Member Info for Overdog

It hasn't stopped me from doing it. Bought 0.1% of CNR this morning having sold a large part of my MTL shares also this morning. As it stands I should get about a 14% increase in my MTL shareholding when (if) the deal goes through and get the CVRs for free.

The guys over on the CNR board are livid. It would appear that the consensus opinion is that we are getting this a bit cheap.

Hi Awax. I can understand your feelings. From our side of the deal MTL is also a company in bargain basement territory so you have the opportunity to swap one screaming bargain for another. Also MTL being a tiny company the La India mine (and the others) will be the dominant assets of the company. They will get the mine into production as well and start bringing in the cash which it would appear that Condor had little prospect of doing. Also it would appear that Mr Mellon is happy to switch CNR paper for MTL paper and he won't want to sell his own shares short. Look forward to welcoming you into our company, we could have a bright future together here.

Hi there. I'm an MTL shareholder. Given that this looks like a done deal maybe you should consider accepting it and loading up on MTL shares. MTL is a very small company with a very good management team on a stupendously low PE ratio but also with declining assets. This deal will be transformational for the company by sorting out the limited mine life issue. You would still own the mine by buying into MTL and the shares are extraordinarily cheap in my opinion. In a few years when your mine is up and running this combined company is going to become very profitable indeed.

Personally, I would hope that Mr Bowden issues a press release in the next few days to sell the idea to the MTL shareholders. Just let us know the rationale behind the purchase, time frames for developing the new assets, some financial forecasts etc. From not knowing CNR at all this morning I am warming to the idea. We presently own a very productive profitable asset but with a finite mine life and potentially a couple of hundred million in the bank over the next couple of years. They have the opposite, a lot of gold in the ground, poor finances, not enough money to develop the asset and lack the expertise to extract it. It's starting to look like a reasonable fit for me and less speculative than our existing exploration acreage. On the negative side it's a long way away and I'm also wondering if anyone else went as far as making an offer and if not why not. Any thoughts?

Sigh. This is how I would explain it to a small child. Now I know it may be a bit complicated for you to understand but concentrate. If a company has 100 shares in issue and I own 80 of them and the other 20 are in treasury then I own 100% of that company. If those 20 treasury shares are later given to a third party to purchase another company then my ownership of said company has reduced to 80%. If that concept is too difficult for you to comprehend then I apologise because I cannot simplify it any further for you.

Don't worry ElectricLion this is what he's like. This is generally a positive and friendly board with very few exceptions.

The treasury shares are effectively owned by me pro rata at the moment as a shareholder. By issuing them to someone else they will then be owned by someone else this diluting my holding. Think about it.

We could do with an explanation from the BOD explaining why this is a good deal for us. Personally know nothing about Condor and the market reaction has put me down by seven grand today. That said Mr Bowden knows what he is doing. It would be nice to explain the rationale behind the acquisition and stop the rout.

Fulmar. Are you thick by any chance? Just asking for a friend.

Fulmar do you have no understanding of how it works. Issuing the shares in treasury back to the market is exactly the same as issuing new shares only with less paperwork involved. The earnings that those shares are accruing at the moment accrue directly to MTL and therefore enhance the per share earnings of the other outstanding shares. Really if you don't understand this you shouldn't be investing in the stock market.

Fulmar do you have no understanding of how it works. Issuing the shares in treasury back to the market is exactly the same as issuing new shares only with less paperwork involved. The earnings that those shares are accruing at the moment accrue directly to MTL and therefore enhance the per share earnings of the other outstanding shares. Really if you don't understand this you shouldn't be investing in the stock market.

This has gone down like a sack of sh*t with the market. Very little to go on so far but to me it looks like a poor geographical fit, CNR the company looks to be in a terrible state. I for one don't want MTL to offer any equity to anyone, if they are to do this it needs to be a cash only offer, I don't want my share of the company diluting. I would rather they borrowed the entire purchase price at 10% than issued any more equity, we have the cash generation to repay it in a year anyway. On a positive note, the directors of our company do know what they are doing and we do have two large controlling shareholders who won't want to do a bad deal.

It's looking grim for the future with any UK assets. The company is absolutely correct to be pivoting towards America. I cannot see anything but deliberate self imposed decline in the UK. Honestly I don't even know why they are still bothering here. We are looking at a future where all our oil and gas is imported because foreign hydrocarbons are much more environmentally friendly than the UK stuff. At least that's what THEY think .

In reply to slow. I've been a shareholder here for about 2 years and have averaged up a few times. I am one of the shareholders that is unconcerned by the lack of a dividend. This share is flying. The last few weeks a little bit sideways but over the two years since I came on board it is up from a penny to five and a bit pence. This company is doing everything right. I would be delighted to see them bank a lot of cash and set the company up for decades to come. Patience will be (and is being) rewarded.

Carrots!!! Really?

Maybe not as bad as first appears. Our loans will be to the customers of the insurance company and not the business itself and should be unaffected by this news. Might not be much more new lending going forward though.

Orchard have been a bit slow announcing this, the insurance company went pop a month ago and we only got told about it today.

Agreed. The way this company is churning out money these shares will have paid for themselves within a year. Draw a line under the interest problem and enjoy the high gold price.

Now on a PE ration of 0.8 and this year's profit should be higher. Either the cheapest share in the UK or maybe the world or I am missing something.

Don't think Mr Candy is selling because he would have to announce it like last time.

Forget about the debt thing, it is historic, it will either go our way or it won't. It is pocket change, we could have £100 mil in the bank this time next year and by then if the share price is still rubbish we will be valued at less than our cash balance and still spewing out cash.

Now on a PE ratio of 0.9.

For a company with no debt, cash in the bank and a built in increase on profits next year due to the rampant gold price, I would suggest it is a tad cheap. I know the mine life is limited but 0.9 is overdoing it.