Member Info for Moneymaker2015

You see it all the time with companies up for sale. Carrying on the 100p sale price scenario; the sp on the day of the announcement could rise as high as 95p. You’ll also see a mass exodus as people take profits. Often this will drop the sp a little, potentially down to 90p or even lower. Then gradually up until the final date of trading the sp will increase. Likely finishing somewhere between 98-100p. The key is not to be too hasty to hit the sell button on hearing good news as you could be missing out on a thousands of pounds, compared to holding on for a few weeks longer. Plus, if you held until the end, you’d get the full value of the sale price.

A quick note on an asset sale, should this happen. The sp can rise higher than the sale price, as purchasers look to grab a special divi to cover their initial investment and still keep a holding in the company. Same again, don’t be too quick to sell-up without calculating the taxation advantages either way. For example, if MT was to be sold alone for say 50p and the sp rose to 60p+, monetary wise it may actually be better to take a special dividend and retain the shares.

Very good read that. I’m a rather pessimistic person, so particularly like his conservative 46p valuation. That sum would be life changing and very welcoming. Anything higher would obviously be a bonus...

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The risk here is fairly low all things considered. Having multiple parties interested means that on the balance of probability, any HOT’s will be beneficial to KAT. If there was only a couple of parties interested, I’d be a lot more wary as the likelihood of us being shafted would be much higher.

Considering the so few shares in issue. Should positive finance news be released, this will rise fairly quickly. We all saw how quick it rose from sub 1p to over 4p, just on news of the opportunity of being involved in Blyvoor.

The 50% spread is a bit ridiculous at the moment. Considering there’s little positive news flowing, new investors aren’t going to want to buy-in here off the back of nothing, knowing full well that a big percentage rise is required just for them to break even. The catch 22 is the mm’s won’t want to reduce the spread, have lots of people sell-up and be stuck with shares and potentially still no buyers.

Thought I’d throw my pennies worth in too.

I think the low sp is predominantly down to where we are in the investment lifecycle. Yes, the company is in a very profitable position. However, with the choice of paying-off more of the debt and releasing the scrip dividend, rather than a cash dividend, there is little incentive for new investors to come on board. I’m in BMN, who are in a similar position. They saw a phenomenal rise when they first went into production. Now, they’re in a profitable position but are committing funds to future expansion. The volumes are minimal compared to what they used to be because there’s no near-term incentive for new share holders.

In a few years, once the debt is re-paid and cash dividends are released, we’re much more likely to greater interest and an increase in share price. It’s just a case of sitting tight for a few years.

Regarding a sale/takeover, it’s all pure speculation. OPG is an absolute cash cow, a sale price would have to be monumental for it to be accepted.

Don’t be too fooled by today’s increase either, it’s mainly just the spread that has increased. Likely mm’s trying to bolster-up some interest.

I’m not surprised SAU holders are unhappy, they’ve got the opportunity for near, long term revenues and no matter who they sell it to, it’s going to be for a fraction of the actual value they would have received by going into production. I still can’t believe they want to sell-up at this stage in the game, especially considering the capital costs are so low.

Sto, the tips website is completely right. Considering production is due to commence in Q1 2021 (now dependent upon the SAU sale of their 50%), by 2022 our profit will be half of our current mcap. The following year it will near enough match the current mcap. If we manage to buy-out SAU of their 50%, our profits will more than double what is already expected too.

I think some are slowly seeing the potential we have here. Having Barrick close by will definitely turn be turning a few heads this way that’s for sure.

Twiggy, you’re in two good companies there I’d say (although I’m slightly biased because I am in both too). I prefer SRES out of the two because they’re closer to production and capital costs will likely be lower, so a slightly lower risk. However, I personally think UFO has the better assets, so would likely be worth more later down the line. The Farm-out news is good though and that will reduce the risk here considerably.

There’s so many out there that have the potential of EUA and GGP though. Out of just a few of my own holdings, I believe AAU, HZM, GLR and JLP will keep increasing over the next few years. Then a few more with higher risk, I’d say IRON, KAT, BMV and MNRG all have the potential to provide a decent return. It’s just a case of putting your money in somewhere and then leaving it for a few years.

Was just checking in here to see if there was any news, then decided to have a gander at the charts.

The last 2-3 years show just how solid the company is performing. I’ve always said it’s a slow and steady rise but looking over that period it is almost a constant rise. As nice as it would be for us to suddenly shoot towards 20p, I’d be wary that it would suddenly drop. Seeing it rise as it is, it would take something drastic for this to plummet and stay there.

The fact that we’ve now got 1.5Moz at Salinbas and aren’t desperate for the cash gives me confidence that I’d be happy topping up at any price below 10p and leaving it there for another few years.

I 100% agree with this. Whilst there’s no guarantees and there’s always the potential that one won’t make it, provided you spread your risk over a number of investments, by the balance of probability one or more will bring in a decent margin.

Using myself as an example (without trying to sound like I actually know what I’m doing lol). I put £4k in EUA at 0.45p a few years ago. It’s currently sitting around 20p. Same with BMN. I was in there at 2p when they were a junior and then sold at 20p when the had their rise (I should have held until 40p, but you live and learn). GGP, I’ve been in there since 1.5p, they’re having a good rise at the moment. I did sell GGP at 9p as they rose off next to nothing so I thought it was going back down again, but then I bought back in at 8p when there was some resistance at that level.

3 of my others that I’m expecting to have similar rises are BMV, SRES and then UFO. Some may not make it and some, like VAST, may just keep doing discounted placings so the share price can never rise, but as I say if you spread your risk you’re not relying just on one share.

Everyone invests differently but what I’ve found works for me is getting in early (sub 1p where possible) and then just leaving it there for circa 5 years. As an example; If I only had £3k to invest, I’d spread it over 3 companies at £1k each. Working off the assumption that in 5 years, 1 would go bust, another would be worth the same amount and one would 10 bag, so my £3k would effectively now be worth £11k. I definitely see UFO as one that will likely be a 10 bagger, but I’d still spread the risk incase the worst should happen. Obviously, DYOR.

Interesting read on Jub Capital. First time I’ve heard of a company going bust from shorting a stock that I actually have a holding in. I bet they’re not the only ones that got stung by the suspension. Why anyone would have shorted this after EUA put AFC’s 54p valuation on their website I’ll never know. Very risky indeed.

It only affects those with slippery fingers though that are willing to let go. I see SRES as a long term hold myself. In a few years it should be worth a fair amount considering the position we’re in now. Once CS is fully up and running, I think the other projects will start to follow suit fairly quickly.

I wonder if that trade is what has dropped the sp today. Must have been a sell as the sells at the time were 20.41 and the buys around 20.60. If it was I bet they’re kicking themselves that they didn’t sell a couple of weeks ago at 28p. Although, I wouldn’t be complaining with that kind of cash in the bank.

I’m of the same mind. The way I see it is that gold is going to keep rising, so the mines are going to keep getting more valuable. Should we put an offer in that gets knocked back, worst case scenario we have to do a small raise to cover costs until they sell to someone else. We now have the funding sorted, so that’s the biggest hurdle out of the way.

Would have to be a very big and low risk rainbow to take these shares off me right now.

Quite a few slippery fingers today. I’m surprised people are selling-up now, thought most would at least wait until we’ve put an offer in and see what the outcome is.

I like the guys optimism (even though they keep saying dollars). I just find 8p hard to believe anytime soon though considering we were at 0.1p only about 2 months ago. Don’t get me wrong I’d be a very happy man if it did but I’m not getting my hopes up just yet.

Hopefully we will find out before the 30th. However, I’ve held shares in so many companies that have extension after extension. AAU’s for example has been going on for 10 months now. It’s more of a surprise when a company achieves a date these days.

I agree with the 7-10p on successful funding. Just seeing how quickly GGP has risen off the back of very little, KAT should have a nice little rise considering it has so few shares in issue.

My only concern is LC (I’ve been a holder of KIBO for quite some time too), but I’d like to think with 14 funding options available, even he must be able to get one over the line.

It’s good to see GWMO moving in the right direction. I had a little punt here in April when the sp was rock bottom and it’s already showing a nice little margin.

Very good RNS, nice to see the project cash flows and moreso that it’s a profitable development. Puts us in a very good position to self-fund exploratory works on other projects.