I know I’m not a long term investor here but the buy out price we keep mentioning of 10p is an insult to long term investors here. SPMP is where it was always supposed to be completed and producing a commercial grade product, long term investors have already taken the hit of dilution to 16.3% the fair price at an absolute minimum here is 30p to be offered I will be declining 10p.
This report was one year ago, the last sentence means a lot..
Tri-star Resources PLC (LON: TSTR) have seen their shares jump after the firm reported that progress had been made in its Oman operations.
Tri-star shares jumped 23.23% on Tuesday afternoon, to 38p. 19/11/19 13:25BST.
Tri-star gave shareholders a positive update when they alluded to the production of antimony metal at world standard commercial grade. The discovery was made at the Port of Sohar Freezone processing facility in Oman.
This comes at a good time for Tri-star where competitors have reported mixed results, and this discovery will allow the firm to stay with the pack.
Established names such as Hoschchild (LON: HOC) Mining have given strong reassurance to shareholders amidst an uncertain trading update. Whilst Serabi Gold (LON: SRB) reported a strong third quarter performance as they update shareholders.
Additionally, Thor Mining (LON: THR) and Avesoro (LON: ASO) saw their shares sink following modest trading updates.
Tri-star said that they wanted to focus on the rapid scaling of production at the plant, and the facility is operated by Strategic & Precious Metals Processing LLC.
Tri-star hold a 40% stake in Strategic & Precious Metals Processing LLC.
The firm has a target capacity to produce over 50,000 ounces of gold, and 20,000 onnes in combined antimony metal and antimony trioxide per annum.
Tri-Star said it has “expressions of interest” from potential customers which would double the expected combined gold capacity from the plant.
Tri-Star Chair Adrian Collins said: “I am delighted that the major milestone of producing antimony metal at a grade of 99.65% has been passed; this proves the metallurgy of the process and enables us now to focus on full-scale commercial production.
“To this end, we are advancing offtake agreements with potential buyers keen to diversify away from their reliance on the current dominant Chinese suppliers.”
Tri-Star said the plant is the largest antimony roaster outside China.
Collins added: “Additionally, the gold circuit is working well, and the first sales of gold have now been made; SPMP is continuing to improve the grade and is now producing gold dore at a grade in excess of 25%.
“Given the robust market fundamentals for our products including high-grade antimony ingots, antimony trioxide and gold dore together with the planned ramp up of production, SPMP is at a tipping point, which we believe will see shareholders rewarded for their support.”
https://ukinvestormagazine.co.uk/tri-star-shares-jump-after-progress-made-in-oman-operations/
I’m not even sure I want anyone to offer us any buy out, I’d rather just have dividends per annum.
The liquidity event will be prior to any SPMP updates.
I’m sure if SPMP wasn’t working to full potential we would’ve heard about that for aure, no news is good news on SPMP.
Cyberbub.. luckily it doesn’t seem like we’re going to run out of cash anytime soon, we could receive some kind of payment from sales/loans from SPMP if we just stay as a private company with no buy out.
I believe the £50k per annum would be for directors wage and £300k for accounting/general business running/xmas party cost etc
What’s to say there’s not more then 1 offer.. it will be a bidding war IMO.
Seems to good to be true all of this at this price for new investors.
I’m looking forward to Thursday when I can relax and at least have some clarification of what’s really going on here.
Still not had any de rampers advising why this share is worth sub 2p.
Cyberbub.. I completely agree the worst case is we get a stupid offer from Odey that he accepts himself and transfers to Odey I believe this is the only risk here. On a positive note, the offer will have to be higher then the close price on Wednesday.
I think a few new investors will get caught short selling at around 5p, it will be patient/long term investors that benefit here and hopefully me.
If we go lower then 1p for this share I will delete all my accounts in shame haha.
3 potential buyouts with funds available for a mega deal.
Oman government
Dubai investors
Obey asset management
One of these 3 will want to own the beast, will be like a Ebay auction with all 3 most likely.
It does seem to good to be true but the only possible worse case scenario IMO is if Odey asset management offer a buy out of less then 2p and our director which I believe highly unlikely and would be extremely damaging to Odey’s reputation.
I think people need to trust TSTR more, they seem to have been a fair open company in the past. Nothings changed why would they not be looking after all shareholders best interests?
I struggle to understand how investors was more confident pumping money into a project that hadn’t even began yet however reluctant to put money into a slice of the completed successful SPMP at a huge discounted price.
Pros massively out way the cons on this cancellation from AIM, savings of £250k+ Per annum just to be listed on AIM why would they want/need to stay as a public company there final investment in SPMP is complete now. Time to sit back and let the dividends roll in.
I’m certain we will have the update from SPMP before end of this December, TSTR will obviously be aware of the current plant production. It all makes sense to me to de register to private company it’s not as if TSTR will be raising any future funds. TSTR’s investment is exactly where it should be now, at the finish line.
The next 3 trading days will be blue..
Rise predictions.
Monday +70%, Tuesday +110%, Wednesday +100%
Our exit price will be around 10p this Wednesday once new investors are loaded and short positions are closed.
I have not seen any negative justifications to why TSTR is now only worth 1.5p per share, also no reason or facts have been posted on this BB to justify why this share isn’t worth 30p+
Facts:
Odey could/would have sold his shares prior to delisting notification for around £20m 30 days ago- he didn’t. These shares are currently worth around £600k on the open public market. - Odey is either aware of a complete take over bid in line, shares will be worth much more as a private company or that SPMP will go public and shares will be worth much more converted into SPMP’s holding with annual dividends.
As always, do your own research.
Good luck to all investors.
My decision is to hold my shares.
I’m not interested in selling my holding on the private market for anything less then 30p.
I believe the current true worth of these share is 30-40p, once we have a new positive update on production levels I believe this could easily rise to 85p+
Future dividend payments seem highly likely, I estimate around 4-6p will be paid per annum.
I’m also happy to wait for any reasonable buy out offer or shares in SPMP if the company is taken private.
To me this is a very rare occasion that us shareholders are able to buy shares ridiculously cheap from panic sellers, I have no reason to believe Odey will or can dilute our shares in the foreseeable future.
All my research into SPMP plant is now a solid fundamentally strong business currently working between 50-100% and an extremely profitable business.
I’m looking forward to retaining my investment here.
Good read..
https://www.traverssmith.com/media/4992/public-to-private-the-impact-of-takeover-code-changes.pdf
Seems the take over code covers us shareholders.
Pdp1000.. good news, where did you hear this from?
If we have no buy out..
I have looked at asset match facility for private company share dealing, seems like a fairer way then trading with a market maker on AIM.
Just pay a commission of 3% to sell shares instead of having a bid/ask price to pay.
There Companies like Brewdog have share dealings this way.
I guess this is the risk we are taking, Odeys in charge here we either trust and stick with him or we sell out before Thursday.
The board have stated leaving AIM was for financial/wasted time reasons which makes sense to me as we are now just hold investment in SPMP and no longer on the board for SPMP. We was also told that the cancellation was also in the best interest of shareholders. Should we be having more faith in our company looking after shareholders best interest seeing as it was shareholders who got SPMP where it is today.
I’m obviously a new holder here so not too clued up on our directors.
So the worst case for shareholders is Odey offers a buyout of around 10-14p to easily gain 100% of the remaining company (still way undervalued IMO).. it does seem strange Odey selling shares however remaining above the 50%, trying to bring share price down which makes sense if he is going to make an offer after we exit.
Odey knows the plant is running probably 100% by now and already confirmed commercial grade.
Odey wouldn’t want a bad business name, he wouldn’t undervalue shareholders too heavily, he knows this share is worth more then 30p+ other wise he would’ve sold last month.
I’m sure we will exit AIM above 8p+ once shorts have closed and big buys are put in place from Monday as the 3%+ anonymous buyers move in.
Quick question..
Our director David Mark Fletcher is also the director for Odey Asset Management.
If David becomes the sole director for Tri-Star and Odey Asset offer a buyout.. once we become a private company, does this mean mean Odey could offer say 1p to buy Tri-Star and David would be able to accept on behalf of all shareholder this kind of low offer?
This would mean Odey/David would own and benefit from 100% of Tri-Star for peanuts?
Who decides to accept an offer or not once it’s a private company?
I could be talking rubbish here but just trying to think of every possible out come.
Our current market cap values SPMP at £8,770,000.
SPMP cost over £150,000,000+ to build.
Fair comment lumpygravy.
As a new investor, I believe the SPMP had huge value seeing as it is built and producing. Any future investment (if any) are going to be nowhere near the money raised to get to where it is today. I also understand that TSTR will be retaining the 16.3% without any further investment being made in the unlikely event that SPMP is not successful.
Yes Harley, glad your on the same wave length!
I’m more then happy to hold, all it takes is the ‘likely’ news to land that as expected SPMP is working to full capacity. All previous problems have been resolved (which they already have to allow to work to
50% capacity) and as you said no more funding from TSTR hence no need for TSTR to be listed on AIM to generate any funding.
Thinking about it why would TSTR need to be on AIM we are an investment company there’s no need for updates every 5 minutes, accounts every 3 months. As the board says this costs us £250k.
If they was worth 25p+ before the plant had confirmed commercial grade product and the plant having build issues I believe my comment is completely justifiable.
The more I research the more I believe my shares have a SP of 40p.