Member Info for UpDownFlat

Each $100 increase is $50m to the bottom line and C/F of POG

Both spot and Comex above $1800. Nice

The accounts say "$12M" net cash inflow from the from doing the transaction, but don’t account for the $10M new interest outflow over the period under which they would have held the old bonds. Therefore, effectively nothing was received for doing it, but a lot of additional items were given. Not the least of which was not reducing the debt by $100M, $50M additional interest payments, and I wont go into the rest.

Also lets stop explaining to much detail, I want the SP up not down.

Rusty,

different exchange rates and different amount of capital $100M vs $125M. Also there was no incremental cash flow.

Any early interest payment discounted at only (T5YIFR) average to achieve conversion is just more theft from the PI's. Lets see how things develop, but right now prosperity and the board have a shady track record and as a shareholder I would like to a clear understanding of their intentions before I would consider voting for them.

Not if they have control of the board, as we have seen in the past it is not beyond POG to do transactions for which they get no consideration under english law.

Are we not just speaking about discounting the Future value of money for inflation (Money is worth more today then in the future), i.e average FRED (T5YIFR) is around 2.5% which would just be normal for the PV of money. Or are we talking about them taking a 50% haircut.

So POG agrees to unnecessarily pay them $50M worth of interest (since it could have just converted last year), and so now we are voting to see if they get the $50m now or later.

Prosperity hmmmm....... certianly not for PI's

Sorry I meant conversion plus interest now instead of conversion plus interest over four years.

mdunsire,

is this part of their plan if they win the vote ? They get their money back now, plus interest and conversion instead of waiting for four years.

or the shareholders

At whats he benifit to the company or us of doing this ?

including mdunshire

It must be the 'greenleaf'

COE,

I think you are right ethics is the way to go. This is the 21st century. Directors don’t have the social/legal support to behave this way anymore. POG cannot position itself as a company that employs women, is environmental careful, is good for the local community but yet rips off ordinary shareholders.
Pressure needs to be brought on the convertible bondholders to surrender/convert these unethical, unfairly issued convertible bonds.
The large shareholders need to step in and bring this companies share price up to its proper value.
POG is a good asset that has a lot of value at the current price of gold.

I think there are lots of legal grounds to challenge but it is not in our interest to do so.
The price of gold is going up slowly for a long, long time. This company is a marginal cost producer, with high debt. It should become immensely profitable and cash rich. Despite the crooked efforts of the old management team this is an attractive investment. We have to navigate the route to least pain/dilution for the ordinary shareholder. I am open at the moment, I want to see what UCG or a decent BOD have to offer.

Yes, so basically ever time POG pays a dividend it’s like a free rights issue for the convertible bondholders. That’s why crooked Roderick and Prosperity was so keen to encourage it.

i.e. more shares

I would value another opinion, on the surface, it seems that although they don’t directly get a dividend the get it knocked off the conversion price.