Galahad Gold Share Discussion Threads

[cestnous] 23/9/2007 11:55

What will 'contingencies' cost, I ask myself?

[tiltonboy] 21/9/2007 13:25

ND,

Perhaps my dealer couldn't find the seller. As you say, you need to get a bit lucky.

Looks like I'm not going to get any more...even at 16p.

tiltonboy

[nil desperandum] 21/9/2007 12:56

Looks like RAB sold ~9m yesterday - although that's more than the volume - there was certainly a 5m X at 16p at the close.

Tiltonboy: I pay my broker a lot of money to do such deals ... and you've got to get a bit lucky as well. At first we were offered at 16.1, then 16 but I held out and a few mins later they came back at 15.75 ... probably the MM trying to shift for RAB I guess?

If you're confident of 18p in 4 months, then if you can get them at 16p and keep the expenses down there's still a good 10% - well worth having given the negligible (famous last words!) risk!

[renew] 20/9/2007 14:42

Best I was offered was 15 .98 Not enough in it at that.

[tiltonboy] 20/9/2007 14:26

ND,

How have you managed that? I've got business left in the market at those levels, and can't deal.

I agree with your thoughts BTW.

tiltonboy

[nil desperandum] 20/9/2007 13:01

Well I reckon 18p is pretty certain with a chance of some upside. So I've bought another 200k @ 15.75 (15.5-16.25 so there may be a reasonable amount of stock around). 10%+ in 4 months or so seems good to me in these markets.

Touch wood - minimal downside!

[fez] 20/9/2007 07:43

From the Liquidation note using closing prices on 13th Sept:

Galahad's 5.5% shareholding in Quadra was approximately £23.9m. (Now sold for £24.4m)
Galahad's 2.9% shareholding in Niger Uranium was approximately £1.4m. (Now sold for £1.2m)
Galahad also has contingent rights to additional consideration that could become payable under the contract for the sale of shares in Northern Dynasty Minerals Ltd to QIT-Fer et Titane Inc, an affiliate of Rio Tinto plc. (No idea what that is worth)

So we're actually up another £0.3m - small beer on the total cash pile of 164.7+24.4+1.2 = £190.3m

Nice to see the company moving so swiftly.

Regarding Niger Uranium (URU) massive markdown likely caused in part by GLA's liquidation - may even be a buying opportunity there.

[pomp circumstance] 18/9/2007 16:23

not a good start for Niger Uranium down 25% today!!!

[nickcduk] 18/9/2007 13:10

Any idea of what they might do with the RIO call option. That must have some intrinsic value which they won't be able to liquidate.

[tiltonboy] 18/9/2007 13:05

ND,

I am also hoping they have been overly conservative with the tax assumptions.

I'm sure they would like to surprise on the upside, rather than t'other way.

tiltonboy

[nil desperandum] 18/9/2007 12:44

I think 18p includes nasty assumptions on the tax - i.e. all payable. There may still be a bonus to the 18p IMHO.

[tin123] 18/9/2007 11:20

Thanks for that, maybe worth a punt, cheers and good luck

[tiltonboy] 18/9/2007 11:12

tin,

I think it is "free" money.

The 18p is a fully diluted figure i.e after the conversion of warrants.

Between 2000-2002 I played a dozen or so cash shells that had stated that they were going into liquidation. In what was a very poor period for stock market returns, I had superb performance. The lowest return I had was 8% (J2C), with the highest 32% (Pure Entertainment).

There may only be a 10% return on this one(subject to a sale at a decent price of Quadra), but over 4 months, that represents a worthwile investment IMHO.

All of the above is subject to a satisfactory conclusion on the tax liabilities, but I believe these have been accounted for.

Obviously DYOR.

tiltonboy

[tin123] 18/9/2007 11:02

tiltonboy

I assume you are gambling on getting 18p, which is why I am confused. If the return is going to be 18p, why isn't everyone buying, surely that's free money. I expect there are concerns over warrants etc and the carve up from the liquidation, and we may get sub 10p a share ! Anyone any ideas

[tiltonboy] 18/9/2007 10:33

I've picked a few up this morning at 15.6p and 15.7p.

[tin123] 18/9/2007 10:27

"The net asset value of Galahad as at 13 September 2007 is estimated to be approximately 18p per ordinary share on a fully diluted basis (see Note 2). Until the liquidation specialists have assessed the amount that needs to be retained to cover actual and contingent liabilities, it is not possible for the Directors to provide guidance as to the exact amount of the proposed pre-liquidation dividend or amount of distributions to shareholders by the liquidator"

Any views on how much, if anything !!, shareholders can expect to get back per share. Should I bail out now !

[pomp circumstance] 17/9/2007 14:56

Tnanmks for that input Capt Jim or is it Capt James Slater! LOL!!!

[captj] 17/9/2007 12:55

they've done me proud as held for years. In a previous life they gave me back all my investment as a dividend but I still retained shares carried forward to this which has gone up nearly 300% before now going defunct. Slaters don't often lose you money and since its a capitalist world am not about to berate them for lokking after themselves when they turned me a good profit

[pomp circumstance] 17/9/2007 08:04

I reckon the have spent company time looking for new investments.
They have figured out they dont want to share them with everyone.
I will be very suprised if we dont see a new company started by them in which they have a bigger stake for less money and invest in soft comodities.
bit cheeky if you ask me!!

But then thats the Slaters for you!

[tiltonboy] 14/9/2007 15:20

I've bought some at 16p, with more left in the market to do.

[nfranks] 14/9/2007 14:59

Am I understanding this correctly????? Shares cost 16.25p at the moment but we'll get 18p four months down the line!!! Why isn't there loads of buying???

After rereading the RNS I'll have a go at answering my own question.

I suppose the 18p is dependent on the price of those other mining shares which might go down as well as up!!!!

[plain vanilla] 14/9/2007 13:26

Very nice, 18p on is way back to shareholders...


Galahad Gold plc

("Galahad" or "the Company")



Board to seek shareholder approval for a voluntary liquidation of the Company

and return of cash to shareholders



Proposed adjournment of EGM convened for 19th September 2007





Introduction



In the circular to shareholders dated 20 August 2007, Galahad set out a proposed
new investment strategy to be considered by shareholders at an EGM to be held on
19 September 2007. The circular also outlined the Board's intention to effect a
substantial return of cash to shareholders before the end of the year and to
change the name of the Company to Galahad plc.



Following further extensive analysis of the issues involved in implementing the
proposed strategy, the Board has today concluded that a voluntary liquidation of
Galahad is in the best interests of the shareholders. Accordingly, the Board
intends to convene an EGM to consider a resolution for the voluntary liquidation
of Galahad. It is also proposed that the EGM convened for 19 September 2007 be
adjourned.



Background to and reasons for the proposals



The following factors have led the Board to conclude that the voluntary
liquidation of the Company including a return of cash realised from the disposal
of the mining investments would be in the best interests of shareholders:



* As noted in the Circular dated 20 August 2007, the Board considers the
market for mining companies to be considerably more mature than when it made
its initial investments in the sector. In the period from June 2003 to 31
August 2007, the annualised rate of return on the Group's investing
activities was 69.4% (see Note 1). Given the increase in metal prices since
2003, the Directors believe that investments in the mining sector are
unlikely to deliver the attractive returns that Galahad has achieved in the
past.



* Galahad has been researching other investment opportunities including soft
commodities, such as grains, other crops, livestock and dairy products. In
the view of the Board, the opportunities in this sector are attractive.
However, the Company's investigations into investments in the soft
commodities sector and the development of the infrastructure and expertise
to enable the Company to invest and manage investments in the sector are at
a very early stage.



* As currently constituted Galahad is subject to legal, regulatory and
taxation regimes that are not conducive to the efficient implementation of
the new investment strategy.



* It has been Galahad's stated intention for some time to return to
shareholders a substantial amount of cash realised from its mining
investments. After taking extensive professional advice on the legal,
taxation and regulatory implications, there have proved to be insuperable
complexities in achieving both a substantial return of cash to shareholders
and at the same time the implementation of a new investment strategy.



* Over the past year, Galahad shares have traded at a discount to the
estimated net asset value of the Company. The Board expects that the
disposal of the remaining mining investments and subsequent voluntary
liquidation of Galahad will enable the full value of Galahad's shares to be
returned to all shareholders.



Liquidation process and timetable



The Company is intending to reorganise its share capital to allow shareholders
to elect to receive the majority of their return as a dividend before the
liquidation commences. It is intended that shareholders who do not elect to
receive the proposed pre-liquidation dividend will be entitled to receive an
equivalent interim distribution in the liquidation. Thereafter, all shareholders
will be entitled to participate equally in any subsequent distributions made by
the liquidator. Galahad has been advised that distributions made in liquidation
should be treated as a return of capital for UK tax purposes.



The Board is working with its advisers to draw up a liquidation proposal to put
to shareholders at the earliest opportunity. It expects to send a circular
outlining the proposal to shareholders in early November. A provisional
timetable for the liquidation is set out in the Appendix to this announcement.



Galahad will be engaging a firm of liquidation specialists to provide an
independent assessment of Galahad's assets and liabilities. These specialists
will advise the Company of the amount that will be needed to be retained on a
prudent basis during the liquidation process to cover actual and contingent
liabilities. This in turn will allow the Directors to settle on the proposed
level of the pre-liquidation dividend and provide shareholders with an estimate
of the likely level of the equivalent interim return of capital to be made in
the liquidation. Once this is determined, Galahad will issue a circular
convening two EGMs, to be held approximately one to two weeks apart. The first
EGM will seek shareholder approval for the reorganisation of the share capital
of Galahad to enable the payment of a pre-liquidation dividend. The second EGM
will seek shareholder approval for the appointment of a liquidator, who will
settle the Company's liabilities, effect the initial return of capital in
liquidation, realise any residual assets of the Company and make any subsequent
return of capital to shareholders.



The proposal is subject to further detailed review and development with the
Company's advisers, including the liquidation specialists, and will necessitate
an application to HMRC for tax clearance.



Current financial position



On 13 September 2007, Galahad had cash and cash equivalents of #164.7 million,
and shareholdings in Quadra Mining Limited ("Quadra") and Niger Uranium Ltd ("
Niger Uranium"). At the closing middle market price on the TSX on 13 September
2007, the market value of Galahad's 5.5% shareholding in Quadra was
approximately #23.9m. At the closing middle market price on AIM on 13 September
2007, the market value of Galahad's 2.9% shareholding in Niger Uranium was
approximately #1.4m. Galahad also has contingent rights to additional
consideration that could become payable under the contract for the sale of
shares in Northern Dynasty Minerals Ltd to QIT-Fer et Titane Inc, an affiliate
of Rio Tinto plc.



The net asset value of Galahad as at 13 September 2007 is estimated to be
approximately 18p per ordinary share on a fully diluted basis (see Note 2).
Until the liquidation specialists have assessed the amount that needs to be
retained to cover actual and contingent liabilities, it is not possible for the
Directors to provide guidance as to the exact amount of the proposed
pre-liquidation dividend or amount of distributions to shareholders by the
liquidator.

[grgkecer] 12/9/2007 07:14

Niger Uranium Limited


Admission to AIM


Niger Uranium (URU) has commenced trading on AIM today.

[nil desperandum] 27/8/2007 20:08

Is this the article?


I think 18-19p is about right...

[grgkecer] 27/8/2007 14:28

Not just one, apparently. From the August 20th RNS announcement:

Investment decisions will be made by the Board of Directors, which both collectively and individually has many years of experience in selecting and managing investments. Galahad has also retained experienced specialists in metals, minerals and agricultural commodities to evaluate and, where appropriate, manage its projects. In due course this management expertise may also be used to generate fees from third parties.