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https://www.ft.com/content/26fd0940-330a-11ea-a329-0bcf87a328f2
Chris Fraser: Ashes to ashes
The 80,000-odd retail investors who backed the dream of building a massive potash mine on the North York moors won’t be the only ones nursing losses if Anglo American’s rescue bid for Sirius Minerals is successful. Sirius chief Chris Fraser will also be feeling the pain. Having sunk his life savings into the company, he’s seen the stock fall 75 per cent in a year — a loss that would be crystallised by the Anglo deal. There could be a silver lining for the ex-Citigroup banker. After impressing Anglo execs in takeover discussions, the FTSE 100 miner is keen to retain his services. Fraser has yet to decide whether to hang around and realise his ambition of building the country’s biggest mine in a generation, or allow his dream to turn to dust.
"Think about it, when you put an offer in for something you always start with a very low offer, knowing that you won't get it for that, you always have a much higher figure that you are prepared to go to "
JonesRichard, I want to agree with you but as usual Sirius BOD are showing their usual lack of foresight and experience.... they have already stated that 5.5p would get BOD recommendation so and new bidders (if there are any) will not be looking to go much higher...
"So who were the past strategic investors US dumb post? Any one is a strategic investor including the old woman down the street "
a strategic investor is normally another company investing
"He is going to ask pi to stump up 600m its give me this or you lose the lot and there is no guarantee after that's gone we will not be back to square one.cf has had 5m so far of our money.If he wants more pi money let him take a wage cut to 500quid a week.hhow much of pi money will go to pay the board for another 6 months.If there is a prospective partner let him name him.He and the city think we are never ending cash cow mugs"
dumb post......... how the f*** are PI's classed as strategic investors..... therefore it would not achieve the desired outcome of derisking
I have had an in depth conversation with IR at SM today.
The article followed a visit of the journalist, a tour of progress on-site, a detailed 80 minute interview over progress and opportunity, but instead of covering that the journalist printed what he did and the comment about going private was a throw away (not serious) and not even part of the interview....
just sit tight is my opinion, or maybe buy a few at these bargain levels
This place has turned into a cesspit filled with moronic individuals who are not fit to lick the s**t of shoes least of all give an opinion on an investment....
I am done here
"On a side note, it also says the SBR can only go to 1000m, but our shafts will be 1500m so maybe some additional modifications to the SBR we are using ?"
longer cables
"Which is what I was suggesting...........
hence inject capital and not buy shares."
illbetabuck, if they only inject capital then they are just part of the finance and not a strategic partner. They will need to take a stake in the company and inject cash.....
If the PIs could see passed this time and stop panic selling shares at a giveaway then the SP will drift back up, which means when they take a stake in the company the dilution will be less.
"Cash may well run out many months before the “stay calm we’re in no hurry to raise funds not desperate six months thing”. Every trade creditor may pull terms and the outflow would decimate the small cash balance. I would imagine this is taking considerable management time just now. And technical advice on exactly at what point further forecast revisions mean they have to consider solvency trading laws."
stop scare mongering.... they have money in the back to pay all liabilities now and planned for the next 6 months, they won't be running up credit balances with suppliers with no way to repay them as that would be illegal if they did it with prior knowledge which they have....
Think about this situation another way.....
With the $500m bonds pulled and the $2.5b RCF pulled we may actually be better off with a little time played out.... like this...
The $400m convertible bonds are being repaid that means they don't get converted at the 15p eventually = less dilution
The $500m HY Bond would have been offered with warrants if CF had been allowed by JPM so that is a further $500m dilution avoided at what would probably have been about 10p per share
The $2.5bn RCF would have had more warrents and very high interest if this had gone ahead.....
Now we get instead:
A reduced cost to production because they are going to rethink some of the expenditure
Probably a strategic partner, lets say they chip in $500m they will want equity but still less the the combined $900m as above - the only issue is what price if the share price can get stable higher then hopefully around the 10-15p
Further borrowing will be less and cheaper after that = more saving and hopefully no more dilution
So this could actually be the best outcome.........
as for take over talk - most of the shares in issue got there at 20p so a takeover at less than a level above that would get voted down imo.
chins up... I have 2.4m shares in this company and still have a road map to riches --> queue the trolls
"Why did they offer the bonds to PI's? between us all we could have taken this up."
because you wouldn't qualify to buy them - you need to be a professional trader or institution
always amazes me when you get a huge drop like this, with people scrabbling to sell how I can never get a buy order in, surely there must be 10s of millions of shares availabel to buy right at this moment..... another stitch up by the markets....
NO
you asked for a certain date by the end of September - that is the only one there is that is certain. once they are sold they are sold that could be any day including the 30th.
for certain 30th September
it won't happen... they are obliged to update by the end of September as they gave that date to the market via an official rns
dickyboy
that's the previous convertible bonds not the high yield
A man is driving a truck with some monkeys in the back when he breaks down. The recovery people are taking forever and its getting dark and he needs to deliver the monkeys to the zoo before it closes. Then he sees a big white van coming along, so he hails it down. He says to the Paddy the Irish driver that he will give him fifty quid to take the monkeys to the zoo, Paddy agrees.
A couple of hours later still stuck at the side of the road, he sees Paddy coming back, but is shocked to see the monkeys still in the van. Paddy, he says, what is going on I though I told you to take them to the zoo? Paddy replies, to b sure I did that, but there's some money left over so I am taking them to the cinema now.
they have another hole, which they send the local kids down in a basket to get it...... keeps the locals engaged :)
JoeSoap - I understand your nerves and I personally have a very significant investment in SM and have my own, but throwing around terms like SM is a complete punt is only going to fuel negative sentiment which will make you feel even more nervous...... be positive and at least you'll help your nerves imo
"We all know this is a complete punt, although a very good punt in my opinion."
JoeSoap - SM is anything but a punt at this stage,, pre-planning maybe but not as it stands