Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
Hello, he's back! I wonder why? Paymasters getting worried?
There is a lot of interest in North Sea oil at the moment and several companies are known to be on the acquisition trail. It's inconceivable that there are no other companies running the sliderule over the Ithaca prospects and assets. We all know this is a prime facility and a company with the cash to buy some of the greater stella area prospects on the cheap could make a real killing. The low ball offer by Delek may backfire for them as it will tempt others to throw their hat into the ring. My advice watch and wait!!
So why are you still here wasting your time exhorting everyone to sell? Presumably you have taken your own advice and sold up, so move on. The fact you are still beating the same old drum speaks volumes!!
Sad to see folks bailing out. For me, there is still good money to be made here but patience will be required. I suspect there is a lot going on behind the scenes
The best thing that could happen here is the bid fails and Delek walk away. Even an improved offer is likely to grossly undervalue the stock! Without the bid, with production starting we would be at this price anyway. The whole thing makes me angry. Why price the bid in C$ when the majority of the shares are traded in £s? Beggars belief. Just do nothing and wait for the institutions to declare their hands. I just hope Delek are not doing backroom deals and making promises to the major holders about this new listed vehicle on the LSE they are talking about.
I am still not sure how well it is understood. The bid is NOT £1.20 it is C$1.95. Because the bid was priced in Canadian dollars, after exchange conversion, the bid in pound terms is now about £1.18. The fall in the price on the UK stock exchange is solely down to this currency factor (the price on the Canadian stock market hasn't moved!
The point I am trying to make in a long winded way is that,if the offer were to be accepted, Investors will be in for a shock when they find they receive something considerably less than the £1.20 they were led to expect!
Deleks offer of C$1.95 initially equated to £1.20. However due to the pounds value increasing against the Canadian dollar, this now equates to about £1.17 or £1.18. So the irony is that shareholders accepting the offer wont even get the derisory £1.20 they thought they would get but will receive something much less and getting smaller by the day. There is further irony in that the majority of shares are traded on AIM and if the pound continues to strengthen, by the time the offer concludes, the price received could be less than it was before the bid was made. Laughable!
Not a hope in hell of this bid being accepted. I am sorely tempted to increase my position. Looking at the trades today - no great volume, but almost as many buys as sells. Buying more, whats to lose, unless the BoD really are giving us misinformation.
AXA investments are the biggest shareholder (Delek excepted). They have 7.5% which equates to almost 10% when Delek shares are excluded. If they react as Cavendish have, the bid is over before it has begun! Here's hoping!
I think Delek may be playing a clever game. If they had come in with a bid of £1.40 people would still have said 'too cheap'. This way they come in low and then if they up the bid to say £1.40, most would grudgingly accept.
Remember Delek (if I understand the rules) have to get 50% acceptance of the shares - excluding the shares they already hold. The 20% they already hold are not counted. Not sure they will find it that easy.
I seem to remember £1.20 was a speculated take out price in the days when we were languishing at 50p (not that long ago). I wonder if there was a deal done when Delek initially bought there 20% stake that a bid for £1.20 would follow at am opportune time and be unopposed by the Board. The price looks ludicrous now but might have made sense then
I too will be interested to hear Malcy's take on this. He is fairly close to Ithaca and will also have his ear to the ground on the institutional holders perceptions. Like everybody else I think it stinks!! Not selling at the moment - will see how this develops.