Member Info for workingstiff

I've just had a look for this document on the site and couldn't find it. Has it been removed?

"... at what price would each of you sell 15p ? 20 / 25p ?" If the table is as rigged as you suggest I'd be gone at 12p

Make that two supporters in the dividend camp. I would like to see the company with less debt but as uncertain says the company is undervalued at present. There is the risk of a bargain hostile takeover as long as the sp remains low. Paying a dividend might improve the company's valuation. Some here will argue that reducing debt will have the same effect. If we look back to 2013/14 Hambro and co cleared more than $500m in debt in those years. The share price continued to fall and - as it turned out - they paid off the wrong debt. From our perspective they would have been better re-financing and hanging on to $300m in cash to deal with the 2010 bonds. There is no certainty that a dividend will lift the share price, I still think the 2015 convertible bonds are an impediment to this. However, it might work and shareholders will at last see something from the company. We've had enough austerity. Notice that I tried to keep my sentences short to avoid being misunderstood :-)

I stand corrected.

"If you were not convinced of POGS growth prospects and you thought 50% over 5 years wasn't achievable the same amount in a bond ( if you can buy one ) supposedly through Irish stock exchange would with compounding effect give more than 50% over 5 years with your money back on maturity." This statement is incorrect. Compound interest requires interest earned to be added to the capital. You cannot do this with bonds.

Lawrence you are not misunderstanding anything - I think Peter went a bit doolally towards the end and was prepared to say anything he thought his audience wanted to hear. Reading down through this page of posts, are we not overthinking this a little? To quote from the company press release of 8th November: - "The Company intends to use the net proceeds from the offering of the Notes to substantially refinance the loans provided pursuant to the banking facilities provided by Sberbank and VTB Bank." I interpret that as meaning that they intend to pay off as much of the bank loans as they can with the proceeds of the issue. When the new notes fall due in 2022 I imagine they'll look to pay off what they can and roll the rest over. Normal business practice.

I would guess that they will put out a release telling us what they have done with the money. In which case we'll know soon enough.

They could buy them on the open market if they repay enough of the bank debt to ease the restrictions on what they do with cash.

And if I can add my half-penneth - - It makes sense for the Fed to manipulate the AU/USD pairing to support the dollar, as the gold futures market is small enough to be easily manipulated, and unlike other currencies there is no risk of upsetting another nation by slapping the price down. - It is also the case that in the recent past the gold price has been jacked up by these pump trades. See https://www.bloomberg.com/news/articles/2017-11-10/mysterious-4-million-ounces-of-gold-trades-trigger-price-plunge ... so it may also be the case that - since the gold futures market is relatively small - on occasion the bullion banks, acting alone, manipulate it for profit simply because they can. It is probably illegal but if the Fed has been involved in the past the banks are hardly likely to get pulled up on it.

Good post Kenj

"What a board full of miserable doom mungers! " LOL! Well said. Some of us have owned a piece of this company for too long with nothing to show for it, I guess.

Kenj They would have had to cede control (51%) of the POX Hub as part of that deal. In any case it didn't happen so something wasn't right about it. Today's share price - 7.93 as I write - suggests that the market reaction to the note placement is less than ecstatic. Unlike you I was not averse to their swapping debt from banks to bonds. I just think that at 8.125% they are paying to much for it.

Amen to all of that. We should get a view today as to how the market views this news. If the reaction is negative, that will be a pity because after the last operational update the SP had been on a little roll - up to over 8.5 before this initiative was first mooted. A similar thing happened early in 2016, when the SP went over 9 - to within a whisker of my break even price, then Hambro killed the run by proposing those two crap deals - the POX hub JV and the Amur Zoloto acquisition. Sometimes I wonder if their approach is to suppress shareholder value rather than create it.

"what was the point" Well it kicks the debt repayment down the road. It lifts some restrictions on what they do with cash they generate for operations. Hopefully they can make something of this freedom of action On the downside POG is still working for its creditors. It is still a better company to lend money to than it is to own.

Does anyone understand the implications of listing these on the Irish Stock Exchange? Is this a Brexit thing?

$500m at 8.125% to pay off the banks. 8.125% is higher than I had hoped.

Well said madsuh.

If we have to pay anywhere near 9% on the new bonds then the company won't do it. Or maybe that should be If we have to pay anywhere near 9% on the new bonds then the company won't do it !!!!!! ??????

" Why would we pay a premium to pay them off early when we can redeem them at maturity at par ?" You save on the outstanding coupon payments and you avoid the possibility of further dilution through transfer.

" Buying the convertible bonds on the open market will be hard" As rustybucket said below - they've done it in the past - http://www.iii.co.uk/research/LSE:POG/news/item/887653/purchases-4-guaranteed-convertible-bonds?context=LSE:POG