That's the first time I've heard that point of view with regards the distribution of CAI. Fair-do's to you and you surely will be able to Buy KRS cheaper tomorrow.
Each to his own. If you've been here for ages you know that Dave Reeves is a top man so despite the small difficulties of trading Asx shares I'm sticking with him. The whole saga of separating this Aussie gold business from Ferrex took so much stick years ago with most pi's suspecting asset stripping rather than creating a standalone business able to secure it's own funding.
The saga is ending tonight, court permitting. and the benefit of owning this Aussie miner which DR has personally told me he fully expects will be taken over within a next year or two, will be shared amongst KRS holders this evening. I am so glad to be one of them. We will have shares in a Togo operation just completing the final ancillary paperwork on it's exploration permit and a gold miner about to move from exploration into production or sale within two years. Brilliant.
That's definitely my last qualifying top-up !
Pine /Chirpy - who knows what will happen short-term, probably will be a big drop in KRS and perhaps some, perhaps enforced, selling in CAI won't do that any favours either.
Let's make our first meaningful calculations of our worth, say, on Friday 29th Nov. When Russell announces he has the 'piece of paper' in his hand, we should pick up. If we all look like fools with egg all over our faces tomorrow, I swear we'll all be smiling in Q1 2020.
idunnowhatimdoin - don't think you're right and I would double check again with whichever company your hoping to put the spreadbet short on with. As you say the spread at these places is terrible, they use the full advertised spread which can be 10% - 20%.
But check out and double check out the effect of the 'corporate event'. Do you get what I was saying with my example of a Barclays dividend? When it goes 'EX' when the Record Date is passed the sp is marked down at 7 am the next day and derivatives ARE affected - longs credited, shorts debited. This WILL happen with KRS distribution of CAI or you are quids in, but I very much doubt it.
IDunnoWhatImDoin not sure where you get CFD (Complex Financial Derivative) it stands for Contract For difference but your definition is fairly appropriate. IG, however,will not allow CFD's in KRS as too illiquid, similarly we're not sure if they will allow spreadbets.
However, I spoke to the guys there and this is the story : it will be a corporate event overnight and your position will be altered accordingly. If you were long KRS you would be credited with the value of CAI stock which would have been given to you if you had physical ownership. Similarly, if short you will be debited a similar amount. So overnight your spreadbet short position will improve if the stock drops in price but you will be debited the profit a long holder would have gained. The 'corporate event' will take it's toll.
Otherwise, similarly, one could always short a stock like, say, Barclays just before it gave a 3% dividend, The sp goes 'ex' the next morning, drops by 3% but you would be debited the dividend (or credited if long simultaneously).
So, no easy money up for grabs with these Complex Financial Derivatives !
I’m interested to know how you get on. Where are you thinking of placing this spreadbet? I haven’t done spreadbets but I often do Cfd’s. If one had a Long Cfd over Nov19/Nov 20, I imagine one would be given CAI shares or perhaps cash to the value. However, with the lack of KRS liquidity, not sure if IG would even do a Long cfd let alone a short one. Perhaps I’ll check it out tomorrow and what might happen on Nov 20
Shorting the KRS stock - interesting idea.
Firstly, who might let one short it? IG ? It might be quite difficult.
Secondly, would the capital reduction actually result in perhaps creating a different entity that wouldn't allow you to carry the short over from Nov 19 to Nov 20 ? Not sure. Perhaps it is a clever idea, certainly the sp is going to fall Nov19/Nov20. Given ownership of KRS shares merits being given CAI shares, would ownership of a negative amount of KRS shares create a liability to provide CAI shares? That is, if you borrowed 1m shares of someone and then sold them, they would not only want their 1m shares back eventually but would also want their CAI entitlement.
Things to ponder but maybe it is a great idea ?!?
100,009 for me - all I can afford and probably my last top-up before Nov19/Nov20.
Those Calidus guys are running scared it seems with their sp down to 0.22c. However, their volume in value is only running at about £20k today and ours around £10k. These are pitiful levels for such wonderful stocks and think these volumes should pick up after Nov 19 but what levels we'll settle at around Xmas,say, is anyone's guess.
Get Mn production going and get Calidus sold off, lock stock and barrel, then we'll be laughing all the way to the bank.
I'm with AJBell too.
I stated before : I learned today AJBell will take all my distribution into my two accounts with most going into my ISA, they are waiving their minimum £10,000 rule as it's a corporate event. Trading CAI is telephone only and a bit dear at £29.95 or so but I can't buy any further CAI except a minimum of £10,000
I suggest it might not work that Euroz thing with your Barclay nominee holding and best to get them transferred over to AJBell immediately. Try https://www.youinvest.co.uk/transferring-to-us and get the ball rolling asap. Good company, helpful for voting, letters of representation, dealing cost £9.95 a trade, large portfolio £50k + charge £7.50 a quarter, proportionately less if smaller. Could just transfer the KRS and then you'd have just KRS and CAI there.
Ask your broker, don't think your idea of selling just before Record Date is going to work.
As we said before, Russell has factored in a 50% overnight drop on Nov 19/20 but I think that's an exaggeration.
I learned today AJBell will take all my distribution into my two accounts with most going into my ISA, they are waiving their minimum £10,000 rule as it's a corporate event. Trading CAI is telephone only and a bit dear at £29.95 or so but I can't buy any further CAI except a minimum of £10,000
Believe the norm is now 2-day settlement but I believe this is irrelevant. Just need to buy on or before Nov 19 I reckon. If you sold on the 19th you’d expect to not qualify wouldn’t you? Conversely buying on the 19th is not ‘ex’
Yes interesting point Russell made that they are prevented from publishing a BFS at the moment by the Togolese govt. When this gets the ok early next year, it's publication could really highlight the great project metrics, which are to generate FCF(free cash flow) of about $2m a year at initial rates but they could soon triple up on that with increased production to $6m a year.
The presentation of current value in KRS predicts a 50% fall in KRS overnight on Nov 19/20 but still has the metrics of buying 1m KRS shares now for £5000 as being worth £6,311 on Nov 20 with the CAI distribution. Personally I now see that 50% fall exaggerated
Great to meet Chirpy Cheep and Markyess - presumably I saw you too Pinecone but didn't clock your LSE name.
Really enjoyable and twp folks from my SOU adventures were there who also needed cheering up.
Dave presented first for Calidus and interesting stories of how they consolidated the land grab in the old days from quite eccentric individuals. Also interesting to know that 'poaching' (of gold) still goes on both legally and illegally. They cannot refuse to allow mini prospectors to have a little dig around with their picks and allow it on the understanding all little nuggets locations are logged with us for future area investigations. So minor in terms of gold removes from surface but can be quite informative. Dave also mentioned we have not drilled anything below 250m whereas he fully expects gold down to 1km so LOM could well be seriously extended over time.
Dave interestingly said to me later that Calidus will 100% be taken over at some point. He said they had companies sniffing around all the time but it will probably not be until production starts though that's not long being 2021 I believe. The Environmental permit is about the only slightly grey area beyond our control, like most other disused mines, we've got bats, particularly of interest are our 'ghost bats'. These and other environmental considerations take time to discuss, work around, but nothing seen as a big problem. Great presentation, nothing to stop us, CAI share price he thinks under stress by fearful Aussies expecting a Keras deluge to hit the Aussie market which won't happen or will only happen in a limited way for a limited time.
Russell next up, another great presentation but couldn't stress enough how simple our business was compared to gold mining, just dig up the first up to 4m of earth put it in a type of washing machine and truck it off to port was the essence of it. The timings of the CAI consolidation and our distribution, pretty well set in stone now for overnight Nov 19/20, are unfortunate but no real problem. We will be issued our shares and then they'll be consolidated around the end of November. Dave stated this essential for big ii's to get involved with CAI. Russell also said we'd have a consolidation one day.
Paperwork all but done for our exploitation license and it's absolutely confirmed, president, etc. Togo becoming investor friendly at last.
Always possibilities for considering other projects and looks like our one should run itself pretty well by Q4 next year. Production to start very soon in the New Year, not sure I heard correctly the short wet season considerations, but we should be generating cash in Q1 I believe.