Member Info for Gavster-NBC

Shockingly poor management, and as usual, the investors last to know except to witness the slow moving car crash.
Cancelling the dividend is total incompetence. The Capital markets day I hope will be more of an opportunity to interrogate and ask them what on earth they have been playing at.

The price dropped to determinate the tender price. Not many shares though 85,051 at 70.25 on 6th,
It has not recovered to the last issue price. 500,000 at 72.52 on the 3rd October.

https://www.londonstockexchange.com/news-article/SMIF/tender-results/15661811
https://www.londonstockexchange.com/news-article/SMIF/issue-of-equity/15656020

Something is up.. I can get an instant quote to sell £20k worth of shares, completely unheard of in the realm of GAL.
There must be buyers a plenty or a large buy order to fill. Not usually one to comment on such things but yesterday I could not even get a quote for a sell worth £1000, so I see this a good reason to hold.

No, other than being signs of expected results and divid announcements.
I did see it too and also bought a holding today just under 70.46, which shows as a sell on the trade list)

Hi VanVan et al.
Have a look at Edison's prospective numbers from July 2022. The Mintails project is in there.

https://www.edisongroup.com/publication/building-steam/31094/

The numbers are extremely attractive for an investment here.

There are no plans to dilute for funding, which PAF have reiterated, unlike Elikhulu, where they issued some shares and the price spanked down to 7p. Any unlikely repeat of such a scenario would represent a very good buying opportunity.

Edison are generally serious and boringly straight with their numbers. Reasonably close within a year but they assume a steadier gold price, which as we know doesn't happen. Their 2022 predictions, EPS 4.57 with bigger debt and Dividend 1.20 compares to reality of 3.90 with much less debt and div of 1.040.
Note their dividend predictions in 2025 and 2026 of 12 and 10 cents per share!

Fantastic news.

The USD/ZAR rate at the moment is also excellent, and with the gold price now turning upwards again, bodes well for the project. IMO By April they could have such a cash surplice to be able to fund a large part of the new tailings plant then also increase next years dividend !

"The Group has agreed a credit approved and underwritten term sheet with FirstRand Bank Limited,
acting through its Rand Merchant Bank division, for US$80 million of senior debt for part funding of
the Project’s construction."

Sold the 90p shares yesterday whilst the UK was buoyant to get my main holdings average down and pleased with that trade. Did not expect such a drop today though, XD is tomorrow right ?

Hi Damofari. Good to see you here.
Just bought my first holding. Chasing the high yield, and took advantage of the bounced up pound after the Truss-anomics dip and BofE intervention.
My attitude is the same when it comes to buybacks. They simply serve sellers, rather than holders.
Cheers and GL

Today, I finally bought some of the holding back I sold (at 1800 plus) when blue sky was reached.
In 2023 the company has stated the dividend will be capped at 60p a year. This implies a much lower share value due to yield. (A share price of 1200 would see a 5% yield with 60p annual dividend (1500p at 4% yield of 60p)
However, this decision was made before inflation and energy rates rocketing. They've just reiterated this plan with the idea of large scale investment and hopefully debt repayment too. I am very anti buybacks as I see them as a way self-serving the directors as the issue themselves shares, and IMO there is absolutely no benefit to shareholders above a proper dividend distribution.
Could this decision be reversed in light of large profits and shareholder pressure ?
Or would other holders here prefer to hold out and see if the company can get a USA style growth share valuation, back upwards not based ion higher dividends ?
I'll hold for now, or may top slice take on a rise. We'll see.

https://www.youtube.com/watch?v=h9YgCi0yjkE
The Economic Ninja on youtube has been recommending the share today and features an interview with Stifano.
So it's a pump up, let's hope it leads the an announcement soon of production, rather than profit taking and a slide back down.

Live price is now 40.5p ,38% up !!

Thanks for this Freedom4Uall
I had to look this up. Do you have a link to the Times Article ?
The terms I can see are from
https://www.synthomer.com/fileadmin/files/ir/eastman_acquisition/Synthomer%20plc%20-%20circular%20%28final%29.pdf

As far as I can tell it covers what we might expect if the company has less earnings but a debt still to pay, basically a lack of dividends and deals.

The financial covenant under the Term Loan Facility Agreement is a leverage covenant,
whereby the net borrowings of the Synthomer Group must not exceed 4.00 times the consolidated
EBITDA of the Synthomer Group on the first “Calculation Date” (as defined in the Term Loan Facility
Agreement, being 31 December 2021), 3.50 times the consolidated EBITDA of the Synthomer Group
on the second and third Calculation Date, 3.25 times the consolidated EBITDA of the Synthomer
Group on each Calculation Date thereafter. No more than once during the life of the Term Facility,
following completion of an acquisition, Synthomer may elect to increase the maximum permitted
leverage by 0.50 times the consolidated EBITDA of the Synthomer Group in respect of the two
measurement periods ending immediately following completion of such acquisition.
The Indenture governing the Notes contains a number of customary covenants that, among other
things, limit or restrict the ability of the issuer and its restricted subsidiaries, subject to certain
exceptions, to:
• incur or guarantee additional indebtedness;
• incur certain liens
• pay dividends and make other distributions on, or redeem or repurchase, capital stock;
• enter into transactions with affiliates of the issuer and its restricted subsidiaries;
• enter into agreements that restrict the ability of the restricted subsidiaries to make dividends or
other payments, or otherwise transfer assets, to the issuer or its restricted subsidiaries;
• designate restricted subsidiaries and unrestricted subsidiaries;
• merge or consolidate; and
• transfer or sell assets.

Production at last ?

A good sign is that the SP has gone up penny today, unusual for PAF, or could be just speculation.
at lower than 17p. IMO nothing of Mintails is priced in.

The transaction to acquire the Mintails tailings retreatment assets is expected to be concluded by September 30. Pan African entered into conditional sale of shares agreements to acquire Mogale Gold and Mintails’ SA Soweto Cluster in November 2020.

Both gold assets are 100% owned by Mintails SA, which was placed into provisional liquidation in 2018.

JPMorgan cuts Synthomer price target to 260 (350) pence - 'neutral'
Today's broker target represents a 150% increase from todays SP.
There is clearly some trading games going on that we can only speculate on, but what we do know, Synth is surely undervalued and comes with a good level dividend.
Trading at a vast discount to NAV.
Recent Director buy highlights of 140,000 shares around 200p :
04-Aug-22 03-Aug-22 Buy Alexander G Catto 200.75 GBX 50,000
04-Aug-22 04-Aug-22 Buy Michael Willome 189.25 GBX 70,000
03-Aug-22 02-Aug-22 Buy Roberto Gualdoni 214.00 GBX 20,000
Surely this all should attract new investors at todays prices leading up to ex-div.

Agree Mulder. It's a bit bonkers. The Div next week is now a 4.4% return.
So... I actually bought a holding at 90 today with the intension to trade a bounce or V recovery, and get my now 'Terrible but used to be quite good" average down. We'll see.

Bad news all round. I may average down in six months to a years time, but meantime. I'll have to sideline these in the bottom drawer / "poor judgement when buying" part of my portfolio.

Hi PJT. Understood and both good points, but that FT article I see as positive for the SP and the fund.
The budget didn't reveal the cuts feared, and since it's in our GOV's nature to print then give money to the private sector guised as incentives, I'm not convinces that's a reason for the sell off either.
Kwarteng in fact made positive moves for the sector. See here.
https://www.investmentweek.co.uk/news/4056852/mini-budget-22-chancellor-unveils-growth-plan-accelerate-infrastructure-development

142.. Ouch !!

99p... What is going on, I know it's Everything, Everywhere, All at once but even so. This is a swift adjustment of yield if ever there was one. It's not the electricity cost. I can only think it's a market reaction to inflation triggered by Putin and the FTSE is not persuaded to strengthen due to the total ineptitude of Truss's plan to make the rich slightly richer at the cost of everyone and everything else. Those very tax hikes in value have already been negated within a day of the budget due to the weakened pound.
https://www.nimblefins.co.uk/average-cost-electricity-kwh-uk