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I would be right behind you TDT with my spoon!!!
I guess what I was trying to say is if any deal negotiated requires a staged payment plan longer than 6 months, to continue on AIM for the duration of the payment plan they will need to invest in 'something'!! otherwise, they will be delisted, which is a situation shareholders do not want to be in.
Thanks, erazzel
trading such shares are more problematic I assume.
Hello Sasa and anyone else for that matter
I guess one of the reasons for AMC Mark 2 with new assets is to keep its listing on AIM? A cash shell is not possible if AMC wants to remain listed?
If one believes that an upfront payment is a negotiable possibility then all the money should go to the shareholders.
If on the other hand some form of staggered payment is required, and if it is stretched out to say 1,2... 4 years what happens to me as a shareholder if AMC has no asset, becomes a cash shell and is delisted on AIM? what happens to my dividends then?
Having difficulty today getting my thoughts together, so if it does not make sense ignore it!!
Thanks for the input guys, has made my decision even harder to make,
I was convinced that the yes vote was the way to go, but less so now!! Need to decide soon
If the deal doesn’t go through, then the BOD need to prioritise the following ;
1- Seek a better deal with better payment plans, if at all possible. this includes a plan that will appease PIs
2- If not completed, finish the TEO
3- Should continue with the Mine plan which needs to be submitted in June 2023
I assume this is the bare minimum until 2023. The last two are vital in keeping the license, we have money in the bank to get to 2023?
Does any of the above increase the Market Value?
If the war didn't happen, we didn't get an offer and we continued as planned the following tasks would have been planned but are not an option currently.
1- Western BFS is irrelevant for the time being
2- Getting Instituauional investors on board now would be impossible
3- evidence of funding for the road etc.......
The Countermeasure is already in place but is not a concern to AMC at present time.
" the legislative commission of the Russian government approved a set of legislative measures that could eventually lead to the nationalisation of foreign companies that leave Russia or suspend their business operations."
The above countermeasure in action
https://www.bbc.co.uk/news/business-61463874
It would be interesting to see if the suspension is due to the sale of their Russia asset and whether it is under similar payment terms to AMC!
Geng
I assume that value will go down as some of that money will go to PIs as a 'Special div! unless the asset they buy generates some readies!!
MD, gotcha.
Lowband " shouldn’t Robin Young be putting it forward..... "
but he has via an RNS:
"The Board and I recommend that shareholders vote in favour of the sale at the General Meeting that will be held on 25 May 2022, as the total consideration represents a significant premium to shareholders compared to the current market capitalisation of the Company. Additionally, in order to move Kun-Manie into a development and production phase, significant further investment is required to be made, including significant expenditure on infrastructure and access roads and there is no guarantee that Amur will be able to source and execute financing agreements to meet this required spend given the current volatile market. This also complicated the execution of this transaction. "
RY is hiding as always and refusing to let investors see the TEO.
MD, fair comment
Just a correction, if your reference to 'minesite based on a 2012 Jorc estimate' is referring to the FMV analysis, it was based on the 30 June 2021 Kun-Manie JORC resource estimate.
"There seems no point in wishing physical harm to people that should stop." agreed.
PS: sorry people for the last part, getting all emotional, the money invested in AMC was for them.. to be honest, I and they have more than enough in life so ignore the self-indulgent rubbish!!!
Not worth much but
In my opinion, what is on the table is the best deal they can get.
Voting no and hoping for a better monetary deal is not going to happen in my opinion, at best; better payment terms that do not stretch out for 15 years. Look at Kinross and see how their payment structure is set out.
AMC seem to be one of the few companies who are selling an asset in Russia during the conflict, therefore the payment plan which they have devised is their best guess at a plan that will be approved by the Russian Gov. The argument, 'to wait and see' what other company strategies other companies are taking is sound.
That being said
I believe Russia is changing the rules regularly to counter western sanctions set upon them, and no one is sure how far they will go, this is clearly evident with Order 81 which has recently been introduced also few other financial orgs warning of changes affecting business dealings in Russia. Therefore, for AMC to sit tight and wait (which I was advocating a few months back), where it looks like the war will continue for a long period of time, seems too risky now. They have a deal which if you believe in the FMV analysis seems fair, to mitigate the risk of losing it all. The uncertainty is the risk which rightly so the BOD have tried to mitigate that risk with the proposed offer.
Additionally
Some have commented on the RNS stating 'personal guarantee' I see this as a good thing, it also highlights the risk of the rules changing in Russia that may void the initial transaction.
The RNS clearly states the risk of financing the project if the deal is not done, Yes this is a normal statement to make, but the BOD has made it a clear statement in the RNS and we should take heed of that.
Regarding voting ‘no’ so that the BOD lose and gain nothing, just NO.
Whether it makes any difference,
In my 40s so have time left I hope, a young family, which I hope will have all the opportunities that my parents couldn’t afford to give me (but they gave me the most important thing and it was their time and attention), and be greater than what I have ever become.
"Based on RY/BOD track records, the dragons would famously say I'm Out" Haha............ not sure why I am laughing as I am down by half! but IT made me chuckle.
I guess that is what you said when you sold your holding!!
Kammy
if they presented an investment case that involved Russia of any kind then NO! And that is one of the issues AMC are facing.
ZaZo73
What its worth, we would also still have the value of the shares that we still hold in AMC
I might email TB to see what he thinks of the current situation (I don't of course expect a reply).
Considering he has purchased over +7m of AMC shares for £162K.
It looks like RY has been flogging a dead horse for many years now, and in that respect, he and his team should take some credit!!
If one believes the FMV analysis is truly independent, then what they have in the ground is not worth as much as I and everyone else has hoped for. The analysis was completed on the 4th Feb before the war!!
In light of that, are there/or will there be more offers in the future? I doubt it. For me, this is the only realistic exit strategy the company has left.
What a disappointment.
They 'intend' on paying a div after the first instalment. At that point, they anticipate they will have $20m in cash. How much can they really give out?
Also, what is this loan business about? how can it be worth $30m
DJ
haha very good,
2025!!! As long as the company is still in existence, all be it, with trillions of shares in issue, there is a glimmer of hope!! How do the new assert findings affect the PFS?? Redlee/Garf anyone ;)
Don't want to be seen deramping here, but there is still no concrete evidence that there are two bidders. The way I read things is that the Express article is speculating on whom the bidder is that made the initial £100m offer.
If there was another bidder should we expect AMC to RNS this? Although there was little price movement If negotiations are at an advanced stage would it be prudent of AMC to suspend the shares?