Listen to our latest Investing Matters Podcast episode 'Uncovering opportunities with investment trusts' with The AIC's Richard Stone here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Any hope for this share - I only have a small number of shares but don't like losing out?
If we're lucky they'll be some money left over for PI's after they sell the assets.
Nothing to do with luck! Market value of a developed producing mine with extensive copper reserves minus debts and costs minus other external costs like sorter and mill and power lines etc..... remainder is?????
The obvious question is, what are those assets worth?
We were all hoping for £1 a share a year ago. Even factoring in debt and the needed investment in the mine this should be worth far more in a sale than the 5p share price trading was halted at.
>We were all hoping for £1 a share a year ago. Even factoring in debt and the needed investment in the mine this should be worth far more in a sale than the 5p share price trading was halted at.
Agree. I was actually quite pessimistic up until today, but now less so. Am I the only one? I also find it interesting it reads like they are selling the whole thing, as opposed to, say, just Little Dear, or even just a portion of it (intentional typo as a homage to moon).
Yes, Xenor, I would have thought so - particularly as a mine already producing gold and copper, with the latter’s continually increasing importance in electrifying the world, and its ensuing shortage (the broad consensus); with an increasing copper price allied to a steady-state production (not to mention the scope to expand output), operational costs should decrease over time, potentially burnishing to would-be suitors its future potential to generate healthy returns. Surely, therefore, this operation has to be significantly worth more than the current market-cap - how much would it cost to obtain permits, explore, construct, and operate a similarly sized mine in its area?
It's a difficult one. I feel a bit of a doom mongerer and can understand why current shareholders would want to try and remain positive.
I'm just not sure that the outcome here will be what many hope. It certainly won't be anything near market value. The structure of any deal is way too variable to even try guess at tbh.
I know another example of just energy where they concluded a transaction and all outstanding shares, options and other equity was cancelled or redeemed for no consideration and without any vote or other action of the existing shareholders. So it's really just a case of wait and see.
It's never a like for like comparison and previous examples are just examples. Being hopeful is a natural feeling in these situations outside of any investors control.
On the plus side one of the key points, I believe, in an SISP is that it's a managed pricess to try get the best value for stakeholders.
I believe the first bid will be what they call a stalking horse bid/transaction. Which effectively sets the floor which any other potential bid competitors have need to improve on by set dates. Their can be extensions.
IMO only, given the debt and investment needed to reduce costs etc etc I personally believe the most likely outcome here is similar to just energy. It's not to say that some restructured deal can't or won't happen that isn't as bad for shareholders but it's highly unlikely that those expecting to see a fair value and return on investment from the suspension price will have their expectations met.
Sadly.
Atb
Person that stopping this newgen one person
The guy who given money is guy that owns mining company
Rmm would be turned into new company under new name. Unless it’s stopped