Member Info for oldspursfan

...or by doing it this way, it’s a sign of major competition. The BoD is keeping the door open for a certain length of time to become their recommended offer. That may save themselves some break fees in the process.

May need our resident legal eagle to back that up though...

Shareegn it would need to be more than 50% of all we have to qualify for Rule15 (or meet Google's view of "substantially all" our assets). Remember those two things were mentioned specifically in the last RNS.

We may end up with a minority interest/ free carry and earning royalties, so not selling all our interest in the licenses is possible and could meet the conditions for both those things. We don't know enough to rule it out yet.

We'll just have to wait and see. GL

So no company in an FSP ever issues a list of unsuccessful or non-recommended other bids.

No company whose bid was not the Board recommended one ever goes to the effort of an RNS to announce "We wish to inform the market we bid £x for this and lost out"

The BoD have announced they have a preference they are now focusing on. Yes, it's an unorthodox end to the FSP period, but I don't know why the absence of a "loser's list" being in the public domain is evidence in your mind of no bids ever being submitted?

You have a very strange set of expectations.

Stork
Seriously, how many boards do you go on, to ask holders who are expecting news/ updates imminently ""yes but what if you don't hear anything for 6 months...?"

Is your investing strategy "yes this company has near term potential, but what if they don't say anything for the best part of year...?"

Tr!ck I think you're misunderstanding what will cause the SP to re-rate. It's not the announcement of any dividend, it will be the announcement of the sale of assets for £xxx.

We have to have the details of the recommended sale/ offer first. If that is, say, £5bn for WK/MT+ surrounding licences, subject to a Rule 15 vote in three weeks time, the share price will not sit at an MCap of just £750m - it will instantly re-rate to near that £5bn valuation. As with other T/O or Major Asset Sale announcements, once the offer figures are known, the market will react.

Any dividend will only come out of the proceeds of sale, further down the line. It will need to be announced, yes, and we may see a bit of SP movement then, but the MCap will still be bobbing around that £5bn sale value, reflecting basically what will be cash in the bank.

Hope this helps

Trift, well certainly the £500k cost I'd expect to be classed as an asset on the balance sheet. Not for 2020 mind as it looks like this was too recent. EUA tend to book assets at cost, hence 2019 only records c £8m total assets including cash.

Can it be something of value to potential bidders? I'd have thought very much so, it's an exclusive option for 2 years to exercise rights to explore and develop 9 sites in the immediate region, with partial resources levels booked, favourable cost and earn out arrangements and arms length involvement from Rosgeo. It's also something no-other company has...

Very good summary.

The only question I would have is if MT and the wider Kola JV are not being separated, then it implies they are both going. Reason being is if we are not looking to sell MT at least, then based on what other assets we have AIM Rule 15 wouldn't apply. MT has to go for that Rule to be triggered. Nothing else makes sense.

Aspen yes I think that is the consideration sell before the record date and incur cgt.

However...

We still have a lot of things to confirm, not least a sale of something! I reckon earliest this crystallises is mid-July, but even that is with a fair wind.

So all this is good to bear in mind, but let’s see what figures actually land... GLA

Arsenalles I don’t think I have ever seen a poor accountant, reckon there’s a reason for that lol!

Good thing is we’ve only just started this tax year so we’re talking a good 18+ months before assessments start falling due. But a good time to start thinking about what documentation you need to keep hold of!

Layla I believe that applies if you have taxable salary above 150k, you will be in the Additional rate at 45% for every pound earned above that, nd in the 38.1% bucket for dividends.

Think the £2k dividend allowance still holds, though, so every cloud and all that...

To get to that stage there will likely be a vote, so a c. 3 week period between sale price announcement/rerate and the vote, then time after that passing for the transaction to occur/ money come in, then dividend amount needs to be set and notified, and record date confirmed. So should be time enough!

Very true Aspen, hence why I’m glad it’s being raised and discussed, and happy to assist in this.

I of course acknowledge that it runs counter to the “it’s all a f**kin con” narrative, but last I saw that bit wasn’t in the RNS, but the potential for a significant dividend was.

Thanks, another simplistic example, using more attractive numbers!

Taxable salary 52,700
"Significant Dividend" income 102,000 :-)

Total personal income 154,700
Personal allowance (for salary purposes): zero it tapered off to nothing around £125k

Salary falls into the higher tax rate. Tax is 20% of the first £37,700, plus 40% of the remaining 15,000 so £13,540. (England and wales)

Dividend tax rate is 32.5% (higher rate), but the first £2000 is tax free, so tax is 32.5% of 100,000, or £32,500.

Total tax payable from above £46,040.

Just a guide, illustration purposes only.

Just as a final note, a quick search on "dividend tax calculators" gives some free online tools to guide you. But essentially:

All taxable personal income, so salary, dividends, other investment income etc, needs to be combined to give a total personal income value.

The total personal income value will confirm how much personal allowance you have as it starts decreasing beyond 100k, as goes completely at around 125k.

The salary portion of your total personal income will determine which tax band you fall into, basic, higher, advanced. The tax rate on dividends changes depending which of these bands you fall into.

Each element of income needs to have tax separately calculated, so salary income tax due will be a separate calculation from dividend, which will be separate from any other income.

I think the above is correct but sure someone will shout if not. But it does take some getting your head around!!

Cheapie, no need to be aggressive as Kira says theres been enough of that already.

Halifax wont deduct tax upfront. They'll pass on the full dividend due to you, but keep a record of it and pass it onto HMRC after the end of the tax year (so 5th april 2022).

It will be your responsibility to let HMRC know you have received dividends and, if over the 2k dividend allowance, submit a self assessment between 6th April 22 and end of January 2023, and pay the tax you owe.

If you decide to reinvest and lose it, it wont count I believe, as it is income tax, and your subsequent loss would fall under cgt which can be carried forward against future cgt. So I dont think the two can be offset. You'll be broke and still owe the income tax so not good!!

PP if the "significant dividend" does come to pass a lot of us will be in the same boat, I suspect!

As I have said, such things are based on your own individual circumstances, allowances and other income/shares so it would be impossible to give advice here, but there are calculators available online.

Key thing this side of any Board Recommended Offer is that people are aware that differences exist!

Tiger yes we know we havent got a deal yet but the FORMAL Sales Process has ended with a proposal the BoD are taking forward that could result in a dividend. It hasn't failed until we get told the talks have fallen through (so you are also counting chickens by saying it has failed!)

We're discussing how that could look and what implications arise from it, but only because the words "significant dividend" were in the RNS.

No one (I hope) has put deposits down on any Lambo's, yet!

Ian_ you may need to keep going as you're only up to 150k!!!

45% in England and Wales (46% Scotland) for every pound of income above 150k

Also once you get past 100k income in a year, your personal allowance will start decreasing (£1 for every £2 you go over, though it does stop at zero, thankfully!)

Nice problem to have, but a bit of a headache!

Paul, no the share price wont go up to reflect the dividend.

It will go up to reflect the value of the asset sale.
Any dividend down the line will come out of those proceeds. So the SP rerating is wholly dependent on what the BoD announce is their recommended offer, sell x/y/z assets for £??? (billion, hopefully).

And if x/y/z assets combine to more then 75% of total assets, then AIM Rule 15 is triggered and we will have to have a vote.

Maybe such a vote can be timed to coincide with, and form part of, the AGM that has to happen by latest 30th June (though that relies on the 2020 Annual Report and Accounts being published). But if not, then another (Extraordinary) General Meeting will be arranged specifically for the sale. Details will be provided, and we'll have about three weeks to debate and get the votes in.

No worries elisaf don’t be scared to ask.
You hold so hopefully will join us all for the ride to come! Have a good weekend

Hi Elisaf
Don’t worry we’ve all been newbies!
Right so first thing is any dividend is hypothetical. It’s a new consideration as we have previously been under an FSP which we have taken to mean full company sale. However we have not yet been given the details of the offer the board wish to put forward. So it may not be dividends, we don’t know for sure.

If it’s a dividend route, it will need to be announced. Then two dates count, the record date at which you need to hold shares to be eligible, and the ex dividend date when the share price basically deducts the dividend amount as that is being paid out from the company coffers.

You will get the dividend for every share you own, which will appear as cash in your account. The value of your shares in your portfolio will go down by a similar amount.

Does this help?