focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
"Nobody uses a multiplier on EBITDA." What an outlandish and untrue statement. For capital intensive projects it's not the best metric to use but surely EBITDA is used across most industries for valuing companies. It may not be the only metric used, but it's definitely used. http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/vebitda.html suggests a valuation multiple of between 8 and 9 for metals & mining.
Andrew Groves Reinventing Wheel- Again � Under A New Name https://frontpageafricaonline.com/index.php/politics/7068-liberia-sable-mining-andrew-groves-reinventing-wheel-again-under-a-new-name
*existing CGO holders will also have interests in the larger entity and will now have assets that they did not have previously (e.g the Zimbabwe coal mine) - existing CGO holders and not CGH
think there's a bit of a mix up here about what's actually happening with this transaction the transaction is considered a reverse takeover, so it's not CGO paying for CGH, but really CGH paying for CGO at a price of 5p per share (vs CGO's current share price ~3.5p) the end game will be that CGH will likely own the majority of the enlarged entity, via the issuing of new CGO shares; existing CGH holders will also have interests in the larger entity and will now have assets that they did not have previously (e.g the Zimbabwe coal mine)
Even Avrohom may have to admit now that the dog isn't dead after all The website has actually been updated with the news as well: http://www.cgh-limited.com/shareholder-communications/news
I'm thinking CGO as well, take this scenario as an example https://markets.ft.com/data/announce/detail?dockey=1323-13421164-6T46JL90M6QLJ5JQA8I3JNN8E2 But the thing that's different here and what i'm confused about is that in this transaction, everyone is talking about Zimbabwe's assets; nothing about the Nimba assets; what will happen to these assets? Where will they be after the acquisition?
Re: the link Toffeebrads posted; the link contains a lot of nuggets that should encourage investors; it really is looking now like there will be some return for shareholders: https://www.bloomberg.com/news/articles/2018-02-13/mugabe-s-fall-has-veteran-miners-jockeying-for-zimbabwe-comeback "Groves is preparing to relist the pair’s Zimbabwe coal, chrome and gold assets in London through the reverse takeover of a cash shell, or dormant company. He sees the ascent to the presidency of Emmerson Mnangagwa, a man who served more than half a century at the side of Mugabe, as beneficial." "Groves said CGH�s first priority will be coal and its Lubu asset could begin producing before the end of the year. �Zimbabwe has been hugely neglected,� he said. �As a destination for mining it�s one of the best.�"
The MOU suggests that management is pursuing its last stated objective - to realize maximum value from the existing asset base. Now that the case has been dropped, will management also look to sell off the Nimba interests to realize value from the asset? Or will there be a more attractive alternative? e.g partnership with another company, etc. Management needs to provide some guidance around this, or at least provide an update to shareholders now that the case has been dropped. At the moment, we're guessing in the absence of information - it's been 15 months since the last update - way too long.
Given that the share price did fall a bit before suspension as a result of the corruption case, i don't think it's unrealistic for the share price to open considerably higher in the event of a re-listing. On the other hand, people may want to cash in and there may be more sellers than buyers! If there was a re-list + a positive update by management though, I think this share could still have a lot of legs
Now that the case has been dropped, we'll have to see what happens next. There's the Contango Holdings news; on the other hand, there's nothing stopping CGH from re-list again; the delist was because of the corruption case. Hmmmm. Appears that all may not be lost here after all...
https://www.liberianobserver.com/news/supreme-court-transfers-judge-gbeisay-to-kakata/
the case is falling to pieces bit by bit..
GW Case Goes to Supreme Court - https://www.liberianobserver.com/news/gw-case-goes-to-supreme-court/
looks like the case may be beginning to fall apart: Central bank governor summoned to testify - http://www.frontpageafricaonline.com/index.php/news/3754-central-bank-governor-summoned-to-testify-in-sable-mining-trial State lawyers point out errors in ruling - http://www.frontpageafricaonline.com/index.php/news/3753-sable-mining-trial-state-lawyers-point-out-errors-in-ruling
meanwhile...iron-ore;s price surges past $90.... http://www.abc.net.au/news/2017-02-14/iron-ore-price-continues-to-defy-expectations/8268066
Heretic, it looks like the company can only trade on AIM once there's a nomad. The appointment of a new nomad over the next week is very unlikely. So although the narrative pointed to a trading window; it's increasingly looking like shareholders won't be able to sell before the delisting. Whether this is game over, or this is a blessing in disguise only time can tell.
i suspect either this afternoon after the meeting or on Monday
1. They are looking to sell off interests in Zimba this financial year. An impairment of Zimba has left the company with net assets of just ~4 million as at March 2016. The ~29 million of intangibles is now gone; It's September now; which could mean that the company before suspension could be trading at around par value based on the updated balance sheet. Who knows how much they will be able to get for Zimba in tthe current environment. 2. The CITIC detail is dead
From reading the circular, it looks like shares will be unsuspended during this period (see snippets below); any thoughts on how low the share price could drop? "If the Resolution is passed at the EGM, it is proposed that the last day of trading in Ordinary Shares on AIM will be 14 October 2016 and that the Cancellation will take effect at 7.00 a.m. on 17 October 2016." "Such Shareholders should consider selling their interests in the market prior to the Cancellation becoming effective."
Note the point; "Such Shareholders should consider selling their interests in the market prior to the Cancellation becoming effective." doesn't that suggest that unsuspension is likely to happen before cancellation of shares? Also : "If the Resolution is passed at the EGM, it is proposed that the last day of trading in Ordinary Shares on AIM will be 14 October 2016 and that the Cancellation will take effect at 7.00 a.m. on 17 October 2016." 5. Principal effects of Cancellation The Directors are aware that certain Shareholders may be unable or unwilling to hold Ordinary Shares in the event that the Cancellation is approved and becomes effective. Such Shareholders should consider selling their interests in the market prior to the Cancellation becoming effective. Under the AIM Rules, the Company is required to give at least 20 clear Business Days’ notice of Cancellation. Additionally, Cancellation will not take effect until at least 5 clear Business Days have passed following the passing of the Resolution. If the Resolution is passed at the EGM, it is proposed that the last day of trading in Ordinary Shares on AIM will be 14 October 2016 and that the Cancellation will take effect at 7.00 a.m. on 17 October 2016.