Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
There's one thing holding this back imo and it's this much-overlooked snippet from the RNS of 22 Nov...
"As previously announced to the market on 5 November 2018, the Company has also commenced working towards restructuring its senior debt facility and is considering wider funding options, as the Board continue to work towards realigning the overall Group debt with the Runruno gold mine cash flows."
How exactly do they intend to realign debt with cash flows? Sounds like a debt for equity swap to me on terms we can't even make a guess at. Small shareholders will surely be punished at some point, it's just a question of how much.
Don't mind admitting I got out at 1.58 today having got in just before the turmoil of the chairman's resignation last week. Nothing like going 30% down in five minutes to make you glad of a profit, however modest.
Assuming the banks grant an extension, the proverbial can has been kicked down the road to 31 Mar, which just brings us back to where we've been this week, waiting and hoping. That's two months of limbo and I don't mean the dancing. See you back here in eight weeks.
According to their recent review, gold producers are where they want to be. Seems contradictory to sell MTL.
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We have been pleased to see the gold price creeping up – again, we have increased our exposure there. The value at the moment is in gold stocks, rather than gold bullion. The mining companies’ share prices have been in long–term decline, and have reached that happy–hunting ground where the enemy of stock appreciation is not bearishness, but indifference. In a world where everything goes down, before everything rallies, and then everything… here is a genuine diversifier. Gold is an opaque and shadowy investment – many refuse to admit it is an investment at all – and so its early signal of a positive response to difficult markets generally is a hopeful sign.
Adam,
Is it possible the CEO has only had assurances that the banks won't force the co into administration? What will they want in return for their continued support? If they insist on a d4e swap, the other major debt holders will insist on it too, and small shareholders would be squeezed out. Plausible? Your thoughts please.
Hi Adam
Not really negative at all, just playing it more cautiously than most, not seeing every big trade as a buy. A 40% gain in four weeks is above my target profit and I don't expect good news on financing until the eleventh hour, so am on the sidelines watching. Getting the standby loan sorted is obviously important, but it's the $35m due later this month that could go down to the wire. Major lenders and major shareholders are jockeying for position and if we stay alert we can all benefit, but you can bet that if there's way to shaft small shareholders, the big boys won't hesitate.
Never posted on LSE until today, precisely because of the immature attitude which pervades these boards and which adamk87 has so ably demonstrated. When opinions are stated as facts and facts are denounced as deramping, who benefits? Why be scared of a balanced debate about the pros and cons? Shame that an honest exchange of opinions and info is beyond some people.
Hi CV7.
No, not currently invested. Got in last month and out last week. Now considering getting back in. Prefer to sit on cash after a large gain like we've just seen.
Sorry if you find facts annoying. I find them useful.
Surely those two trades of 3m shares were some kind of rollover? Tiny difference in price plus gap of just 14 seconds between them was the giveaway. Interesting times for MTL but too much over-excitement on this board if I may be so bold as a newcomer here.