Highland Gold Mining Ld Share Discussion Threads

[srpactive] 02/8/2020 20:45

I have been saying for a longtime the AT trades on the bid have been
keeping this down and all know it.
Share price should be at least 350p with bid premium, but I feel
it is a done deal.

dyor

active

[loganair] 02/8/2020 12:22

HGM is nearly at the bottom of the list when it comes to the percentage rise in the share price for this year of precious metal miners. Average rise would give HGM a share price of 350p/370p. Therefore a take over at 400p would of been a fair price at the moment.

[qazwsxedc69] 02/8/2020 12:10

In fact someone on the AAZ board did a read across of metrics comparing to the 300p here, and it came out incredibly favourable valuation wise.

[qazwsxedc69] 02/8/2020 12:08

AAZ/ALTN/AAU all worth a look (in that order) DYOR etc

[geckotheglorious] 02/8/2020 12:03

Arja
I sold my modest stake around 304p..

Sad to see them go...

Looking for some non Russia exposed Goldies (and nothing in Africa/ME as have large stake in CEY)

[rhuvaal2] 02/8/2020 12:03

I have in effect retired from investing: please someone indicate the possible implications of staying put here. Many thanks in advance

[loganair] 02/8/2020 11:55

arja- Believe you me, Mr A is getting far more out of this then just the 300p per share for his shares - behind the scenes influence, power and backhanders is the Russian way of doing things.

Not just the oligarchs, most Russians are about Greed and Power, for that matter so are most politicians as are so called top bankers and business men.

[arja] 02/8/2020 11:20

I doubt Abramovich would have sold at 300p if he thought the takeover price could be higher as he is hardly a distressed seller needing the dosh and would have had the best legal advice . Small investors took it up to 310p early on friday before
they understood the implications .Very convenient for some as you say Gecko.

[geckotheglorious] 02/8/2020 11:07

Over bar thee shouting imv.
Russian billionaire holders have all sold have they not?

Just before the next leg up in gold.

How convenient.

[breaktwister] 02/8/2020 11:05

Is this sale a done deal? Not at all happy with the buyout price, a stitch-up.

[loganair] 02/8/2020 09:55

Re 17154: I just read all RNS's in full.

Clearly the Russian oligarchs want to take HGM private to get the best part of the rise in the price of gold and opening of Kekura for themselves.

In a couple of years time could have easily been looking at a 500p share price with a 30p yearly dividend.

HGM is nearly at the bottom of the list when it comes to the percentage rise in the share price for this year of precious metal miners. Average rise would give HGM a share price of 350p/370p. Therefore a take over at 400p would of been a fair price at the moment.

[wbodger] 02/8/2020 09:27

Re 17154: written by a Russian computer using a template and Google Translate. Nobody thought to actually read it with brain engaged. Four per cent? Really?

Clearly this is stitched up, but in all honesty I only invested because Abramovic owned it and I have made a handsome profit.

I would like my dividend though. On principle.

(I might disagree with you, loganair, about the likely use of the proceeds. Abramovic has been rumoured ready to sell Chelsea Football Club and Roman already needs a visa to come to Britain.)

[nerdbirder] 02/8/2020 07:03

Loganair - where did you find this?
Here's some sums using massive assumptions and based on data from last week.
Average gold price 2020 $1669
Ounces mined 295000
Value of mined gold 2020 $492,335,000
Average % revenue vs mined gold over past 5 years 92.4%
Predicted revenue 2020 $455,101,093
Operating expenses minus capex (average over the last five years) $228, 200,000
Net income $226,901,093
Forward p/e 4.81

Nope not happy to sell for £3

[loganair] 01/8/2020 18:36

Fortiana - "The Offer provides Highland Gold Shareholders with an opportunity to crystallize the value of their Highland Gold Shares for cash at an attractive premium, providing a liquidity event for Highland Gold's shareholders."

"Fortiana considers the terms of the Offer to be attractive for Highland Gold's shareholders representing a premium of approximately:

-- 4 per cent. to the Closing Price per Highland Gold Share of GBP2.89 on 30 July 2020 (being the last practicable date prior to the date of this Announcement).

"Fortiana believes that such a premium is in line with other recent premia paid in precedent transactions in the mining sector."



"The Highland Gold Independent Directors understand that the Selling Shareholders have been exploring a number of options and have concluded that the Offer represents an attractive price for them to exit." - Sounds to me possibly the directors have another mining project they wish to put the money they had in HGM into. On the whole Russian oligarchs tend to think short term for maximum gain rather then in for the long term investment.



"There are risks in the Highland Gold Group's development of its Kekura site, which remains several years away from commercial production" -??? I thought Kekura was only 18 months away from commercial production, not several years.



"Given the significant impact of the gold price on the Highland Gold share price, the Highland Gold Independent Directors would note that, if Independent Highland Gold Shareholders have a view of future gold prices that is meaningfully higher than the current consensus forecasts, the Offer may be relatively less attractive to them."

[nerdbirder] 01/8/2020 17:48

So are we expecting the price to hover around 296p or is there a chance the takeover will be voted down? I'm really not keen on selling

[loganair] 01/8/2020 11:00

It is obviously in ones face what is going on.

Just as the good times are upon the company, price of gold rising and is expected to continue to rise and with 170oz Kekura mine soon to come in to production HGM has been taken private at a knocked down price.

Once Kekura is on line HGM is worth 500p per share and would have been paying c30p in dividends per year.

Russian oligarchs are as greedy as they come, just look what happened with TNK/BP.

Don't worry HGM directors and Mr A will be getting a lot more out of the sale of HGM shares then may first appear on the surface.

I can complain even though I've made c6 1/2 x my original investment I made around 5 years ago = each year I've made over 100% return on my investment.

[nerdbirder] 01/8/2020 07:16

I'm totally confused by this. Simply wall st have changed their valuation from £20 ish to £1.50 ish overnight, abramovich et Al have sold up.. Last time I looked the company was selling their gold for 30% more than last year - why are they selling?
I think I worked out that the company revenue was going to be above 1/2 billion this year at an average gold price of $1700 and net profit was likely to double (don't quote me, I haven't got my sums in front of me).
Anyone got any ideas?

[gary hindsight] 31/7/2020 23:10

Lb not offended at all, just laughable really and was just making the point I posted"Didn?t abramovich agree within the first rns this morning I thought he was part of the 40%?"Factually correct, non contentious and some moronic idiot decides to vote it down. Put up a comment, question me, do something constructive. Maybe they are so stupid they can't manage anything more than a tick down and that's the level of their brain capacity. They really shouldn't be in the investment game if that is the level of their intelligenceLast comment on the matter from me

[wbodger] 31/7/2020 22:35

Standard words. It doesn't say they will, besides the formal document will set out the exact offer. What has been announced is the Board's intention to accept Fortiana's offer for the shares they control and to recommend an offer in general terms. I will wait to read the Offer.

Shares tendered and Offer funds are kept in Escrow until the Offer succeeds or fails. Until the bidder announces Unconditionality the Offer is subject to the condition of majority control. Shares tendered will be marked up to the successful bid price, should the Offer be raised. (Sellers who trade in the market lose that protection, the buyer inherits it.)

There is no point accepting the market quote unless you can put the funds to better use without waiting. Even here, where it is admittedly unlikely the bid will fail, you never know.

[uknighted] 31/7/2020 21:18

From today’s RNS:

“ -- If any dividend or other distribution is authorised, declared, made or paid in respect of Highland Gold Shares on or after the date of this Announcement, Fortiana reserves the right to reduce the offer consideration by the aggregate amount of such dividend or other distribution.”

[wbodger] 31/7/2020 18:28

I'm not sure I agree with an earlier poster that the offer will be reduced by the dividend.

At this time of year the dividend has usually been 5 pence which is chicken feed compared to the bid of 300. It will be wrapped up in Q4 - the second intermediate (another 5 pence) might go, but until a EGM is called to replace the Board they can continue to run the company, including declare a dividend on the basis of the first half trading (at sky high PoG). I expect the final offer to shareholders to be £3.05.

[little beaker] 31/7/2020 18:06

Gary (17142) why are you so offended by whether you get voted up or down on an anonymous internet bulletin board, frequented by morons?

I'd personally wear it as a badge of honour