Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
"what is the equation for the future disposal of the residual /reduced holding with regard to gain"
Your original acquisition costs are reduced by the amount returned to give the acquisition costs of your consolidated holding, which becomes the figure to use for future calculations.
For shares held outside an ISA or SIPP
your capital gain from the returned capital due to the redemption of the B shares is
1.0169n(1 – u/(1.0169 + 0.76q)),
where
n = number of shares owned before consolidation;
q = 3.9465, the share price at close on Monday 16th May (first day of trading after consolidation);
u = Your average cost per share (expressed in pounds) before consolidation
You have a CGT allowance of £12,300 for 2022 to 2023 and so if your total gains don't exceed this for the current financial year you'll have no capital gains tax to pay.
"They used to have broker reports, averaged broker prices, details of recent trades, trade levels for the day etc etc - all gone now"
Agree with that Jim, they have definitely 'dumbed down' their service but I was forced to change from Barclays when the latter's service really hit rock-bottom a few years back. At least with HL I get to trade when I want too, even though they are on the expensive side. It's a shame you can't get the service that I once enjoyed with Charles Schwab.
"I sold out a couple of weeks ago @4.41 as didn't want all the complications and with a view of buying back again"
I considered that option too. Likely, quite a few had that plan which is another reason to expect a price rise on Monday - other worlds events notwithstanding!
If the SP remains at 4.074 on Monday, you will actually be slightly up.
Suppose you have 10,000 shares then your holding on Friday was worth 10,000 x 4.074 = £40,740.
But on Monday you will have 0.76 x 10,000 = 7,600 shares, which are worth 7,600 x 4.074 = £30,962.40, and your returned capital (actually returned on Thursday 19th with HL) is worth 10,000 x 1.0169 = £10,169.
Now £30,962.40 + £10,169 = £41,131.40, an increase of £391.40 from what you had on Friday.
1.0169/0.24 = 4.237
Of course, the right-hand figure is of interest only if one assumes the pre-consolidation and post-consolidation prices are more or less equal. Also, this basic calculation ignores the relatively small effects of stamp duty and dealing costs when reinvesting. Nevertheless, it's an interesting way of looking at things. There are no free lunches but there maybe a few nibbles.
Your capital gain from the returned capital due to the redemption of the B shares is
1.0169n(1 – u/(1.0169 + 0.76q)),
where
n = number of shares your currently own;
q = Share price at close on Monday 16th May (first day of trading after consolidation);
u = Your current unit cost (average cost per share).
Not sure how any fractional share entitlement is treated - sometimes fractional entitlements get donated to charity!
But, anyway, they will make close to zero difference to your capital gain.