Member Info for JohnNth

PE ratio comparison

Altyn Gold = 8.8

Solidcore = 3.4

If Solidcore was valued at same PE ratio as Altyn Gold, it would be worth $9.90

@foggthmogg...excellent article; thanks for that.

"When public funds run low, fiscal authorities often resort to questionable practices—such as disputing valid tax invoices—to delay or deny exporters their rightful refunds, effectively stealing from businesses to plug budget gaps."

So it seems the blocking of VAT refunds is temporary and likely to be refunded/restored in the near future. Nevertheless, FXPO will still be applying pressure through implementing reduced level of activity to apply pressure on authorities for an early resolve.

I made numerous comments at the time the sale as going through; imo whole sale process stank and rushed through to suit Alexander Nesis and no one else.

Before the sale, the company said we need to de-list from LSE to execute sale in Russia as the country was under sanctions. Once delisted and sale was agreed and executed, Nesis changed the tune and said we were barred from selling to number of Russian companies which were on Western sanction list eg. Polyus and hence were left with not much choice. He did say the company was worth lot more but there were very few buyers and company accepted highest bid.

At the time I said it need not be that way; why not float the Russian business separately on MOEX and issue shares to existing holders. As it turns out, Russian authorities have not confiscated individual shares from foreign Investors in many other companies and soon (once sanctions lifted) we would be having the benefits.

As it turns out, delisting was carried out to escape scrutiny of the sale process and to deny shareholders the vote in a difficult to understand/navigate jurisdiction of the land of goats and Borat.

All said and we are where we are. Despite record gold prices, sp is hardly moving and divis and GDR listing ruled out for the moment. Company have rules out buying back stock on grounds of maintaining liquidity.

This leaves us private investors between rock and a hard place for next few years.

THANK GOD I'm invested in Solidcore.................

@Krok...I would go with the second option and argue it is a contingency fund to stave off bankruptcy of the 'whole' company. The company may have other little/insignificant operations which could keep going even if Poltava Mining and Yeristovo Mining was lost to the government.

After all, action to withhold VAT is unlawful, and how many other companies could survive such position for much longer?

Further, company can also argue that such funds held overseas have in the past been used to invest in the country and that shareholders have NOT been given divis since the war started ie. such funds has not been syphoned away for the benefit of shareholders.

Scaling back will seriously impact the company and the local economy, but it would also force the issue in the courts and result in a sooner outcome to various legal matters.

I remain optimistic

Please DYOR

It is highly likely that $100m cash FXPO has is kept outside Ukraine and injected in Ukrainian subsidiaries as and when required. FXPO operations in Ukraine have been self funding since conflict with Russia began in 2022, needing minimal cash injection from outside.

Hence, FXPO in Ukraine have two options:

1) Keep injecting cash held outside Ukraine to maintain production and eventually lose all of it if VAT refunds are not restored; or

2) Gradually reduce output and eventually may even halt production to conserve cash; applying pressure through Courts and any levels at its disposal.

Which option would you choose?

Interesting to note Trump imposed zero tariff on Russia but 10% on Ukraine despite annual $3.5bn exports from Russia to US.

Read between the lines and you can deduce the sanctions on Russia will come off as soon as it starts playing ball and it will be reciprocated almost immediately.

Drill down the facts and you see JEMA to be a absolute no brainer

Talk of 48.5% nationalisation is utter rubbish. You cannot carve out a proportion of a company like Poltava Mining and nationalise it. Further, I don't think Supreme Court will uphold decision to nationalise a portion of the company either.

It's either the whole company gets nationalised or FXPO keeps all, There is no in between.

Https://www.msn.com/en-gb/news/world/putin-reopens-goldman-sachs-dealings-amidst-us-talks/ar-AA1CdsK5?ocid=msedgntp&pc=U531&cvid=c760beedad6c4af1b0c71b3b0b3abcee&ei=27

Corrupt Ukranian authorities are using the 'ultimate beneficial owner' rule to go after Zhevago's 'assets' in Poltava Mining and such a ruling/forfeiture would not stand up in any Western jurisdiction.

I am of the view this will not stand up in the Ukranian Supreme Court either. However, if authorities goes ahead and nationalise the company, then it would trigger compensation which would be way above figures banded about on this board.

osg says compensation "now standing at some £500M to £600M compensation off the present share price and could rise to double that should it happen."

Whatever the bilateral agreement states, the Arbitration Courts would be obliged to apply 'equity' to the whole matter; taking into account events (temporary or malicious) impacting the sp, valuation of such assets in wider market place etc.

Lastly, Ukraine have stated one of its most URGENT objective is to join the EU and committed itself to reforms in the country aimed at achieving congruence in governance and wider matters with that of EU. The approach taken against FXPO runs exactly the opposite.

" https://www.msn.com/en-ie/news/world/ukraine-needs-to-align-legal-framework-with-eu-says-new-justice-minister-olha-stefanishyna/ar-AA1BYRoy?ocid=BingNewsVerp

M1974...can you name one company in the whole world which has to compete in the market place and which is efficiently run by a government?

Answer: NONE

M1974..."Let's just assume they do manage to nationalise his holding, why would this be so disastrous for the remaining shareholders?"

With 49.5% state would be able to take effective control of the company and rubber stamp any requests made by the state eg. authorities may demand $200m in fines for illegal mining of ore. The company board (almost wholly appointed by the board) would just agree to pay it and there's nothing we would be able to do about it.

MB07...Nesis did say whilst hedging has not been a company policy in the past, it is reviewing that going forward and will arrive at decision soon.

MB07...I think 2030 is too far in the future; early 2028 more likely imo to coincide with opening of Ertis POX.

Also, note in his previous address Nesis ruled out share buy back as well on grounds it would further reduce liquidity in its stock on the AIX. I cannot agree with that; when holders cannot obtain value the company should be doing all it can to raise the sp enabling them to cash out. And the way its working on AIX, few millions spent buying its own stock would take sp north of $5.

Shareholders can wait for the divis as long as sp is moving higher. Holders in Berkshire Hathaway have been waiting for divis since 1967....

MB07...I listened to about half of it, and it was negative when it came to divis and GDR listing, but overall positive on trading and future outlook.

Nesis said the current gold price could not be sustained and therefore they had to conserve cash until company completely divests away from Russia.

Also, he elaborated on the previously stated objective of producing 1m oz of gold by 2030; he said it did not mean actually producing that much gold, but impact on the bottom line equivalent to producing 1m oz of gold. This could be from producing copper, tin etc

He went onto say the company was also looking at investment opportunities in neighbouring countries as well the Arabian peninsula.

For dividends to be paid, following needs to happen:

1) All remaining/previously Russian listed stock needs to be freed from Euroclear; company said they should be able to complete this by end 2025.

2) Company should secure enough cash to complete capital projects currently under development; most notably the Ertis POX autoclave hub in Pavlodar, Kazakhstan which is due to come into operation in 2028. As things stand now, this will largely be met from cash flow generated by the company from trading. International lenders are keeping away from Solidcore due to its continued exposure to Russia where it has to send the refractory ore for processing and extracting of gold.

My personal view is, even if they met the above two criteria (I assume by mid to late 2026), it would still be difficult to pay the divis unless and until the company tidies up its shareholder register which is in a mess. Fixing the register without a GDR listing, which according to the company is still few years away would be difficult.

So this begs the question, in the absence of divis, GDR listing and lack of liquidity on the AIX, what plans do the company have to increase sp and thereby shareholder value?

Mr Nesis previously stated "We will continue to work with our advisors and with AIX/AIFC to include the exchange on the platform of a significant Western broker, preferrably who would cater to both institutional and retail investors. We are engaging investment banks to resume coverage of the stock, and will resume marketing the company on the equity conference circuit."

Mr Nesis did not report any further progress on this in his address early today.

Chinese FM on his way to Moscow to force Putin's hand on ceasefire.

https://www.msn.com/en-gb/news/world/china-s-foreign-minister-visits-russia-amid-uncertainty-around-ukraine-ceasefire/ar-AA1BZICC?ocid=msedgntp&pc=U531&cvid=9df0d6354712445b9183dfbecc5527d1&ei=15

If arbitration is triggered, it would gain publicity and with it more scrutiny from the press and alike; enough imo to stop the corrupt Z and his mob getting their hands on FXPO assets.

Company's posture regards legal matters is changing from being reactive to events to being more pro-active; and about time too.

Osg...yes I can see countries like China and India will be having a quiet word with Putin. Ceasefire, peace and end of bloodshed is long overdue.

Russia is in a strong position, so they'll only be harming themselves if they don't submit to ceasefire soon. Ball is most definitely in their court.

Ray of hope for FXPO..........

https://www.msn.com/en-gb/news/world/zelenskyy-orders-election-planning-after-full-ceasefire-eyes-july-2025-the-economist/ar-AA1BX3J4?ocid=msedgntp&pc=U531&cvid=9c4fb106ddf444efbd9b042982d71b67&ei=97