Archipelago Resources Share Discussion Threads

[contrarian2investor] 27/9/2013 12:32

I already hold AAZ, so I have bought some more this morning with the cash due from AR. Wish me luck. GLA

[yorgi] 27/9/2013 11:59

Very true but nothing we can do about it sadly.

[contrarian2investor] 27/9/2013 11:51

Hi all fellow AR. shareholders,

As private investors we have been robbed by the very people entrusted to run the company!


Courtesy of Proactive Investor. Please ensure you read the last paragraph. It is very telling!



Archipelago Resource (AR/LN)– Offer for company
• Archipelago Resources shares jumped today on the announced offer for the company at 58 pence per share.
• The offer values the business at £338m .
• Archipelago Resources is not currently subject to the City Code on Takeovers. We suspect the offer has been timed just ahead of the rule change on London listed companies with overseas directors adhering to the UK Takeover Code which comes in on Monday.
• Investors are warned that if they do not accept the offer then they might get stuck with less liquid paper in an unlisted company.
. "the Offer is not governed by, nor do all the terms comply with, the City Code and, following consultation with the Takeover Panel, the City Code will not apply to the portion of the Offer Period that extends beyond 29 September 2013. Accordingly, Archipelago Shareholders will therefore not be afforded the protections of the City Code in respect of the Offer."
. Management target gold production of 140,000-155,000oz this year at a cost of US$620- $680/oz net of silver credits.
§ Good production rose 20% in H1 to 72,636oz of gold produced with a 46% yoy increase in production in Q2 to 41,061oz
§ The company reported cash and cash equivalents of $108.1m at the interim.
Conclusion: We see the offer as opportunistic. The company is proving its value through recent gold production increases and this has reduced cash costs to $618/oz. We have to wonder why Archipelago was not previously advised to take up the UK Takeover Code for better shareholder protection as other miners have done?

[lfc4ever] 27/9/2013 09:01

They have timed their move pretty well.

I don't quite get the anger here.

First, Raj I think played a very large part in overcoming the local difficulties- without them we might not be mining at all, and might not have a company to sell at all.

Secondly, given that they had such a large % shareholding it was plainly the case, imo, that at some point they would seek a complete takeover. I have raised this as a possibility on this board in the past. ANyone who bought in post the raj involvement and did not take that into account is indeed a mug punter and deserves no sympathy.

Thirdly, gold has the jitters. It is a very different environment from last year when Colin was looking for £1 a share.

But for this move, if there was further weakness in gold, I think that a further retreat to 40p could have been a distinct possibility.

those who bought at hihger levels will have done so when the outlook on gold was rather different. so gold investments have proved to be not so good over the last 18 months- deal with it .

I am not too unhappy wiht 58p as an exit point.

[ironstorm] 27/9/2013 08:39

Sad to see this go - lucky to get out well ahead.

They are certainly getting a bargain. Good luck all.

hxxp://ironstorminvesting.blogspot.co.uk/

[juhelmiah] 27/9/2013 08:38

REM.That is all.

[el1te] 27/9/2013 08:36

Moved Archipelago off my Buy Rating now. I expected this to go a lot higher during 2014 (towards 80p) so disappointed with the 58p bid which fell short of my 2013 year-end target.

If anyone is looking for a smaller gold explorer (soon to be producer), I covered Serabi Gold (LSE:SRB) in my two-part gold series:


May be worth a look. Good luck with all your investments elsewhere, I won't be re-covering Archipelago.

El1te

[juju44] 27/9/2013 07:53

dont think i will put my returned cash into another miner

[jbravo2] 27/9/2013 07:50

This is indeed a low offer. No doubt everyone approving the deal gets their lovely slice of cake.
Am going to stick my profits into AAZ. Resource upgrade due on Monday

[yorgi] 27/9/2013 07:49

I agree but sadly we "small" PI's often suffer this outcome.

[juju44] 27/9/2013 07:43

been here a year from 60p - gutted .Feel like i have been raped. This is theft
What divi

[p4ulinho] 27/9/2013 07:41

outragegeous,

BTW anyone got their divi today

[juju44] 27/9/2013 07:30

usual corruption making idiots out of mug punters

[el1te] 27/9/2013 07:20

Precisely! After all the talk of Archipelago making an acquisition, it is them who have been poached, and from within!

[daneswooddynamo] 27/9/2013 07:18

funnily enough the market makes it a slam dunk considering that the bidder already has over 50% and hoovering up more as we speak at 57.5

[el1te] 27/9/2013 07:16

Hmm, interesting development. I had a 60p target for Archipelago. Let's see what the market makes of it.

[yorgi] 27/9/2013 07:02

That is a pity, a great company with great potential for the long term......yes probably is worth more.

[spellbrook] 27/9/2013 07:02

so a few in the know get in with quick large 100k & 200k buys for a quick profit..

[silverfern] 27/9/2013 07:01

appalling really

[juju44] 27/9/2013 06:59

is that all this is worth ?

[spellbrook] 27/9/2013 06:59

thats why we have had the large buys over last 2 days...hmmmmmmmmm

[contrarian2investor] 27/9/2013 06:58

Not happy, AR. is getting taken over cheaply for 58p. Yes, I made have a nice return but this offer severely undervalues the company. I will now have to keep digging and find some other mining opportunities.

Archipelago Resources plc ("Archipelago" or "the Company")

Unconditional Recommended Cash Offer

by PT Rajawali Corpora to acquire the entire issued and to be issued share capital of Archipelago Resources plc not already owned by PT Rajawali Corpora or its associated undertakings.

[p4ulinho] 26/9/2013 17:38

I speak and the market listens..LOL..
but LFC gold taken down again, back to 47 again tomorrow no doubt