Golden Prospect Precious... Share Discussion Threads

[bamboo2] 04/6/2011 16:55

hi mozy123, just looking for clarification and the reason/s behind item 5.
this allows gpm to buyback up to 15% of the fund.
possible explanations are,

1, to place the shares in treasury, perhaps to allow for greater liquidity?
2, to cancel shares, reducing the overall size of the fund?

edit, added from agm[3rd june] rns,

"5. To approve that conditional upon the Ordinary Shares of the Company continuing to be traded on the main market of the London Stock Exchange, the Company be authorised in accordance with Article 4.8 of the Articles of Association of the Company and The Companies (Guernsey) Law, 2008, as amended, (the "Law") to make market acquisitions of its own shares provided that unless a tender offer is made to all holders of Ordinary Shares:-

5.1. the maximum number of Shares hereby authorised to be purchased shall be less than 15% of the Company's issued share capital;

5.2. the minimum price (exclusive of expenses) which may be paid for the Shares is GBP0.01 per Share;

5.3. the maximum price (exclusive of expenses) payable by the Company which may be paid for the Shares shall be 5% above the average of the middle market quotations taken from the AIM appendix to the London Stock Exchange Daily Official List on each of the five business days before the purchase is made;

5.4. the authority hereby conferred shall (unless previously renewed or revoked) expire at the end of the annual general meeting of the Company to be held in 2012 or, if earlier, the date falling eighteen months from the date of passing of these resolutions;

5.5. the Company may make a contract to purchase its own shares under that authority hereby conferred prior to the expiry of such authority which will or may be executed or wholly or partly executed after the expiry of such authority, and may make a purchase of its own shares in pursuance of any such contract; and,

5.6. the purchase price may be paid by the Company out of distributable profits or out of capital and share premium or otherwise to the fullest extent permitted by the Ordinance"

[mozy123] 04/6/2011 15:59

Bamboo, out of interest what have you asked them in your email?

[bamboo2] 04/6/2011 14:45

fordtin, well found. one could take a calculated guess that a further 30k fres shares have been added since dec 2010, resulting in the top 5 listing.

i have had an out of office autoreply to my email. i had therefore sent my previous email to the wrong address. will convey any reply here.

[fordtin] 04/6/2011 10:43

re Fresnillo,

the 'Annual Report and Audited Financial Statements for the year ended 31 December 2010' included a holding as at 31 dec 2010;

Equities - Fresnillo Plc
Holding - 120,000
Fair Value - £2,001,600
% of Total Net Assets - 3.86%

-----------------------------------------

the 'Interim Report and Financial Statements for the period ended 30 June 2010' included;

Equities - Fresnillo Plc
Holding - 90,000
Fair Value - £881,325
% of Total Net Assets - 3.11%

-----------------------------------------

the 'Annual Report and Audited Financial Statements for the year ended 31 December 2009' included a holding as at 31 dec 2009;

Equities - Fresnillo Plc
Holding - 60,000
Fair Value - £468,600
% of Total Net Assets - 2.03%

-----------------------------------------

[bamboo2] 03/6/2011 22:18

re fresnillo, it's quite possible that the holding was simply increased during the recent dip. in fact, there could be any number of explanations for its appearance in the top 5.

a bit late in the day, i have re addressed my email regarding item 5 at the upcomming agm.

all the best.

[mozy123] 03/6/2011 17:16

Not if you have the view silver at $100 and Fresnillo's output to reach 85mil ouch by 2018. Fres is a quaility company.

[tonsil] 03/6/2011 17:12

bb2
good pointbut fir Fresnillo to suddenly appear indicates a recent investment - a bit late for the stock - they should have been in much earlier imho

[bamboo2] 03/6/2011 16:58

tonsil, not convinced there is churning going on here.
month to month changes in the top five holdings could easily be a product of changes in the individual values of the shares concerned.

i like the idea of a broad based fund, holding large and small miners of gold and silver

[bamboo2] 27/5/2011 15:13

more averaging in today. still no response to my email. perhaps i sent it to the wrong place. will check.

looks like hui could end the week positive.

[bamboo2] 10/5/2011 08:53

starting today, averaging back in.

edit, it has to be said, the lag here allows very relaxed trading.

[bamboo2] 09/5/2011 15:50

hi fordtin, just got back in. thanks for the reply.

an increase in liquidity could be a very good thing, as in the past i have sometimes found it difficult to trade more than 1000 shares at a time, over the net.
i am presuming shares would be traded in and out of treasury, rather than bought for cancellation.
though it could be that the aim is to reduce the size of the fund

i guess that's why it would be nice to know the reasoning behind the change.

i do, however, wonder about a potential moral hazard [is that what i mean?!]. a bit like the snake eating itself.

[fordtin] 09/5/2011 09:54

morning bamboo.

I suppose it could temporarily improve liquidity if there is persistent selling as it would soak up some of the surplus, but wouldn't it ultimately reduce liquidity as there would be less free float if persistent buyers subsequently turn up?

The thing I like about share buybacks by companies which trade at substantial discounts to NAV, is that it further increases the NAV per share, consequently increasing the discount.

[bamboo2] 09/5/2011 09:27

re the proposed changes to allow gpm to buy their own shares,
still no reply to my email.
anyone else made enquiries?

[bamboo2] 03/5/2011 09:27

nothing about buybacks in the annual report so have to assume this is a new rule.
should i should also assume the objective is greater liquidity?
perhaps a quick email to the co.

[bamboo2] 02/5/2011 09:51

Jimbo55, it's all about timing i guess! :)

===============================================================================

anyone, section 5 of the agenda at the upcomming agm is of interest.

how does this change the existing situation?

is the object of this to provide greater liquidity?
[a minor problem i have experienced in the past here]

is it a percentage increase in potential aquisitions/disposals or is this a new rule?

"5. To approve that conditional upon the Ordinary Shares of the Company continuing to be traded on the main market of the London Stock Exchange, the Company be authorised in accordance with Article 4.8 of the Articles of Association of the Company and The Companies (Guernsey) Law, 2008, as amended, (the "Law") to make market acquisitions of its own shares provided that unless a tender offer is made to all holders of Ordinary Shares:-

5.1. the maximum number of Shares hereby authorised to be purchased shall be less than 15% of the Company's issued share capital;

5.2. the minimum price (exclusive of expenses) which may be paid for the Shares is GBP0.01 per Share;

5.3. the maximum price (exclusive of expenses) payable by the Company which may be paid for the Shares shall be 5% above the average of the middle market quotations taken from the AIM appendix to the London Stock Exchange Daily Official List on each of the five business days before the purchase is made;

5.4. the authority hereby conferred shall (unless previously renewed or revoked) expire at the end of the annual general meeting of the Company to be held in 2012 or, if earlier, the date falling eighteen months from the date of passing of these resolutions;

5.5. the Company may make a contract to purchase its own shares under that authority hereby conferred prior to the expiry of such authority which will or may be executed or wholly or partly executed after the expiry of such authority, and may make a purchase of its own shares in pursuance of any such contract; and,

5.6. the purchase price may be paid by the Company out of distributable profits or out of capital and share premium or otherwise to the fullest extent permitted by the Ordinance. "

[jimbo55] 26/4/2011 13:47

bamboo, I held this for almost a year last year, and made over 80%. What does this tell you about patience being a virtue...? :)

[bamboo2] 26/4/2011 10:39

hi fordtin, lol, this is probably not the most efficient way to trade gold miners and this is not really my intention. i really just want a long term hold, but the temptation of nearly 10% is too good to ignore at the moment.
i have sat and watched much bigger short term gains wither slowly away, over the last six months or so, and can't bear it!
interestingly, there was no trouble shifting over £5k, so i may rue the decision!
i fully expect to be back before the end of the week.
all the best

[fordtin] 26/4/2011 10:28

Morning bamboo.

No offence intended, but I hope your timing is appalling ;o)

[bamboo2] 26/4/2011 09:27

taken advantage of the lag to book some profits here this morning.
will watch very closely for re entry point.

despite $1500 gold we have tsx miners down, hui down.

[fordtin] 06/4/2011 10:11

I used a bit of the new ISA allowance for a wee top-up. Regretting not using the whole allowance now ;o)

[bamboo2] 06/4/2011 09:51

hi mozy, i really like the lag here!

the close on the hui yesterday evening, despite the weakness in the wider market, was the cue for this mornings top up.
a quick check on spot gold and the australian miners, to be sure.

all the best

[mozy123] 06/4/2011 08:11

great bamboo, this seems to be lagging really bad at the moment

[bamboo2] 06/4/2011 08:09

topped up again. i see some others got in here early too.

[mozy123] 30/3/2011 11:09

122p per share Nav and this is at 105p - time to top up!