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Jury is out .
What was the price and terms achieved on the sale of the Claymore Royalty ?I never saw specific details published. What was the return ?
I hope DB has got this new investment right. Oklahoma wells are notorious for declines. They start off about 267 BOPD and by month 36 drop to a bout 34 BOPD (About 87 percent decline), constant cash burn, need to drill , drill and then drill some more.
Being familiar with what happened to Magnolia Petrolium (MAGP) I have my reservations.
Also looking at the web site for ReachOilGas the term woefully lacking is an understatement.
No doubt we,ll find out very soon about the JV , any chance Americans get to burn some eager UK cash will no doubt be snapped up super quick.
As I said I hope DB has got this right by taking the Royalties route and the risk lies with others but steady on with the JV ,s I say , tread carefully .
Offer price is based according to them on the following (Don't shoot the messenger)
Based on Market valuation :
The Consideration of 13.5 pence per Shanta Share values the entire issued share capital of Shanta at approximately £141.95 million and represents a premium of approximately:
→ 6.72 per cent. to the Closing Price of 12.65 pence per Shanta Share on 19 December 2023 (the "Latest Practicable Date");
→ 23.28 per cent. to the volume-weighted average Closing Price of 10.95 pence per Shanta Share for the three month period ended on the Latest Practicable Date;
→ 32.63 per cent. to the volume-weighted average Closing Price of 10.18 pence per Shanta Share for the six month period ended on the Latest Practicable Date; and
→ 27.74 per cent. to the volume-weighted average Closing Price of 10.57 pence per Shanta Share for the twelve month period ended on the Latest Practicable Date.
The offer price should be higher and I suggest that they pretty much agree with this themselves, there offer has been made against what value the UK AIM market has been attributing to SHG over the past, recent period :
De-rating of gold sector valuations..............
Over the last decade, the valuation of publicly listed gold companies has de-rated with industry research illustrating that UK listed African gold miners are now trading over 40% down on a P/NAV basis than five years ago. Bidco believes the impact on junior gold miners within that peer group is exacerbated by other factors such as lack of diversification, jurisdictional issues and poor liquidity.
Poor liquidity is the biggest one I suggest plus shame that this comes just as we have increased production into rising POG
I,m waiting a few weeks to see if anything develops
Thanks for that. I used a separate Tab to search aquis and it didn't come up.
I top sliced at 10:03 , it was a SELL but shows as a BUY of 675,454 Shares, value £2465
So where apart from here are trades listed ? Mine from this morning hasn't shown up and I don't see this stock on aquis ??
John Mcriricks and a Horse racing analysis :
To ride on a horse is to fly without wings, but there is no place for arrogance or complacency in racing because you are up there one minute and on your backside the next.