Member Info for jointhedots

kenj - just thiking about your point which I assume to be correct - I suspect there may be a problem for our BoD and relationships within the consortium that could be objected to if they attempt to avoid a shareholder vote, as the shareholding could be considered considered to have been secured illegitimately as votes at the AGM where lined up knowing this was an agreed deal. Dishonest ??? I didn't cast a vote as it's importance was not known. Not to mention D Davidovich selling shares!

Things will become clearer but we must give it time.

Kenj, all I'm suggesting is that shareholder don't need to do anything to win and avoid missing out on anything here, also I'm not convinced the deal will be waved through if other big shareholders object. It's all If's buts and maybe's - we need to wait to see if there is any resistance from other big shareholders IMO.

Also I started reading the A of Association the but gave up after a marathon, but the BoD need to follow those if they are more stringent is any area, I repeat it is not done and dusted and a third party can also throw their hat in the ring (unlikely in Russia I suppose but look at POG, there appears to be a turf war going on in Russia)

I'm holding for a while (it's now a safe haven IMO) to see if we can tease more money out of our buyer.

Here's the relevant section of the RNS (note only 68% voted in the contended resolutions so no party has a clear (required) majority even to 50% )

All of the special resolutions brought before the AGM failed to pass by the required 2/3 majority. The voting on each resolution was as follows:

7. That the new Articles of Association of the Company were approved and adopted as the Articles of Association of the Company, in substitution for and to the exclusion of all existing Articles of Association.

For: 59.33% Against: 40.67%

8. That the Directors be and they are hereby generally and unconditionally authorised to allot, grant options or warrants over, offer or otherwise deal with up to 33% of the authorised but unissued share capital of the Company at the date of the passing of this resolution to such persons at such times and on such terms as they think proper without first making an offer to each person who holds ordinary shares in the Company, such authority to expire at the conclusion of the annual general meeting of the Company in 2020, save that the Directors may, notwithstanding such expiry, allot any ordinary shares or grant such rights under this authority in pursuance of any offer or agreement to do so made by the Company before the expiry of this authority.

For: 58.88% Against: 41.12%

The percentage of votes cast was 68%.

Guys, don't take a knee jerk viewpoint and read everything.

Here's my take, the consortium led by the good old Chelsea boss has agreed to sell (presumably to a Russian mate who some might surmise will reciprocate the favour).

Their 40% ish shareholding is significant but cannot carry the day unless other shareholders oblige - for a takeover like this the authorities typically require a 75% vote in favour.

Take a look at the AGM outcome, just RNSed, resolutions 7 and 8 failed to pass, spookily by a vote of 40% + against - as those resolution (if I'm reading it correctly ) where for new articles of association and allowing the BoD to issue 33% new shares I believe they would have facilitated this deal.

Key is vote are clearly split with not all big shareholder on board with the deal - I sense a fight brewing and things are far from done - the Russian authority approval is a formality but the UK listing is not.

£3 is the minimum and more is possible, our buyer cannot purchase the sub £3 shares in open market without paying the seller the differential - IMO knee jerk selling below £3 is for jerks now the SP is underwritten until things are clarified.

Each to his own though

Oops, a little farcical, but no harm done - SP of a company more often than not rises after an AGM outcome RNS so we may get a dip then rally in the afternoon. That's assuming Gold doesn't move significantly of course.

Guys - what on Earth are you thinking of - Kerogen can't sell as they have effectively taken over the BoD and are well and truly insiders who are reviewing all company data, so have insider information.

Equally important - we must assume they and the other big shareholders are not idiots - they are responsibly for the current SP weakness, having questioned all previous assumptions - if they wanted to sell shares at anything other than a massive loss they would have held back. Consequently, IMO they are more likely to toss more money in the pot to secure a new deal/easement from bondholders whilst we still have lots of wriggle room. Strengthen the balance sheet was their stated aim, it is well trodden ground, shareholders and bondholders doing a deal whilst neither party is under pressure (settlement is still 2 years away).

Once, the problems of uncertainty is sorted out the SP will soar irrespective of any increase in production. Production is not a problem at the moment, uncertainty is.

Centrica have never needed a quick exit from spirit, sure they had a balance sheet under pressure and where focused on selling, but they made it clear when C19 struck that they would delay to ensure a fair price and smooth process.

The sale highlighted obviously provides flexibility for them, but I have thought since the new BoD took over (stated a few weeks ago) that HUR and Spirit could combine to sell together leaving HUR with Lancaster and less cost obligations.

That would surely present a more attractive bundle of Oil production assets to one buyer and a fractured basement opportunity to a second without the spending constraints currently imposed on Spirit - everyone's a winner and critically HuR achieve balance sheet strength which was set out as the main priority for our BoD.

It's so predictable to see the doomsday group play their hand when the SP is taking a beating.

THEY KNOW NOTHING, all the charts, insights, perceived problems are guesses and best hopes to upset shareholders.

The truth is that other in -play oilies such as TLW and PMO have also been under pressure this week, fear amongst HUR shareholders is acute at the moment so we are easy pray - but nothing is settled the future could still be very bright.

THe new BoD have taken a very conservative approach so no dramatic activity planned this year so no excitement which many on AIM crave - some PI's will be moving on and we may well also have a II seller - so what it simply provides a buying opportunity.

Buy and sell as you please, but don't let the slime balls get under your skin, that want you to lose out

Just to back up what I posted yesterday about the strategic importance of Gold to Russia and the extremely unlikely chance of operations being stopped by C19 as has occured in other countries. Polyus, who I highlighted yesterday as apparently having a huge outbreak at their Flagship mine, have today reported that their production is up 16% so clearly they did not stop operations. "Polyus says gold output rises 16% to 690,400 ounces in Apr–June"

Furthermore HGM updated only a couple of weeks ago about their thorough response and that they had no problems.

I just re-read the RNS and it's all very reassuring IMO.

If I had available funds I would also buy more, very happy with my investment here, profitability this year should be very strong, the higher capital expenditure this year will lead to even better performance in the coming years as the new venture are integrated and what an excellent way to expand, great we've got the option, as I suspect assets are going to expensive going forward.

The crazy SP is merely a temporary blip and providing the progess and gold price hold together a rising SP is ineviatable IMO.

IMO the SP is crazy, but it is for a reason, as I said the other day "All down to the impact and fears associated with C19 IMO."

However someone followed up to say production may have been impacted, that's not what I meant, I was thinking of the potential for problems rather than anything already known - we must all be clear that Mining is a million miles away from a normal steady state production environment in a factory, planning is years, sometimes decades in advance and capital expenditure huge - so the H1 production was pre-planned and the reduction known if the BoD are to be believed (and we have no reason not to). Problems occur where there are unexpected geological conditions or other disruptions - the proof of the pudding in mining is IMO measured in not running out of a workplace year after year whilst turning out the best possible profit as they go. Highland have proved excellent in this regard, unlike the likes of POG, and we should take confidence from it together with the clear forward plan they have communicated.

Hence I'm not worried about productioon or even C19. Again everyone should be aware (I'm sure you are, see first link) that the largest and world class gold mine Olimpiada in Russia was hit by a huge C19 outbreak of 1000+ cases in May - together with many other mines and oil extraction sites. That together with the financial pressures in Russia was what I was eluding to. However, and this is VERY IMPORTANT to note that the Russian government ensured continued to operate and Polyrus have confirmed they will not lose annual production. IMO Highland as much as any gold mining company in the world is protected from disruption, it is now more than ever of national importance to generate $US revenues. News today is that Gold exports overtook Gas exports in $US value, second link, first time in modern times, the government stopped buying IMO to allow the Russian banks to benefit from the $US.

Noticed yesterday and article from stockpedia about HGM, link 3; finally an article about a billionairre ex-major shareholder in POG, looking to buy assets in the far east - maybe HGM is on someones radar.

Crazy, overdone, but understandable and IMO will rebound strongly

https://energy.economictimes.indiatimes.com/news/oil-and-gas/the-oil-and-gas-sites-hit-by-coronavirus-in-russia-kazakhstan/75908916

https://www.kitco.com/news/2020-07-14/Russia-s-revenue-from-gold-exports-beats-that-of-gas-for-the-first-time.html

https://uk.finance.yahoo.com/news/why-shares-highland-gold-mining-131754203.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvLnVrLw&guce_referrer_sig=AQAAACevnCQs5Y5vqcdujIpnHHTGdNwnzV_d2eYKRC4m0572Tnge8XzDuAs-sGVLYptF1oDU39pVsHalikQZVhWnqIM4cCoLg7hiZRX73bPfpyzrKsXlnv-1qA7nqIDYaRKldAWvPIA4Q0u2FGE4z03qiwzryc0q6xTEkOImthoMRF-7

https://www.kxan36news.com/gold-parties-kenes-rakishev-is-studying-three-assets-in-russia

All down to the impact and fears associated with C19 IMO.

Can turn anytime, our seller will just be done when he's done no fanfare, liberating cash IMO - there is turmoil in Russia's extractive industries led by oil, but jitters across sectors and companies not yet impacted is the main factor

Thunder - you're right of course - we should question things, especially for investments in countries like Russia.

I just don't see a HGM specific problem at the moment - we're most likely being swept along by macro-economic pressures IMO - but time will tell and investors with any sense will keep their eye on the ball.

The general commodity sector has been downbeat today, lets see what tomorrow brings.

We're not going to find out the reason, but to assume there is some sinister reason or deep meaning to the action of sellers when there are a number of very plausible explanations backed by real information in the public domain is stretching it.

Billionaires are a strange bunch where their wealth is a balance of their assets minus liabilities and in good times they thrive by rising asset values and their ability to easily service debt - we are at a moment of extreme stress and all bets are off, the recent collapse in Gold mining shares was attributed to sellers liquidation to cover other positions.

Richard Branson offered his prized island as security to borrow recently and let one of his airline investments go bust, who would have though that Multi-Billionaire would be strapped for cash - rich or superrich if you can't service debts it's over - happened to Robert Maxwell, Alan Bond (at one time one of the world richest) and many others.

Gotti - there is no reason to believe its manipulation

We can't assume anything, just hazard a guess, but I don't see any demons here.

Thunder - as I said the other day, IMO the most plausible explanation is that like business leaders around the world our seller(s) has probably been caught out by the collapsing economy, it is apparently especially acute in Russia and combined with the sanctions, $$ swap problem and collapsing Rouble means some Russian asset based investors only have the choice of selling overseas listed entities to raise capital at the moment.

I would also mention that Russia has hundreds of Banks not all fully backed by the government, those entities could be exposed to some very bad loans which could bankrupt them (many Russian companies have a problem in having $ debt and Rouble income that's why Commodity and Gold assets are so prized). Our seller from the other day has Russian based assets that may require support and only have income in Roubles) I took great comfort from HGM being able to secure debt at a reasonable interest rate recently - speaks volumes for the security offered. Sorry if I'm preaching what you already know, but you asked.

If the bulk of selling is indeed down to a single or a few entities as appears to be the case that should be very reassuring that the SP will recover strongly

IMO - there is a 10 to 15% rise in the SP due just to get back to where the SP was wrt its peers, without adding anything for the strengthening gold price or solid news - like today's, we now know there are no nasty surprises due for last quarter.

This share appears to be becoming one of the sector laggard, it normally responds in line with it's peers, I suspect it is due to our seller/s dumping into the buying.

Not a problem if you're in it for a decent time scale as any delay in repricing will simply lead to a bigger jump later as long as HGM continue to perform well. If you want to get out quick at full value - tough luck unfortunately.

Good progress, production back end loaded, as long as they are progressing well with the developments as expected production is great - if development stall then that has a more dramatic effect in the mining sector, it's obviously not like a factory where the flexibility to increase/decrease production easy.

Higher prices will now start to have an impact as months of higher revenues have been banked.

As I said earlier the likely selling has nothing to do with any perception that HGM is anything other than a great investment - if you have to sell something I think we would all sell something that we perceived we were getting a decent price for - many of their other businesses are probably in unlisted companies that they can't sell. Least painful option!

To add to my thoughts yesterday on our seller - perhaps he is simply selling some of his portfolio that is liquid not trashed. Many sellers of Gold assets do so in order to cover problems in other investments!

I read yesterday evening about Russia having a serious economic problems as C19 causes recession. The crushed oil price hasn't helped, so bearing in mind the Oligarchs have other interests in Russia, Mr Davidovich is in meat processing, it's not a great stretch of the imagination to envisage he needs cash to support other parts of his portfolio.

Perhaps this phenomenon may even account for the fighting in POG as enemies believe their adversaries are financially weakened and for the taking - just a thought. Putin appears give his people some degree of freedom to infight as long as it is within his overall agenda, I recall during the last recession Oligarchs were apparently put on notice they may be expected to do the patriotic thing and repatriate some of their money - maybe he's put them on notice to bring back US Dollars.

Maybe, I'm off the mark, but perhaps worth considering in many other companies that many old scores might be settled or seemingly invincible industrialists fall, and not just in Russia (Closer to home Richard Branson's airline in trouble) and there are many other countries that will be under even greater pressure (some National default are a distinct possibility as $ debt payments become impossible to service.

Whatever you invest in , take care, the current risk on environment appears to me to be very strange in light of the rising C19 numbers and yet to materialise economic consequences. Our seller, is inconsequential even if he sells all his shares - I suspect there will be bigger catalysts to drive Gold prices and assets prices all over the place. Overall, I can't think of a better sector to be in.

https://oilprice.com/Energy/Energy-General/Oil-Price-Crash-Causes-Major-Recession-In-Russia.html