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Real-Time news about Brinkley Mining (London Stock Exchange): 0 recent articles
|linney3: Hi Stu.I am usually good at Maths but this time (thankfully!) I am wrong.I had divided my holding by 11.9228 instead of the correct calculation.Thanks for correcting me.
Regarding EUG the Capital value is shown at AS$ 15.35million which in pound terms equates to £ 9.38million.The BRM deal if it goes through will bring £9million worth of DRA shares to EUG and even with a minus 35% investment factor equates to £5.85million and £867k in cash - total £6.435million and in return BM shareholders will get 28% of the enlarged company.Therefore it should result in a fair increase in the EUG share price,if DRA stays at the same price,and a whole lot more if DRA increases or becomes a takeover target|
|linney3: stu31 - Your calulations are flawed. 10,000 BRM eqates to 839 EUG shares.EUG trade at a mid price of 25cent putting a value of A$209 on the holding which equates to £129 or 1.29p when divided by 10,000.So effecively the share price is not tracking EUG at all
Also,Chris,I disagree with your dilution theory.BRM shareholders are being given a stake valued at £4million in EUG.However thy are bringing over £10million of immediate value to EUG,and this increases EUGs net worth by over £6milion.
EUG has a current capital value of £9.47million so the dilution of 28% is far outshone by the immediate value being brought to the table in DRA shares and pure cash.|
|chrismez: Linney you can add my vote to yours when / if you speak to Gangsta Gunzy.
Its an extremely weak argument to say that a line had to be drawn somewhere and I don't buy that for one minute.
Its purely coincidence then is it that over the period of 2 months or so they happened to draw the line when the share price of BRM was at its lowest for that period. Nope - sorry don't buy that for one minute.
Neither I suspect did RAB Capital - there's obviously something else in this shambles for RAB it seems to me. In some way or another they'll do alright out of it, while the little PI, as usual, takes it up the a'#e.
|linney3: Some more interesting facts to mull over:
Eurogolds total investment to date in Brinkley is exactly £2.5million.For this figure they have a 42% interest in Brinkley PLC.
Brinkleys total assets(Dragon shares = £9.76million and £867k) = £10.63million)
Eurogold hope to acquire the total ISC of Brinkley for an all share consideration of Eurogold valueing the transaction at just over £4million.
In return BRM shareholders will get a 28% shareholding in the enlarged Eurogold company. - a company I might add where an illiquid situation exists.
Therefore,for Eurogolds £2.5million investment they hope to acquire the remaining 58% for £2.32million in Eurogold shares(This figure excludes their own 42% stake at 1.14p which equates to £1.68million.
So effectively,Eurogold will take control of Brinkleys share and cash assets of £10.63million for £4.83million which includes their "paper loss" on BRM share purchases at 1.85p for their initial 103.5million and their top up of 39.5million at 1.45p - and overnight they will have made Eurogold an immediate profit of £5.8million.
Not for me and I have emailed PG and made him aware that a NO vote will be forthcoming from myself.
I hate the idea that someone can have the neck to try get one over investors,and I can only assume that the RAB Special Situations holding has been influenced by PGs previous stockbroking experience and perhaps a friend in RAB.
I for one,have seen my investment in BRM show an at worst value of one half penny,and finally when things are looking up,an Aussie investor trys to take my value away.
However it is going to be an uphill struggle to wrest the 25% he requires to see this over the line - and a battle I hope he fails to achieve|
|linney3: Dragon hit 20cent overnight on over 25million shares traded,settling back at a close of 16.5cent.Eurogold shot up to 27cent on under 500k shares traded.DRA plans to recommence drilling in Finland.This activity occuring when the Aussie market was down and mining shares wer badly affected.
Needless to say,BRM has not budged.
On EUGs valuation of BRMs asset valuation at end of August,they have grown 65% on DRAs overnight close including the 35% reduction - basically BRM shares have a total value of 3p and with the 35% deduction 2p a share.This figure excludes value that can be achieved from BRMs land banks.
Without labouring the point BRMs investment in DRA is valued at 5cent a share by Gunzburg and he is sitting pretty knowing that his offer expires at year end and not a lot anyone can do with the share price until then.
The hope I hold is that DRA will become a takeover target and the BRM holding in that company will attain full value and a premium paid.
Alternatively,if the DRA share price were to surge it must be reflected in BRM pricing level even while Eurogold have a takeover offer in place|
|linney3: Dragon have issue a news item - Commencing underground development aimed a paving the way for mining longevity.DRA share price has closed at 14.5c having touched 15c.EUG share price has also risen past 2 days to 24c.
Gunzburg must know that he has little chance of pulling off a stroke with BRM shareholders,and as the month end approaches DRA share price can only increase|
|linney3: Onward and upward Samtom (should you not be looking out your window at Connaught Offices - a few PIs might like to have the same view as yourself with a few loaded 6 shooters!!)
I have done some crude calculations on BRM value vis a vis Dragon holding coupled with remaining cash:
BRM holding in DRA equates to 12.69%.DRA value is $99.54million which is $12.63million - BRM investment was $8.4million so we are showing a profit on investment of $4.23million.The pound value of our holding is £7.5million which when coupled with cash in the bank at 30th June 2010 of £867k(less £167k for costs for Q3 which is pessimistic) Total = £8.2million.
There are 356,336,248 shares in issue,giving us a share value of 2.3p today(This figure does not include any assets within BRM such as land banks etc)
For the record Eurogold participation in BRM was in 2 major tranches.The initial purchase of 103.5million shares was transacted in August 2009 at a share price of 1.85p.The second tranch of 39.5million was transacted in February at a price of 1.45p.(The total % of these 2 buys is 40.19%)There have been a few minor top ups at a penny and under bringing Euro holding up to 42%.and which Eurogold are now showing over 50% loss on investment value based on the bid price of BRM currently. Crude figures show Euros investment in BRM to be around the £2.55million level,which equates to a £894k profit ( 35% return) on their investment at todays "asset" value.However,as I have stressed numerous times before,I do not believe Euro are in BRM for a "punt",and the real value to Euro will come from their DRA holding(of which they also hold 4% privately)coming to fruition
Ok - end of rant!|
|samtom2: BRM's investment looking tidy in Dragon mining. Look at Dragon's share price since BRM invested.
1 week A$0.105 +A$0.005 +4.76%
1 month A$0.100 +A$0.010 +10.00%
3 months A$0.081 +A$0.029 +35.80%
6 months A$0.089 +A$0.021 +23.60%
1 year A$0.067 +A$0.043 +64.18%|
|linney3: The administration costs of £136K appear high for 6 months considering all they have done is bought additional shares in Dragon(unless of course this figure includes listing costs for BRM).I can only hope that some of this charge is for First Class tickets to South Africa to find a buyer for the nil value assets! - I have always maintained that there is value to be obtained from these "assets". We have a net value of £5.883million which is close to twice our current share price - and this can of course go either way,with nearly £900k of that in pure cash.
I think Chris is wrong when he says we will test 0.5p again - my view is that Eurogold will purchase another tranch of BRM in the next week or two(they always do something after an rns)
Either way we are approaching the 1st Anniversary of Eurogold involvement in BRM and its high time they made their move.(I have always maintained that Gunzburg knows an offer is being prepared either by Eurogold or a third party for Dragon and if thats the case our "investment" will mature|
|englishbeakfast: papillon: nice detective work ! any ball park idea as to what it means per BRM share price ?|
Brinkley Mining share price data is direct from the London Stock Exchange