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Thanks Creaser - I think I follow you. They have the option to buy up to 25m shares at 0.24p and sell them at the market rate, which is a very strong motivator. 25m shares at 0.24p is £60k, so selling at 1p gives them £250k. But what if the share price is above 1p?
I don't understand the £250k part of the cap though. If the share price was 2p, does that mean they can only exercise an option to buy 12.5m shares maximum (£250k divided by £0.02)? This would limit how much the company has to 'buy' to pay out on the option. Apologies for my ignorance on this detail (not that it really has any impact on any decision I will make, it is more out of curiosity really). Thanks
Yes indeed Ghoti. However, can someone please confirm my understanding of the implications of the options being capped at a penny? Does that mean they will have no appetite to push the share price beyond this if their effective pay won't increase with any higher share price? What happens to their option when they exercise it if the share price was 2p for example? Thanks
Thanks mercman. I've 'only' got 2/3 of your holding but it will hopefully present a pleasant headache to sell! Fingers crossed we aren't competing for buyers at the same time. I'm very much hoping this will yield a life changing profit at the end of it. Good luck everyone ??
Mercedesman - What is your strategy to exit/sell when the time comes with a holding that size? Won't it distort the market, or are you intending to drip sell in small batches over a few weeks? (assuming a buyout doesn't mean they get bought automatically by the new purchaser). Is this something you have done elsewhere before? Cheers :-)
'Patience is bitter, but it's fruit is sweet.'
That's a great quote Navarre75!
Looking at the value of some of the buys this morning and it looks suspiciously like after a couple of days to open this year's ISA, people are putting their entire allowance into KOD. I can't say I blame them and I think their confidence will be greatly rewarded over the new few years. Good luck all patient long term holders :-)
kmlondon - yes, that makes sense. I guess therefore my shares will form part of the HSBC holding. So that would mean some companies listed as big holders may in fact just be popular retail investor platforms with many combined individual holdings, rather than pension fund providers or 'institutional investors'.
Interesting list George2244. Presumably that only refers to public companies/investment trusts and not private individuals? There will be a few members of the public that would otherwise be on that list (unless their holdings are part of the companies listing, for example where HSBC runs the share dealing account of an individual?).
Does anyone know if private individuals' holdings would ever be published in such a list, or is that prevented due to privacy rules (eg GDPR)?
The pedantry of decimal points ...
https://www.bbc.com/news/technology-59638565
:-D
Thanks Laverda. As you say, let us give the management team the space to do their stuff - the news will come when it is ready. Exciting times indeed! :-)
A good read indeed. Does anyone have a 'rule of thumb' guide of profit margin on such operations? The RNS stated a total life revenue of USD1.4bn, which spread over the 15.8bn shares equates to about 6p per share. Obviously a lot of costs have to be deducted from this. Are there any precedents as to how much profit per share over the life would be left to therefore give a guide to NPV? Good luck to all long term holders :-)
Well done fpvone. Many here are complaining of the drop/stagnation in price, but I'm relishing it. I too topped up this morning at 0.34p for 500k. Will it still be this price for next month's payday too? I hope so! Stay patient everyone :-)
I guess there may also be accountancy rules that say what can and cannot be listed as assets on the balance sheet that contributes to a company's Net Asset Value. Maybe the licence will dump a big pile of value onto the balance sheet thereby increasing the apparent 'real' declared worth of the company rather than any speculated future value we may attribute to the ore in the ground?
Another month, another paypacket, another topup - though I wasn't expecting to topup at the same price as last month!
Another 8 weeks would suit me - that would mean two more months' pay to top up with :-D
Well I thought I did well to top-up with last month's pay at 0.4p so I'm both surprised and pleased to have been able to top-up this month at 0.34p. Hopefully another month of doldrums ahead of us so I can get another bargain top-up next month, then the share price can go as bonkers as it likes! Good luck to all LTHs - patience is key and take full advantage of this current lull. This went to almost 0.5p in early July so anything under that seems to be relatively 'safe' money in my opinion :-)
Thanks Adam. I hope so. You've a good holding too - this is an eye-watering amount for me! Breakeven of just under 0.24p though, so not expecting to lose money (but you never know!). Hoping this will turn into a life-changing sum in the not too distant future. Fingers crossed, but I'm looking to be patient for 6-24months. Get-rich-slowly is good (well, quick compared to putting the cash in the bank!). Be patient and good luck everyone :-)
Another cheeky 400k top-up for me this morning at 0.401p. Glad of the recent dip in the price just as payday arrives. I just worked out I own over 0.25% of the company. Yikes! I hope this comes good.
Just made a couple of cheeky top-ups at 0.394 and 0.393p
hoping for a good rise next week :-)
I think FJ last posted his final batch of sells was to be at 0.2p to buy a new car. At this rate, I'm going to be buying a helicopter! I managed another sneaky top-up this morning at 0.249p taking me to 31m shares, so all of this talk of 1p, 2p and even 5p really would be life changing! Good luck all.