Gippsland Share Discussion Threads

[joan of arc] 26/4/2011 10:48

A few more thoughts for any of you who have any interest in not having your investments stolen from you.

1) Why is only 80% of Eritrea being transferred? Is that to get around some nice legal technicality regarding armslength transactions?

2) Why was $2.24m lent to a subsidiary? That was not why the capital was supposedly raised last year (check the placement announcement)?

3) What if the directors decide not to go ahead with Tranche 2? Hint - Adobha keeps all the cash that was GIP's and now has been conveniently diluted for current GIP holders!

4) And last but not least, do you not think that a board with any integrity would instead have split the compny in two giving equal ownership for each shareholder and then proceeded with any capital raising independently?

Come on you lot, wake up - we are being shafted.

[joan of arc] 25/4/2011 14:38

This is a smoke and mirrors transaction and a very complicated one at that to divest the minority GIP holders of its most tangible assets. The net effect as I see it, and assuming that "subscribing for the issued capital of Adobha Eritrea" means paying GIP, is that GIP ends up with what cash is left from the previous fund raising. Unless there are substantial additional assets already in Adobha, then our holding is being diluted in direct proportion to the number of Adobha shares currently in existence - in return for nothing!

In addition we will be expected to participate in further fund raising for a venture that brings no benefit to GIP.

This is clearly daylight robbery and we should vote against the divestment. Unfortunately I believe Gandel owns the majority of GIP shares and so we cannot stop this by this route alone.

There must be some rules on the ASX that say a manipulation of assets via a transaction of this type which is not in the interests of all investors should be, if not illegal, then against the ASX rules. As anyone any ideas on this and if an objection can be raised to the ASX?

[chipperfrd] 25/4/2011 10:14

JoA,

I certainly do not see how GIP benefits from any of this disinvestment.

re Heemskirk: GIP are not getting any cash for their 40% stake in that JV either. Just 4m shares in this newco Arobha (Australia). At A$0.2/share their share will be nominally priced at only A$800k but we have yet to see how many shares will appear on IPO and what the share price may actually settle at on the ASX.

At the bare minimum I would have expected an independent valuation of the Heemskirk stake and for shareholders to have been consulted rather than this asset (argueably the only one with a tangible cash value) to be transferred across to this newco as shares only.

The fact that it is 3 GIP directors controlling the newco and presumably under-writing the IPO just looks like asset stripping.

GIP shareholders will be offered shares in newco but, in effect, you would just be paying for assets that you already have a share in through GIP already.

I would like to see something positive in all this for GIP - but at the moment I cannot see how GIP benefits.
Chip

[joan of arc] 24/4/2011 21:09

Meaning that we are being totally shafted??

[chipperfrd] 24/4/2011 13:01

JoA,

According to GIP's disinvestment release the Adobha (Australia) Tranche 1 shares in Adobhe Eritrea will only pay A$2.2m for 40% of the company - but they require the outstanding GIP loan of A$2.245m to be forgiven. Net result is that GIP & GIP shareholders are releasing 40% of the Eritrean company for NIL cash return!!

The remaining 40% of Adobha Eritrea is meant to be transferred when the Tranche 2 shares are purchased for A$2.2m - yet this 2nd tranche is conditional on Adobha Australia agreeing to go ahead - so GIP may well not get this cash at all. So possible that there will be no new cash into GIP at all.

[joan of arc] 24/4/2011 11:32

I will take another look shortly at it but it smells of yet another Gandel rip-off. What is this $2m debt foregiveness - I don't recall seeing anything about this before.

[shadowchaser] 22/4/2011 11:23

GIP,In looking closely at the Hemskirk bundling and share deal and sell off ,it's far from apparant that the directors are working in the best interests of the existing GIP shareholders.
What we have here, in hiving off these assets is in effect the dilution [as I predicted in earlier posts ]asking fans to pay twice [or is it thrice?] for assets already owned .

This cannot be allowed to happen in this form .....

We'll see the reaction on the general market after the holidays,but it certainly doesn't look good to me..!

-SC

[varies] 21/4/2011 18:04

hiijinx
Thank you very much for posting this news which I had missed.
I am a shareholder in both GIP and AMG Advanced Metallurgical and at least my unrealised gains on the latter exceed my losses on the former. (There is, of course, much more to AMG than just tantalum.)
Like many others here, I am thoroughly browned off with GIP but remain stuck in out of obstinacy rather than for any sensible reason.
In the light of what you tell us, it seems ever more likely thatthe reason for Mr. Telford leaving the company was that his fellow directors saw him as having put his trust in Starck for far too long.
It is, alas, all too possible that the present bull market in tantalum may have come to an end by the time we dig any out at Abu Dabbab.

[hiijinx] 21/4/2011 17:22

From the April Tantalum Investing Newsletter

German firm H.C. Stark, makers of ceramic materials and refractory metals, has agreed to a purchase the bulk of tantalum and niobium from Brazilian miner, AMG Advanced Metallurgical Group. The mine according to the Tantalum-Niobium International Study Center puts the mines production at 300,000 pounds of tantalum, about 20 percent of global production. Dr. Andreas Meier stated, "Thanks to this agreement, we have secured a continuous supple of conflict-free tantalum raw materials for our company."


Does'nt sound to clever for GIP.

[chipperfrd] 21/4/2011 02:06

GIP divesting non-Egyptian assets:

[shadowchaser] 11/4/2011 10:56

GIP ,Lots of pretty pictures on Co.website but there still will not be any significant Ta production before 2013.

Stark have signed short term contracts to cover the two year gap recently and they definitely seem to have had Gip gripped firmly by the balls for years.

Watch for cash call/sp dilution coming soon !!!

Good to see some actual work being done nevertheless...

SC

[chipperfrd] 11/4/2011 02:19

Abu Dabbab - project update

[shadowchaser] 07/4/2011 12:20

So......it's back to sleep 'till the start of June
-when the results should be evident...

-SC

[shadowchaser] 07/4/2011 12:01

yep V.
Just before GIP go back to the market ,cap in hand ,for another cash call ,we usually get an share price massaging news release of tentative progress to begin on the Abu site .

Usually a share dilution follows the rise .....

who is to say it will be any different this time ?

Cynical in my old [gipper ] age ,Eh?

-SC

[varies] 06/4/2011 13:34

Good news about the trial mining.
Unfortunately GIP is running out of cash again, so the latest report tells us,and we do need to see some positive results from these trials if GIP is to raise the money needed just to cover its runnung expenses of c$1.5m p.a. beyond October.
Fngers crossed, as always, with this one !

[shadowchaser] 06/4/2011 11:40

GIP- Hang onto your hat ,hang onto to your coat.....

Trial Mining started at ABU !!!!

Falls off his chair in astonishment ---

GIP actually doing something and not just rock-kicking.

What is the world coming to,

I ask myself????




LOL!-SC

[joan of arc] 29/3/2011 19:42

MS thanks for that. There was mention in it of the Eritrean spin-out. Does any one kow what is going on with this? I thought we were supposed to get some shares in the new company as a cnosequence of this.

[chipperfrd] 08/3/2011 01:50

Just for info (GIP have 40%).

[shadowchaser] 01/3/2011 11:02

GIP- For all readers ---re above,the new Petroleum and mining minister appointed as interim govt. spokesman has announced that Egypt:-

''needs all existing oil and mining agreements ''

This looks to be good news on the gip front !

-SC

[shadowchaser] 22/2/2011 15:16

MMMmmm,---It was more the concern over the corruption in the award of business contracts and the syphoning off of profits by Govt. officials that formed part of the grievances laid out as the cause of the desire for the revolution ,I was thinking about ...

I.E. Will the negotiated 50%/50% deal between GIP and the former Egyptian regime be honoured by the new lot ?

[Or need to be renegotiated ? ]

-SC

[marksnsparkle] 21/2/2011 19:00

David Cameron has been in Egypt today, kind of gives you an idea of how stable the country is now ... I mean I doubt he will be visiting Tunisia or Libya :-) ...

David Cameron hails 'opportunity' on Egypt visit

[marksnsparkle] 21/2/2011 10:10

shadowchaser ... don't see why not, people are going about there daily business in Cairo and the rest of Egypt ... come the summer I'm sure people will be holidaying there

Out of all the uprisings in the Middle East, Egypt has seen the least turmoil, we are now heading for elections in Sept/Oct and until then stability is being kept by the army

[shadowchaser] 20/2/2011 13:53

Gip--Re the tin experimental mining project around the Tantalum mountain ---

Will the trailer- mounted separator and other crushing and sorting equipment ordered for 'late in current quarter ''actually be delivered now
with all the brou hah ha in Cairo ?

-SC