Pure Gold Mining Share Discussion Threads

[puffintickler] 30/7/2015 09:27

Likely cash payout 115-125p,
Pessimistic value of residual business 25-35p+ depending partly on cash taken out of business
Pessimistic value of the two together 150p+
Current price 130p

[sharestobuy] 30/7/2015 09:20

Looks like we finally have movement. What's going on, new investor here. Anyone fill me in?

[badtime] 29/7/2015 12:35

Re post 4180 I see those options for 100k of shares are being admitted for trading on July 31st ..I wonder ..

[badtime] 28/7/2015 23:45

Been some reasonably sized trades recently at full price of 130p ...ive seen 10 and 15k more than a couple of times

[riddlerone] 26/7/2015 17:03

30/07/2012 07:00 UK Regulatory (RNS & others) Pure Wafer PLC Trading Update

30/07/2013 07:00 UK Regulatory (RNS & others) Pure Wafer PLC Trading Update: Strong Trading Momentum Maintained

31/07/2014 07:02 UK Regulatory (RNS & others) Pure Wafer PLC Trading Update & Proposed Maiden Dividend

I wonder ?

[puffintickler] 26/7/2015 08:08

Exactly MrToad2, that is why I think my scenario (not really a forecast) is realistic and that there should be more risk on the upside than the down.

[mrtoad2] 23/7/2015 11:34

Remember too that there was a 40% expansion at both facilities with the Prescott capacity being available "during the first half of 2014". If they have managed to salvage some of the key equipment from Swansea to add to it, then there should be room for significant volume expansion given the capacity capability and customer contracts taken over from Swansea. GLA

[puffintickler] 23/7/2015 09:45

Hi riddlerone

In terms of the value of the plant you are right, but of course there will be bank debts and a whole raft of other issues, debtors and creditors that will muddy the picture.

I assume that the remaining Prescott business would be left with a normal level of debt in which case it is easiest to value it on profitability. To estimate that I assume a bit less than half the original complete business. Less than half because Prescott was less than half, since then it has expanded but there will be less operating result to support the overheads.

[papy02] 21/7/2015 15:52

riddlerone,

I hope you are right but why do you think that the claim alone is > 118p, based on the warrants buyback, rather than that the sum of the cash payout and Prescott value is (materially) >118p ?

[riddlerone] 21/7/2015 15:42

My take on it is a little different.I think we can say by the warrants that have been bought back that the claim should account for a minimum of 118p.If you look at the acquisition document from 2007 then it gives a reasonable value of the Prescott facility
"Assets acquired

The acquired leasehold facility in Prescott, Arizona is a purpose built plant
with high quality process services and cleanrooms close to many existing and
planned customer facilities, scaleable with further expenditure to 300mm
capacity of 80,000 wafers per month, and with adjacent land of 1.6 acres
available for further capacity increases. The plant has reclaim capacity in
excess of 100,000 smaller diameter wafers per month, and the Company plans to
grow this volume in addition to its 300mm ramp. For comparison, management
believe that to build a similar facility on a greenfield site with installed
300mm capacity would cost cUS$50m, and would take approximately two years to
break into positive EBITDA during qualification and the ramp phase of facility.
Existing unaudited annual revenues were US$8.6m with EBITDA of approximately
US$0.4m.

So i know that was 8 years ago but $50m to build from scratch then must equate to $60m now.Also has double the revenue and possibly more if the upgrading goes ahead as planned.At 150p that would value Prescott at around $12m which is what was paid 8 years ago so seems on the low side.

[puffintickler] 20/7/2015 17:47

That depends on the cash payout so it is best to look at the value pre distribution. Looking at the recent results which gives a bit of an idea of the performance of the Prescott facility my average total value estimate is 150p (of which probably 110-120p given back as cash). Hoping for more but may of course be less.

[riddlerone] 20/7/2015 17:28

Thanks Puffin didnt realize that.Whats your valuation on the sum of the parts that are left?

[puffintickler] 20/7/2015 16:47

That $45M was invested by the previous owners 18 years ago. Not relevant to its valuation now.

[riddlerone] 20/7/2015 09:40

I found some details of the investment Pure has made in Prescott quite interesting
hxxp://dcourier.com/main.asp?SectionID=1&SubSectionID=1086&ArticleID=130936&utm_source=&utm_medium=&utm_campaign=

So $45m invested with a clean balance sheet and revenue of $14m plus any migrated accounts from Swansea.Probably around break even when the admin/management has been downsized with great potential growth. What value would do you put on this business any views?

[badtime] 15/7/2015 11:09

Bit of a hit on the bid...a few sellers around

[badtime] 07/7/2015 13:29

I'm hoping for more than the current share price .hence I see no reason to sell

[puffintickler] 07/7/2015 13:19

I am hoping for 160p+.

[alan@bj] 07/7/2015 12:38

Just re-read the note dated 11th May 2015 from Simon Thompson at Investors Chronicle, in which he summarises:-

"In the circumstances, I rate Pure Wafer's shares a buy on a bid-offer spread of 110p-113p and have an initial target price of 140p-150p, assuming a conservative cash payout of between 100p and 110p a share and a value for the retained US business of 40p a share. The cash payout could easily be more. So ahead of a further announcement from Pure Wafer in mid-June following a consultation with its UK staff, I rate the shares a strong buy."

So, if the cash payout hit the maximum 125p stated by the company, we could be looking at a target price of 165p, or 30% upside on the present share price.

[alan@bj] 07/7/2015 09:24

Rising again this morning. Further news due soon?

[cameo4] 04/7/2015 11:12

at least some of the workers have found employment.
hxxp://www.expressandstar.com/wpmvc/wp/wp-content/uploads/xmlImages/PA/2015/07/P-393b225e-a941-4518-a7d4-28a0c03ea9cd.jpg

[badtime] 03/7/2015 09:55

Conclusion of Swansea Staff Consultation

3 July 2015

The Board of Pure Wafer plc ("Pure Wafer" or "the Company"), one of the leading global providers of high quality silicon wafer reclaim services to many of the world's largest semiconductor manufacturers and foundries as an integral part of their cost control programmes, confirms that it has concluded the period of consultation with staff at its Swansea facility.

On 1 May 2015 the Board announced its proposal not to reinstate the Swansea facility or to resume operations in the UK. Following the completion of the consultation process the Board can now confirm that this proposal will proceed in order to facilitate a return of surplus funds to shareholders once all attendant liabilities have been settled.

The Company will make a further announcement when it has further progressed negotiations with suppliersand creditors affecting the Swansea facility and is therefore in a position to give more guidance on the expected level of the proposed distribution to shareholders. One of the issues to be resolved is the 99 year lease of land at the Swansea premises which is not due to expire until 2099.

The Board would like to emphasise that the Company's facility in Prescott, Arizona, continues to operate successfully and those operations are unaffected by its proposal in respect of Swansea. Indeed, the Group confirms that it is currently making further investment in its Prescott facility which, subject to the successful completion of customer qualification procedures, will take on additional production which has been diverted from Swansea. In the six month period to 31 December 2014, Prescott was responsible for approximately 44% of Group turnover.

[meijiman] 01/7/2015 13:50

In which case the shares are a buy!

[alan@bj] 01/7/2015 13:10

Also, after the payout, the company will still have its operation in Arizona, worth perhaps 35p a share.

[puffintickler] 01/7/2015 12:52

110-125, probably upper end of that range.

[paulturner006] 30/6/2015 20:38

Any guesses as to what the amount returned will be?