Base Resources Share Discussion Threads

[meanreverter] 24/4/2024 22:39

Goehring & Rozencwajg, resource-sector analysts whom I respect a lot, predict a tight uranium market over the next few years, squeezed especially by production problems at Kazatomprom. That would be good for other uranium producers such as Energy Fuels Inc.

From a wider perspective, I'm not a fan of uranium. However, in present circumstances, I won't feel the need to hurry in selling my UUUU shares if the deal with Base goes through.

[plasybryn] 24/4/2024 09:10

Bse interviewHttps://www.proactiveinvestors.co.uk/companies/news/1045990/base-resources-soars-90-on-merger-news-with-energy-fuels-to-forge-global-minerals-leader-1045990.html

[brownmruk] 22/4/2024 21:31

A discount on that basis is appropriate. There is risk: deal may not complete; exchange rate movements between CAD, AUD and each individual's local currency; share price fluctuation of EFR. There may be costs depending on individual circumstances: dividend tax; exchange fees; CGT.

[mjneish] 22/4/2024 18:54

Not sure whether I am looking at this correctly, but here goes.

Under the terms of the Transaction, Base Resources shareholders will be entitled to receive 0.0260 Energy Fuels common shares (Share Consideration), plus A$0.065 in cash via an unfranked special dividend payable by Base Resources (together, the Transaction Consideration), for each Base Resources share held.

So say you own 10,000 shares in BSE on the LSE.

At 12p per share mid-price, this is worth £1,200.

At the above rate, this is converted to 260 shares in UUUU. This is worth US$1,375 at the current mid-price, or £1,113 at the current exchange rate. So a slight loss there.

However, the special dividend is A$650 or £339.30 at the current exchange rate.

So £1,200 becomes £1,452.30 as everything stands currently, after the huge share price appreciation since last night.

A look at the chart for UUUU shows a very depressed price. Should this recover, then of course the gains will be greater. Does anyone know anything about UUUU and why the price is at the bottom of the three-year trading range even though shares with exposure to uranium have done very well lately?

EDIT: this means that there's around 20% upside left in the shares before they become fair value relative to what they are worth when converted to shares in UUUU and the special dividend is paid out. This will of course be wiped out if UUUU falls 20%. At any rate, it's the price when the deal goes through in a few months' time that matters for a fair comparison, so one could maybe argue that a discount is appropriate.

[plasybryn] 22/4/2024 17:27

Seems a bit like pump & dump activity over on LSE. Talk of 50p shareprice. Where do all these people suddenly come from. Where is Jane. Hope you benefitted from today.

[stealive] 22/4/2024 16:03

UJO about to fly

[brownmruk] 22/4/2024 15:29

So with EFR down about 9% on the news, I make that about 0.28 AUD or 0.146 GBP
per share.

[mondex] 22/4/2024 12:37

Many thanks Plasybryn for the updates.
This takeover results in Base becoming a growth stock rather than an income one. Any thoughts on the tax exposure as UUUU is an NYSE stock?

[plasybryn] 22/4/2024 11:38

Great presentation by Tim. Very confident and strategically switched on. Seems like a very good move. Well done for keeping something this big under wraps.

[mjneish] 22/4/2024 10:50

I'm actually hoping that it goes down now to give us all yet another bite at the cherry.

[plasybryn] 22/4/2024 10:29

I suspect there will be a number of what one might term loose investors who will jump ship at the earliest opportunity. They will move on soon enough. New Institutional investors will want to mull on the details and listen to todays Webcast etc. I suspect the share price will continue to creep north (fair value is circa 16p plus) as we get closer to sign off. It wont be hard for some who have already shown a lot of patience to hold tight for a further re-rating. In the meantime perhaps we will also get news on Fiscal Terms.

[brownmruk] 22/4/2024 10:07

Yes, quite a discount. Interesting to see how the EFR share price reacts on opening.

[meanreverter] 22/4/2024 09:59

Based on the NYSE American closing price for UUUU at $5.84 and current exchange rates for USD and AUD to GBP, I make the value of 0.026 UUUU shares plus A$0.065 to be 15.66p. This compares with the present LSE quote of 9.93p for Base Resources.

[plasybryn] 22/4/2024 09:41

The Transaction Consideration implies an offer price of A$0.302 per share3 and a total equity value for Base Resources of A$375 million4, and represents a premium of:188% to Base Resources' last closing price of A$0.105 per share on 19 April 2024.173% to Base Resources' 20-day volume weighted average price (VWAP) to 19 April 2024 of A$0.111 per share.Following implementation of the Transaction, Base Resources shareholders will hold approximately 16.4% of the combined group, which will have a pro forma market capitalisation of approximately US$1,144 million5.

[plasybryn] 22/4/2024 09:39

As outlined above, the Scheme is subject to several conditions, including approval of Base Resources shareholders at a Scheme Meeting, which is expected to be held in late July / early August 2024.If the Transaction is approved by Base Resources shareholders and the other conditions precedent are satisfied or waived, the Scheme is expected to be implemented in the third quarter of 2024.

[plasybryn] 22/4/2024 09:37

Managing Director of Base Resources, Tim Carstens, said:"This Transaction, which is the culmination of 12 months of discussions between Base Resources and Energy Fuels, reflects the exceptional quality of the Toliara Project and the efforts of the Base Resources team over the past several years to advance the project towards construction readiness. The combined group will have the financial and technical capability to not only build Toliara into one of the best critical mineral projects in the world, but also to develop an integrated value chain for the rare earth elements that are essential to the global energy transition. Shareholders of Base Resources will receive both a compelling and immediate premium, and the opportunity to further participate in the market recognition and development of a company with a unique diversified position in the critical minerals landscape."

[mondex] 22/4/2024 09:02

"Base Resources shareholders to receive 0.0260 Energy Fuels common shares plus an unfranked special dividend of A$0.065 for each Base Resources share held, equating to total consideration of approximately A$0.302 per share."

This is equivalent to 16 p per share or am I missing something?

[plasybryn] 22/4/2024 08:55

Webcast at 11 am todayhttps://registrations.events/direct/OCP5249348

[farrugia] 22/4/2024 08:21

i actually had added - anyone selling here seems to be selling early

[mjneish] 22/4/2024 07:56

I held on as well. :) Was starting to have my doubts though.

[plasybryn] 22/4/2024 07:40

I think i must have been the last man standing here. Glad i held on.

[plasybryn] 22/4/2024 07:21

"Represents a premium to Base Resources' last closing price of 188%, and a premium to the 20-day VWAP of Base Resources shares of 173%"