Member Info for UpDownFlat

Norges obviously have their head screwed on correctly. Voted against 19 and 20

Agree completely, we dont want another freebe given to buy suppourt.

After 24 hours, seems like things are stable.

agree with most of what you say istabraq, except maybe the last sentence.
Panic and you lose

I believe the bonds become redeemable on a change of control, so I don’t think this is a takeover as it would require $650M for the debt (plus interest I think $140M ?) and another $750M for the equity. Quite a lot of cash to come up with. A merger would require lots of consent. So, I don’t think this is that either. Not a hostile merger.

Issuing more share via board control would not work either as the convertibles have an anti - dilution ratio. They voted to block the issue of shares at the AGM. (Something in the best interests of the shareholders)

Most probably this is either a genuinely angry investor/s or an attempt to get a favourable business deal, I tend to think the former as some of the big funds didn’t vote.

BOA didn’t sound very happy with the current board.

As shareholders you should be wary of the current crew. They have treated shareholders very badly over the years. Don’t be masochists or fall back on dogma look at the reality.

They had a warning about lack of support during the TEMI debacle and still tried to get authority to issue a £33m worth of shares at the AGM, LTIPs and large increase in salaries.

Compare this to what’s happening in the rest of the world. Someone called a halt to the party.

we don’t really know the reasons for the no vote. Maybe just like me they were disgruntled and wanted to send a message. Bank of America didn’t sound particular impressed. Maybe its best to wait and see.

Quite frankly, anyone in the world would be better for the shareholders.

Gold going up. This share is the perfect play on the price of gold. Is worth many times current price

The value of the company hasn’t changed.
Current management have the bondholder’s interests at heart.
Stukarov has his own interest at heart.
Shareholders caught in the middle.
With decent management this company is worth a lot more.

Yes Hambro is not good, still I cant see Pavel not being around in three months time. Maybe its time to be nice to shareholders.

I think you are proably correct about the merger.

I personally would be a lot more loyal to the current team, if they hadnt shat on us nine months ago.

Actually , this is a block vote on re-election as far as I can tell. It is not taking control.

hmmmm

Good list, a lost of positives for the company in the last year.

Kenj,
that is really great. If they cannot be redeemed then the whole "proactive refinancing statement" thing was really nonsense and there is less risk that the shareholders will be stung again.
The timing is excellent as the US central bank has stated low/zero rates for the next three years (which is half the premise for rising gold). Also, at that point in time POG will have lower net debt.

2.5%, then we will open the champers

Rusty,

my reason for staying is because POG is a marginal cost producer, with a rising gold price and heavily indebted. The math of this lead to better return if the management do not do any more of these actions which are anti shareholder.

Voicing this publicly is a way to stop them. You will only find out about the refinancing late in the day and it will be too late to stop.

I am not against financing I am against early refinancing because of the nature of double interest payments. It is unnecessary to do this now, just because the bond holders want it.

Because I have opinions doesn’t mean I should or will leave. If you don’t speak up you will have another situation like the convertible bonds or the purchase of TEMI. Both in the last 12 months, and both very questionable.

This is a battle, gold is trying to pull this company up from its previous near bankrupt state and as it makes massive gains and the future is looking bright, the BOD and executive are looking for ways to strip the shareholders of the gain by taking out the cash and diluting the shareholders.

if they were to refinance now at 4%, it would mean an extra $40m in cash (+$3M in fees) for their friends. Enough to pay for the TEMI. And they would try and present this as a win.