Member Info for spike501

It’s almost certain they’ll vote in favor, the alternative is almost certainly administration.

Shareplease - the debtors of £514k must have been accounted for revenue in 2019. Debtors is an asset and for an asset to have been generated there must have been a corresponding entry in the income statement - i.e revenue.

"They count as potential revenues as they may not get paid. They are only a trade receivable at this stage."

No they don't - its revenue that is yet to be paid. Its already been recognised to the P&L and is an asset on the balance sheet.

Any thoughts the Government would bail out shareholders who took a high risk punt was always wishful thinking. There may have been a case for Government financing to help support the mine, if the company fell into administration but in the end its not even needed as AAL will buy and develop it.

"Which follows that bashers are paid by someone.

Who would pay?
...and why?"

Who are you being paid by 81lucky for suggesting this is all pre-orchestrated - is it that you hope shareholders vote it down so it goes to insolvency and can be bought even cheaper?

Come on who is paying you to say this stuff?

AAL is being pushed higher by strength in metals particularly platinum. The Sirius transaction is having limited impact.

The short term reaction to the announcement was a drop, suggesting the market on balance was slightly negative on the transaction.

“ This one would easily be over too (so they could raise £700-1B range)”

Find me the last equity raise for over £250million that was completed without an underwriter.

You’re living in fantasy land

"SXX must have known along time ago that the AA deal was the one they would be pursuing but still went ahead with screwing more money out of shareholders."

9 months ago SXX and AAL were no doubt talking about AAL taking a strategic stake in SXX in return for providing financing to develop a mine. Clearly at that time they never reached a point where they were close on the terms of what that looked like and SXX considered they continue on their own as they were confident of finance.

That was all blown apart when the financing failed and completely changed the dynamics of the negotiating position, which allowed AAL to make an offer they were comfortable with and as things stand look like the best offer on the table.

"To be fair I would sooner Gina have it. At least she chipped in!"

She'd sell it to AAL to recover her money.

AAL would just pick it out the administration.

Government don't care how or who develops the mine, they just want it developed and AAL are providing the market solution so there is no need for Government to step in.

"b) a rights issue being undertaken to raise the $600m to keep us going for a while?"

There is utterly no chance of a rights issue being successful at raising $600million.

It could well be true and its just another risk that private investors overlook - someone flashes a shiny piece of paper showing an NPV of billions for something that is currently just a field and everyone piles in ignoring all the risks to turn that bit of field into billions.

"I went all in here and like I say am pretty sure I will go all in on Emmerson, I know it's not a recommended approach to investing but it hasn't worked out here too well has it"

huh? You went all in, in the knowledge that its a bad method of investing and as is likely it went pear shaped so you're doing it again?

JonesRichard - I've seen your posts were you have targeted £2 per SXX share. - thats a £15bn market cap. Based on this you should stick it in AAL and you'll make 50%.

$600million which as soon as announced would cause the market cap to collapse, so shares in issue would likely need to increase 4 fold? Really you think there is this sort of money in the market???

"No realistic finance available , are you taking the phiss now "

What financing options are available?

"There is enough support for an equity raise (albeit with massive dilution)."

Is there? At the levels of dilution required is it ever likely that equity could be worth the 5.5p proposed as an offer by AAL.

"Nowhere did they ever mention they were considering a sale as an alternative to financing."

What do you think a strategic review process means? Of course a full sale is one the potential outcomes of that.

"They have not upheld their fiduciary duty."

They have protected some value for shareholders, when there was a very real chance of equity being worthless. Also given the fact the company was running out of money, their fiduciary duty is not just to shareholders but to all stakeholders so they also had responsibility to others such as debt holders.

If this wasn't the best offer on the table its highly likely you'd have heard of it by now - its pretty apparent that there are no realistic other financing options, so this is being pursued as a means to secure best value possible.

"Following media queries, we have provided a very clear statement that there is no intention to take Sirius Minerals private. Our focus continues to be on completing our strategic review and unlocking the value of our project for shareholders, our community, and the UK as a whole.

There's a class action here. AAL better be ready"

Where? Its not going private.

What is the class action about?

“
one 'improvements' might be added to the firm offer might be to provide existing shareholders' an option to take AAL shares of the same value (5.5p x their holding); so we are still in a 'happy' star family.”

Why would AAL want to screw over their existing shareholders? AAL share price dropped on announcement of this deal that suggests the market doesn’t really like it and thinks AAL are slightly overpaying.