Member Info for Guitarsolo

Well today's news is excellent. I recollect that Zone II would approximately allow production to double although it will undoubtedly take a little while to reach that level.

Share price is up 10% but I think this still massively underrates the company, even if zinc prices are sadly 25% off their recent peak.

The new license should be a £2 event in my book so definitely a strong buy still (although I did trim about 15% of my holding at 156p a while back over fears of zinc prices/supply).

Hold for the H1 results due out in August I presume. As there is no debt and not much capex, I expect the results will give the most transparent indication yet of how much the company can earn from operations (mine the stuff, sell it, pay your costs and tax and the rest if pure profit!).

The expansion might lower the board's ability to pay a (generous) dividend, preferring to defer that until zone II is fully functional and contributing to profits. But I would still expect something from them.....say 2-4pps.

But joy of joys, we can now start to factor in far greater production levels with Zone II. Wooohoooo!

Guitarsolo - that news is worth a Dave Gilmour in my eyes!

Crikey, compared to most AIM listed mining explorers I would say SAV. and David Archer are doing a stirling job (backed as we know by three highly-prospective projects). We all knew a degree of share dilution via placing was coming. We also all hope it won't be too diluting to our own shareholdings.

But the pattern of prices for the placings is very positive and indicative that some major shareholders/investors (who have the resources and experience to know more than I) see SAV as a good investment. I haven't checked dates/numbers but my recollection is that the last placing was around 6p and the one before that 5.x. So each placing is at a higher price than the last and the rate of increase is also on an upwards trend. That's very positive to say the least.

Yes, it is at a discount to today's opening price but that might be because there has been a near 100% rise recently (6p to 12p) even excluding the froth up to 17p. That rapid rise causes a mirage that there has been a large discount offered with this placing because it wasn't arranged only this week!

£12m in the bag to pay for the scoping study and more. On track for a decision about Portugal this autumn I hope and starting to mine H1 next year.

If that Oman mining license comes through and SAV can get mining there it can throw off the cash to help fund the $109m capex needed to develop Portugal - and that reduces the need for further placings and dilutions later on.

I think David Archer has a plan - and one that I like.

Guitarsolo

Hello Everyone,

Another defector here from II who have destroyed their website and a very handy investment community. I see a few old names here (Sage, Gaile5 etc) who I have listened to over the years. I know a few others are now on ADVFN (Chinese Dragon and Millwallfan) but I tried that site and found it equally unworkable to my mind.

Anyway, that said, my take on the recent share price movement is that it is an overreaction. Let's look at the facts:

(i) The zinc price is falling, down over 20% from its highs of over $1.60/lb (about $3400 pt). That is disappointing but is still WAY over GFM's breakeven point so it is very profitable still.
(ii) Zinc stocks have risen from 120kt or so to 250kt but historically this is still quite low. I believe there is still a zinc deficit which means that the stock coming on to LME is only reducing the amount that is not on LME by even more.
(iii) The H1 average zinc price is going to be over $3000 pt. That is a good amount higher than 2017 so all other things being equal profits should have risen in 2018H1.
(iv) The company is debt free now as we all know and laud.
(v) GFM has a cash stockpile on top of this. It could be over $50m by now which is worth approx. 25p per share. That means you're getting the rest of it for £1 a share!
(v) 2017H2 earnings were about 17c (call it 13p). There is every reason to think this will be repeated if not beaten because there is no interest to pay, zinc prices have been higher etc.
(vi) There are more warrants to be exercised in management's favour, another 20m was it? But I believe it would only dilute from 172m shares to 192m. Not too drastic.
(vii) The prospect of the extended license is STILL there! As it has been for years though.

The GFM board have made some very good decisions over the years. They have positioned the company/production nicely in the mining curve vis-a-vis prices. They bought shares back at very low prices. The one thing they are very bad at though is communication! The whole Bermuda board meeting stuff with just a note say "everything is passed" with only very sporadic updates says it all. It's a shame because all they need to do is issue a quarterly update saying that X amount was mined at Y average sale price etc. It wouldn't take much.

If you think zinc is now on a big downward trend, then I would get out. But if, like me, you think the Trump noise will pass, zinc still needed for all sorts of infrastructure spend etc then GFM is at a very attractive price right now. With EPS likely to (easily) exceed 20pps for a full year, you've got a debt free cash cow here at under 6x P/E. Amazing value.

I am prepared to wait for the H1 earnings release in August. It should hopefully say 2018H1 earning of perhaps 18c (14p) and instigating a dividend. If that happens, GFM should be £2 a share in my opinion.

Guitarsolo - usually posts are shorter!

Langspoondedfifer, I am not quite sure where you are coming from about this. There's no clandestine meetings. There's no "touting for names and holdings". If you are a shareholder you could have attended the meeting. If you are a shareholder (PI) you could elect to join the Shareholder Group. FYI, the Shareholder Group has been established primarily to allow PIs to remain in contact with each other should this forum disappear (well done to LSE for still keeping it alive). It also allowed PIs to gather their thoughts and questions for PRG (of which there are many). Finally, it allows the PRG board a simple way of communicating with a large number of PIs through one outlet. Give the guys/girls who have put in the effort to make this happen some credit for their work. They deserve it. I understand that many of the Shareholder Group did attend the meeting. Well done to them. I could not, primarily because I live a long way away and have a young family that I could not abandon on a Sunday (they were all ill as it happens so I really could not). However, as part of the Shareholder Group, I feel that I have someone there who is in a similar position to me and so am not completely in the dark. I for one am very grateful for the effort of Clever Sheep and others who are prominent members of the Shareholder Group. Guitarsolo

Firstly, I think those of us that have signed up to the shareholder group owe a thanks to Clever Sheep for making the effort to organise it. (CS, I didn't receive your circular but may have signed up after you sent it) Confounded, I think the reason to club together is not so much that we can swing with more weight at the BOD. There's not much to be gained by that at the moment. But if as a collective group we own say 15-20% of the company, then we should be treated en masse as a significant shareholder and kept up to date of developments. But more importantly, it is very possible that LSE will take down this board at any moment (iii did with a fortnight of delisting). If that happened without the shareholder group we would have lost the chance to organise ourselves. Well done Clever Sheep. And well done LSE for keeping this board going. Regards Guitarsolo

Well, at least there is some contact (I say "some") and talking about a "strategy for 2016" suggests they don't think they are out of business. Hmmmm. Well, I haven't received my share certificates yet from HSBC. Has anyone else? How long did it take to arrive as I only posted my instruction about 10 days ago. They are being all secret squirrel about the details of the meeting. Thou shall prove you are a shareholder and then we'll tell you where it is etc. Come on PM! What if I haven't received my certificates by then? Has anyone been told where the meeting is supposed to be so I can consider whether I have any chance of attending? If you're sworn to secrecy, can you at least say which city it is in?!! Is anyone signed up to attend? Guitarsolo

I have just consulted the PRG website and note there is still no update (since November!). I am getting to the point of finding it unacceptable. I have therefore just sent the following email via their website and expect a reply. To my mind, they could rustle up a statement for the website in less than an hour, given that there is no NOMAD to consult, and given that PRG is no longer traded there are far fewer restrictions about what a private company can say to its owners. -- Dear Sirs, It has now been three weeks since PRG was de-listed from the AIM and shareholders have not received a single update either by post, email or even a statement on your website. Given that the de-listing, which shareholders were not consulted about, has removed your easiest avenue of issuing an update (via a RNS) the least you can do is provide a statement. I am sure PRG management are working hard but it is important to update the owners of the company about developments, particularly when they have been as concerning as recently. If you fail to do so, it is inevitable that supposition and guesswork will begin to take the place of genuine information. That can only be detrimental and can be averted with a short but informative update. It shouldn't take long given there is no longer a NOMAD to consult. Yours faithfully --- Chances of a reply? Slim I fear. Do we start to be more demanding? I am getting that way. Does anyone have any experience of listed companies delisting or going bust in this way? Should we be forming an action group or at least have an alterative way of contacting other shareholders? I'm not a frequenter of chat rooms or similar online groups so would welcome any suggestions! Guitarsolo

Regarding HSBC, I have now received confirmation that they will not hold delisted PRG shares in my Invest Direct account either (i.e. not the ISA). Effectively that means I have no choice but to request the individual share certificates and hold these personally as I don't really want to find and register with another broker who would hold such shares (at a cost as well I am sure). Given that PRG can no longer update all shareholders in one go via a RNS to the AIM, I think the least they can do is take their shareholder register and send a letter to all explaining the current position and the board's intentions. I am a shareholder in the company I work for and as such receive regular updates. It's what you have to do when you're a private company, as PRG now is. I dare say that the contributors to this board (and the ex-iii board) probably own a decent chunk of the company. Through my family's investments, I've got 550,000 shares and I know of others with more. If we work collectively, we can present our grievances and requests as a group with (I don't know) say 15% of the company. Just a thought. Guitarsolo

JohnnyG, I'd be interested to know what HSBC say to you. I won't be able to do anything for a couple of days so if I do follow the same path then it would be useful to know if you've been successful. Not that I actually have any shares in my trading account (they're all inside the ISA) but I could remedy that with cash at short notice. BTW, I sent an email to PRG via their website saying that imho private investors need an update, but I not had a reply. I note others have been more successful so I try and keep tabs via that. Until then, well done LSE for keeping this forum open (unlike iii who have shut theirs). Now more than ever PIs need a way to communicate and share info. Guitarsolo

Morning All, I'm new to this board but recognise a few names from the iii facility. I've been a PRG holder for quite a while and have to say to being shocked and disappointed by the events of the last quarter 2015. I am sure there are all sorts of things happening that we as private investors aren't informed about but still, I have to say the communication from PRG to its shareholders has been poor. But the reason for my post if specific to one issue. I held some of my PRG shares inside an ISA but, as expected, my holder (HSBC Direct) has now advised they can no longer do so because of the delisting. I will be sent the share certificates and will hold them in my own name outside of the ISA. Firstly, that is INFURIATING! I bought them inside the ISA specifically to protect me against potential CGT if/when the share price goes up as it should! Secondly, it means I have used my ISA allowance on shares that can no longer be held. Thank you Philip Manduca! Is anyone else in the same boat? If so, does anyone know; If the shares are re-listed can they be transferred back inside an ISA (assuming their status has not changed in the interim)? Does anyone have any advice how/where to hold the share certificates? I'm not thinking of doing anything much for now - can't anyway! Just sit and wait to see if PM and others can get their act together, get the funding (why not ask the current shareholders?), get mining and start finding those stones. Then relist? Or sell the company privately. You can't complain as a PI playing in the markets. You know it is stacked against you. But we have been trampled over without any consideration. The tax implications for folk who held shares inside an ISA for starters. Guitarsolo