Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I've not checked, and we may not even have been told, but I'd expect that there would be a clause in his warrant agreement that says he gets a period to exercise his warrants if an offer is made for the entire issued share capital. So whether he did it now or not, his warrants would enable him to benefit from any sale that's agreed. As you say, Simms, by doing it now he ensures that shareholders can rest easy that the company won't need to ask for funds, and potential buyers can realise that the company isn't going to put a yellow sticker on the assets.
I'm sure he's not doing it to flip them quickly for an instant profit, so this is a fantastic way for Condor to ensure it has enough working capital to see it through the sale process.
I'm sure some of the selling here has simply been people expecting La India to be sold faster than it has been, and getting bored. But it may well be that other people have been getting nervous that the company won't have sufficient working capital to see it through, and we could be faced with a heavily discounted raise that then creates an overhang as the placees bank their quick profits.
If that was at the back of anyone's mind, they can breathe easy again now, knowing that the company has a fresh million in the bank.
Good job we're not a Chinese company then.
Some Chinese company or companies have treated people poorly when mining gold in the same district. Presumably the problem was the companies involved, rather than the area itself?
It was always going to be only an option at this stage. That much we knew, although a number ignored it when they were worrying how we'd pay for a new asset at this point
You'd get our first, right? If you're so wired that you need to let the world to know what a shady investment a company is (as opposed to keeping your negative thoughts to yourself), you'd exit your own position before going on that mission. Otherwise your only lowering the price you get to leave at.
I seem to recall, technically, that Mindea could go to 1000m before. Have I remembered that correctly? Mind you, if I have, it doesn't mean they don't have the capability to supply equipment with deeper options if asked. But either way, your point stands: They can do deeper than 600-700m if keeping going seems a good idea
Makus - please enlighten us all. What depth are they at, and what depth is the target?
Tamesis introduced Kavango to some significantly sized explorers who were very interested, but the feedback was that more data was needed before they'd move forwards. So not a waste of time - they made the right introductions. But there was feedback from the process that means it's too early to JV the KSZ, and in the meantime discussions with those parties have not closed off.
That's fine - you see red flags, you don't have to invest. Walk away. Others see other things here that lead them to want to invest.
But I would defend F79 on one point. Ben's tweet yesterday said that he'd just left Botswana and was back in Zimbabwe. This is not F79 pumping blindly. He's just reporting what is in the public domain.
Now, if you're misread that piece of public data, there's a possibility that you're misread the other pieces of information available to us all. Possible. That, or you're finding some general notes of caution, that are important to here, but don't necessarily carry the weight you give them where the whole company gets written off.
Given you're presumably not invested here, your altruism to stay on the board and make sure nobody else is invested either is commendable. But can I suggest that, if you've decided this company's not for you, and if you reached that conclusion some time ago, you spend your time now researching companies that are likely to be investments for you. You could spend too much time helping others with their portfolios. Unless you stand to gain in some way if the Kavango share price does badly? Not quite sure what keeps you here.
But F79 never reads as a pumper to me. He researches carefully, and posts detailed arguments, arguments that others can engage with for sure, but far far from being empty pumps
Christy, "our initial capital should still be somewhere!"
Unless your AMC shares came from a placing, where your money went directly to the company, you bought your shares from somebody else who held them before you did. That's how the London Stock Exchange works - it's a secondary market where shares pass from one holder to another, with money passing in the other direction, sometimes via a market maker who acts as an intermediary.
So the cash you paid up when you bought your shares is still somewhere - it's in the account of whoever was on the other end of the trade when you bought your shares. When you bought them, they came with rights to the dividend. They now don't have that right, so people are not willing to pay as much as they were before. That's why the price has dropped. But if you bought for 1.8p, received a dividend of 1.8p, and still hold the shares for which someone else will pay you 0.2p in the market, you are better off than if you'd sold before the dividend date. If you'd done that, you've had bought for 1.8p and sold for 1.7p. Instead, you bought for 1.8p and can receive 1.8p + 0.2p back. Or you could decide to hold them longer, in the hope that events flow in such a way that people will be paying more for them at a later date - that's for you to decide.
@Phoenixy - you do not. As your nominee, Halifax will deal with it for you. It's their bank details that the company needs, not yours.
The previous share prices have been revised down to deduct the 1.8p per share dividend. Websites / charts that adjust for dividends will have done this, deducting exactly 1.8p. However, as I explained to someone else here earlier today, for most of the period leading up to the ex date the share price was below the 1.8p dividend price. That means the dividend was never fully priced in, so the correct amount to deduct will be somewhere below 1.8p. But such websites have no other calculation to go off - so they subtract 1.8p. But because we were trading slightly above, or even below, dividend, that gives some crazy calculations - like the Google Finance 500% gain on the day
That's because they tried to factor in the dividend, which means the base price they're using to compare today's prices is yesterday's close minus 1.8p. But, as we discussed yesterday, yesterday's close factored in less than 1.8p for the value of the dividend. It was trading at so close to the dividend amount (and nearly closed below it) that they're virtually comparing it to yesterday's price of zero. Ignore Google's percentages
The conclusion in here the other day was somewhere between $8m and $9m
You are correct Billy. Buy today, you get the dividend. Sell today, you don't. Buy tomorrow, you don't get the dividend. Sell tomorrow, you still get the dividend.
So the share price would drop at the open tomorrow by whatever amount the market has priced in for the dividend. Of course, the price fluctuates, so other factors may come into play. If they announce an RTO tomorrow morning, that would skew the amount the share price drops (or stop it dropping at all). But apart from factors like that, the share price drops at the open tomorrow.
The question is: By how much. The bid is still below the dividend. That tells me that the market is not pricing the dividend at 1.8p on the share price. Otherwise 1.8p would be the absolute minimum anyone would sell for. That must mean that there is still some skepticism out there whether the dividend will definitely be paid. Personally, I think that risk is infinitessimal, but if everyone thought the risk was zero then 1.8p would be a clear floor for the bid price.
So the share price will drop by whatever part of the current share price is explained by the dividend. Obviously not 1.8p, because you cannot sell for -0.02p tomorrow. We'll find out in the morning
Don't forget the T2 settlement. The ex-dividend date is the date when it trades without rights to the dividend. That's 1st June according to the RNS. Buy on 1st June, you don't get the dividend. That's because you won't hold the stock by close of play on the 2nd, because your trade settles on Monday 5th.
Gazzle, in fairness, most company's dividend announcements don't come with a strong warning that you need to register your bank details in order to receive the dividend. That is an unusual section to put in the RNS, and that may be what freaked a few people into thinking they have to take some steps. Maybe the bigger surprise is that people don't get what a nominee is, and what they do for you.
Anyway, one more trading day for people to buy this before it goes ex-div
Yes, I am very excited at it.
If the geophysical data is correct (and we've no reason to assume otherwise), the reason they missed before is because the exact target was twice as conductive, but smaller and off to one side. And that's not because they drilled the wrong place but because a second conductor was very close and they hit her centre of the combined area.
That means we're drilling into something that is insanely conductive (better than before), our previous successful DHEM survey means we know where to go (better than before), and we have budget and drill team allocation to drop two holes rather than just the one (better than before).
It looks very like there's something significant down there, and we're very well placed to hit it. Then we can go and see what's at B3 and B4 as well.
That's the kind of story that should breed a load of expectation, and it's only the negative sentiment that's getting in the way of that. But if they hit visible massive sulphide, that negativity will evaporate faster than a Kalahari puddle in the morning sun.
Not long to wait now
Thanks for explaining Purdey. Could you now explain why it would (might?) be Ben Turney who decides how the shares held by Eridge vote at the AGM?
I'm totally lost. I must be missing some history here: what is the connection with Kavango?