Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
As well as the detailed costs you mention, PetTrader:
AST have never disclosed what percentage of any award would go to EYNO in return for their no cost services. I guess the reason for the secrecy is that it is embarrassingly high.
To me, it is very clear that Slovenia do not want AST there, and will stall, delay and block every attempt to stimulate the wells, as they have successfully done for more than a decade.
I bailed out 4 years ago, bored with listening to what the company were going to do, and watching them achieve nothing. RKtech is spot on imo.
Danger_Mouse,
I am afraid you lost me with your dividend yield calculations, although you got the sum right.
The Daily Telegraph show the yearly dividend at 0.87p and a yield of 5.25%.
The yield is simply the annual dividend divided by the share price, then multiplied by 100 to give a percentage figure. The yield percentage will vary as the sp goes up and down, and individually will reflect the price you paid for the shares.
At yesterdays closing price of 16.54p
0.86915 / 16.54 = 0.05249, multiplied by 100 = 5.25% This is a pre tax yield.
At 20% tax
(0.86915 x 0.8) / 16.54 = 0.04203, multiplied by 100 = 4.2%
Danger_Mouse,
Not sure that I agree with your comment "This is true for all shares".
It depends on on which broker you have invested with, and also on which foreign country is applying the withholding tax.
eg:
AJBell will only reclaim the tax on American and Canadian shares.
Interactive Investor will reclaim the tax on some markets, but it's unclear which.
HBOS & iWeb both automatically deduct only 10% on PAF dividends.
Hi PetTrader,
The technical detail of what constitutes fracking and what doesn't is way over my head. Alwaysup is the only one on here who appears knowledgeable in that field.
What you say may be plausible, but is let down by your closing sentence - "But only with the correct management team in place".
The board was already top heavy with accountants before they added another one last month. As you say, they lack the engineers that they would need to achieve this!
PetTrader,
It was RNS'd previously that Geoenergo had applied for an extension. However, with AST engaged in legal disputes with both Geoenergo and the Slovenian state, it is far from certain that they will get it.
Also with AST never having completed an EIA assessment, and Slovenia later banning all forms of fracking, would a license extension be of any use to them?
And Interactive Investor appear to be no better.
Interactive Investor T & C's
"11.1.3 We only provide a withholding tax service in selected markets. Foreign or overseas
investments may be subject to withholding taxes meaning that your Account may only
receive income or dividend returns less withholding taxes, which may be higher in some
markets than others. Our services do not include a service to reclaim withholding tax in
respect of your Account. You are responsible for checking whether we provide a withholding tax service in the particular market before you place an order."
Danger_Mouse,
Thanks for the tax reclaim form. However, this only works if AJBell are prepared to play ball. Following their reply last year (below), I suspect this would be a complete waste of time.
"Our Dividends Team have confirmed that this dividend has been taxed correctly as the underlying listing is South African meaning it has been taxed at their withholding tax rate of 20%.
Unfortunately, we do not offer a withholding tax reclaim service. As your shares are held under AJ Bell's name the ability to individually reclaim the tax is not possible. To proceed we would have to open a separate designation for yourself then enter negotiations with the South African tax authority and reclaim the sum that way. As we are a low-cost broker the service mentioned above would be extremely costly and ultimately the fee would have to be passed on and reflected in us raising our charges across the board "
"I am buying in here with the hope of dividend growth rather than large-scale expansion"
Then I hope that you did not buy these shares via an AJBell account, Danger_Mouse.
AJBell will deduct 20% Withholding Tax on all PAF dividends. Other providers such as HBOS or iWeb only deduct 10%.
Hi Max,
I agree with you that their trade is long term, but I would not call it investing.
They have paid £1.5m for an investment in shares that were worth £1m.
They overpaid by £0.5m to secure an option to buy at a set price in the future. That second part of the trade to me is gambling.
AParky,
The extra warrants do nothing to offset the paper loss. The warrants are exercutable at a price of 25p per share, so will only increase any losses if they are exercised when the sp is below that price.
The warrants are nothing more than a long term gamble on the share price rising. The price of that bet was over half a million pounds, and so far the share price has fallen, not risen.
Billy-Bunter,
I was aware of the placing on the 9th Dec . They raised £1.5m, not £0.5m.
That was done when the sp was around 16.75p. So the purchaser will have booked an immediate paper loss of loss of c 8.5p per share (£510,000) on the 6,000,000 shares they purchased at 25p. The sp continued to fall another 4p per share, adding another £240,000 to their paper loss.
With a total paper loss of c £750,000, I will be surprised if they are in a hurry to repeat the exercise. If as Max19 says these guys are "confident enough to increase their holding" surely it makes more sense to buy shares on the open market at 12p to 13p, rather than pay 25p for newly issued shares.
Either way if B-B is correct "I think they need more than £20M" , then they will need to find more than 13 other punters willing to take the same risks.
Placings are usually offered at a discount to the current share price. Warrants are a bonus to the reduced offering they are not the main attraction. AVO cannot offer this without first reducing their nominal share price.
"I think they need more than £20M but even so, I expect them to raise the money via one or more placings. Its just going to be at the expense of a lot of additional 25p warrants. "
Billy-Bunter,
I can't see any placings happening with the share price around 12.5p. Companies are not allowed to issue new shares at below their stated nominal price, which for AVO is 25p per share.
Nobody in their right mind would pay 25p for AVO shares while they are currently trading at around half that price, even with the inducement of future warrants. If AVO are going to issue new shares they will need to reduce the nominal share price first, by means of a share reorganisation, ie: convert every existing share into 5 new shares with a nominal value of 5p each. This would not effect the market cap value of the company, but would give it the flexibility to issue shares to raise funds.
While the share price remains below its nominal price AVO will be reliant on borrowing from banks. There will be no open offers or placings.
The link to PAF works fine, and I could open all the links, except the latest one. The one Dartron mentioned.
The sp shot up after a new unsolicited joint offer for Yamana was made on Friday by Pan American Silver Corp and Agnico Eagle Ltd.
This was described by Yamans as a superior offer, and the directors suggested that Gold Fields might make an improved offer. However, they continues to fully support the original Gold Fields offer.
Today Gold Fields said its board had unanimously determined that it will not change the terms of its proposed acquisition.
Yamana directors had little choice but to continue backing the lower offer from Gold Fields as to do otherwise would result in a US$300m termination fee being payable to Gold Fields.
As I understand it, share holders can choose to reject the lower Gold Fields offer without the company incurring the US$300m termination fee. So I know which way I will vote.
Isn't this discussion on types of fracking somewhat irrelevant, when all types of fracking have been banned in Slovenia?
RNS 26 Apr 2022
"Further to the Company's announcement on 16 March 2022 which noted the proposed amendments to the Slovenian mining law, on 6 April the Republic of Slovenia voted to adopt amendments to the mining law which included provisions that explicitly prohibit holders of mining rights from being able to carry out exploration or exploitation of hydrocarbons with the use of any form of hydraulic stimulation."
"- Biomass produced using sawmill and forest residuals, and low-grade roundwood, which often have few alternative markets and would otherwise be landfilled, burned or left to rot, releasing CO2 and other GHGs"
Do you believe everything that companies that you invest in say Mattw007?
"With 20,000 tonnes of wood pellets arriving at Drax every day, here are the numbers that tell the story of how the port of Immingham keeps more biomass coming in than any other in the world:"
Do you really think that 20,000 tonnes of Biomass pellets per day can be harvested from sawmill off cuts, forest residue and low grade wood that would otherwise be scrapped?
Even if it could be achieved, many sources would be needed and the cost of collecting cuttings and selective scraps from them would be prohibitive. The only way this amount of wood could be constantly sourced is forest stripping.
It has taken David Attenborough a long while to wake up to this low carbon con, that others raised years ago, but well done to him for having the courage to challenge the Green orthodoxy
https://theecologist.org/2017/apr/10/no-drax-theres-nothing-sustainable-about-big-biomass
"A US Treasury spokesperson said Yellen was “pointing out” that there had been economic shocks “which couldn’t have been foreseen 18 months ago”.
That statement is bulls**t.
Around the same time the Bank of England was predicting inflation rising to 2% and being transitory (ie: falling back down soon).
The US Treasury and the BoE are fully aware that if you pump billions of pounds or dollars into the economy without anything to back it up you are likely to cause inflation. They arrogantly thought that they were clever enough to control it, and that the public would be too thick to understand what was happening.
Printing billions of funny money, or as they prefer to call it "Quantitative Easing", increases the amount of money in circulation without adding any new assets or goods. More money, same assets equals price inflation. It also lessens peoples confidence in cash, which partly explains the popularity of Crypto currencies.
I suspect that the termination fee would only be payable if Yamana went back on their word and pulled out of the agreement (ie: accepted a higher offer from someone else). However, I guess we won't know for sure until Q3 when they publish the merger details.
We stand to get US$450m if Goldfields pull out. That would be a fantastic outcome imo, but rather unlikely I am afraid.
"Full details of the Transaction will be included in the meeting materials of each of Gold Fields and Yamana, which are expected to be mailed to their respective shareholders in the third quarter of 2022."
"Gold Fields would be entitled to a US$300m termination fee and Yamana would be entitled to a US$450m termination fee."