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Andy = idiot

I am 100% correct.

You can work through any amount of figures in any way you choose.

Andy.

Let me work this through slowly for you, and the other 8 people who ticked up your post, who are clearly also inept at basic maths.

Total amount of spend = $42m. Dividends and Tender.

Total Cost of Dividends if nobody elects to tender would be $42m (it's just under but we're rounding up)

Lets say 10% of the share holdings elect to tender.

So dividends are paid using 90% of the $42m, leaving $4.2m left.

How many shares can $4.2m buy at 935p, can they buy the 10% of the 47.58m shares who elected to tender ? that would be 10% x 47.58m x 935p = £44.49m. Answer : No.

So how many can they buy, well it's $4.2m which is around 570,000 Shares.

But they can't because if they do, that would leave 4.19m shares that need to be paid the dividend.

Which comes to $3.66m.

So they pay that, and that leaves $0.54m only, that they can spend on shares...

But they can't because if they do, like before, they woukd need to pay the dividend on the shares they cannot buy.

So you see.

It is 100% true that the number of shares that DEC can tender is ZERO, if the total spend on tendering and the dividend is $42m,

Andy144, notrex, do the maths please and catch up. It's about GCSE standard so should not be difficult.

The number of shares that DEC can tender with a total spend of dividends + tender of $42m is ZERO.

Come on, it's not difficult to get your head around.

SP is 21.4p as I write with gold at an eye watering $2157 (£1,691) !!

Mulder you were right about that 20p sticking point. That's no past it seems.

Amazing gold price currently, the bulls are out in force, everything from $2200 to $20000 predicted.

Some classics from our old friend Peter Schiff https://www.youtube.com/watch?v=cNXLgczF8UQ

Mulder As you know I've also been invested in PAF since 2010. That PE of 10 you're referring must be the spike in August 2020, the SP got to 28p and gold 2070. If gold get's momentum in a similar fashion then the SP here would spike to well over 40p !

Assuming everyone has done the calcs and caught up with the fact that the only way DEC can buy any decent number of shares is by spending more than $42m then can anyone suggest what exactly this tender offer is all about ?

If DEC had stated that they'll spend $62m, then this would mean they're willing to by $20m with of shares, like a buyback in one go, but why bother doing a tender and just buyback the shares.

Obviously if by total they mean the sum of the Dividends and the Tender together is $42m then the number of shares they can buy is so small, so why bother with it at all? If it's to confuse short sellers, it clearly has not worked.

The only indicator I can think of is DEC will get a definitive number of people willing to sell their shares at this price, and by also knowing the number of shares on loan to shorters will be able to strategise a financial method of outing the short sellers, or know how much they can spend on a buyback.

Sorry TheWednesday, wrote the last one before seeing your latest post.

If anyone can show the maths workings for any other way this can play out then I'd be very interested to read through it.

The big question has to be why this offer has been done.. I can only think that it is some sort of warning to shorters and a way of cutting down retail investor numbers.

Also noting the language used by Rusty where he states the best use of money is to buy back shares contradicts the previous pledge that the dividend is the most important. The next results must surely be another steady ship, but IMO the biggest indicator as to if the SP can shoot north will be the degradation rates. Less than or 10% is what we need.

TheWebnesday, yourexample is really up the spout.

"The dividend entitlement for the 600 shares would be used to buy some of the 600 shares."

I repeat, THE ONLY WAY THEY CAN BUY ANY SHARES IS BY SPENDING MORE THAN $42m.

TheWednesday. I am 100% Correct.

Any shares not bought will still be paid the dividend.

Well today's RNS is again total b0||0cks. That's if you thought the previous showing a few rock hammers wasn't pathetic enough.

We're going to drill here here and here and show you pictures from 2003, back when there was actual work going on and real live people employed mining and exploring gold.

Mining.. That's a word isn't it. How's that going Stifano ?

Actually, Adjusting AISC for the new lower guidance and the discount to GP for selling makes the 700s.

But the point is clear, upwards.

I am still concerned as to why did the company issued such a lower guidance for these 6 months. When they were coy and silent before the SP got smashed by 30% due to the load shedding.

Exactly Richt9999

Which means in order to tender any shares they'll have to come up with extra cash, above the 42m. They have not specified how many shares they can tender, but if the ceiling total spend on divs/tender is 42m then the answer is simple, zero.

Jdcbc and bismark.

Incorrect. If all shareholders wave their entitlement then 42m spent in shares will require Dec to spend a further 37m, thereby meaning way more than 42m has been spent.

This is pretty simple stuff. Do the calculations.

That's over $700 per ounce profit. Looking at a current earnings rate of $140m.

That's a current P/E of around 3.5 What's reasonable for PAF ? Historically it was around 6 before extra political tension and load shedding. If the market prices in a P/E of 5 then SP should get to around 28p, P/E of 4 then an SP of around 23p.

Let's hope the GP sustains.

JDCBC

As I just pointed out if they spent the entire $42m on shares they would then have to find $37m more to pay the dividends on the rest.

Let me put this as simply as possible so that everyone understands.

THE ONLY WAY THEY CAN TENDER ANY SHARES IS BY SPENDING MORE THAN $42M

Fullstop. Do the maths.

Blacksteel, your maths is totally up the spout.

Shares in issue = 47.58m

Cost of dividend = 47.58m x 87.5c = $41.6m (which rounded up is why the figure $42m exisits.

How many shares can be bought for $42m - Well at 935p or $11.87 = 3.5m shares.

So that leaves 47.58 - 3.5m = 44.08m shares left which all require the dividend (= 44.08m x 87.5c ) = $37.58m

Where exactly will the $37m come from ?

I still don't believe there is any abuse to warrant reporting, it's all kind of normal for AIM, late reporting and whatnot. It all evens out in the end IMO

The most important question for me... Once the numbers are adjusted, will the dividend be much higher than the usual nearly one cent. With these gold prices they can affiord to pay off extra debt and pay us more too.

Power is still a problem though. Imagine what their output would be without load shedding.

https://mydorpie.com/m/?page=loadshedding&suburb=Barberton®ion=Umjindi&province=Mpumalanga

Hi Damofarl.

The problem is that DEC can only tender shares if they spend over the $42m allocated for Divi or equivalent.

They definitely have the $42m.

Blacksteel. I should add that they can afford to tender practically NO shares at all if they stay under $42m.

Blacksteel. Do the maths.

There is literally Zero spare cash available to buy any shares above the $42m after paying dividends or equivalent.

Hi DavidCharles.

That's the exact sums I did a week or so ago.

BUT it's even worse. The only reason why those 380k shares can exist, is because the amount needed to pay for the dividends has been rounded up to the nearest million, to get $42m. So that 380,000 has been bought with extra cash above whats needed for the dividends.

The ONLY way that they can exercise the tender is by spending cash ABOVE whats needed for the dividends or the equivalent.