Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Unfortunately had to sell my holding here during yesterday and today. i couldn't risk losing all the gain i had made in the event the price tanks after Thursday. i had really thought/hoped this would sort my pension out. One of the few decent shares i have bought, scuppered by government policy. Saying i am bitter isn't even close to it.
i could buy back if the price falls to or under £2.50 but at 75% what is the upside here while it remains exclusively a NS operation. If it wasn't for the cash who knows what the price would be. A foreign excursion is the only way forward but i am cynical the board have the guts to go outside their comfort zone. So will keep an interest here but for the first time in longer than i can remember i am no longer a SQZ shareholder. A very sad day for me for all sorts of reasons.
Certainty on precisely when the levy is to apply and a sliding scale would have been the way to go if the WFT was unavoidable. But of course the policy simply focuses on pandering to the majority to raise money in an industry that the london elite can't stand. With no certainty on when it may or may not no longer apply if prices go down.
Let them shiver i say except it impacts the most vulnerable if output stopped. So not practicable
i'm no maths genius but by my calculations, Serica earn more profit if the oil price is €60 a barrel paying 40% tax than it is if it is €110 and they are paying 75% tax. So the idiot government is actually penalising the oil and gas companies for the higher price and not just taxing a "windfall" at all. And it doesn't allow for when prices fall to €30 which it has done not that long ago.
A sweet spot would be if the oil and gas price fell to about €70 but in reality the enhanced tax rate will never be reduced so the industry in this country is doomed. Total madness.
It’s a big if and even if it does 75% of profits go to the government to redistribute as it sees fit so not sure it’s worth it as if the current rate is 65% or 75% why can’t it be 90% or more.
My advice is stop the drilling point to the horrendous market the govt has created and confirm we are looking to other jurisdictions to invest in
There is no point in buying any more NS assets. It is clear nothing is off the table for this government so why risk it
Buying overseas assets is the only option for any oiler now thanks to HMG. I would be unhappy buying any UK asset as why pay 75% tax? And any allowances only delays the inevitable when profit is actually made which would be the whole point. And anyone who thinks the levy is temporary is living in cloud cuckoo land as it is here to stay. No government will reduce it whatever the circumstances. So its foreign assets or distribute the money as i am not sure we are much of a target ourselves anymore for exactly the same reasons no other NS assets are. But at least we have money to buy something (albeit abroad). We could maybe do a I3E and find some canadian assets.
People are losing and the government could t give a fig. Wanted to sell this morning but bottled it looks like I may regret that but who knows
I just hope we stay above cash value but am sure they will try and go after that too
Commercially they have two options buy assets abroad or shut down and distribute the cash and wind the business up or mothball. the problem is the board gets paid shed loads regardless so there isn’t much downside for them if the profit is near zero as they have so little skin in the game
You wonder whether the actual announcement will be 5% and we all breath a sigh of relief. Either way I’m out I can’t stand this government and labour would be worse and will have to invest elsewhere it breaks my heart as have held 5 years? But if it goes to 75% effective rate why not 85 or even 95? Reality industry uninvestable and the government doesn’t care less
it does seem we are going through a period when we are red on bad market days and red on good market days too, which doesn't inspire confidence that there is any end to this run. The world must have discovered lots more gas immediately available to use. Otherwise we would be higher surely
Agreed. No reason to buy and every reason to sell to lock in any profit. i hate to say it but i just can't see any reason why the WFT won't be increased and / or extended as all voices against appear to be in the political wilderness and it is such an easy win for the govt. So who would buy a share where every £ of profit at least a third (and after next week probably more) goes in tax. Total madness
We are down a third on our ATH in just over two months of trading on nothing but sentiment and the actions of this government, makes you think.
Bring back Liz is what i say at least she wouldn't have extended the WFT and didn't want to bring in the first one.