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I've had the following reply from DR, which alleviates my concerns. Also HL seem to consider the idea of ASX dealing. First DR I think the first thing to bear in mind is that any distribution will not for at least 18 months due to escrow, maybe longer as we would want all performance shares issued before this happened, so many things can change in that time! With regards the shares, we would look at an institutional book build at the same time to give UK holders the right to take shares or cash at that time but would also look at setting up a mechanism for holding and trading shares on the ASX that is available to shareholders. I hope this alleviates some of your concerns. Second HL We have not received any details about a distribution as of yet. We are able to offer a trading facility. However, until we receive further details we cannot comment on whether we will be able to hold Calidus Shares on the Australian Stock Exchange.
You have hit the nail on the head shareminator. A distribution of shares or internal sale of shares for a cash distribution is not what I want at this stage. There is so much potential. Now I understand that Keras may wish to pursue other interests and wish to release cash, but why not sell for their own use only? They may wish to benefit shareholders but at this stage of the company's life I would rather forego immediate benefit for greater and longer term benefits in the future. There are many resource companies in a growth phase that pay no dividend. Even successful gold producers pay no or negligible dividends. I'm concerned that Keras is displaying short term thinking and playing into the hands of those who are looking for a quick gain before jumping on to the next best thing (GGP). I expect the management to reward their loyal, long term shareholders and themselves in a steady, sustainable fashion. If DR replies then I may make those points to him. Mind you, we have to find out exactly what we will get. Perhaps it is not as much of Calidus as we think.
Oops forgot to say I am awaiting a reply.
MrPositive, I embedded the wording in my post. Thank you for your reply. As a newbie on LSE I am testing thd water regarding the boards. Some can be like those ancient villages where you don't exist unless your family has been around for generations.
"should be a far, far higher number than today's �14m Mcap" What objective criteria do you use to value Thor? I guess most of us don't really sit down with a spreadsheet and rules.
I've already emailed DR but clearly my post has been overlooked4ignored. I would be interested in what you have to add to what I referrred to. Let's hope he is not too busy to get ****ed off dealing with multiple variations of the same theme. Speculation about what he might or might not do about the Calidus shares is irrelevant. Let's see what he says.
To HL: In Specie Distribution of ASX Shares I hold shares in KRS listed on AIM. The company proposes to do an in specie distribution of shares it owns in ASX listed CAI. Since I cannot deal in ASX shares on HL what would you do when an attempt is made to credit my account? Are there alternatives, such as HL selling these as part of a bulk sale for your customers holding KRS? To KRS: In Specie Distribution of CAI Shares Mr Reeves, May I bring to your attention that such a CAI share distribution would cause problems for shareholders who have certain brokerage accounts. My own broker is Hargreaves Lansdown, one of the largest brokers in the UK. Since they do not deal with ASX shares, this will pose a problem if it is intended that my in specie shares are to be credited to that account. I am not sure that HL will accept them. If I have to nominate another broker that will deal with them, then I will have to go to the bother of creating such an account. At the moment I have <X> KRS shares so it may be worth it. But what of the people with smaller holdings? At what point do they just give up and effectively throw away the distribution? Further, my shares are held in a tax protected account. Were I to have to open another account, I would lose the tax protection. Please reconsider the in specie distribution because of the problems it raises for shareholders.
Kev, indeed, that's what the problem is, if we get CAI shares. I cannot sell them through my SIPP, which is where they will go. Hence I need someone who can sell them on my behalf and credit my account with the proceeds. That can be KRS or HL. What I don't want is a bunch of shares outside my SIPP, for which I will have to pay tax and find a broker to sell for me.
As I understand it "in specie" means we get shares. As a holder in an HL SIPP, these are not tradeable. I wonder how many of us are in the same position. I hope DR has a rethink assuming he is aware of the problem. For my part I can ask HL if they will do a one off sale for HL shareholders when/if it becomes appropriate. I also wonder if we can have the shares transferred to an account with another broker. Personally, I don't want another SIPP and I don't have enough ISA allowance (ignoring the wierdness involved with the authorities should that conversion be allowed). DR also needs to consider the effect on the share price should a broker choose to do a mass sell on behalf of their clients. No, let KRS take the burden and offer us cash with all the cost and arrangements coming from them.
From Yahoo Finance: UK volume today - 8.74M Australia volume today 190,905 I don't think the Aussie tail will wag the UK dog. Is the ASX listing worth it?
Phew, I've been back to the September posts and moved up to now, filtering the obvious non contributory negative posters (wish I could filter them out of my reading stream though). All I can say is "Aha!". Since I am a Led Zeppelin fan and have never heard a-ha, let me respond with their reaction to the share price disconnect: Communication breakdown It's always the same I'm having a nervous breakdown Drive me insane!
Chesh, thank you, I am off there now with a cup of coffee.
Chirpy, well you are right. I suppose I am not yet seeing the arithmetic. I've done the "is this a worthwhile investment" due diligence, but I have not reached the "Aha" point of this being a better investment than I thought through buying via KRS. So I have yet to see that they are half price (but I shall investigate unless someone has a reference to the arithmetic).
Thank you Sanar. I have pretty bad experiences with AIM, both from the management of companies listed on it and the MMs, not to mention the dubiety/honesty of a few posters on its message boards. However, this being me new on LSE, you do seem a friendly and helpful bunch ☺
Last purchase for now was 1M @.449 so I think there is a seller I might be taking from. I was impressed by DR, KRS and Calidus. This only came to my attention recently. I'm discounting Togo completely. I would just have bought Calidus except that HL won't trade on the ASX. So it is a little disappointing not to get the full value, by being forced to go through KRS. Can anyone tell me why KRS did it this way and not simply dual list on AIM (spit) and ASX. Or have I got it the wrong way round and Calidus came first and was always the intended main play. It just seems daft this way. Why not merge in some fashion?
...and another, same price.
Well I just bought 1M @.4499 so thank you HL
Oops type meant to write Calidus...goofed my first post here!
Another perspective is that the others are significantly hyped up on Pilbara fever. Nothing seems to be definitely proven and until it is, prices are somewhat speculative. Having said that, the risk is so much less with CAI's more conservative price. HL won't let me buy ASX shares so I'm dipping my toe with Novo through the buffer of Kirkland Lake Gold, and Calidon through KRS. KL is one of the best gold plays around so if Pilbara does not come up to expectations, I am secure in that knowledge. KRS is simply a proxy for Calidon, but its cheap price, at the moment, gives me potential leverage.