RE: Uk Investors9 Mar 2023 20:41
Actually two things have changed over the past two weeks MrRiker. Firstly MetalTiger now wish to adopt a more active investing approach and you only need to look at its amateurish dealing history over the past year to know that this is a recipe for disaster. I am not looking for dividends but I want mtr to hold onto its price copper assets rather than for mtr’s management to use them to learn how to trade. Hearing Michael McNeilly state that he wants to be able to use derivatives fills me with dread.
Secondly its decision to delist without proper consultation and at the same time replace options to a level only just above the current nav removes any doubt that management are in this to enrich themselves at our expense. (I have always been uncomfortable with Michael McNeilly sitting on the board of companies he is investing our money in).
I will not sell at this price but I will vote against the resolutions put forward.
I would also support a resolution to liquidate the company, this could be put forward at the next AGM which should be due in May. My understanding is that the NSRs are valued conservatively and I reckon they could be sold quite easily to Sandfire or indeed any mining royalty company with a bit of cash.
I’m actually not sure the new approach has been cleared with major share holders. Yes perhaps Rick Rule will be on board - think him and Michael go way back but he only has a couple of percent. There is one hedge fund but no other institutional investors and then there is Michael Joseph, an individual investor with 9%. I cant believe he would be happy with the current state of affairs. Looking at his twitter account @benchpressmike he is also here for the NSR. And of course the directors have negligible share holdings. So there is all to play for and as Simon Thompson says, there is a great arbitrage opportunity here. Buy (or hold) for 9p, then liquidate for double in the next few months.
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