African Aura Share Discussion Threads

[horneblower] 07/4/2011 10:38

There's going to be a strange hiatus between the 8th and the 13th. If you sell AAAM during that interval you then don't own the shares and won't get your AUM entitlement. The price therefore should reflect that so I am expecting a large drop in price tomorrow (40%?).

If you WERE TO GET the AUE shares having sold in the interval, then everyone should sell first thing tomorrow until the price drops to where they think the AFF price should be.

Fireworks tomorrow morning?

[zangdook] 07/4/2011 10:36

OT - Cote d'Ivoire

I take your point about OT, longsight (8462), but since you and several others have since posted on the (general) subject I'll take the liberty of adding this link:



I know Republicans are often nuts, but since 99.9% of our politicians and media are on the same page on this it's worth reading one who is not. IMV this guy has it right.

""I do know that the French have always had pretty much control of the government in the Ivory Coast and that's just the way the French operate, until President Gbagbo got there and, of course, the French have been running against him ever since that time. And, the current opponent, Ouattara, is no exception; he is the chosen one by the French and, quite frankly, they rigged the election," said Inhofe."

[parthus] 07/4/2011 10:34

unionhall and longsight: Thank you both

[unionhall] 07/4/2011 10:30

Longsight - that would be determined by whether the sale was recorded before 13th. If it were then the AAAM shares would not be recorded as yours on the official list on the "record date" and you would not get the AUE shares.


Whichever way it goes - not worth taking any risk Imho.

[longsight] 07/4/2011 10:29

I hope my prior post is not misleading in view of unionhall's info.

[unionhall] 07/4/2011 10:25

parthus - that is my reading of the situation....


As all the data is firmly in the public domain I guess they don't believe suspension is warranted - just my guess.

(By the way I am subject to correction on the above but the wording of the announcement seems pretty precise.)

[longsight] 07/4/2011 10:25

unionhall - my understanding is slightly different. Shares trade today for the last day with entitlement to AUE shares. From tomorrow AAAM [or Affrero] trades ex entitlement but will therefore be correspondingly cheaper. If you sold them tomorrow, you will still get your AUE on the 13th. Where I think there might be upside from all of this is my instinct that the AAAM price tomorrow might not fall that far & when AUE then starts trading on 13th the market will have to accord it a reasonable value - so from the 13th those still holding AAAM i.e. AFF & AUE might find they have an immediate revaluation upwards.

[parthus] 07/4/2011 10:21

unionhall: So (after today) if it would be madness to buy AAAM before the 13th...and foolish for any holders prior to tomorrow to sell... there should be zero trading till the 13th.... I think they should suspend the shares after today and reopen on the 13th...

[unionhall] 07/4/2011 10:17

7 April 2011


Last day of dealings in African Aura Shares (with the right to receive Aureus Mining Shares) for settlement purposes
------------------------------



8 April 2011 at 8.00 a.m. GMT


African Aura Shares marked "ex-entitlement" (i.e not having the right to receive Aureus Mining Shares) by the London Stock Exchange for settlement
purposes
------------------------------



13 April 2011 5.01 a.m.GMT


Record date for purposes of determining African Aura Shareholders entitled to Aureus Mining Shares

[unionhall] 07/4/2011 10:15

AAAM will be quoted tomorrow but any shares bought will be ex-entitlement ie no AUE share will attach to them.

It would be madness for any sells tomorrow or Monday as the seller would lose the AUE share - ie the AAAM shares must be bought today or before and held until 13th to be allocated a UAE share.....


AFAIK....

[parthus] 07/4/2011 10:08

longsight: Are you saying that AAAM will not be quoted from tomorrow , but Affrero instead ? And AUE will only be quoted on the 13th, hence an obvious drop in Affrero ?

Many thanks

[longsight] 07/4/2011 09:21

Looking at share price post split. Very intruiging! I suppose one possibility is that Affrero trades ex AUE tomorrow & yet the share price doesn't drop very much say 60p. Then when AUE opens on 13th the market might kick off with £1.40. Just some off the wall thoughts! The market is nuts anyway. Why did the share price suddenly move up post the EGM? Everyone knew it was a 100% foregone conclusion that the split wd be approved.

In any case, I agree with Luis on this. The 2 businesses are far too lowly valued at present so if this "2 for the price of 1" idea really takes off we might be pleasantly surprised on the SPs of the 2 Cos.

[longsight] 07/4/2011 09:13

banter - belatted response. My 3 favourite stocks are HK2233 [WCC], WTI & AAAM. I'm not a particularly savvy investor so please don't take this as any sort of recommendation. The selection is resource based so subject to macroeconomic risk [& other risks!]. My perspective is long term i.e. 2 to 5 years or longer. My objective is large cap gains. There are lots of other shares I might be keen to invest in but I haven't had the time to research them in depth yet.

[unionhall] 07/4/2011 08:04

hero = AFF is set up the same as this and the AUE thread - It will come right for you - before 13th April here is the place to be in any case....

[roverite12] 07/4/2011 08:03

Hero - I don't believe any BB for the 2 new companies will have ben set up pre split . Give it a few days .
Well done to thoes who make this the most informative BB about . Cheers

[ridicule] 07/4/2011 07:56

freegirl You make an interesting point. I have been able to 'put through'in my nominee accounts in the past, but not when dealing with my ISA accounts. I use Jarvis Investments.

[freegirl] 07/4/2011 07:43

@cupra kid

alternative to bed and isa is a 'put through'. May depend on your broker. Both buy and sell 'put through' at same end of spread, you can elect which end although not sure why one would elect the upper, possibly pay a turn(can be paid outside of isa funds), and broker commision. Barclays will do it and it should work out more cost effective than bed and isa.
Good luck

[hero2] 07/4/2011 07:36

unionhall-many thanks for your efforts.like others, I can't access AFF on the free bb-am I doing something wrong?(I know I'm not a real trader!)

[ridicule] 07/4/2011 07:29

Hetrsbirder I think today is last day that one can invest and get the AUE share not tomorrow when I think it will have gone ex-rights?

"Luis da Silva, President and CEO of African Aura commented:

"I am delighted that the proposed split of the Company's assets has been approved by shareholders today. The management believes a real opportunity exists for investors to buy-in to the split concept and the upside that they believe will be created by holders receiving two new shares in the resulting pure iron ore and gold entities, Afferro and Aureus, respectively. The last day of trading in African Aura with the right to receive a share in Aureus Mining will be 7 April 2011."

[chrisis33] 07/4/2011 03:06

Hetrsbirder - thankd for the presentation link some days ago. I'm just back from a few days hols, with fresh ISA funds ready to invest tomorrow. The gold looks very exciting, and it's interesting to hear that the Putu resource is from just 50% of the ridge. Nkout speaks for itself.

[j1nxed] 07/4/2011 02:05

when it comes to the share price for AFF and AUE post split i'm going to be very conservative and go for the lowest possible attributable value to their resources

AFF = $3,7 (mcap of $344m)

this is based on spheres EV/Total FE multiple which could be considered outdated but it has the lowest value among AAAMs peers in africa

AUE = $1,29 (mcap of roughly $120m)

This is based on $80/oz and 1,5m Oz


as you can see there is plenty of upside since this is practically today's mcap based on the lowest possible values. I Think we're going to have a pretty decent news flow over the next few months for both companies (second half will be massive for the iron ore) which is going to gently increase the values of both companies and my gut feeling is that they will both double in value by the end of the year from my conservative estimations

[ridicule] 07/4/2011 00:24

Cupra Kid In answer to your question, I bed & Isa'd part of both mine and my wife's holdings that were outside the ISas. I chose to keep the same number of shares and paid cash for the dealing costs and the spread using a debit card. The deals were struck at 08.15 311p -312p (1p spread). Cash cost of circa £89 per deal and 3416 shares transferred into each ISA. Hope this helps answer your question.

[unionhall] 06/4/2011 22:43

cheers processwhite - no problem to me - nice of you to say....

[processwhite] 06/4/2011 21:03

Unionhall, before we spilt can I say a big thanks for the management of this thread. I've been a very grateful silent user for the last 18 months or so and wanted to thank you for your effort. I look forward to double value in the future.

[franciso1] 06/4/2011 19:55

Apr 5, 2011 287.40 309.11 287.40 309.11 2,707,800 309.11
Apr 4, 2011 289.36 290.00 289.36 290.00 615,200 290.00
Apr 1, 2011 286.40 288.36 286.40 288.36 209,700 288.36
and today more than 2 millions