Hambledon Mining Share Discussion Threads

[chestnuts] 07/10/2013 07:34

AAAAAr

I dont think he had over 50% like this guy does and now he as over 80% and alot more money.

[aaaaar] 07/10/2013 07:26

What was NB % holding at its peak?

[chestnuts] 07/10/2013 07:19

Rhotoid

The conversion price doesnt matter, thats a rouse , they are trying to make the small shareholder feell like its a good deal , its a good deal for the new owners as when he converts it wont matter a jot what price as long as he gets his $27m back and then he will have over 80% control of HMB and could delist at any time and say he buys another mine with more convertables, the share holders % will get smaller, he is not lending HMB money for your benfit its for HIS benefit, i have seen this happen before , it might take a yr or 2 to actually happen, would you buy in to a company where one person as more than 80% holding and could take it private at any time delist it at any time.

[rhotoid] 06/10/2013 23:58

chestnuts, extract from the announcement:
"The Convertible Loan Notes are convertible into new ordinary shares of 0.1 pence each ("Ordinary Shares") in the Company at a conversion price of 3p per share"
Unless I'm going doolally that's at a premium?

Granted that's still probably below what many of us bought in at (when previous idiots in charge) but seems reasonable enough.

If you view it as a addition subsidiary with assets then I'm pleased they've fully funded it themselves and put their money where their mouth is, how much value it adds probably others know better than me but as long as they've funded it there's little downside and my instinct is that they probably have got something good as they're in the know and not some idiot in a some Devon cottage.

[chestnuts] 06/10/2013 22:05

rhotoid

how is it not dilutive, they have just issued 58% more capital in preferential shares which can be turned into shares, which will probably happen as they dont have any money also how are they going to fund the operations for this new mine, dont you see he is a business man he as just saved himself £8m by not buying all the shares out on HMB , he is now saddling the company with loads of debt which he holds both sides of the debt , ie creditor and debtor, the only person who is going to lose out is shareholders.

[rhotoid] 06/10/2013 21:40

The funding for this is at a big premium to the present share price it's not dilutive, as chipperford said if they were wanting to delist they could have done that long ago.
Compare to the last hideous bunch this management seems to be acting in good faith and at least achieving something, my only hope is that they ensure this doesn't detract from the success of the productive side and that that is given due prominence in the months to come.

[chestnuts] 05/10/2013 16:03

Chip

Yes they could have taken control for an extra £8m, or you could argued they have control with out paying the £8m , also call it what you like placing or preferential shares they have diluted the shareholders, also if they do convert and they will, and when they buy something else using preferential shares diluting further, also now they have bought the company how are they going to fund its development more preferential shares, dilute the shareholders further, as stated when the take over was announced this guy in charge is only going to take away your % of ownership, and when he is ready he will consolidate the shares ie your 1 million shares could be = to just 10 shares albeit the share price might have to be reconfigured. But share holders will lose out thats for sure,

[chestnuts] 04/10/2013 19:28

Phillis

If you think having a major shareholder owning over 75% of a company is a good thing then keep holding, they will be able to delist and you will be left holding nothing.

[chipperfrd] 04/10/2013 18:16

chestnuts,

Of course they can take full control - but they could have done that back in November 2012 by doing an outright takeover for an extra £8m - but they didn't!

When are you going to acknowledge such an obvious fact?

We won't know just how good or bad today's deal is until further info is available (as already mentioned above).

Outwardly, adding 9m oz at just $2.96/oz looks extremely good. You really can't drill and evaluate a deposit of such a size for anything like that these days.

ps. the convertible loan is not a placing as you have stated. If they do convert, it will be at 3p/share - which is more than 50% above the current share price in case you have not noticed. In the meantime they have now put up £29m!

All I am doing is hanging onto their coat-tails. My downside is 0p/share. The upside is unknown, but could be quite remarkable :-)

[phillis] 04/10/2013 17:53

I see Nutty has moved from the other thread to annoy us

Get the hence Nuts!

[chestnuts] 04/10/2013 17:29

What this placing actually does is give the Assaubayer over 75% control over HMB, so at any time they could delist if the preferaential shares are turned into ordinary shares and this is why i sold i have seen this before, he doesnt have to buy the other shares as they become worthless.

[lfdkmp] 04/10/2013 12:58

chip

Thanks for the response.

[chipperfrd] 04/10/2013 12:42

LFDKMP,

AR was only created last Winter in order to execute the partial offer for HMB - so there can be no history discernible before that time.

As for a connection between Hydrogeology LLP and the Assaubayev family - quite possible I would have thought. At the very least they have likely been well aware of the Karasuyskoe Ore Fields before they became involved with HMB. Perhaps even because of it! Buying a controlling interest in a production asset quite close to an available large source of ore would look like a very sensible thing to do.
Chip

[lfdkmp] 04/10/2013 11:32

With the exception of this announcement, is there any current or historical association between African Resources and Hydrogeology LLP?

[chipperfrd] 04/10/2013 11:21

As above, it's early days to make any informed assessment of what this new development might mean to the company and it's stake holders.

On the bare details thus far I make this observation:

For an increase in issued shares (assuming conversion) of c. 59%
The resource oz per share will increase by 272% (assuming the 9m oz are confirmed as a mineable resource).

- needs MINT permit
- needs JORC categorisation
- needs economic assessment

Then the investment case can be assessed to some degree.

I am assuming that the new deposit being purchased is a porphyry which might be exploited by one or more open pits.

Given the planned depletion of the Seki open pit operations in 2015 it makes perfect sense to redeploy the current open pit equipments (excavators, trucks, et al) to such a nearby site for commencement of a similar operation.

I suggest that all will be somewhat clearer in 12 months time. In the meantime we will see how well the growth in underground production is progressing.
Chip

[chipperfrd] 04/10/2013 09:53

It's all a gamble but the concert party have put £25m on the line so far. I therefore take the view that they can see a decent return over time.

Assuming the outcome of the JORC CPR confirms the resource and, what is more, it looks an economic resource to exploit - then happy days!

Far too early to make any judgement from what has been released, but I have to presume that AR has poured over the drill data and have found it favourable - otherwise they would not put their £13m at risk.

Time will tell.
Chip

[giant steps] 04/10/2013 09:47

It's not a comfortable dilution for the minority holders

[phillis] 04/10/2013 09:46

I suppose expansion was always going to bring dilution

[chipperfrd] 04/10/2013 09:38

You are joking of course :-)

[chipperfrd] 04/10/2013 09:03

That is an interesting development!

They said they would be looking to exploit other deposits in Kazakhstan so perhaps we should not be surprised.

9m oz Au + 16m oz Ag for $27.5m works out at c. $2.96 per AuEq oz - so the price looks good.

Let us see how the JORC looks when they have obtained MINT approval.
Chip

[dofmeister] 04/10/2013 08:10

I can see that, I said it looks like a great deal.

[chrisdgb] 04/10/2013 08:09

terrible dilution...............

[chestnuts] 04/10/2013 08:01

Dof

Shareholders are being diluted out, if they convert the convertables into shares the main shareholder will easily own 80% of the company.

[dofmeister] 04/10/2013 07:50

Looks like a great deal,$3 per oz in the ground for an advanced exploration project!