Member Info for SocialistB

Hi justthoughtidsay

Don’t take this personally, but I think you’re wrong, and most of all I hope that you’re wrong.

Not out of any malice towards you, but simply because I would like to see this share price start an ascent. (that is the reason based on hope)

Here is the other reason:

The BOD have managed to raise £484,386 minus expenses in this financial climate. That can not have been an easy accomplishment, unless there is a huge belief in the BOD, our existing assets or in the one we are about to invest in.

On top of that, the BOD are investing £39,000 of their own money on the 30th of June 2020.
I like it when a BOD have skin in the game. I always see that as a positive.

But I wonder, what will it take before the market wakes up and see the potential that is so clear to the new investors and some existing ones.

What will the RNS have to say?

Today or maybe tomorrow an additional 74,520,893 shares will hit the market.
And Gunsynd will have a total of 149,041,786 ordinary shares issued.
Double up from yesterday.
And there will be £484,386 minus expenses more in the coffer.

That all sounds good.
But will it do any good to the share price?
Will the share price start moving north based on that information alone, or will it take more info then that, to move it in the right direction.

In my view the market ought to see it as follows:

£400,000+ extra in the coffer: POSITIVE
Double as many shares: NEGATIVE

So one positive and one negative = NEUTRAL.

So to get this share moving we need another positive.
Like in the form of an RNS saying where they plan to invest the money.
That the due diligence with an explorer in Australia went well and they are about to buy a stake in XXXXX company.

The RNS is not layman term enough for me, can anyone help me shine a light on this matter: Do we old LTH have the right and possibility to buy an equal amount of shares with warrants or can the BOD solely sell them to whom they please?

HELP PLEASE, clarification needed.

What a week this has been.

Pro/con – an ongoing analyse. Part 1.

PRO: £600,000, minus costs, more in the coffer by the end of the month.

CON: Existing share holding diluted by 55.3%, and potential for further dilution when warrants kick in.

Do I consider this to be a good or bad thing for the existing shareholders?

To be honest, I am on the fence on this one at the moment. (due to lack of knowledge)

If there is a fantastic investment opportunity out there, then we truly need the money and the only way to get it, is by issuing more shares.
(unless we want to obtain debt, but that is always risky and highly unlikely during the current economical climate)

But, seeing our share of the business being more then halved, is anything but fun.
It hurts and can only hurt, if that is the way we look at it.

So I suggest that we try not to. (even though that is hard)

Because if there is this fantastic investment opportunity out there, then this share price will ascent when the market becomes aware of our involvement.

And that is why we invest, to see the share price rise, too make a profit.
(and rise, it has to, as I doubt that there are any LTH who are not significantly underwater with this one at the moment)

PRO: The BOD have again shown their ability to raise cash.

CON: Not all of the old LTH’s have been given the change to bid in on the first trench of 74,520,893 shares that hit the market on the 17th of June 2020

I feel the BOD have forgotten about us, small fishes.

I am uncertain what the following sentence from RNS Number : 8631P means:

“For the Conditional Placing to proceed, the Company requires Shareholder approval to authorise the Directors to allot the Conditional Placing Shares and dis-apply statutory pre-emption rights in relation to the issue of the Conditional Placing Shares.”

If we old LTH’s can subscribe on equal foot with new shareholders for the 17,786,799 shares on the 30th of June and it potentially could resemble the following then I would be happy.

149,041,786 shares will then have to compete for an additional 17,786,799 shares.

149,041,786 / 17,786,799 = 0.1193410215 of a share.

0.1193410215 x 9 = 1.0740691943, so for every 9 shares you own on the 30th of June, it is likely that you can subscribe for and receive 1 share if the 17+ million shares are fully subscribed.

However if the BOD have already lined up buyers for these 17+ million shares again as with the 74+million without giving me a change to bid in as well, then I am VERY UNHAPPY

I want to be in the boat where for every 3 shares you buy through subscription on the 30th of June, you get a warrant that you can exercise within 2 years at a price of 1.3 penny.

The RNS is not layman term enough for me, can anyone help me shine a light on this matter: Do we old LTH have the right and possibility to buy an equal amount of shares with warrants or can the BOD solely sell them to whom they please?

HELP PLEAS

Hi shellymarie1985, thanks for your reply.

Out of curiosity, may I ask which company is your broker?

I am asking, because I have not experienced what you just described.
What you described was what I expected.

Instead I lost the ability to vote at what I considered to be an important AGM at the time, I could not even turn up in person, as it was to late for me to be registered.

Since then I have been registered, and as I have a couple of different brokers, it makes up the vast majority of my mail, the poor mailman hates my guts as I do not live on the ground floor.

Hydrogen.

What an initiative you started yesterday.

Thank you for all the counting, time and effort.

I think it is worth mentioning, as not all might know, I certainly did not when I started out investing.

BEING A SHAREHOLDER DOES NOT MEAN
YOU CAN AUTOMAGICALLY VOTE.

For most of us, I assume that the shares are held in a nominee account with the broker of our choice.

I am not aware of any brokers that per default sends out votes to the AGM’s etc etc.

YOU HAVE TO LET YOUR BROKER KNOW,
THAT YOU WANT THE RIGHT TO VOTE.

And please let them know tomorrow, sooner rather then later.

When you first hear that a vote is about to take place, it is most likely to late to register for it, so act in advance.

The system here in the UK leaves a lot to be wished for in regard to rights for us shareholders.

Consider becoming a member of ShareSoc.

ShareSoc – UK Individual Shareholders Society

https://www.sharesoc.org/

Let's try and shape a better future for UK shareholders.

THE_CHAIN

Thank you for 2 excellent posts and the wonderful debate that you have created here today.

You have succeeded were I failed so blatantly last week.

Thank you.

Hi Pennydealer.

Yeah, the market moves in mystical way's.

But all based on one sale.

Unfortunately, I cannot top up at .65

Repost of an earlier message this morning

Good morning Scotty666.

So true, so true. As it unfolded yesterday, I would certainly have wished we held 10 times as many shares in UOG as we do.

Unfortunately, we were not that lucky.

But now we just have to sit back and wait for the shares to achieve a significant sum.
Question is how long that will take in the current climate.

However I am still hopeful in regard to other of our investments, and especially what might unfold as a new one in the near future.

And talking about current climate, I am intrigued as to how well Rogue Baron will do in it’s current shape as things stands right now.

I can see people be willing to invest in the alcohol side of the business, but personally I would be scared to invest into anything with a Restaurant /Bar /Hotel in the concept, as things stands right now.
Maybe that side of the business plan should be put on ice for time being?
And potential investors be assured that the obligations that we have in regard to these, can be maintained or let go at a minimal financial burden.

When we originally invested in Human Brands inc. it was a business that was focused on growth in Asia as it was considered the fastest growing area. That was kind of the USP back then.
Maybe that plan should be revisited again.

Unless Avacta (AVCT) and Omega Diagnostic (ODX) pulls some fantastic cheap and good products out of their sleeve.
Imagine, test kits with an answer within 2 minutes and costing £2-5, I would gladly pay that, to be able to go into a Pub /Hotel /Restaurant not to mention going to the airport.
And society would be almost back to normal.

Unfortunately the above 2 companies have nothing to do with Gunsynd, but their products could have a fantastic influence on several of our investments, if society could come closer to what we considered to be normal just a few month’s ago.

One that would benefit as well is our stake in ZTR, when oil prices start to normalise and social distancing could be ignored, then Sajiwin is more likely to be able to move forward and finalise the deal. And we will still be involved in the old Oyster oil adventure that was so promising.

But my biggest hope is for what we do not have yet, but hopefully will acquire in the near future.
Exposure to a good gold explorer in western Australia, more precisely in the Paterson region.
When you look at some of the other companies/people certain board members also have connections with, then I find it highly likely they could be aware of companies like Greatland Gold and Artemis. (there are probably many others)
Question is just, will they be able to raise capital for a meaningful investment in these companies.
Last summer they showed they could raise capital.
And if they can do that again, and especially for the 2 above mentioned companies, that could be the game changer for Gunsynd.
They have been doing due diligence for several month’s now.
Hopefully we will get

Good evening Dio666.

I know I have a naive approach to doing business sometimes.
The whole “negotiating power” thingy bob does not sit well with me.
(I blame an old boss, whose mantra was that the company had only done a good deal, if the customer was happy and satisfied)

I prefer the gentleman handshake over a glass of good whiskey.
(and then a signature for the sake of the law)

And listening to GH speaking at the AGM in December 2019 that is exactly the kind of relationship he described having with Newcrest in my ears.
He could not applaud them enough for the help they gave to our people on the ground.
The amenities they put at their disposal.
So for me a good sign of a great and friendly relationship.
Exactly what I want from a business partner.

But you are right, Newcrest have so indeed made their plays, based on their negotiating power at the time (hope you don’t mind to much, me paraphrasing you with small modifications) otherwise they would not have achieved 70% of Havieron.

I just hope they will be happy with that or with 75%. (I really want to sell 5% at a fair market price)

If they are happy with say 70% they have managed to get almost ¾ of a (hopefully) Tier 1 mine for $65 million + 70% of the cost of building the mine, so including overrun of a budget, as it is custom to do on major projects, lets say they come in just south of $200 million.

That is a fantastic price for 70% of a (again hopefully) Tier 1 mine.

Buying the 5% at a fair market value will cost them a lot.

Buying the whole 30% will cost them so MUCH more.

So I just really hope they will be happy with their 70-75% share of Havieron.

With money in our coffers, after having sold 5% at fair value, we can pay our share of the cost to build the mine and we can start to prove up Scallywag.
If Scallywag turns out to be commercial viable, then we already have a tolling agreement in place with Newcrest allowing us to have it processed at Telfer.

That would open up for another JV with Newcrest, but hopefully in a reversed ratio with 75/25 in our favour.

There will of course be extra income for Newcrest to be had. We will have to pay them for doing the hard work.

I am sure we could get many 100rd millions for our share in Havieron, but I am even more sure that long term we will get so much more if we stay invested for decades to come.

Hi again TakingMyTime.

I cannot disagree with the sentiment in your last post, that is what is most likely to happen in such a circumstance.

And I would be likely to follow suit as well, for the exact same reasons.

We do not know what the BOD will choose as the way forward, to increase shareholder value.
We are just sitting here second guessing, pouring our heart and dreams out. And putting the argument for our case out there to be debated, dissected and commented on.
And as in any debate, a desired outcome is to win people over.

I have learned that there are people here who find that they have diminishing years left and for that reason would love to accept an offer of 80 pence - £1.

And I fully get that. Time and good health is some of the most precious things we can have. So there is a natural desire to get most out of it.

But I am in a different boat. I expect to have many decades ahead of me. And would like GGP to make those decades very comfortable for me.

I find it hard to pick the right stocks, I have burned my fingers more often then I care to count, but here I am onto a winner.

GGP will be the forever giving share (well at least for a couple of decades) if we evolve and become miners as well.

That can be outright miners on our remaining assets or through JV’s with Newcrest or other established miners. Main condition would be that we do so on better terms then our current one at Havieron.

TakingMyTime.
In your last paragraph you indicate you would follow the BOD blindly.
I assume that is a truth with modifications.

They might recommend a good deal, they might recommend a fantastic deal.
But that does not mean it is the best deal possible, maybe just the easiest and quickest and yet still very good one.

But don’t ever disregard the theoretical possibility that it could suit their personal circumstances better then yours.

Selling gold in the ground can never be the best deal, there is more profit to be had.
Otherwise there would not be a buyer.

So if your time horizon is short I understand you want an offer here and now. It kind of takes the decision of when to sell out of your hand.

But if you can wait 5 years (not necessarily happily) but wait, then you can get so much more from this share.

And you will not burn your fingers on this one.

But you might on the next 1, 2 or 3 shares you try your luck with if you go out of this one.

Hi again Mrninjazx6

Let’s try and crush some numbers. (And hopefully get it right)

A merger with a 100:1 ratio.

We should have more then 4 billion shares in issue all in. But for the sake of argument, let’s just say 4 Billion.

Today Monday the 25-5-2020 when googling Newcrest’s shareprice: Aus 31.61

Today Monday the 25-5-2020 when googling the exchange rate AUS to GBP = 0,54

So 4 Billion divided by 100 = 40 Million shares.

40 Million shares x AUS 31.61 = AUS 1.264.400.000

AUS 1.264.400.000 / 0.54 = £678.597.158

Today Monday the 25-5-2020 according to LSE our market cap is £325 million

So £678 million is only slightly more then a doubling of our current share price.

I agree a 100:1 ratio is not going to happen.

Way to cheap.

Our assets would be totally undervalued.

Hi Dip666 and Mrninjazx6.

I agree with both of you.

A merger would be fantastic, especially if it could be done at 1:1, if Scallywag turns out to be the big monster we all are dreaming of. (yeah, we are allowed to dream)

Now, fantasy aside. I would be very happy with a 3 GGP for 1 Newcrest share ratio.

But truth be told, I have no Idea what exchange ratio Newcrest’s shareholders would be willing to accept.

And this is where I fear Dip666 is right.

We might be bought out way before then. It would make financial sense for Newcrest or any other major miner to make this attempt, considering the assets that we got.

But however much we are offered, we are worth more.

They have to make a considerable profit on any deal they make.

Hence why I am not keen on selling gold in the ground, but want to mine it.

Either on our own or through a JV. (but on much better terms)

If we have patience, we can earn so much more here.

In the end it is up to us shareholders what offer we will accept.

Hi TakingMyTime and thanks for your reply.

First off, I don’t think you should look at that line in isolation.

Second off, I can guarantee you that there is no way we are going to be offered £20 billion for our share in Havieron.

And even if Scallywag proves to be bigger and better then Havieron, I also doubt that, that amount would come on the table for the whole of GGP in this financial climate.
And within a year.

But I would love to be proven wrong.

£20 Billion.
That would mean more then £4 a share (4 billion+ all shares in)
At such a shareprice, even I might put my mantra about maximizing profit aside.

But it does not change my view, that selling gold in the ground is selling your asset to cheap.

When you are offered just a few hundred per ounce for what is in the ground, you are so far from the true value of the gold.

I do not believe the true value of Havieron can be assessed.

Even the best MRE, will fall short.

Telfer has been in operation since sometime in the 1970’s.

At some point in the 1970’s you could buy a house in London for £5000

Today, that same house is more like £400.000 – 500.000 (and we are talking about a house not the best condition here, way past it’s prime)

So even if we got the most fantastic deal for Havieron at today’s prizes, in today’s environment, I cannot see it as anything but a lousy deal, long term.

I want as much value as I can get here.

So many shares here on AIM are just floating around or going bottom up.

This one is different, this could be a new ASOS.

And I am so thrilled to have gotten into it already and are more then ready for a stratospheric ascent.

But that will not happen if people are happy with a take over offer at 30-40 pence. (£2 Billion)

Hi Sandgrounded.

The simple answer is NO.

NO NO NO.

There is no possibility of Newcrest turning their attention to Scallywag.
They have no stake in that area at the moment.
They only have a stake in Havieron.

But it is true that they have a right of first refusal to Scallywag.
That was part of the Havieron deal.
But that is all they got, so far regarding Scallywag.

So when we hopefully prove up Scallywag to be Havieron’s big brother, it becomes very interesting. (but mind you, it could be a duster)

We can mine it ourselves.

We can go into a JV on Scallywag and Newcrest would have first right of refusal to our terms.

We could put it up for sale and Newcrest would have first right of refusal to our asking price.

As some might have noticed, I am not a fan of the latter suggestion as that is not maximizing the value for us shareholders.

Hi TimberTrader, thanks for the excellent find.

My take on the article is that there is an emphasis more on Joint Ventures then on take overs.

Which would be fine with me.

As long as any future JV’s are on far better terms then what we got at Havieron.

From the perspective of being greedy and nothing but greedy, I can see why Newcrest would want the whole cake and nothing but the whole cake.

But that attitude could come at a price.

If the BOD and/or shareholders of a takeover target finds that they have been had, further down the line.
That sentiment will quickly be known in the Junior mining circles and they might not become “the miner of choice” which seems to be an important statement to them.

No it would be far better and cheaper for them to keep a Junior miner as a minority JV partner.

Better because, they will become the miner of choice, when other Junior miners see what value it brings to a company to have Newcrest onboard.

Cheaper because there is no huge upfront/buyout cost. They will not be saddled with debt.
All they have to, is being happier with a smaller slice of the cake.
In our case, they will be missing out on 25-30%.

They will still have done the deal of the century.

They got 70% of a potential Tier 1 mine for 65 million.

Even better for them, it was not money they paid to Greatland Gold and their shareholders.
The money was spent on proving up the asset.

So although it might be wrong to say that Newcrest got 70% for free, it would not be so wrong to say that Greatland Gold gave 70% out freely.

70% is a number I have a bittersweet feeling with. It is a huge % to hand over.

But if that is, what I takes to become a 25-30% partner in a Tier 1 mine for decades to come, then it is been a price well worth paying.

Especially since we have other/more promising assets on our hand.

And wont have to accept a deal on those terms in the future.

But wee need a cash generating mine to sustain further exploration.

It would be silly to accept a one of payment, based on gold in the ground.

What do we do after all our current assets have been proven up and sold for gold in the ground prices. (which are so far from the true value)
Start exploring for new assets, of course.

But that is the dangerous part, It might be 15 years again until we find something of value.

Hi Maximus10.

I like your headline.
But I like this one even better: Why we should both be mining and exploring.

In my view it should not an either/or scenario, but an inclusive one.
We should do both.
That is least risky way forward.
GGP has been around since 2005 and are first now starting to shine seriously, that shows how difficult exploring is.
And it is true, Scallywag has not been proven yet but there are good indications.
But some of our other assets have shown very promising results. And are near to surface as well.
And could surely be mined if we had the money to buy the machinery ourselves or pay someone else to do it for us.

As you are saying: "The safest, cheapest and least risky way to obtain the best value from Scallywag would be to prove it up and then go for another JV with Newcrest on better terms than the current one."
75/25 to us and then there will be a toll processing fee at Telfer on top of that paid to Newcrest.

Any JV's we have in a gold producing mine and I'll consider us miners.
Maybe not full-fledged.
But none the less miners.

And we would be heading towards the sky like these explores that became miners.

https://stockhead.com.au/resources/this-is-how-3m-market-cap-minnow-ramelius-became-an-850m-gold-miner/

Good evening mushroomkid, 14101066VS and Bebeto and soon good night as well.

mushroomkid, you are so right GGP is at this stage is just a handful or two of blokes and becoming a mining company would be quite a change.
But that does not mean, that it is a step that is not worth taking.
And with the current speed at Havieron, I could see it become a possibility in a relatively few years (5 years)

14101066VS, you are saying we are doing well as non-miners.
That is of course a bit difficult to argue against, when we have this amazing share price that we got.
I will however play the devils advocate and give it a good try.
GGP was founded in 2005 and first here in 2020, 15 years later has it really been able to shine.
It proves how difficult it is to find gold.
For that reason, I will much rather hold on to a share in a gold producing mine then sell it for one of payment.
If we are continuously invested in Havieron then that will keep on paying dividends to GGP and that can fund further exploration and pay us shareholders a nice dividend as well.

Bebeto, you are so right. there is a finite number of possible way's this can go down and all are viable.

GGP considers Scallywag to be significantly bigger then Havieron.
And Scallywag is closer to surface, so might be much easier to mine for new inexperienced company.
So get a handsome payout for 5%
Utilize that money for our 25% of the cost of the mine at Havieron.
And use the rest of the money on securing GGP financially and prove up our other assets.
Then decide what is the best way forward.
Going solo on our other projects, i.e. 100% to us on Scallywag.
or
75% to us and 25% to Newcrest on Scallywag.
Newcrest gets to mine Scallywag as well and it will all be toll processed at Telfer.

Such a scenario cold ensure GGP remain a company of just one or two handful's of blokes.
Geared on further exploration and ensuring that the shareholders are getting their correct percentage from each asset that we have a JV in.

The future is bright.

And we can all get the true value these fantastic assets has to offer.

Good evening OzAu.

Been here since 2017. Good for you. You have already benefited massively.
I do not know what price you are dreaming of, but I am sure it is a delight for you to look at your share holding.
And if you dream of 20-30 pence you will get it, no matter how this adventure unfolds.

But please hold for gold.
Be patient.
And we can all get the true value these fantastic assets.