Member Info for Notperfect

I wonder. I'm still able to buy in much bigger chunks and at a better price.

A curious pattern of small trades this morning. All buys at full Ask. Always in round hundreds, typically 500, 600 or 700 with a few higher and a few lower. Every minute or so. Anyone seen this before?

Thanks Phoebus

The market seems to have ignored the warrants element of the deal. If gold has really turned the corner and Perseus does get its act in gear, these could be a real bonus.

Agreed. Might also cause problems without a UK listing for ISA shareholders. No doubt it will become clearer soon. Perseus itself looks like an interesting recovery play if it can improve its existing producing mine and so help fund Yaoure. Yaoure is going to make good profit for someone. It doesn't look like that will be Amara now but it could be Perseus. Of course if gold continues to recover then I wonder if Perseus with Yaoure will be taken over in turn.

The AMA RNS says "...the Perseus Board will examine the merits of obtaining a standard listing of its ordinary shares on the Official List of the UK Listing Authority to complement its existing share listings on the ASX and the TSX." That feels quite a bit short of WILL list on the LSE market. Have you seen something more definitive, redbeast?

The latest info from Amara has the BFS by the end of Q1 2016. First they have to announce the results of the current drilling which will lead to a mineral resource update in Q4. Plus in Q3 they will complete an Environmental and Social Impact Assessment and submit an application for a mining licence.

Obviously your focus today is on the delisting. However, do you really still believe there is £300K on its way? There is NO mention of November's "agreement for services" in the financial report. Even if the money had not yet been received, this was the only contract win they had. If this was still even a slight possibility, in any normal company it would be trumpeted from the rooftops. Sadly I think it's absence speaks very loudly. It looks to me like you've been strung out to dry by your Canadian partners. I wish shareholders well for the future and I hope your AGM raises some hope but I suspect you are starting back at square one. TW was belatedly right about this one but for your sake I hope the problem ultimately was in Canada.

From Thursday's webcast (28 mins in) - following the placing earlier this year and the IFC investment at 16p - "No other fundraising between now and a production decision"

Ivan's problem is that he set the expectation of Q1 in the TW presentation. In reality he isn't in control of the process as the partners are the people carrying out the due diligence and they'll take as long as they need for such a complex product. If there was anything specifically wrong then INC would have had to put out an RNS by now, and I suspect the two increased holdings RNS wouldn't have happened either. But I agree with you that people will get nervous if nothing positive is released before April. No bad news either might make for an interesting punt later next week.

Should have added, assuming your shares are not already sheltered from CGT in a tax wrapper...

For a higher rate UK taxpayer the Capital B shares may be the better option. The key point to consider is your Capital Gains Tax for this tax year. Will the B shares payment be entirely within your CGT allowance for 2014-2015? If the answer is yes, then the payment will not attract any further tax.

... and the shares consolidation means we won't see the share price fall by 73p, we'll just have fewer shares,

cumbrian The special dividend is already in the price. Before the deal the Canadian business accounted for about £1.5bn of the £9.3bn total value of SL. That means about 60p of the £3.85 share price was ALREADY from Canada. Selling the business for £2.2bn adds a £700m premium to SL's value and translates to a further 30p on the share price. Effectively SL is replacing a business unit accounting for 60p in the SP with cash accounting for 90p. The share price went up by the difference, that is 30p. The £4.15 SP include the 90p value for Canada. SL proposes to return 73p per share of this value and retain the rest. So if nothing else changed the price would fall by 73p from £4.15. In practice the market is still digesting the long term value of the whole deal and the price may move further. However, it may be difficult to separate that from the short term concerns of the Scottish question.

thecumbrian You need to remember that the Canadian business was already contributing to the SL share price before this deal was announced. So the rise in SP on Thursday was more of an upgrade on that embedded value because the market thought it was a good deal. Shareholders will get more information this month so you'll see more details then. However, the value of the special dividend was notionally priced into the SP on Thursday. It won't be a further additional windfall. Was selling today the best option? Who knows. We'll need to see where the market settles on the overall value of the deal. The first day's reaction isn't necessarily the market's final settled view. Selling half first thing and keeping half doesn't sound a bad strategy. Assuming the deal is approved by shareholders, SL will need to ask shareholders for their individual instructions. There will also be a share consolidation so, as Bonz1957 says, it's going to be a time consuming and complex process to run. They may well pay the final dividend first, then pay the special dividend and consolidate the ordinary shares later.

thecumbrian The special divi is proposed for Q2 2015. Much work still to do before it can be paid out. More likely to be part of the final divi process paying out in May next year.

Good piece of business by SL. Excellent price for the Canadian business and a potentially valuable distribution channel for selling more of SL Investments' products through Manulife.