Member Info for johnpwh

Hi Kenj
I think there is more than a realistic hope of 3 dividend payments over 12 months, it is hopefully nailed on! From my reading (and memory) the first 2 will be paid in tax year 20/21 and the final in 21/22 (I presume early in that year).
You mentioned the danger of posts potentially misleading newbies, which I agree with although I hope that few people would be naive enough to make investment decisions based on a poster unknown to them without further 'due diligence'. To be fair that partly explains my post, as I wanted to correct any misapprehensions that may have been created that this special dividend was part of a recurring regular series. That it most definitely isn't.
As already mentioned I do view this divi more as a return of capital rather than a free 'Brucie Bonus'. We have seen a drop in the SP, whether that will recover fully from is anyones guess. May help some people in swapping CGT for IT on the substantial divi.
Have a good Sunday
John

JungleBabbler, Kenj
if you are talking about VanVan then you are talking about someone who, with respect, knows this company forwards, backwards and sideways. And probably upside down. I have been with him to company meetings/ presentations years before Covid relegated them to virtual events, and he and I have discussed the company with the Directors on several occasions. You would do well to read anything he posts. Indeed If there is one person whose posts I read here its VanVan
discopablo
in my opinion you are mistaken in talking in terms of yield with the current 3 one off (if that's not too much of a contradiction) dividends. Yield only makes sense in respect of regular dividends which you have reason to expect will extend into the foreseeable future at a similar level. That isn't the case here, when these 3 special divis are gone they are gone - even if any further dividends are paid they will not be of this magnitude or anything like. The BOD are very evasive when asked about regular dividends, so I wouldn't bank on it.
Its very likely in my opinion (not shared by all I admit) that these dividends will pretty much just swap capital gains for income. With PoG having declined from the heights of over $2000, and no other AAU sites due to add to the production numbers for several years, I cant see what news will ignite the SP for some time.

Must admit I sold 10k Thursday and 50k Friday. Got the majority left but, as these are not in a tax wrapper, I want to be careful with CGT as I'm over the pa already. I did however dig out an old share from years back that I think I can make a negligible value claim on. And will!

Why not? It is pretty much equal to the cash element and there is doubt over the share element which, even if it comes, will not be received for many months.

tomcat, Foz
Well you both get up earlier than me on a Saturday!
Good points. This structuring of the ZNWD shares as a special dividend makes me highly suspicious that they will try to dodge it to reduce the cost of acquiring shares. In that event BCN S/Hs will lose no money by selling in the market now rather than waiting for several months. In this matter I don't trust the BCN board to represent our interests because i suspect they are feathering their nests and not wanting to rock the boat (2 idioms in one sentence!), and I don't trust GF as they are good businessmen.
One consideration for me is timing. I suspect that in any event payment for my shares will be in tax year 20/21, but I may sell some this tax year and hang on to the rest to dispose of in 21/22 if it all goes on that long for CGT purposes.
I may be grasping at straws (oops, another one) but I think they actually have to apply to take the company private in the 75%-90% scenario? Could that fail?
I also suspect that resisting S/Hs would be given a last chance to sell their shares prior to BCN being taken private even though its not their right - after all this whole shabby exercise is a share grab at minimum cost to GF so they want them. In that case the divi ZNWD shares would be unlikely to be offered though.
I agree M&G will not change their mind, there will be no white knight (the figures don't add up to make it a realistic possibility), no reversion to the May 6th Scheme of Arrangement proposal, no Government intervention (UK at least ..... the Mexican government however need to give permission, don't know what to think about that).
Have a good Bank Holiday lads and lasses. I'm off for a Covid test, though I think its just man flu. Severe of course.

Night all. At least this week I can't have my normal Friday moan about nowt happening!

Hi N.
As we've all implied none pf us really understand this but there are potential pitfalls to those hanging on without knowing the consequences - such as being trapped in an AIM listed share where the dominant (>50%) shareholder is a consumer of the product so will buy at 'mates rates' or, even worse, if BCN is taken private so not only would that happen but your shareholding would also be totally illiquid as (by definition of private) it wont be listed on any exchange

r
I don't think that there is much danger they will fail to reach 50% with their 28.5%, M&Gs 13% and the 1% of the independent directors. They only need 7% or so additional and I think that will come from the major shareholders.

N7455
That date is buried in the RNS. You are a better man than me, and I suspect most on this board, if you can work it out.
Good luck!

Hi beardozer
Have you any information on this - I have looked at the list of negligible shares on the Gov.Uk website and see no sign of it. But then again neither are things like Patisserie Valerie or Sirrius Minerals.
Is the Australian listing active?

Bonkers, Foz, Tomcat, 'r', MrC etc and of course Dee
Yes the mood has changed, and myself I see little point in fighting this. The complicit, shameful BCN board has manipulated this situation into a position where there is little chance of this share grab failing, improved or challenged by a counter offer. The percentages just don't realistically allow that even if mathematically possible - its a bit like discussions about promotions and relegation in the Premier league at the end of each season!
I don't think many of us really understand the minutiae in the legalese of that long RNS on Wednesday. I would love to see a proper plain English summary published.
Foz has made a couple of points this morning (or maybe yesterday, I've just been catching up) of note. Firstly he picked up on the point I made on Wednesday evening that the ZNWD distribution part of the offer (the 'sweetener'). There appears to be get out clause for GF in awarding this based on dates of various processes. I, nor Foz, are claiming to in any way understand how this could be triggered, but being a cynic I imagine it could be 'arranged'. Again anyone brighter than me who could interpret this would be welcomed - otherwise, with the SP sitting very close to the 67.5p cash part of the offer, you could be hanging on months for a dollop of clotted cream that ain't gonna be put on your scone.
Foz also made a point about the danger of getting caught in the 50.1%-75% range where the AIM listing is retained but GF being so dominant that they end up being able to sell all of the Lithium to themselves at below (perhaps far below) market value. Hence GF gain by not having to ever pay the of 'independent' BCN S/H any divis by making sure BCN never makes a profit. Its a cynical but very good point.
I, amongst others, can no longer guarantee my support, Sorry for that but they changed the whole basis of the actual offer on Wednesday. Its not so much a no brainer because it is a higher offer (because its not, its inadequate) but the clever new bid structure coupled with the capitulation by M&G make accepting it the 'least bad' option - who wants to risk being a minority shareholder in a Chinese dominated private company operating in a politically sensitive country like Mexico?
Finally, and this is by no means a critisism of Dee, who I thank for his efforts and doff my cap to, we may have partially caused the current hopeless situation. By standing up the original proposal was likely to be defeated. Some (expensive) bright minds have come up with the actual bid. In truth small PIs are never going to win in these situations, only powerful Institutions are likely to. We did our best.

Malik
With all due respect this is not the occasion to ramp ZNWD on the BCN board, at a time when BCN posters are very pre-occupied with what is a very significant news on their shareholdings.
Thanks

tomcat
Is your reading that GF can accumulate in the market now?

Thanks Dee

Its very hard to get your head round this and seems kind of unfair that a plain English precis isn't issued for the benefit of PIs
Dont mind saying I read this wrong on my quick read earlier, having misinterpreted the 50% reference. Now it appears that if they receive 90% they can apply to compulsorily acquire the rest, and if 75% they intend to apply to take the company private leaving the opposing PIs as minority S/H in a private company with limited reporting requirements. I don't know what to think now, but I suspect we may see GF hoovering up any available shares in the market (on the assumption that they can) to reinforce their position as far as they can.
Very confused

Hi Dee
Thanks as usual for your efforts.
I'm not understanding this - if you had 100 individuals holding 1 share each in certificate form then you are saying that counts 100 against if they oppose (in number,). But an individual voting for who has with 1000 shares counts as only 1?

Well pointed out Tomcat
That is one big RNS, wish there was a precis that all could understand.

That's how I would read it, but I cant state that categorically. Its my opinion.
Equally dismal is that we cant fight this. Its too much of a done deal. They changed the rules today

Hi dave
Loving the moniker by the way.
My understanding is that for each BCN share its 67.5p cash and you would hold .23589 share in ZNWD. So for your 5400 BCN shares you would end up with cash and 1273 ZNWD shares (part shares normally rounded down).
Yes , have a chat with Halifax
By the way, anyone holding outside a ISA/ Pension wrapper is in for fun. The acquisition cost of the ZNWD shares for a future CGT calc is a hoot. You'll love it

Another quick read but too tired to look closely.
Effectively the situation seems that this is an entirely new offer on a new basis. Its as if the May 6th RNS was never published.
A new offer is being made under Section 28 of the Companies Act, and the offer is 67.5p plus c. 0.25 ZNWD share. Forget the proposed offer under Section 26 Scheme of Arrangement, all those terms and conditions are history.
Under this Section 28 takeover a simple majority of shares are needed to accept the offer, including the ones they own. Now they currently have 28.5% and effectively have support of M&Gs 13.7% and the independent directors 0.9% - so they already have assurances of c.43%. I'm not sure but I think they can also now buy in the market, so only need to buy 7% more of the equity to have secured victory and the vote wont mathematically be able to reject it. And why wouldn't they buy in the market while SP stays sub about 73.5p - every share they buy is saving them money? As significant S/H they will need to RNS any increases in their holding so its worth keeping a watch.
Also don't forget they act as S/H in BCN in respect of the ZNWD distribution. So they will come out of this with at least 28.5% of BCNs current ZNWD S/H.
One thing that is worrying me, don't know if anyone else has spotted and is of the same mind (I may be wrong), but it looks as though the 'sweetener' of the ZNWD equity is NOT guaranteed even if this bid succeeds - I need to read again but my interpretation is that if the court sanctioning of the capital reorganisation necessary is not achieved by the time the bid for BCN becomes unconditional then GF does not have to keep its promise to give BCN S/H the 0.25 ZNWD 'sweetener'. Hope I have read that wrong, but that is alarming. If they chose not to keep its promise then, post the takeover, GF will own all of BCNs current ZNWD S/H - ie the offer is then EXACTLY the same as that proposed on 6th May
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