack stump up a little under two thirds of �300m and Acacia stump up the remainder, (which it just about has). The bill will be covered. Why should Barrack pay two thirds? It made the original agreements that have caused the problem. And it is better to own two thirds of a viable company than two thirds of a stagnent company with limited production a huge pile of Ore that�s going nowhere. Other options might include Barrack buying up the remaining third of Acacia, (which it was trying to offload last year). But then it ther would be takeover issues and a greater expense than �200m. Or maybe a rights issue, (which could end up a dead duck). With the bill paid, Acacia would still be getting 84% (less taxes) of the profit from the gold mined and might, just might be the preferred company to mine those other Tanzanian resources. Usually no news is good news, but not in this case.
From South African news - Tanzanian President John Magufuli on Wednesday ordered the army to build a wall around the country's tanzanite mines to prevent smuggling and better control exports of the precious gems unique to the East African country. The deep blue or royal purple stones are mined in the Mererani hills near Mount Kilimanjaro. Magufuli ordered the army to "start building a wall around this whole area," insisting the work be done as soon as possible. But he did not specify exactly where the wall should be built. "Surveillance cameras will be installed and there will be only one entrance," Magufuli said. "Even if you swallow tanzanite, it will be detected". The order seems to be the latest move by Magufuli - who swept to power in 2015 on an anti-corruption platform - to regulate the mining sector, which has faced allegations of fraud and underreporting of production and profits. A commission of enquiry set up Magufuli estimated in June that $90bn had been lost in tax evasion arising from mining operations since 1998. And a parliamentary report published earlier this month revealed that smugglers and mining operators are the ones reaping the benefits of the country's tanzanite riches due to corruption and unfavourable contracts. "This country is rich in natural resources. God has given us minerals which exist nowhere else but are we benefiting?" Magufuli said. "The theft of tanzanite is immeasurable. It has been going on for years and it must stop". Magufuli has locked horns with foreign mining companies, accusing them of under-valuing their production of gold, diamonds and tanzanite, resulting in a loss of billions of dollars in taxes and royalties since 1998. The Tanzanian government this month seized diamonds worth nearly $30m after accusing British company Petra Diamonds of under-estimating their value when trying to export the gems.