Member Info for Richorpoor

Rex

We're buy backs are conserned

99.97% voted for the buyback offer and .003against and at a ridiculous low price of 422 it was oversubscribed

If these shares were sold on the open market we could have a share price in the 300

The company have said there will be no more buybacks untill the next mine move

Interesting simply wall Street have got Kenmare share of over 1500 there fair price according to earnings but the market values far less

With the company 2 biggest share holders selling millions of shares over the last 3 years shares which they brought for 232 good business for them good profit taking

They crossed the threshold on the 11sept

Same day as tender results day so it looks like they profit took

We haven't heard anything from MG but they already sold 33% of there shares in the last 18months

Remember these shares were purchased when Kenmare resources needed to refinance

So expect them to take profit now

Often rise before ex dividend date next week

The truth is they not going to sell 20% at 422 The large investors have sold down to profit take they can't sell on the open market has they would flood bringing the sp right down and lossing the profit

Think it would take over 700 a share to even get on the field as now there only going to be 89.3million shares left on the market

Although the investors can offer all there shares to the offer they know only 5.9%of them are a guarantee but they can pick up extra share of the shareholders portion who didn't take up the offer that's why they offer to sell more to get there extra portion

This will be there only opportunity to do this for the next 3 years as the board has said they will need extra money foythe mine move whilst keeping dividends over 10%yield

Buyback results

22 million shares where offers by share holders to sell at 422

16 million more shares than offer of 5.5 million

So maybe the board paid to much for the share maybe should have offered 380

But most on here thought they should paid more but the market says different

Don't panic the company is in good shape and should be paying dividends yield off 10% over the next few years so is a good investment but I wouldn't expect the share price to increase much

until the mine move before seeing 6pounds ashare

Con

Well there's no stranger than folks.....

Shares being sold on the open market for 420 today

Rich22

The interim dividend as been set already at 17.5 cents a share this will not be affected by the buyback

But those shares which the company buy back are x divided so the company retain that part of the dividend in its targeted 50million dividend pool

So those shareholders who are still with us in April we benefit from this

The amount the company saves is 5500000x17.5c

Providing all shares are successfully brought back by the company

I'm expecting the buyback will be successful but they're not going to have mine at that price would take my chances on the open market

But it good we clear up the shares of those who will sell at that price as this as been holding the share price back for years

The 50milliion USD dividend target for The year is what the company had in its report

It's what the board is aiming for including this September payment and next April dividend

It's all in the the report those shares that are sold in the buyback do not receive any dividend

On YouTube there is a video of the report

Search Kenmare resources it's worth seeing

So the 50million is a target dividend payout the board expecting but can come in higher or lower of course

When something is sold the sellers want the highest price

When something is brought the buyer wants to buy at the lowest price

So board would need to sell at the lowest price but

Still need to buy able to buy back the 5.5milluonshares at 422pence if they don't succeed then they have the price wrong and mis judge the market

But 20months ago they've brought over 14million shares at only 418pence and the sellers where offering another 3=5million to be sold so this meant they overpaid the price

If the buyback is successful then the 50million target dividend pot will be dividend by 89.5million shares rather than 95million increase our dividend payout by around 6%

30 million USD buyback equals 25pence a share that's equivalent to a 6% yeild that's no small payback

It doesn't matter what price to me what they sell them at as it does not change the yield

And the company still has a billion dollars in assets

That's it's true worth

750 a share but for transaction it could be 100

Because we the shareholders own the company so we just buying the shares of ourselves to obtain a 6% yield in the process

Con totally agree about the bonds also some of the big boys brought a lot of them shares at 232pence so have profit took when they can

Share buy back if a fixed price probably would be the last 10day avarage finish on today date or they might just buy on the open market on the price of the day I'm sure they have had some talk's with there big investors which will direct their decision

4 seller at a value of 2 million as to be a institution selling but which one

Last year the company made 62 million in the first 6 months

This year I'm expecting a stronger proformence

Expecting around 100 million as sales are up31% on last year's first 6 months and sale price up about 5% although down from the record breaking prices of the last 6 months

Interestingly analyst's only have the company making 130 million for all of 2023 so I will interested to see if they change their forecast if my expectations come to be

I don't think the company would be talking about a 30million buy back if this kind of profit I'm forecasting is not there

Shep I think they will do 50+50

But obviously I prefer buy back to save paying tax

To give a example if a Irish company had 100million share at 5euros each and I owned 0:001%of the company I would have 100000 shares if they paid me 10% dividend yield I would get 50000euros dividend less 25%tax which would be 12500euros and I would still own 0:001%of the company

But the buy back option of 10% means the company would no longer be in 100million share it would be 90million and if I sold 10% of my holding 10000shares at 5euro I would make 50000euro and pay tax and still own0:001% of the company I don't even have to pay capital gains tax unless the share price as increased from the time I bought and in the first £6000 in the UK is tax free which most shareholders will pay no tax at all

Personaly I would have saved £6000 tax over the last year if they did buy back instead of dividends

So that's why I prefer buyback I'm not sure why others prefer dividends maybe ???

Kenmare reports are normally bearish rather than bullish so that what I expect from them and read allowing for that so for a bearish report I see the positive

If the company made 10times profit than it as I'm sure they would find negative things to write about so have to agree with you it's his style in the early days I believe he was criticized for writing bullish reports then the company nearly went under so his he playing it safe

Positives were reserved cash increase from 25mil to 42million and shipping equals sales up 30%

So result we be come results come August profit will be up more than 20% compared to last year

That's why they talking about share buybacks because they have made the money

It's not theft it Irish tax laws made on a Irish company so under Irish tax laws the way round the company should have done a 10% buy back direct to the share holders which would a ovoid tax in Ireland but could be subject to capital gains tax in some countries the directors should now this but need to explain to the shareholders the benefits

Shep Dave glad to hear your dividend as arrived

That was a long wait

I'm not in the UK myself but In the UK as a dual tax treaty with Ireland and in the UK dividend tax I believe nis 10% so you might be able to claim 40%of it back and Ireland keep 60% of the tax you need to check with a tax accountant

Yes it's Irish tax law to deduct 25% I had checked with kenmare and Lloyds it's cost me £6000 in tax

If the company did a 10% buy back instead of dividend of each shareholder we wouldn't have to pay this tax it would come under capital gains which would make myself tax free so I think a 9 million buy back would have gave shareholders a better deal on there tax return