Isn't the UK windfall tax here until something like 2028 as a sop to the public blaming the energy producers for the crisis rather than the massive tax element that government imposes (and hence imposes even more)? I believe that the UK will still impose windfall tax if the crude price falls 50% or more as the term 'windfall' was never defined.
Does anyone know of a reason Mr C?
Hexam
We'll have to see what happens I guess. Anyway, I wish everyone here the very best.
antlev
I agree that it wont be pretty. But those, which I admit includes me, who have never been invested here may view this for the future if the listing is retained. I imagine that what will happen is that there will be a consolidation of the shares after the restructuring takes place, say 1 for 50. Even though an accounting exercise, psychologically penny shares are treated with suspicion.
hexam
My interpretation is not quite the same. By recovery I am reading significant recovery from the current level as a result of the deal, not that it is wipeout for current equity holders which i assume you mean by 100%. Time will tell.
antlev
Your maths is fine but your logic isn't. The equity replaces the loans so the balance sheet strengthens, the post restructure financial structure is healthier and the company far more valuable. No lender is going to swap their debt for 2p shares if post the transaction those shares will be worth a fortieth of that amount. They aren't that daft.
Hexam
I think we agree. Its not good for existing shareholders for sure, they is no prospect of a meaningful recovery of share price to previous levels. But as you imply, if the listing continues (and I saw no words to the contrary) then any new shareholders could do well. Obviously a cloud of sentiment will hand over the SP for a long time until the way forward is encouraging.
Well its good news in the sense that the company will continue, but a lot more so if you are a cinema goer than a current equity holder. Once all the refinancing has gone through and the dust settled it may well be worthwhile becoming an equity holder. Its just not great news for anyone who is already a LTH
Awesome
Having had a quick read I agree. There is a rights issue with no mention of a new class of equity. So I assume what is being proposed is a massive dilution in lieu of debt. Since this is pretty much a done deal I would have thought that the SP would otherwise be even closer to zero
I am not a holder, long or short, and so have no axe to grind but look at the SP graph. Its a falling knife. Either sit it out or leave it to bottom and commence rising before buying. We have no definition of what is a windfall tax, the rhyming slang chancellor will simply tax any profit on North sea assets. And gas prices are a shadow of their prior peak.
mrc_mrc
I have to agree. After selling the last of my shares in late November I have been watching the SP wondering about buying a new position after a 40+% drop. Sadly this RNS does not encourage me to do this, especially in view of the lower oil price when our government have failed to define 'excess profits'. Effectively there is no tax on excess profits it is simply a hike in overall Corporation Tax rates which will disproportionately affect predominately UK producers.
No alternatives have surfaced, I'm surprised that the SP is above the bid price. I never was very good at this game!
So much for the great recovery specialist.
Nice to see a positive SP reaction to this. The drift has been concerning.
All I hope Foz is that this inaugurates a new dynamism that we haven't seen for some time. Else it will just drift back again.
Don't know Foz. That's the trouble no one on here does, we are just guessing.
We now have some substantial shareholders, and like you I cant see them sitting around which the Board go back to their tea and biscuits. Looks like far more sense for the like of AMG to mount a takeover then form a JV with a mining operation. At the end of the day having the stuff in the ground as European production takes off is no good for them, they need progress in extraction.
Hi Foz
Pleased at long last that something is happening. The new investors will not just allow endless reissuing of the same presentation telling of the potential while no progress is made. Personally I think this is heading for a takeover, as Zinnwald is still strapped for cash.
Though in the red as I expect many are, I am going to run what remains after using this mornings rise to have a bit of a trim to balance my CGT books (only a few days left to so). GLA
Thanks TT
I'm pretty much sure that no one here will see a brass farthing of their investment back no matter if the amount is recovered or not. Expect Gilbert & Co. will do ok though.
In case you think I am taking my dislike of Gilbert too far, then fair enough. However I have plenty of vitriol left.