Member Info for kenj

AJ,
To the best of my knowledge, there is no forthcoming dividend payment.
In their offer to buy all of TSG's shares, Horvik said that the 118p offer price would be reduced by the amount of any dividend paid before that date. Consequently no dividend is likely to be issued, and the share price will remain locked between 115p to 118p until the deal is finalized. There is a faint chance that the deal could be blocked by the regulators, but most deals sail through unopposed.

Sorry should read Tornadotony.

" Ex divi date is 6th May. 74p is mouth watering."

I think that you have got that wrong Tornadoony.
The divi is US 89cents. At current exchange rate that is 65p.

" Why would a bullion bank need 10 days to retrieve the gold/silver that they have securely stored for you?"

I think that a 10 day delay is quite reasonable JMT1234.
Back in 2013 the New York Federal Reserve Bank asked for seven years to return 300 tons of Germany's gold, one fifth of the 1500 tons that the FED were storing for them.

" The Offer is expected to complete in Q3 2021, subject to the satisfaction of the FAS Pre-Condition and the Condition set out in Appendix I to this Announcement."

If it all goes to plan then expect to be offered 118p per share sometime between beginning of July to end of September.

However, if you think that the price of gold is likely rise significantly by then, it might be better to sell now at c114.5p, and buy into another gold miner. Conversely, if you think that gold will fall in price, then hold out for the 118p offer. TSG's price is going nowhere in the next few months, while other gold miners will rise or fall with the gold price.

"kenji there is huge diffrence between an rns and an item from a news paper/blog..."

Not in this case! O2B@C.
The news article in the links posted by Shirna and Real-welshboy is basically a reworded copy of the RNS. It imparts absolutely no new information, yet as Reso pointed out, received a total of nine ticks.

As Kragero says "this is a done deal" imo.

Yes Write1, it will be a cash offer, but some regulatory approvals are needed before the offer is formally made. The terms though have been agreed in advance, and are unlikely to change.
As Kragrero says "this is a dine deal" imo.

The Slovenian news announcement says nothing that we did not already know.

"The British company Ascent Resources has announced it will initiate arbitration proceedings against Slovenia"

The word they used is WILL, not HAVE, so this is no different to the RNS.

"Do Horvik not need to achieve over 75% holding to remove from AIM?"

Yes MonkeyTennis1, you are right they do need a 75% holding to cancel the AIM listing and take the company private, forcing you to sell your shares. But do you want to hold shares in a company where you have no voice or effective vote? They have already been promised control of the company, see statement below:

" Today, Horvik agreed to acquire 44,558,918 TSG Shares, representing approximately 51.2 per cent. of the issued share capital of TSG"

This controlling interest means any small investors would have virtually no say in how the company is run, and who benefits, which is the reason that the Take-Over Panel insists that they must make an offer to acquire all remaining shares in the company.

A better offer could still come in, but I believe it would be blocked by Horvik's 51.2% controlling interest. Once Directors and NED's have backed an offer it invariably completes. The same thing happened recently with Highland Gold (HGM), and the sp never went above the 300p offer price. Most shareholders sold out or took the 300p offer, and HGM de-listed.

"But there's no thing they can do stop the share price rising. "

DuncanGold,
TSG's share price has effectively been top locked at 118p by this offer. Who is going to pay above 118p for these shares when in a few months time they will be forced to accept that price for them?

In the months this will take to complete the gold price might rise sharply, pushing up the price of gold mining shares, but not this one. The maximum profit you will get here is 115p to 118p, that is 3p (2.6%).

Hi Tony,

Thanks for the detailed reply. I was aware of the $27m VAT over payment, but not some of the other info. I had also noticed that the tax paid seemed rather high, but did not know the details. Just spotted this, which partly explains the high tax take.

"A profit before tax of US$39.0 million (2019: loss before tax of US$1.2 million) was recorded. A tax charge amounting to US$21.8 million (2019: US$8.3 million) resulted in a profit after tax of US$17.2 million (2019: loss after tax of US$9.5 million). The increased tax charge in 2020 reflects the Group's increased profitability and US$4.1 million recognised in respect of historical tax assessments conducted in the Period. "

If US$4.1 million was historical (ie: for earlier years), then SHG would have paid $17.7m in tax for 2020, which is slightly higher than their annual after tax profit ($17.2m). A high rate of tax when the RNS speaks of royalties of 6% and a clearing fee of 1%.

I have a relatively small investment here, and have not been following this too carefully, so thanks for making this clearer.

Regards kenj

Tornadotony,

I suspect that the fall in the company's share price is probably a hangover from a statement in last months Final Results. The tax situation in Tanzania is far from clear, and potentially quite worrying. It has certainly caused me to think twice about topping up!

"During 2017, the Tanzanian Parliament enacted several legislative bills, which amended the Mining Act 2010 to provide for an increased government shareholding in mining projects. The amendments entitle the government to a minimum of 16% free carried interest in all mining projects, and the right to increase this commensurate with the value of historic tax reliefs and exemptions enjoyed by the mining company (up to a maximum of 50%). Since the incorporation of its Tanzanian subsidiaries, Shanta has not been the recipient of any preferential tax arrangements in Tanzania nor has it been party to a Mining Development Agreement.

These changes preceded the announcement by Barrick Gold on 20 October 2019 that they had entered into a bilateral agreement to share the future economic benefits from Barrick Gold's mines in Tanzania on a 50/50 basis. It is management's view that a similar arrangement between Shanta and the Government of Tanzania could be required.

On 30 October 2020, the Mining (State Participation) Regulations 2020 were published, which expanded on this free-carried interest and provided that the Government of Tanzania shall enjoy the right to receive a proportionate share from any repayment of equity or loan.

It remains uncertain how the new legislative bills will be interpreted and implemented. To date, with the exception of the increase in royalties from 4% to 6% and the introduction of a clearing fee of 1% which was effective from July 2017, there has been no material impact on the Group. The Company continues to take in-country legal and tax advice to monitor the situation carefully."

Tornadotony,

I suspect that the fall in the company's share price is probably a hangover from a statement in last months Final Results. The tax situation in Tanzania is far from clear, and potentially quite worrying. It has certainly caused me to think twice about topping up!

"During 2017, the Tanzanian Parliament enacted several legislative bills, which amended the Mining Act 2010 to provide for an increased government shareholding in mining projects. The amendments entitle the government to a minimum of 16% free carried interest in all mining projects, and the right to increase this commensurate with the value of historic tax reliefs and exemptions enjoyed by the mining company (up to a maximum of 50%). Since the incorporation of its Tanzanian subsidiaries, Shanta has not been the recipient of any preferential tax arrangements in Tanzania nor has it been party to a Mining Development Agreement.

These changes preceded the announcement by Barrick Gold on 20 October 2019 that they had entered into a bilateral agreement to share the future economic benefits from Barrick Gold's mines in Tanzania on a 50/50 basis. It is management's view that a similar arrangement between Shanta and the Government of Tanzania could be required.

On 30 October 2020, the Mining (State Participation) Regulations 2020 were published, which expanded on this free-carried interest and provided that the Government of Tanzania shall enjoy the right to receive a proportionate share from any repayment of equity or loan.

It remains uncertain how the new legislative bills will be interpreted and implemented. To date, with the exception of the increase in royalties from 4% to 6% and the introduction of a clearing fee of 1% which was effective from July 2017, there has been no material impact on the Group. The Company continues to take in-country legal and tax advice to monitor the situation carefully."

Can anyone explain why the share price has collapsed so dramatically?
These shares were listed on the FTSE back in October at around 480p.
Current price = 290p.
The last results did not look too bad to me, but I must be missing something!

I suspected that was the case Camkite.
But if that was true then Ivans should have said he knew someone with an average price of 150p. That is completely different from a purchase price of 150p.

eg: my 2010 purchase at 5.25p, after the 1 for 20 consolidation in 2015 results in an average price of 105p.

"i know someone who bought AST around 150p."
What utter twaddle!

My earliest purchase of Ascent was in Oct 2010 at 5.25p, and it has rarely been much above that since, and generally a good bit lower.

BuggerTheBanks, I did not understand your post.
AAZ I believe paid an untaxed divi of 3.4648p.
SHG as far as I know have never paid a divi.
Not familiar with the other companies.

Just re-read you post LordWales.
You will have problems selling these shares to anyone, if you no longer have the share certificates. I hope you sent them registered and signed for delivery. There are different insurance levels depending on which postage method you selected. If you simply popped them in an envelope with a first class stamp, then the Post Office will take no responsibility at all.
Hopefully they are just delayed in the Christmas rush.

LordWales,
I have never been in this position, but as far as I know, you will need the company to buy them back from you, as there is no market trading HGM shares anymore. I would not expect you will be offered the 300p buy out price though.
Google "how do you sell privately listed shares" as a start. Good luck.