Member Info for sasa43

That would would be nice, graking but any perceived delay might be due to the recent fire hazard, possibly? Although they've subsequently stated the mine wasn't affected, it might have caused some delay in the reporting / dissemination process - sasa.

We should see several drilling results RNS'd before December's 'first gold pour' - the next one due any time now...

The webinar was very positive on this score as they drill deeper into the '8 zone' which they're most excited about, so I don't think these are discounted right now, Wlaw.

As metis points out, the LDN price is somewhat below Toronto's level at present, so I've just bought some more at 116.5p ahead of being impressed again (hopefully) - sasa.

Entirely agree with your last sentence, especially, djryan, that 'Long money is best'...

I've been in this investment game for a long time (60 years odd now) and one thing I've learned is that trading stocks like this one is 'for the birds' if you're after the real gravy. Once you've spotted something with exciting prospects which meets the criteria of 1: good management, 2: great assets and 3: a decent balance sheet, you're best placed to just sit on it and let the sp do the talking, given the mkt usually wakes up to the potential in the end.

This comfortably meets the above yardsticks, imv, so follow the old mkt maxim that 'the short term trader is a long term loser' and just be patient. I've known quite a few very successful investors in my time by waiting for a much undervalued situation to be properly re - rated but I've not known anybody who really made a 'killing' by jumping in and out of such stocks all the time.

From what we know already, this is now, seemingly, on that re-rating trajectory, so just sit back and enjoy the ride; I don't think we'll have to wait that long. So GLA, especially to those who had the foresight or just plain luck to get aboard - sasa.

I reckon you picked the quality one there, Tjay - sasa.

You don't go bust taking profits, Throne, especially if you're able to run the balance 'for free', as you say. If, as seems very likely, this has much further to run, however, you'll just be 'less right', that's all - sasa.

SQZ 'needs to demonstrate' it's replenishing its reserves? Think Rhum3 and Columbus next year fits that bill for now, Tom - sasa.

Thanks, TDT - that chart expresses the likely trend, relative to the next development stages, very well - sasa.

Yes, the U/T price distorted the closing level - it was around 117p as you say, rockie, so this morning's level is just 1p or so down, reflecting the easier gold price, no more than that - sasa.

To take SNG onto the next level? How much of the £14m raised last time is left in the bank?

Another expedient funding round, if required, would involve much reduced equity dilution than last time and that might be an ideal time to add to my position, if all shareholders were able to participate in a decent sp discounted rights issue, unlike previously...

Any thoughts on this? - sasa.

Hi jtd - I think that all they need to do is secure over 50% of the equity (voting control) and the more the sp wilts, the more likely they are to succeed by mkt purchases to get there; provided they don't pay more than the 300p offered to all shareholders.

If they do so to get over the 50%, they have to offer the highest mkt price paid to all holders. It is usual for a bona fide offeror to allow the target co to pay its last divd to their shareholders (goodwill gesture for the ongoing relationship, as much as anything) but this buyer doesn't have that in mind, quite clearly....

Sad for HGM holders all round, imv - sasa.

Hi gwm - the mandatory offer for HGM stipulates that if the BoD sanction any divd payment as they were likely to do shortly, then that would be deducted from the 300p cash offer. HGM hasn't yet commented on what they intend to do about that yet, as far as I know...

My best two replacements when we're forced out of this are POLY and the Canadian Pure Gold (quoted on AIM under PUR) fwiw - although POLY are Russian, too, they're in the FTSE100 so that might afford some protection against such shenanigans we're seeing here.

PUR looks particularly interesting at this early stage of its development, sitting right in the middle of Canada's prolific mining belt, Red Lake. Well worth a look - sasa.

Echo that, Batterseafish - that's about the best alternative I've come up with after this HGM hiatus is concluded. PUR's first 'gold pour' is scheduled for Q4 this year and being in a friendly jurisdiction removes the risk of this sort of 'steal' we're now seeing here...

Although it doesn't yet pay a divd, of course, its potential is considerable with impressive grades being regularly reported to augment their growing resource.

It's fully funded with strong Insto backing, too - another Kirkland in the making? Could well be... sasa.

Hi Red - would welcome your views on this RNS out yesterday, if you're still invested here...

I'm quite taken aback by this development, fearing that the buyer of the large minority holdings (40% odd) is trying to gain control of the company on the cheap at the expense of the majority investors by relying on the rules to have to offer the same 300p ps to all the shareholders.

Am even more surprised that the BoD which, in complying with that rule, is actually recommending the offer to all the other shareholders, too; unless there is something seriously amiss with HGM all of a sudden, 300p ps seems well below 'fair value' to me.

Your thoughts? - sasa.

Hi Planets - you and me both and probably just about everyone else who's in this... The general consensus seems to be that this 'steal' is likely to go through, regardless, sad to say.

The only decent, potential, replacement I've come up with is Polymetal (POLY) - although not quite such a good yielder, its in the FTSE 100 and isn't too expensive, imv. If gold continues to push on, then POLY should continue its good run; hope that helps - sasa.

Hi kenj - I agree that only a tiny gain might be the result of adding now but that's not the point; I resent some wealthy 'smart alecs' trying to leg over the other shareholders in getting our asset on the cheap - not unlike what's going on over at POG.

It's obviously a futile gesture on my part but trying to buy a £5 note for £3 at others' expense rankles me quite a bit - sasa.

Totally agree, shareminator. The existing group of oligarchs could have sold their strategic holding to an Insto or two 'off mkt' if they had other plans to pursue and didn't want to offer a realistic price for the majority remaining in order to release their funds.

Under the rules, Fortiana, now holding this 40% odd position, is required to offer the same terms to all holders and I suspect that they're trying to intimidate other holders to accept these terms to get control under that guise rather than pay for what HGM is really worth right now.

They would have required Board consent where the appointment of an additional director or two to represent their sizeable minority interest was concerned but the BoD didn't need to recommend such poor terms to the majority - just state to them that this deal made it mandatory under the rules.

As you say, one wonders what prompted them to recommend those terms - sasa.

Hi kenj - well, if the majority of the remaining holders let this Fortiana 'coup' go through and get this 'going for a song', then those who failed to stop it will still get the 300p cash offer ultimately, as set out.

If their attempt to gain control of the company fails, then I'd expect the sp to be relatively unaffected, since no offer premium will be lost as it doesn't exist right now and it might, in fact, regain its earlier momentum from here. It certainly deserves to rejoin the gold boom...

Ergo, I think that buying more at just under the current offer looks a very safe bet and if the 'carpetbaggers' buy more in the mkt / offer more to get over the line, then that will be a 'mini - bonus', too.

I've just upped my holding by 40% on such considerations... sasa.

We've had these oligarchs on the register for yonks - this 'agreed' deal merely transfers a sizeable minority interest from one group to a single entity; under the rules a 40% swap has to be offered to all the shareholders for consideration by them - the owners of the Co.

There's no premium here which a full offer normally comprises as an incentive for all to accept - what amazes me, is why the BoD has gone along with it? The 'independent' Directors, with Citi's acquiescence, having 'sheepishly' recommended it, so it should rightly fail to get over the 50% mark and, in that event, the sp should be relatively unaffected, given the nil premium which otherwise would be lost.

Pre - Kekura and the anticipated good eps achievement / likely divd hike to be reported soon in the present buoyant climate for gold producers, if Fortiana wants it all, they'll have to pay a realistic price for HGM, like 50% more for it than this derisory attempt to scare the other holders into relinquishing their much more valuable equity than what this exchange deal is based upon at current levels.

HGM can easily stand on its own metrics today, as its recent history so amply demonstrates, so don't be phased by this change of minority ownership on the register; it's intimidatory - that's all it is, imv...

Just my take, fwiw but DYOR, as always, of course - sasa.

Hi flex - just seen your post, re: RRE...

Tbh, I'm as confused as anybody on the RRE bb about the stake building up to the vote; normally, one could assume that the latest position being taken by some Instos signals a blocking move ahead but, unless that presages a counter offer or an improvement in the present, agreed, terms, what's the point?

It can't signal that they want AA to continue, as is, since his 'volte face' over accepting the present terms (some 15% odd below CoH / with no value ascribed to the business itself) will have destroyed his credibility henceforth, having previously chortled about the shs being worth £50 quid or so. Is there something questionable about the outlook for the business, then, one might wonder?

And why do the Saudis now want to step up their interest in fossil fuels in contrast to their strenuous efforts in recent times to lessen their economic dependence on oil? Neither makes any sense to me, I have to say and thus I sold my shs shortly after the agreed offer was announced - 'When in doubt' etc.,

NewK's general observations are as good as any vis a vis this conundrum, I suppose. I'm much happier running on with my significant SQZ investment, given their superior management and pretty straight forward business model which I can readily understand.

I know that's not very helpful but that's all I can say, really - sasa.

With an $1,150 op.cost margin currently, PUR looks better set than most aspiring producers and picking up more shs around current levels seems very appealing, given the impressive drilling results still being reported.

It becomes a producer in Qtr 4 this year, of course - sasa.