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Ooops, I accidentally hit the send button ... so to carry on ...
If, as per the expected prospectus, additional 250m shares will be issued to SAU then we would have:
SAU 300,000,000 41.81%
Colin Patterson 73,325,385 10.22%
Charles Barclay 19,206,428 2.68%
Aidan Bishop 66,320,297 9.24%
This is clearly the situation when SAU would be the most dominant shareholder. I don't think the directors would like it.
I just wonder whether it is possible (within the prospectus rules) to issue shares but sell them to other entities and pay SAU in cash. This way the directors still could collectively be the most dominant shareholders.
In theory, if good news/progress is on its way, some other entities may be willing to buy higher than 3.6p. I'm sure if somebody wanted to acquire say 25m+ shares the sp would be pushed higher than that. Remember the sp was 5p+ before SAU announced leaving the JV.
Any thoughts?
JerseyC, the director holding is interesting in this situation.
As per my notes (correct me someone if I'm wrong), currently post 50m share issue to SAU,
Colin Patterson73,325,385 15.7%
Charles Barclay 19,206,428 4.1%
Aidan Bishop 66,320,297 14.2%
SAU 50,000,000 10.7%
Now it's down to execution and a successful conclusion of the share issuing process/prospectus update.
However, I mentioned it here a while ago that the BoD could try to sell their assets in Philippines. I believe Moneymaker replied that the asset represents around 450k oz of gold. Is it a JORCed asset? Is it a reserve or resource?
Not sure what is the situation there and how likely a buyer could be found. But even in a fire sell scenario, assuming the asset was worth just 1% of gold in the ground we could pay SAU $7.5m and give them just the initial 50m shares.
This would significantly minimize dilution, SAU influence and increase the sp.
Is the asset worth much less than 1%? Is there any floor in this scenario ? Thank you.
The sp still has not even reached the point when the price for acquiring of the other 50% was announced.
Now we even know how it will be financed. We have doubled our assets with less than doubled the number of shares so we clearly gained. It is also very likely that by the time we start producing the POG will improve.
As stated by many, now we need a plan with key milestones to be delivered. Everything is nicely setup.
By no means I like the lack of communication but the reality is that the two parties can't simply agree on acceptable terms and it seems nobody wants to give in....
Given this status, even if BMV wanted to release an RNS to update shareholders what they suppose to say?
Naturally, they would not commit to any date and very likely they would just express a hope that a deal will announced soon with a usual caveat - "There is no guarantee ...."
How would market react? Maybe even worse than to no news, not sure.
As somebody earlier said, there should be no brainer to come up with a deal as it would be beneficial for both companies.
I've checked the SAU sp and it doesn't look very optimistic on any time scale I selected. Therefor it's also in their interest to strike a deal.
For a moment I thought that BMV might want to sell their assets in Philippines but not sure how realistic this could be. You never know, surely such deal can be done in 6 months if there is a buyer.
GL
Yes, creeping up and on that bases I did yet another final top up yesterday :)
Let's hope a deal is announced as suggested before end of Q2.
I think SAU also need a bit of good news as their sp dropped recently. I understand they are funded and in theory don't need money now and I think this is also the reason they could afford to be a tough negotiator. But equally , they are aware that BMV can't just generate $10m out of thin air ...
Soon we will find out, GL all.
Following the recent open pit ban lifting in Philippines, it looks that the mining situation has improved there.
Could BMV benefit from selling their Batangas assets to help finance the current project in South Korea ?
I was not invested in BMV for that long to know the details about the Batangas project. However, I recall, last year the Co stated that they were approached regarding this dormant asset by a local entity. How realistic is to monetize it and what value could be attached to it?
Thank you
Hi,
Anybody managed to vote with EQI?
No notification in the "Corporate action" section.
Just called them up and was told that they have not been notified.
Also the agent said that it's responsibility of the company to notify EQI which I found a bit strange.
Shall I contact directly EUA to notify EQI?
Any advice welcome.
If we go back a few months, BMV was about to progress to another stage with secured financing of their 50%. The market
recognised that progress as the sp went considerably up.
Then SAU decided to walk away and BMV now trying to get on with the new reality. Yes, the best outcome would be to acquire the other half. But I can certainly understand that it's not easy to get another ~$10m for a 14m MCAP company.
They can't simply crate $10m out of thin air - they are not a government :)
I bought another 100k and will buy another 100k in two weeks, maybe a wrong call ... Let's wait and see a few more weeks.
I wonder what would be the reaction and sp if BMV decided to sell the co to a major or mid tier miner ... Just a thought, no idea how realistic it is.
I agree that the communication from the BoD is not excessive by any means, that's for sure. However, in situations like this, let's be realistic and assess the facts:
1) It wasn't BMV walking away from the JV. It was SAU.
2) BMV felt they can secure finances to buy the other half and maybe expected the price from the arbiter to be lower.
Despite delays, I think this is still the quickest way to conclude it, rather than waiting for SAU to find a buyer.
3) The figure from the arbiter might seem high but from a mid-long term perspective it's not too bad.
It represents equivalent of 6k oz of gold. Just 6k for the other 50% of the JV.
If we believe the story in the company prospectus, it's no brainer, as long as it can be financed somehow ...
4) Financing: Maybe the Bod expected let's say $6-7m to be paid for the other half but it's $9m instead which is
more difficult to secure. However, they stated that non-dilutive finance is preferred, good for shareholders
5) Lack of timescale: Contract negotiations take time and committing to some fixed dates might give your
opponent advantage. In this case cash, royalty or other options are considered so it needs time to find a solution.
6) SP is drifting on relatively low volume when no news is expected which historically is no surprise here. People chasing
other opportunities.
7) Despite poor communication, the Bod are aligned with shareholders as they don't take big salaries
and have their skin in the game.
Not happy with the overall 12+ months delay but still holding as the story and gold is still there, potentially
more of it for us once we own 100%.
Just my view.
GL
dawnraid_
I assume the time refers to SAU RNS tomorrow.
Could you please provide a reliable link where it should be published? Sorry I've never dealt with SAU or any Aus co so I have no idea about their RNS system.
Thanks