Galahad Gold Share Discussion Threads

[fuiseog] 20/12/2007 09:23

And then of course there is always the fees and costs that liquidators incur, not easy to budget for.

Fuiseog

[tiltonboy] 20/12/2007 08:50

nick,

They have taken extensive taxation advice, so I would be surprised if anything comes up, but as you say, it is not cut and dried.

tiltonboy

[nickcduk] 20/12/2007 08:37

The tax issue for me isn't as cut and dry as the rest of you seem to assume. I will wait on the sidelines until nearer the EGM date before I take a position. I am sure there will be sellers between now and then if markets continue to remain edgy.

[skyship] 20/12/2007 08:15

nickcduk - I agree with Tiltonboy, in liquidations you invariably receive yr cash in 2-3 tranches - one big payout followed by two much smaller payouts as affairs are wound-up.

Unfortunately I was out yesterday afternoon so missed the opportunity to pick up some cheap stock - however added another 100k @ 16.65p this morning - a fantastic deal - assuming 19p that will be a 13.4% turn in less than 3months.

[pomp circumstance] 19/12/2007 20:45

keeping 20mi back to pay their wages ;)

[tiltonboy] 19/12/2007 20:32

nick,

First up, they never said they were going to pay 18p, it was posters deducing that.

Secondly, the 2.37p is to cover unforeseen liabilities, so they obviously do not expect to have any.

I agree it's not clean, but invariably in a liquidation that is the way it is. In receiving the current share price in cash imminently, I can wait for the balance.

I still think it is a good deal.

tiltonboy

[nickcduk] 19/12/2007 19:21

The 2.37p put aside for tax contingencies is of concern. They were pretty sure of their position when they said they would return 18p. The fact they are now going to hold it back suggests its still very much in the air whether or not they will get it. It is quite disappointing news and not the clean 18p cash return we were promised.

[fez] 19/12/2007 17:47

Yes

Excellent spot which I missed even on second reading...

There is also the possibility of another 0.66p from the contingent rights from the Northern Dynasty sale but the company expects the likelyhood of a payout from this as 'unlikely'

Also I was wrong on timing - earliest first payment date is 15th Feb.

[tiltonboy] 19/12/2007 17:21

fez,

You've missed one out, and something I missed on my first read. In appendix 1 there is this:

" It is estimated that interest receivable by the Company on its cash deposits
after 30 November 2007 to the expected date of the first interim distribution in
liquidation, potential tax credits on the exercise of employment related options
and expected mitigation of the staff termination payments could amount in
aggregate to an additional 0.48 pence per Ordinary Share on a fully diluted
basis. The amount realised is contingent on interest rates available and also on
the occurrence and timing of certain events in the future."

I expect to see nothing from Northern Dynasty, so hopefully we will receive:

16.5p cash + 2.37p contingency(only unforeseen tax matters will affect this) + 0.48p interest and tax credits = 19.35p.

I'm sure the company would not have put figures to the last two items if they were not fairly confident of achieving them.

Well happy with this announcement. Picked a few up at 16.4p and will try and buy a few more cheap one's.

tiltonboy

[fez] 19/12/2007 16:42

Not the definitive answer we'd like but we're being held-up by government dilly-dallying...



Looks like we'll be getting:

Dividend - 16.5p (possibly as early as January but can be deferred until next tax year)
Contingency - 2.37p (held back to cover unforeseen liabilities and pending the review by HMRC of final corporation tax returns)
Additional - ??? (Galahad still hold contingent rights to additional consideration that could become payable under the contract for the sale of shares in Northern Dynasty Minerals Ltd)

Sounds good to me...

[tiltonboy] 19/12/2007 13:47

nick,

I understand there is a board meeting today to discuss the circular. I believe the delay is down to the new CGT rules, and would therefore concur with your comment that there may be a mechanism introduced to defer payment until the new tax year. Hopefully, those that want a payout sooner, will get it.

If there isn't an announcement tomorrow I will chase them.

tiltonboy

[nickcduk] 19/12/2007 13:21

Silence is deafening. I don't think we are likely to get the EGM circular sent out this side of christmas. There would surely be too much of a risk of it getting caught up in the christmas post and getting lost. It will probably be next year now. Reading through the last RNS I get the feeling they might even try and delay returning cash until after April. It seems as though some of them want to take advantage of the lower CGT on offer after that date.

A board meeting is currently in progress so we should get some news soon.

[paulbullet66] 17/12/2007 09:37

Thanks for that Fez, thought it was quite interesting, especially bit about Brazil

Paul

[tonytravel] 17/12/2007 09:24

My broker informed me that payment is due on 7 january 2008.
Does anyone agree with this ?

[fez] 14/12/2007 16:04

Interesting presentation from Jim Slater from recent Minesite where he talks about Galahad, Buffett, his next venture, and Brazil...



...unfortunately no insights as to when we might see a cash return...

[tiltonboy] 14/12/2007 15:38

SKYSHIP,

I would think so.

Hopefully not long to wait.

tiltonboy

[skyship] 14/12/2007 14:49

T. Thanks - presumably all receipts will be totally tax-free in a SIPP?

[tiltonboy] 11/12/2007 11:29

Circular due in the next week.

[skyship] 08/12/2007 09:33

T. - Thnx for that, good idea. Have been trying to reach Alan to get his estimate of the likely payout, unfortunately to no avail as I know he's holidaying down in Portugal for a few weeks - must be in an area with no internet shop!

[tiltonboy] 07/12/2007 16:14

SKYSHIP,

Greetings. If they haven't made an announcement by Wednesday, I will give them a call.

tiltonboy

[nickcduk] 07/12/2007 16:14

They seem to be dragging their heels a fair bit here. Hope they haven't bumped into tax complications which could affect the 18p payout.

[skyship] 07/12/2007 16:06

"The Company now expects to issue the Circular in early December 2007."

Anyone got a view on the likely date?

[tiltonboy] 28/11/2007 09:07

SKYSHIP,

I'm expecting a payout in JAN/FEB. I can't see why they are down at these prices.

tiltonboy

[skyship] 28/11/2007 08:19

hmmmm - if they pay out 18p within 6months, that = a 17.1% GRY. Seems too good to be true!