 DRD Gold Limited (DRDGOLD) is a South African gold mining company specializing in the recovery of gold from surface tailings, which are the waste materials left after ore processing. It is a leader in surface gold mining and a recognized player in sustainable mining practices.
Key Details:
1. Foundation: DRD Gold traces its roots back to the 1890s, but as a modern entity, it has evolved through mergers and acquisitions.
2. Operations: It focuses on tailings retreatment projects in South Africa, particularly in the Gauteng province.
3. Sustainability: The company has a reputation for using eco-friendly mining practices and innovative technologies in gold recovery.
4. Listing:
• DRD Gold is listed on the Johannesburg Stock Exchange (JSE) under the ticker DRD.
• It is also listed on the New York Stock Exchange (NYSE) under the ticker DRD.
Trading:
DRD Gold has been trading publicly for several decades. It has been consistently active in the financial markets since the late 20th century, reflecting its operations and evolution in the mining sector. |
Hi Tiger. Thank you. I have since made further enquiries about this here in the US.
The ongoing AIM investigation in the UK may uncover any breach of fiduciary duties and if it does, I would think a law suit to attempt to recover some of the funds will be possible. Betts Metals in Birmingham are closed atm for "staff training." |
I don't think this saga has much longer to run.
Coris have had enough time to complete due diligence already. (It's not as if they don't know HUM well!).
So, I don't think Coris are ready to pay $20m to buy out the shares of the minority shareholders.
Instead, my guess is that they are looking for a buyer for parts of HUM, and they want to keep it as a going concern whilst those negotiations complete. Hence the PUSU extension.
If a buyer fails to emerge this month, then I expect administration in the New Year. Coris have security over the assets, so they'll get a fair proportion of their loans back. It will be really hard on HUM's suppliers. And equity, of course.
BT - I'm not sure you can sue directors for simple incompetence. Breach of fiduciary duties, yes. |
trader465 DRD Gold? Good description but are you sure you have the spelling right? Hummmmm........???????
I can't prove this but I "heard it through the grapevine." I have reason to believe that a disgruntled Hum shareholder is considering filing for damages here alleging "incompetence and mis-management". I'm not a lawyer, but is that possible? If not, why not? I would appreciate any input. |
I'm hopeful of a conclusion either way. I wrote my investment off here years ago but if there is anything to come, the money will go straight into my pick HYSR on here a few months ago which is doing well.
Just for the record, (according to three SEC form 4 insider purchases) on 19th November 2024 the total shares acquired were 260 million. IMO not bad. |
That was exactly the trouble they had with "Gold", the film about Bre-X. The actual true story was so incredible they had to tone it down and leave out some of the more outrageous parts to make it believable.
It's deadline day here, so I'm wondering what news will come after close of play / first thing tomorrow morning. Any road, I'm happy just to be rubbernecking this car crash, and not involved in it.
(BTW, if you're wondering how I know about "Gold", that's my day job!).
UPDATE: PUSU deadline just extended to Jan 3rd. Due diligence not complete. Not necessarily good news, that. |
Hi Tiger. Questionable histories? Really? Nah! What an imagination you must have! You'll be telling us next that someone will think about making a film about opening a gold mine to filter profits through his Daddies bullion business (established in 1760). What a story THAT would be!!! But I doubt if anyone would believe it. Would they...............? |
Hi Trader 465!
Thanks for the post. Unfortunately, I can only uptick it once.
The Bre-X fraud is the basis for the feature film "Gold", which is well worth a watch. Only the film-makers had to tone down the actual story so that the audience would believe it!
As for Bunker Hill, Dan actually sank $2m of HUM money into an attempt to resurrect it, even though the company was run by people with very questionable histories.
Who knows, maybe someday the film rights to the HUM story might be worth a mint?!? |
trader465 It isn't rocket science to figure out. But the disturbing thing is some people really believe they can get away with this. History suggests they can't. |
From memory; before the fire at Betts private gold business in the UK, Betts were being paid by HUM to supply HUM with staff and warehousing in the UK? Why? |
This is just a massive pile of debt |
Here are five examples of companies or situations where gold mining firms or their executives allegedly manipulated figures, overstated costs, or deliberately ran operations into debt to acquire assets cheaply or profit through insider schemes:
1. Durban Roodepoort Deep (DRDGold) - South Africa (1990s-2000s)
• What Happened: DRDGold, a South African gold mining company, faced allegations of poor financial management and asset stripping by its executives.
• Manipulative Practices:
• Executives were accused of inflating operating costs and underreporting profits from its mines.
• These actions led to the shutdown of some operations, making them appear unprofitable. The mines were then sold to entities tied to the same executives at reduced prices.
• Outcome: The company faced legal challenges, but poor regulatory oversight allowed some practices to go unchecked.
2. Pegasus Gold - United States (1990s)
• What Happened: This North American mining company was accused of mismanagement before its bankruptcy in 1998.
• Manipulative Practices:
• Executives allegedly engaged in questionable financial practices, including overstating liabilities and underreporting gold yields.
• Some insiders were accused of benefiting from asset sales when the company went into receivership.
• Outcome: The bankruptcy left environmental liabilities at abandoned mine sites, sparking lawsuits and government investigations.
3. Bunker Hill Mining - United States (1980s)
• What Happened: Bunker Hill, once a prominent mining operation in Idaho, faced allegations of fraud and mismanagement before its collapse.
• Manipulative Practices:
• Executives allegedly siphoned off profits through inflated contracts and insider deals.
• The company was left with mounting debts and liabilities, leading to bankruptcy.
• Outcome: After the collapse, environmental cleanup costs were left to taxpayers, and directors faced limited accountability.
4. Aurora Gold - Guyana (2010s)
• What Happened: Aurora Gold, a mining project in Guyana, saw its financials come under scrutiny after the company struggled with debt despite significant gold reserves.
• Manipulative Practices:
• Allegations surfaced that management overstated costs and diverted cash flow to related companies.
• The mine was later sold to another company at a fraction of its valuation, with insiders allegedly benefiting.
• Outcome: The mine continued operations under new ownership, but questions about past management remain.
5. Busang Gold Project (Bre-X Fallout) - Indonesia (1990s)
• What Happened: Following the Bre-X scandal, many smaller operations in the Busang region were sold off cheaply under murky circumstances.
• Manipulative Practices:
• Smaller mining operators allegedly overstated costs and transferred assets to entities controlled by insiders.
• Profitable concessions were undervalued and resold, enriching those with insider access.
• Outcome: The lack of strong oversight allowed these practices to persist, damaging trust in gold mining ventures in the region.
These examples highlight how manipulation in the mining sector can devastate investors, communities, and the environment while enriching insiders. In many cases, weak regulatory environments or lack of transparency allowed these schemes to flourish. |
Hi Tiger. You are correct and some of the "seriously upset" people have very long memories. |
Tiger. For years BushyTailed has peddled dangerous nonsense on here to such an extent that at one time I was calling him BushyBetts because I suspected nepotism. I still do. |
Resolute (RSG) RNS out. They've now paid $130m of the $160m shakedown imposed on them by the Mali military junta. They're also being forced to transfer to the much less favourable new mining code for the future - so much for the "stability" agreements that all Western miners signed in Mali!
Yanfolila (a smaller operation and nearly worked out), I'm sure, is now a negative liability rather than a positive asset for Hummingbird. Probably the best thing HUM can do is sell it for next to nothing to a local operator in favour with the junta and get out.
All told, I wonder if Mali's actions won't set off a wave of resource nationalism in West Africa and other governments won't follow suit. Gold mining makes up a huge proportion of the exports of some of these countries (e.g. Mail - 50%), so it must be a tempting target.
On reflection, I'm not at all convinced that HUM will pass Coris's due diligence, and the 2.6p offer will ever be formally made. I think administration. |
sometimes I wonder if hedging at such a low price makes them perpetuate the situation till he hedge runs out next year. |
I bought at 1.3412 other day only 200000 but worth flutter |
I disagree. IMO, you overestimate the value of Kouroussa. (After all, it hasn't produced properly for 18 months, so why should it suddenly start now? There are clearly problems with the deposit). Coris will end up losing money on this business as well; they're just trying to reduce their losses at this point.
I think the chances of administration are 50%, so even for a small flutter, I'd want a share price of 1.3p to make this bet worthwhile. (Which I'm sure I won't get, by the way). |
You're definitely correct there in that infinitely better to avoid administration. This will be producing such that the £20m will become a drop in the ocean but unfortunately long term shareholders won't see anything apart from the 2.67p. Personally think it's a no brainer re risk reward for a small flutter. |
BushyTailed peddling some dangerous nonsense on the other board. If shareholders reject this deal, I see HUM falling into administration immediately, and not "multi-bagging". The company is plainly insolvent.
I imagine Coris (even though they have security over the mines) are concerned about the mining licences being revoked, which is why they are seemingly willing to pay $20m or so to avoid administration.
Still, nothing is definite. The situation is Mali is clearly deteriorating fast, & the longed for buyer for Dugbe has seemingly walked. To pay 2p to maybe get 2.6p and maybe get nothing is a lousy risk reward in my book.
I'd categorise the 50% rise today as death throes. It's remarkable how often you get a violent rise like this when an AIM toddler is on its way out. |
Shorters on fire lol |
Hi Cinoib I think you are right.
It's a bit baffling to put someone with zero experience in charge of a gold mine, unless there was a good reason? I was told the answer years ago by someone who thought he knew why and it looks as though he was right. Perhaps trader 465 hit the nail on the head with his info. and the AIM investigation will clarify something? |
Evening B.T. looks like my 3p offer for the whole company was a bit over priced, I think 1p might be closer to the mark. |
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