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I raised this question about CGT a couple of weeks ago.
Just because the shares were delisted it doesn't mean they have zero value. Unlisted companies have shares issued too and they're subject to CGT.
I'm not 100% sure but the most logical outcome to me is that CGT will be relevant for profits above the value of our holding when we delisted.
It's easy for me.
The fear of losing every penny of my investment in CIZ is tiny compared to the fear of missing out on the 5 / 10 / 20 + bagger that this could become.
A few people have asked how to get their shares back in there ISA. For those that are unsure, If you want to keep hold of your shares or not lose money then you need to be very careful!
If your broker is offering Bed & ISA then ask what kind of protection they are able to offer to ensure your shares remain yours. When a Bed & ISA takes place your shares are sold and immediately bought back again. With HL they explain that the shares are effectively held safe whilst in transition. I'm not sure how other brokers work. You don't want to lose your shares if the broker can't buy them back at the same or similar price (or not at all!) due to buying demand on the day.
Ask about the fee (or equivalent cost if you end up having shares deducted to cover the fee).
Check that you won't be paying the full spread to buy the shares back in your ISA. HL charged me around £50 worth of shares for a Bed & ISA for which the spread would have been several hundred. Check in advance.
Biggest risk could be a DIY Bed & ISA.
If you sell your shares yourself it will take a few working days to get that money into your ISA. This is because the money showing in your account from shares you sell isn't actually there until 2 days later (your broker makes it available to use to buy more shares, but it's not actually there so you can't transfer it - I assume this is typical for all brokers?). Those 2 to 3 days could mean losing out on a couple of hundred % on a newly listed share with possible news incoming.
Another option is to transfer additional money into your ISA to buy on the day, and then sell from your trading account afterwards. Great if you have the money to free up temporarily.
With a DIY Bed & ISA you will be paying the spread which might be very big on day 1. Check what you can buy and sell at before doing this and decide if you're happy with the cost difference.
It might not be easy to buy or sell on the day (too much demand to buy or too many sellers).
If you manage to buy in your ISA before selling from your trading account and the price then goes up then great as you have twice as many shares and you can sell your trading account shares at a profit and cover the spread.
But if the share price drops after you've bought in your ISA and you can't get a quote to sell then you'll be losing on two lots of shares plus the spread by the time you have a sell quote to offload your trading account shares.
For me I'll be using a fresh pot of money in my ISA to buy CIZ if the price is right and if the spread isn't crazy big. I'll decide later what to do with my shares in my trading account.
I hope that's useful to anyone that was unsure.
Hi Kully
Regarding the licenses I think Zaco has remained unchanged because we're not close to renewal time there so no need to do anything. Also Zaco only hosts one of the top 4 priority targets in Fwiji, and Fwiji has its own exploration license within Zaco (1 of 3) so it's already well packaged for a deal potentially. I too think Fwiji is AA's number 1 priority.
Zamsort licenses changed (at least in part) to accommodate Zambian mining policies for license renewal but add to that readiness of an Anglo transaction as per NvS's comments yesterday.
So many possibilities here and a combination of target acquisition (Fwiji?), partnership (Muswema / Fwiji?) and our own production (Cheyeza East) could all happen. Or something at company level. We'll hopefully find out soon.
Regarding drilling I heard 2 rigs kicking off at Fwiji in the next few weeks and then onto Cheyeza East which seems to cover June. Airborne surveys are covering Muswema which will be used to adjust the plan when this data is available end of June. Maybe Muswema will be drilled July onwards.
Big summer ahead!
Suggest you pop over to Bould's website to have a read of the prospectus for our pending admission to the main market.
Page 24 of the prospectus summarises the admission and placing statistics. Issue price is 10p.
Maybe some are waiting for more visibility on the drill program.
Does anyone have any details on the 149 historic cores that were planned to be re-logged? I imagine we can expect the results of these before hearing news about drilling?
I've just voted in favour via my HL online account.
I had options to vote in both my SIPP and my fund & share account, so actioned both. Worth checking if shares are held in more than one account.
Ztr666 go on the screen where all your shares are listed. On BOU's row you'll see a dark blue icon with a tick under the Actions column to the right.
I think we were around £22M MCAP when NvS spoke about 10 or 20 bags (zero not an option IMO).
Maybe he'd have gone higher if considering an AA deal. Plus additional major offers. Plus multiple tier 1's. Plus free cash flow from processing plant. Plus copper price.
I imagine BOU's most significant shareholder will vote yes. Anyone think otherwise?
And I wonder if he'll take up this:
"7,603,432 shares which may be allotted on Admission to Antos Glogowski should the warrants, as further described
at paragraph 12.1.1 of Part VII, be exercised on Admission"
I understand the principle of CGT. Remember we can't use losses for shares we originally bought in an ISA.
I'm asking about how the new shares are classified in terms of value if they were removed from an ISA at 0.02p each and then become relisted at 5p (equivalent of 0.01p). I'm hoping (expect) that the value of the cancelled shares of 0.02p apply.
If we've had shares shifted out of our ISA's and now they are worth 5p, if we then open at 10p does that mean that we have an instant hit against our CGT allowance?
Lovelyboy / anyone else
Are you aware of possible reasons why the relisted shares may not be allowed in a SIPP? The shares I have in my SIPP are still there (unlike the ones that were in my ISA) and I thought it was a given for an LSE main market listing?
Thanks for sharing. My HL account is active so no worries there. I think a call nearer the time would be a good idea to make sure they definitely flick the switch on BOU. Although not intending to sell its always worth having the option for a top slice at 10 bags on day one ;o)
I think you're right about a share consolidation.
Warrants for us would be nice!
Placing maybe depends on the cash position of the target, unless our BoD have offered a fundraise as an incentive to RTO though BOU. There's likely to be some institution investment lined up perhaps?
JHolder
I expect the prospectus will answer that type of question amongst others, since it's the document that we'll be expected to base our vote upon.