Grit Investment Share Discussion Threads

[spectoacc] 22/12/2016 09:18

10p, but your note says 20p? If fools keep buying then the market price can easily be pushed up - doesn't mean any size can be sold again. Happy to give you far longer for your 20p target - 3 years? They only have to trade once there, I won't even hold you to being able to sell in size, but if they trade once below say 3p, or don't trade at all at 20p by end 2019, I win the bet.

1. Jury is indeed out on Merrex - but when trading at 22c, they agreed sale at 17c, and that fell through. It's now 16c. Gold was higher then
2. We've just had a major commodity run in 2016 - didn't do GRIT much good did it? Gold's been on a big dive since the US election, though you seem to have missed that. I don't pretend to be able to call where it goes from here, but I do know that GRIT isn't how I'd play it.
3. They certainly don't have net cash - can you imagine what the £2.7m CULS holders would say if some of the cash meant for them was paid to Sam's RDP?
4. AAM - "AAM and Siberian Gold fields. We point out that both of these holdings were signed off at the current carrying value by independent auditors in making up the NAV too".

[richie666] 22/12/2016 09:04

1. Jury's out on Merrex let's see what price they ultimately sell for here
2. U miss the point re in a bull cycle premiums are paid for strategic stakes
3. They do have cash - they have paid out circa £2m to LIM and sit with near £1m at present. Easiest thing in the world would have been to milk the cash and not go for shares.
4. U completely overlook AAM where there is material value. Google recent news flow.

Money speaks louder than words and so aside from the 6% plus I hold in the stock illustrating my preparedness to "eat my own cooking" how's about the following? I will bet £1000 donation to any charity of your choosing against £1000 of a charity of mine (PETA for the record) that the stock is north of 10p by spring next year. 31 March deadline.

If you have the courage of your convictions email me at [e-mail] to firm the bet.

And while u are at it u should look at our recomms this year - almost all have multi-bagged from recommended initial prices. How have u done this year?

[spectoacc] 22/12/2016 08:47

@Richie, I hardly know where to begin - it's hilarious. But since you quote that paragraph:

They can't yet sell holdings at close enough to market prices to repay the £2.7m (not £1.5m, which is just LIM) of CULS. Even the Merrex attempted sale at a 20% discount fell through (if you think Merrex worth so much more, why not buy it? You'd have more luck selling again than GRIT).

Valuing small - or micro - caps at bid may indeed by acceptable to the auditors, but try selling in any size. Therefore the veracity of a NAV that needs realisations is in serious doubt. A point I've made many times.

As for what Sam's getting - it's not a choice between £300k or stock for RDP, it's a choice between "there's no cash" or "you can have the shares at £0.05p at each trigger, with only a 6 month lock-in".

He's also getting £20k pa salary for joining the board. Nice reward for failure.

Still - it does indeed save one set of cash costs of over £300k pa, albeit with c.£40k pa added on now for "admin", and his salary, and his overhang.

I don't want to quote too much of what is a comedy note from a bloke from Leeds, but:

"With the very vast majority of the company’s portfolio being denominated in dollars, the material pound weakness seen since the EU referendum shock exit result has been a nice tail wind to the NAV too"

Have you been following the NAV?

[richie666] 22/12/2016 08:31

"... we can see that at the current stock price of 6.5p this actually reflects a modest discount to the quoted portfolio plus cash & NET of the entire CULS repayment. There is thus zero value being attributed to the two meaningful and potentially valuable (and viable) resource plays – AAM and Siberian Gold fields. We point out that both of these holdings were signed off at the current carrying value by independent auditors in making up the NAV too"

[spectoacc] 22/12/2016 08:20

Thanks @richie, haven't laughed so much in a long time!

[spectoacc] 06/12/2016 15:38

20.1p NAV. To be fair, possibly still a buyer around - sellers seem to be getting out at full bid, despite selling multiples of NMS. Nothing further on CULS repayment, tho probably nothing to say.

Edit - Lol - 5 minutes after NAV RNS, this comes out!

"Portfolio Realisation
On 2 September 2016 the Company announced an agreement to sell 26,100,000 shares in Merrex Gold realising proceeds of CAD$ 4,437,000 with settlement due within 90 days.
Following a disagreement with the buyer, both sides have agreed to cancel the transaction and GRIT retains the ownership to the 26,100,000 shares which continue to be valued within the NAV at the bid price.
LIM Asia Multi-Strategy Fund Inc ("LIM") continue to hold GBP1.5 million of nominal 9% Convertible Unsecured Loan Stock 2017 ("Loan Stock") and the Company remain confident that this amount can be repaid from further portfolio realisations. Following the full repayment of LIM, there will remain in issue GBP1.2 million of Loan Stock held by other parties."

Jeez - so they "remain confident" they can make enough sales to cover LIM's remaining £1.5m. But what about the other £1.2m, why no "confident" quote for that too? 2017 is approaching fast - seem to remember end-Feb as repayment date. Tho to be fair they breached covenants so long ago, that's probably flexible IMO, particularly if the 9% interest keeps rolling in.

The Merrex Gold shares have gradually sunk over the past 3 months to 15c - surely GRIT would have put in place a solid enough agreement to prevent the buyer reneging if the share price fell? 17c was a c.20% discount to the then market price - another 20% off the current price to sell them in future? And it's not a sale if the agreement's not watertight!

Guessing that accounts for the NAV drop - they'd have calculated NAV based on Merrex at 17c, now having to calculate it at market price. Not that the last RNS implies that - "...Continue to be valued within the NAV at the bid price..". Suspect "continue" isn't accurate, or else they've lost some value elsewhere.

Be interesting to see what they can actually sell - seemingly nothing, recently. And more interesting still to see what's left when the £2.7m has finally been repaid. All IMO.

[spectoacc] 21/11/2016 09:17

Very quiet on here. NAV fallen to 21.59p as of 14th Nov: no indication whether that's partly due to more realisations to try to raise cash to repay the CULS (ie selling holdings at below book value). My views on the veracity of GRIT's stated NAV certainly haven't changed. Will be interesting to see what's left if/when they do manage to repay all the CULS - whatever it is, it'll likely be the most illiquid & hard to realise holdings. Hopefully they'll retain something income-paying in order to at least meet running costs, and avoid having to make further sales to remain listed.

Still very much not a holder, and haven't seen reason to contact the company in some time, so all IMO. Share price and NAV continue to converge in the way predicted.

[spectoacc] 28/10/2016 07:20

Lol only GRIT could come up with good news on a holding, and have it negatively affect NAV. Now down to 23p.

£1.5m still to find for LIM from "..Continuing portfolio realisations" - strewth. Was expecting £1m more needed from selling anything they could, post-Merrex sale. Or are they including Merrex receipts within the £1.5m more? And aren't there a further £1m of 2017 CULs due to be repaid too?

For the avoidance of doubt - still very much not a holder, so not going to dig any further.


"The NAV above includes an adjustment to the carrying value of the Company's investment in Anglo African Minerals plc ("AAM"), following a recently completed third party capital raising by AAM. Having successfully completed the fund raising, AAM has also recently announced that it has entered into the first stage of a joint venture agreement with a consortium consisting of two substantial Chinese corporations - China New Era Group Corporation and China Geo-Engineering Corporation on the co-development of the FAR project in Guinea. AAM believe that this is a significant milestone in creating shareholder value and securing the development of the FAR project.
The Board of Global Resources Investment Trust plc will look to reassess the carrying value of the Company's investment in AAM at the year end on 31 December 2016.
The Board also confirms that in the week commencing 31 October 2016 the Company will be repaying GBP1.0 million nominal of 9% Convertible Unsecured Loan Stock 2017 to LIM Asia Multi-Strategy Fund Inc ("LIM"). It expects to repay the balance of GBP1.5 million nominal of 9% Convertible Unsecured Loan Stock 2017 to LIM from the proceeds of continuing portfolio realisations. "

[luckymouse] 26/10/2016 21:33

Woken up with the sector

[spectoacc] 04/10/2016 19:46

Am all out of GRIT, yes, tho it's still on my alerts list.

Had to have a chuckle at the Half Year Report and "Sam"'s explanation of why the price fell to 2p.

[richie666] 04/10/2016 18:44

I thought u had sold out Spec..?!

[spectoacc] 03/10/2016 08:40

Got to give them credit for getting so many away at only a 22% discount to the price - although since Merrex was arguably the largest/most liquid holding, be interesting to see what it takes to raise the remaining million needed to repay the other CULS. They say they've been selling down some of the smaller holdings so maybe they've realised a few k that way.

On the subject of largely unlisted, smallcap, resources co's - SPPC just announced intention to wind up (or sale of co), 12/14p vs last NAV of 37.4p (from 31st March). No existential threat to this one. Timescale/returns uncertain but I'd be disappointed not to recover a lot more than current s/p.

[flyfisher] 30/9/2016 16:01

Merrex was quoted at 22c on the interim accounting date at 30th june, with a subsequent sale agreed at 17c, accordingly it looks like nav will be £0.76m lower when the sale completes.

[luckymouse] 19/9/2016 15:18

A. is sector - GRIT looking weaker than sector here - still on a massive discount - depends if mkt feels all news is factored in

[luckymouse] 19/9/2016 15:10

Mostly sells - softened with the sector

[richie666] 08/9/2016 15:39

Waiting on news.

[richie666] 02/9/2016 15:19

Apfindley, suggest you read here -

In particular the bottom section. There is value minimum of around 18p per share here and probably much more if AAM & Siberian re-list and list respectively. I expect to ultimately receive 20-30p on these.

[apfindley] 02/9/2016 14:59

So they're going to sell their investment for 2.6mill, but use it to pay off 2.5mill of loan notes.There will then remain an outstanding 1.2mill of loan notes to repay.Hmm not looking too clever is it. Sounds like they hardly any cash. And are selling their investment to pay only one loan note holder off.Reducing the liability, which is great, but with no income, how will they pay the remaining 1.2mill loan holder, and continue to operate and still move ahead with exploration.Not the best use of the proceeds of sale of investment, imo.

[richie666] 02/9/2016 12:56

Fantastic announcement -

Clears necessity for a forced liquidation of the portfolio and allows us to concentrate on AAM in particular now.

[davebowler] 01/9/2016 12:42

Hope the target is right!

[richie666] 30/8/2016 14:08

We stand by the price target here Luckymouse -

[luckymouse] 30/8/2016 12:16

Hi Richie - yes looks about right to me - may consolidate at points - but discount in combination with the long term bowl(imp), less wide sprd, gold holdings, strength of the sector, a few inst's accumulating, Zaks tip etc caught my eye.

[richie666] 30/8/2016 10:54

Luckymouse - ol Zak may be right that we see 15/16p in the weeks/months ahead.