Metal Tiger Share Discussion Threads

[pwhite73] 27/11/2016 13:38

Haven't posted here for a while but I have been proven right about this load of rubbish. Any offer from BMR no matter how small should be grabbed at with both hands before everything disappears not that there was ever anything there in the first place.

[sweepie2] 27/11/2016 13:26

An astonishing RNS late yesterday detailing a potential shocking offer for Metal Tiger (MTR) by BMR Group (BMR) has left me, and many of their respective shareholders, scratching our heads. Alex Borelli is the CEO of both companies – what the hell is playing at?

The Metal Tiger RNS came out an oddly-timed 4.20pm yesterday and stated:

“The Board of the Company announces that it has received an indicative offer for the Company ("the Indicative Offer") from BMR Group plc ("BMR"). This process is at an early stage and there can be no certainty that an offer will be made for the Company.

The Indicative Offer is an all share offer whereby it is proposed that Metal Tiger shareholders will receive 0.231 BMR shares for every 1 Metal Tiger share that they own. Based on the closing share prices of Metal Tiger and BMR as at 24 November 2016, the Indicative Offer represents a discount to the closing price of Metal Tiger shares on 24 November 2016.”

BMR has until 23 December to firm up its offer but the statement didn’t say much more than that.

So…..let me try and get my head round this.

Alex Borelli is the CEO of both BMR and Metal Tiger, having only taken on the latter role relatively recently from 10 October. On that date, Metal Tiger closed at 3.13p, valuing the business at about £19 million. Then about six weeks later, as CEO of BMR he makes an offer for Metal Tiger, which as at Friday’s closing prices values Metal Tiger at about £7 million.

What on earth is he thinking?

He must realise that the fact that he is CEO of both companies means that there will be much closer scrutiny of any deal. On what basis can he imagine that the Metal Tiger shareholders would appreciate an all-share deal, in a connected company, at a significant discount to the current share price?

Who would sign up to that?

No-one, particularly as there was no stated strategic rationale as to why this could benefit the Metal Tiger shareholders in the long-run.

I don’t think I’m being overly cynical but the only thing I can take from all of this is that in the last couple of months Alex Borelli has had a good look at the Metal Tiger assets and thought: “OMG,

The Metal Tiger shareholders must be furious with this potential destruction of value in such a short timeframe and, amazingly, I imagine some of them are clamouring for the glory days of Paul Johnson at the helm.

The other oddity here is the response of the BMR shareholders.

BMR traded as high as 6.2p on Thursday morning but then started to decline fairly dramatically and was down around 5p late yesterday afternoon. I imagine that it was this share price movement that forced BMR’s hand, hence the rather rushed nature of the statement. Further selling carried on after the announcement with the BMR share price closing at 4.625p.

It does smell a bit as if some of the BMR shareholders had got an early sense of this deal brewing and decided to vote with their feet from Thursday morning onwards although can’t imagine that sort of things goes on in the lower reaches of AIM, does it?

Despite the offer being made at an arguably low price, they clearly don’t want the Johnson eclectic mix of shareholdings in micro-cap miners and some early-stage plays in Botswana and Thailand when BMR is closing in on producing from its own assets.

Often with M&A, when a deal is first announced, one share price will go up, usually the target, and the other can initially go down as its shareholders may be concerned about overpaying for the business or worried about the strategic fit. In this case, both shareholders seem equally unhappy!

From here, I cannot see how Alex Borelli comes out of it with any credit whatsoever. It’s hard to see how this deal can reach fruition on the terms outlined in the indicative offer. It definitely wouldn’t complete following that shareholder reaction if it were taking place between larger listed entities, although Elon Musk could probably get away with it, but I guess AIM is its own world with its own rules and one should never say never.

In any event, Borelli needs to make a follow-up announcement very quickly, ideally at 7am on Monday, setting out a clear view on why this deal, albeit at an early stage, has potential strategic benefits for both parties as otherwise I can see the Metal Tiger share price taking a beating first thing.

Somewhat amusingly, or fortuitously perhaps, Alex Borelli is meant to be presenting at a Share Talk evening tonight so it will give some shareholders a chance to get a few things off their chest and perhaps he will be able to explain this crazy-looking deal. I hope he doesn’t pull out at the last minute hiding behind some takeover code nonsense.

- See more at: hxxp://www.shareprophets.com/views/25532/metal-tiger-and-bmr-deal-wtf-is-borelli-thinking#sthash.cj8mIOIr.dpuf

[manics] 27/11/2016 11:27

lazygun, 10009504 -it's wake up and smell the coffee imo.

A company is either fundamentally sound enough such that convoluted deals and structures and warrants and dilution aren't required, or it isn't.

The Paul Johnson model imo relied on investors extending the benefit of the doubt. 7-8 years ago private investors would assume "a new deal. Management know what's best. Huge gains are surely here".

Some AIM directors used ambiguity to give over the illusion of potential whilst all the while issuing gajillions of shares in placing after placing to line their own pockets.

The fact that nobody can work out what the heck is going on is the billowing smoke telling of the fire within. Private investors are better informed today and thank goodness. They see an RNS such as MTR issued Friday and they evacuate. Ambiguity is bad, not good. Think Quindell!

We continue to witness the Paul Johnson public markets execution model imo though it is now outdated and ineffective -that's what the market has decreed through the falls from +6p imo.

[lazygun] 27/11/2016 10:55

Unless the story with Botswana has changed, Mtr is way undervalued, and this thing that ab has started is unfathomnable.

He's got a lot of explaining to do to shareholders and the market, as has the Mtr board...

L

[paleje] 27/11/2016 10:35

With that in mind, lazygun, perhaps it's worth keeping an eye on BMR share price which might become attractive in all the panic and confusion. Glutton for punishment:)

[lazygun] 27/11/2016 10:15

The other thing to consider of course is early Nov, Bmr share price was around 8p. So at that point, 0.231bmr shares for each Mtr share, would have been about 2p per share equivalent for Mtr.

This would still have been opportunistic, but less severe than the current situation.

Wonder if it was leaked somehow, and naybe ab's hand was forced...

L

[paleje] 27/11/2016 10:00

For what it's worth the Aussies on hotcopper were sanguine, reckon the MOD scoping study will be out by Weds latest as JH is presenting at Mines&Money and sounds confident. Some suggest Friday's RNS was a tactical manoeuvre not a genuine offer.

If the scoping study is actually rubbish there will be a lot of burnt fingers. From the 'offer' you'd think Borelli had advance knowledge but if he did so would other insiders. Did Terry Grammer make such a hugely wrong judgement of the asset? And put his and his wife's money behind that judgement, much at way above last weeks closing price? Possible I suppose, but likely?

I thought I'd done ok buying at 2p and just over with the MOD report so close then out of the blue this happens. Well we'll see next week, I think there's a lot more to come out but it could be a mess tomorrow morning.

[10009504] 27/11/2016 09:34

guys get a grip pj is not at the helm ab is and if there is any stitch up aim your anger t him. nobody knows yet if this is bad or good

[lazygun] 27/11/2016 09:16

And yet another ill informed post. What does it have to do with pj? This is all Alex Borelli's doing... not pj....

L.

[manics] 27/11/2016 08:31

Paul Johnson
Down, Down, Down, Down, Down

[manics] 27/11/2016 08:29

Imagine you believed in Paul Johnson only to watch your portfolio evaporate into dilution and warrants and guff. Then imagine you booked a train ticket and London hotel to hear your Mining Mavern guru speak. Then imagine he was a no show.

What a kick in the teeth.

[supercity] 27/11/2016 08:18

1st November quarterly activities report...they stated cash and equities were worth just over 5 million but also this little gem"The Company's target is to deliver a high return for shareholders by investing in significantly undervalued and/or high potential opportunities in the mineral exploration and development sector timed to coincide, where possible, with a cyclical recovery in the exploration and mining markets. The Company's key strategic objective is to ensure the distribution to shareholders of major returns achieved from disposals."So why on earth do they release the statement they did on Friday ten minutes before the close without an accompanying line laughing at an offer that is significantly below the current market price...and apparently not turning up last night according to the poster above - decision already made???

[lazygun] 27/11/2016 01:35

Again, tLking without knowledge.....

L.

[geoffsh] 26/11/2016 19:41

Live link to Birmingham.




hxxps://www.periscope.tv/Share_Talk/1lDGLmpnVZQJm

[lazygun] 26/11/2016 19:17

I think it is opportunistic. I can't see shareholders voting in favour of accepting the deal, given the nature of the assets that Mtr has available to it.

If mtr's assets for some reason become worthless, again it would still make no sense for the Bmr board to make the offer in the first place. All they'll be doing is taking on a load of rubbish in such a scenario.

If the assets genuinely are worth what everyone thinks they're worth, I'd have expected Mtr shareholders to reject the offer.

Can you really see terry grammar and the rest of the Mtr board accepting such a deal?

He'd have to believe that Bmr would represent a better value proposition than Mtr, and I simply don't believe that to be the case.

No-one on here has offered any hard factual evidence to suggest the doom and gloom situation yet, and I challenge anyone to do so.

Next week sure will be interesting, and if anyone can post a transcript of pj's comments tonite, that would be welcomed.

Pj, and the board and so on must have known about this ahead of the announcement, so AB will likely have had to explain his actions with his Bmr hat on to them.

To me this could represent a huge buying opportunity, but let's see if people do panic and drive the price lower first...

L.

[someuwin] 26/11/2016 18:23

Share_Talk ‏@Share_Talk 5 hours ago

#ShareTalkBirmingham UPDATE Paul Johnson will be answering Q tonite on behalf #MTR Alex Borrelli will not be giving presentation @Share_Talk

[howesp] 26/11/2016 15:24

How many shares does PJ have? I was thinking he had enough to scupper all of this if he wants to but now I wonder whether he is being shafted by AB-see his words that he is delighted PJ has just spent another £60,000!

As you are all saying Monday morning could be very bloody and maybe we have to hope a "white knight" appears on the horizon. Does TG have any good contacts? Perhaps we could rope in Donald Trump!!

All we can do as "plebs" is to watch this space and "plebs" usually lose out.

[billionaire1] 26/11/2016 12:31

What time is tonites meeting

[billionaire1] 26/11/2016 10:39

whats the chances of alex and p j both not turning up at tonights meeting as they are both too busy being engaged in other negotiations and avoiding the flak

[andrea152] 26/11/2016 10:34

This is a related counter-party transaction, with Alex Borrelli on both BOD's & would also be a reverse takeover, under the Takeover Code.

Both of those words fill me with dread, as it is the same modus operandi used by the likes of Melissa Sturgess in the wonderful Dwyka Diamonds saga, a few years ago, and we all know how THAT finished up......!

All is not as it seems on the surface with MTR and I think that Investors are all too savvy about these matters nowadays. Monday will b a VERY bloody day. Any Company that publishes as many RNS's as MTR has done over the past 2 years, in order to promote itself to PI's, must be a warning in itself.

IMHO, DYOR, GLA.

[someuwin] 26/11/2016 10:24

Supercity - except that BMR would then have £13m of MTR value added to it. Which would add another 1p to the share price as well.

[paleje] 26/11/2016 10:18

Alex Borelli RNS issued only 18 days ago, read his words:-

On 7 November 2016 Paul Johnson issued Metal Tiger with an option exercise for three million shares in the Company at a price of 2p for a total of GBP60,000.

Alex Borrelli Chief Executive Officer of Metal Tiger said "I am delighted that Paul has chosen to exercise his options early which makes a clear statement to market of his belief in the Company's business model and in the future plans and potential of the Company.

The natural resource sector has recently encountered a significantly challenging phase with the share price of many resource companies falling considerably. Metal Tiger has suffered from this sector pullback, but despite this our business is continuing to make material progress.

Much of our work of late has been in the background and shareholders may not be fully aware of the extent of progress at this time. However it is our intent to provide further updates to market in the near term to outline what has been achieved. These updates will encompass the progress of our Joint Ventures in Thailand and Botswana where the Company's key investments are situated.

I would like to take this opportunity to thank shareholders for their continuing support and note that the board recognise the importance of delivering share price performance and, at the appropriate time, returns of value to those shareholders who have committed to the Company and remained on the register."
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Much work in the background eh Alex? So it would seem.