The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
I noticed the cancellation from the official list - Does anyone understand what this exactly means -> Will the shares be delisted from London ???
Hmmm ... made a mistake ... net cash was USD 17 mln NOT GBP 17 mln. ... OUCH. But, expenses for Basay are lower than initially thought -> at the end of AUG 2012 they stated that they stopped drilling at Basay, so worst case only during the months July and August the company was drilling at Basay. As a result NET CASH should be around GBP 10.5 (roughly net cash in GBP) - 3 (other expenses) - 0.7 (Hinoba-An) - 1 (Basay costs July and August) = NET CASH GBP 5.8 MLN. (AT JAN 2013) so basically the company's net cash is around its current market cap ...
A quick follow up on some findings - mainly focussing on the Net Cash level of the company. I noted that in the latest filing they are talking about the fact that Basay costed them about USD 4.3 mln. in cash during a 6 months period. As a result of the situation with Basay any cash outflow seems to be limited as from Dec 2012. So, let's assume they had the same run-rate of cash outflow with Basay in H2 2012. Then the Net Cash will now be around GBP 17 mln MINUS GBP 2.5 mln (Basay run rate) MINUS around GBP 3 mln. of other expenses (same run rate as in H1 2012) = GBP 11.5 mln. However, from this amount the expenses for Hinoba-An should be deducted as well. The expenses were around GBP 0.7 mln. in H1 2012. So assuming the same run rate -> NET CASH SHOULD BE SOMEWHERE AROUND GBP 10.5 MLN. (as of 1 JAN 2013). Any feedback will be appreciated !
With the share price drop the market cap is now around GBP 6.2 mln. Cash as of June 2012 was 17 GBP mln. (with almost no liabilities). Does anyone have any idea what the current Cash level should be ? I noticed that drilling at Basay was around USD 1 mln. a month and that they have stopped that because of a lack of future funding. So worst case it could be 6 more months of USD 1 mln. drilling costs = around GBP 4 mln. Current net cash would be around GBP 13 mln. As I am trying to understand the share price drop (I guess as anyone else) -> I am very interested to hear your thoughts on this !
FOR IMMEDIATE RELEASE 22 February 2013 3Legs Resources plc ("3Legs" or "the Company") Board Changes / Sale of Shares by a Director The Directors of the Company have been informed by Robert Jeffcock of his intention to resign as a Director of the Company with effect from today, 22 February 2013. The Directors of the Company have also been informed by Clive Needham of his intention to resign as a Director of the Company with effect from today, 22 February 2013. Mr Needham will remain on the board of a number of subsidiary companies within the 3Legs group. Robert Jeffcock has also informed the Directors today that Caithness Limited as trustee for Robert Jeffcock sold 6,000,000 ordinary shares in the Company on 21 February 2013 at a price of 26.5 pence per share. Following this transaction, Caithness Limited holds 1,330,720 ordinary shares in the Company, representing 1.57% of the issued ordinary share capital of the Company. Enquiries: 3Legs Resources plc Tel: +44 1624 811 611 Kamlesh Parmar, Chief Executive Officer Alexander Fraser, Chief Financial Officer Jefferies Hoare Govett Tel: +44 (0) 207 029 8000 Simon Hardy Jamie Buckland College Hill Tel: +44 (0) 207 457 2020 Matthew Tyler Catherine Wickman
I am new to this company and as of yesterday analysing this stock. Could anybody inform me whether the tender offer already has been finished (ie. should one deduct the GBP 6.5 mln from the cash) ? thanks !