Member Info for UpDownFlat

of resolution number 12. Seems like Prosperity and Everest were voting the same way. If you think about this it means that that there was a settlement at the end.
This is good for the future. I would have been more concerned if this was close. Also, we now don’t have the convertibles as a special class of shareholders who can be given favours. All shareholders are now becoming equal.

let’s give this a chance. Last time this was taken over it was a bunch of Brits trying to run a Russian company. This time POG have Russians goldminers involved. Maybe POG can tap those reserves and get their costs under control. Remember UCG have made statements regarding their intetntions. New CEO, new auditors perhaps new idea's.

This must have had the backing of all of the large institutions

Rusty, in 2019 they didn’t act like a company that was "strapped for cash".
Read through the accounts, they didn’t cut back on local social fund investment, they gave excessive pay and bonus increases, they bought a helicopter they didn’t go out and mine more gold from their ever-increasing reserves.

In fact, they are rather dumb. They got caught, because the price of gold rose. They were priced for bankruptcy due to the terrible BOD and executive. This is why the share price has risen so much. I honestly think new management would be good. I think Pavel understands the local situation, but is not interested in making this into a first-class gold miner. He is quite happy the way things are.

workingstiff,
I agree with you, the 2019 convertibles will go down as one of the worst financial decisions in history. Financial transactions are not POG's strong point. Thier were many options avalaible to them.

COE,

gold miners are a speculative bet on the price of gold. A lot of people buy them because they want exposure to gold price movements. Hedging is totally the wrong thing to do. If POG were hedged it would just be a very low return, highly indebted, badly managed, politcally unstable business in Russia.

If shareholders want a good well managed stable business they should look at P&G or visa or similar but not gold miners.

It seems the system is going to spam us with RNS showing changes in % due to dilution.

Hopefully removal of the uncertainty after the meeting causes the share price to rally. Then we need the new BOD to take action on fixing whatever is wrong with the finance function.

I believe it meant give them an additional financial reward.

This conversion is definitely a benefit to shareholders, as long as they didn’t pay a "little Greenleaf" as mdunshire puts it. Its odd to think that these were issued less than a year ago. Maybe if we get some new blood it will include someone with some financial acumen.

Don’t tease me Rusty .. Think of the Gold prepay as a $180m hidden loan, which hopefully they should have repaid by now. What becomes quite apparent is how close this company was to bankruptcy. Pavel, Peter and co had driven this company into the ground through cronyism and bad decision making, but where very lucky because the price of gold saved them and the shareholders.
Now I personally believe UCG are better at managing and making decisions but unfortunately, I am unsure about their ultimate intentions.
The Temi conspiracy was because Pavel wanted to bung his friend some shares cheaply to capitalise on the gold price rise.
The price speculation was based purely on Gold being at £3000, but maybe bad management could F that up.

I will take a stab, gold @$3000, based on 2021 volume mix, and a forward PE of 12 a fair price would be £2.40 ish

Nice analysis L3Trader

Rusty,
there was no other way that these convertible bondholders were going to convert. I want the same thing you do, an increasing share price, preferably with independence. I just don’t see it as black and white as you do. I recommend to all shareholders to vote "for" 1-6 and "against" 7-19. If prosperity is truly on the side of the shareholders they too will convert. If not then you are being used.

Workingstiff,

the dilution was going to happen anyway, but UCG has just given away 4 years of interest and all sorts of dilution protection for nothing. This really makes a dividend possible. The only question I have is "Pavel running UCG ? " because the only reason we are in the mess is because he gave away the convertibles for nothing in the first place.

Rusty
for ye olde board'y , 3.4M shares. Net debt is also down by $50m. Really the other side now needs to convert and this company should start to fly.

And an annual $4.25M saving on interest payments from this portion.

This is actually excellent news for equity shareholders. At least $50m of the $125m have converted, which means that they are on an equal playing field. This should be share price positive as on this we don’t have incremental dilution risk.

I just held my nose and voted 3.4M shares for 1-6 against 7-19.
My thinking is that it is safer to have the old crooks back than run a risk right now. Gold is going higher and I want to capitalise on this. If someone wants POG they need to make a proper bid.