Afferro Min Share Discussion Threads

[fairman] 19/11/2013 08:22

I don't like a Board taking a view on the share price. They should drive the business forward and keep shareholders informed. It seems to me that our Board decided that they because the share price had dipped "to a historical low" that they should sell. Surely a historic low is a time to accumulate not to bail out. Why should they think that their 'crystal ball' about the future share price is better than the shareholders. I dont want them to decide when to "sell" tha company - that is the shareholders decision. They should concentrate on their day job and create a profitable mining company - not be short term share traders.

[irenekent] 19/11/2013 08:04

I assume the board are still drawing salaries whilst this slow motion completion continues. If the November deadline is missed then what recourse do we have. Can they be removed? Should they be? I hope other companies who are hoping to flog off their assets to Chinese companies for a swift backhander will start to realise that it is a poisoned chalice as most Chinese companies have no power to complete anything. They are puppets of a corrupt government.

[gheebee] 19/11/2013 08:04

We should be truly grateful that AFF is a Canadian Company so that at least we get regular reminders of just how well the BOD are looking after Shareholder's interests in these difficult times.



"If the Arrangement is completed, the directors of Afferro expect it to deliver a higher value to Afferro Shareholders over a shorter timescale than Afferro could realise were it to continue operating on a standalone basis. The Board of Afferro also expects that completion of the Arrangement will mitigate the potential downside to Afferro's share price in the current challenging market, in which valuations for development companies with large capital cost projects are at historical lows. The directors believe that the Arrangement will also mitigate the risk to Afferro of continuing development with little certainty that full financing will be available for the construction of the plant and infrastructure for the Nkout Project."

Putting aside any discussion on the relative merits of whole life project value estimation compared with short to medium term share price calculations as determinants of shareholder value, it makes one wonder why IMIC are taking this millstone on at all, if they still are.

[yorkie52] 19/11/2013 07:50

Management statement out today. No mention of the Ntem transport study which should have been completed yonks ago. Its disgusting that they are holding back such potentially important information. all they say in the management statement is "Ntem has a key advantage in that it is only 80 km from the port currently under construction near Kribi. The Company estimates that the port could have capacity for a small iron ore operation. On this basis, there is
the potential at Ntem for an initially low volume, but scalable, mining operation"

[yorkie52] 19/11/2013 07:38

Whum, you're 7 months behind the times that was published in April!!!

[whum] 18/11/2013 15:18

just read the Bloomberg report on failed takeovers by Chinese
enterprises, given a large element of this deal involves a tie up with
Chinese state enterprises, a big question mark remains as to the probity
of the deal in light of the new Chinese leadership.-- see

[michaelwhight] 18/11/2013 12:21

Just the difference between the share price and the offer price I guess. No actual tradable valuation as yet I guess.

[whum] 18/11/2013 12:10

outsize-- where did you obtain that valuation?

[allstar_07] 18/11/2013 11:30

Sorry I know Greenroon asked a similar question but I didn't see a reply.Where do we currently stand in terms of dates for the deal going through?

[outsizeclothes.com] 18/11/2013 11:10

Whum, the market's valuing the 40p bonds at 2p, so that should be your answer - at this moment a 5% chance.

[whum] 18/11/2013 08:52

given the foregoing discussions what are realities
of the loan notes being honoured and being paid out
at the end of the period.

[gheebee] 18/11/2013 08:41

The announcement was a joint announcement so it will defo be closed by next Tuesday. Will I have to pay income tax or capital gains tax on my loan note profits?

[brettmo] 18/11/2013 07:38

De-Listing for AFF was last predicted by the BOD to be no earlier than this coming week (21st) and no later than next week (26 /27th I believe) on the basis that IMIC bought the shares with approval of their shareholders. Something seems still to be awry at IMC with no news from them one way or the other.
Very Hanlong-esque with the false dawns dating back to the June announcement.

[gheebee] 16/11/2013 23:18

2phildove

Greenroom78 is almost spot on in answering your question IMO too. It's just that "best buddies" may actually be an understatement.

[6kenny] 16/11/2013 22:51

Any BAO holders on here as we are trying to ascertain fair value for BAO and trying to compare it to AFF?

Tia

[taffer87] 16/11/2013 22:48

Greenroom.. but it hasn't happened yet.. surely its in management's interests to get the deal through ASAP... with all the cash incentives they have..

[michaelwhight] 16/11/2013 14:31

Quite right Green. When talking to Pas I kept having Reggie Perrinesque flashbacks only in this case it was Toad of Toad Hall.

[mufasa3] 16/11/2013 11:16

This is the most disgraceful board on AIM but they are cursed and they will choke on their ill gotten gains. The only Bod who make it very clear that their interests are different from that of the shareholders. They will struggle to get support for any other ventures.

[effortless cool] 16/11/2013 10:49

Yes, you have gone from roughly one operational update a month to nothing since June.

Just another aspect of the disgraceful behaviour of the board here.

I sold out some time ago for a loss. I don't trust the board and I certainly don't trust IMIC.

[diesel] 16/11/2013 09:24

I know most of us here are harbouring bitter feelings towards this deal, but one of the things that concerns me is the complete embargo on operational news from AFF since the offer, is this legal?

[greenroom78] 16/11/2013 09:16

Because management rolled over and had their tummies tickled, got their options/bonds paid out in cash and because IMIC are best buddies with our BoD and especially Guy Pas (IMO obviously).

[2phildove] 16/11/2013 08:53

Hold shares in another mining giant to be.....
In a few sentences, anyone care to advise why the take out price was so low here. My understanding is the resouce was pretty good.
Thanks

[2xs] 15/11/2013 08:52

Carla, i bring your attention to page 68 of the information memorandum of the deal. My reading of this is we will be hit for income tax on the difference between the at price at which we get the notes (determining a price will be difficult but I'm sure hmrc will have a low one)and the price at which we sell / or they mature. This is currently how HMRC treats deeply discounted securities. Some on this board disagree with me but i think its pretty clear cut.

Pg68

Income tax
Individuals who are resident in the UK for tax purposes and who hold Convertible Notes may be liable to UK income tax (under Chapter 8 of Part 4 of the Income Tax (Trading and Other Income) Act 2005) on the profit realized on a disposal of a Convertible Note (whether on redemption, sale or transfer of a Convertible Note or on conversion of a Convertible Note into IMIC Shares). For these purposes the profit realized on disposal is, broadly, the amount by which the proceeds received on disposal of a Convertible Note, or the market value of any IMIC Shares issued on the conversion of a Convertible Note, exceeds the market value of the Convertible Note at the time when it was issued, less certain costs.
Individuals who are resident in the UK for tax purposes may be liable to UK income tax on interest received on Convertible Notes. For individuals, interest is normally taxable in the tax year in which it is received.

So they will be treated as deeply discounted securities.

[irenekent] 15/11/2013 08:09

Lets wait until we get them - if ever.