Metal Tiger Share Discussion Threads

[trumpingtonsmythe] 31/5/2020 20:01

Do you think the low intelligence trading team are looking at trying to make their £50 by talking MTR down by suggesting consolidation, wrongly, is a negative? Will be interesting to see who rocks up tomorrow am and starts spouting groundless fear.

[charaxes1] 31/5/2020 19:41

Sorry dekle don’t understand what you are saying.

[dekle] 31/5/2020 19:14

Let’s not waste money messing about with the number in issue. Forget consolidation. Don’t waste money

[charaxes1] 31/5/2020 17:30

It is good to see some interesting comment on this BB. Many days have passed with no posts! Hopefully onwards and upwards.

[lazygun] 31/5/2020 17:09

Well, I hope I’m wrong.

On the whole, Mtr board have managed to not really put a foot wrong much. Kings gate didn’t work out, but I gather that was a late switch in voting block, Kemco in thailand ultimately failed, and they’ve effectively shutdown their Spanish interests, but the board have generally not done anything without a good reason, and seems to demonstrate some thought has been applied before any move that they’ve made.

Maybe this will be a consolidation that is viewed positively. Guess we wait and see...

I imagine at some point we’ll also find out what happens to TG’s shareholdings when his estate is wound up and distributed to his heirs....

It could result in holdings having to be sold - not sure if they can simply be transferred or not....

L

[grantstevens] 31/5/2020 12:19

No idea, I was just trying to collate the thoughts of others on why the consolidation, beyond the MTR statement. I didn’t think of it and have no idea if it’s a valid or not. I just think it’s nothing to do with some of the concerns people had re dilution and I think it just comes at a time when MTR have really reset themselves and have no need to ever raise with the dividend and collared loan to draw down if needed. They also have no outgoings than plc admin costs unless they want new ops or to maintain current positions. The value of their NSR in Bots will be achieved by SFR Bearing all the costs of exploration (recently increased to 20m aud) and their other 20% positions are all funded for 1 year in SAU and 2 years in CBE.
If there is any validity in charaxes idea, they have links with N America via Sprott and I know the Canadians like low number of shares in issue ( I was in MKA which did very well after consolidation)TSX could be a possibility. I also know that N Americans know Doug Kirwin v well (SAU) and they like the S Korea project. Brent Cook did an analysis on them. On the other hand they are well known in Oz know via their Oz deals and TG (RIP).
I am just going to wait and see, I do agree that some see consolidation as negative; I just don’t think it’s the same in all cases. It could be a self fulfilling prophecy however; as BB posters spook people out of their positions.

[cbeadle] 31/5/2020 11:54

Where else might they list, or transfer to a full UK listing?

[grantstevens] 30/5/2020 23:26

Exactly PERE, share drop nothing to do with consolidation. They are not consolidating due to forthcoming dilutive event either, as some have suggested surely? MTR clearly don’t need cash and when they do they use the collared derivative.
I think it’s just a reset and maybe to attract wider non retail investors and as charaxes1 mentioned perhaps they are looking at dual list and they have been advised it’s a good idea, it’s not one I have thought of but who knows. I think you just have to trust board and I think they have earned trust over last year.
Re consolidations I think THR did well and GGP post consolidation ( although THR dropped back for obvious reasons)

[charaxes1] 30/5/2020 21:59

Uk Pembridge has turned out to be a complete basket case and cannot be compared to MTR!

[uknighted] 30/5/2020 20:51

Skyship, check out Pembridge (Pere). Consolidated 12ish months ago and share price now back to pre-consolidation level.
Check out any of valirx, MANY recent consolidations.

[skyship] 30/5/2020 20:49

Lazy - my comments are based upon 50yrs of LSE experience, inc. 6yrs as a stockbroker back in the 60s/70s...

When asked about consolidation I usually quote Dana - the N.Sea oil explorer. Go take a look...

[lazygun] 30/5/2020 18:38

Sky ship,

We’ll see.

I have yet to see any robust or plausible reason to conduct a consolidation, either in general, or in relation to this particular proposed consolidation.



The location of the agm seems a bit of an odd one. Anyone know who owns the property where it’s being held? Charles hall maybe?

L.

[charaxes1] 30/5/2020 17:29

I agree with your points Skyship.

[skyship] 30/5/2020 17:01

Lazy – you will be pleased to read that you are wrong about consolidations.
Consolidations for stupidly low sps reward shareholders as it does two beneficial things:

# It attracts a higher number of investors, as many won’t buy penny stocks which are usually the domaine of the financially unsophisticated

# It invariably reduces the spread
===========================

As set out in the Notice, the Board is proposing a 1 for 10 consolidation in the ordinary shares of the Company. The number of shares the Company currently has in issue is considerably higher than that of the majority of companies on AIM with a similar market capitalisation and the Board believes that this, which results in a share price quoted in single pence, affects investor perception and share price volatility. Accordingly, the primary objective of the proposed share consolidation is to reduce the number of ordinary shares to a level which is more in line with other comparable AIM-traded companies and thereby creating a higher share price per ordinary share.

The Board believes that this will improve the marketability of the Company's ordinary shares by way of a higher share price and hopes that, by narrowing the spread of its bid offer price, it will reduce the volatility in the Company's share price.

[trumpingtonsmythe] 30/5/2020 13:00

Come on DreamT, or does Dom Cummins need you back as his speech writer?

[trumpingtonsmythe] 30/5/2020 12:34

So today you have said - there is no consolidation, ah yes there is I have seen the AGM notice now but it's the internet's fault I didn't see it earlier, I have you on filter, no I don't, yes I do, no I don't, consolidations mean dilution, no they don't but they are always bad, paddy didn't say it, ah he did but he was predicting the failure of the share price following consolidation! I have to say I concur with laxyguns assessment of your contributions!

[charaxes1] 30/5/2020 12:33

I still do not understand any of your logic dreamtwister. An inferred resource declaration at A4 will allow an economic value to be calculated on the Royalty. That will give a tangible value in the balance sheet. This should further underpin the share price. Strange you seem to really like this share one day and then decide to bash it the next day. I suppose each to their own!

[trumpingtonsmythe] 30/5/2020 11:54

Post 7789! Anyway you filtered me so can't see my post so well done on responding!I guess any rising share will attract the attention of the shorting brigade. Think they are wrong but it's their choice.

[trumpingtonsmythe] 30/5/2020 11:28

To be fair paddy since you said this company was 'a disaster' it's doubled in price!

[charaxes1] 30/5/2020 11:10

Lazy there is a good reason to consolidate. MTR may well be looking to a secondary listing. In that sense a consolidation makes perfect sense. A company with in excess of 1.5bn penny shares will not be that welcome on a new exchange. I clearly remember the term given by Kingsgate, “penny dreadfuls”!

[billionairepaddy] 30/5/2020 11:07

have had shares in a few companies that consolidated down through the years and it NEVER lead to an increase in the share price

[lazygun] 30/5/2020 11:06

The other issue is of course the spread.

Right now it’s about 7,5% (2.1-1.95)/2.025.

But after consolidation, what will the mm’s do with the spread? There’s more chance of the spread being widened than narrowed, which if that happens immediately knocks some of the value of your holdings...

L.

[lazygun] 30/5/2020 10:57

Consolidations are typically seen on a subjective/emotive level as taking something away from the investor. Share splits typically seen contrarily as giving something to investors, and therefore seen more favourably by investors.

Additionally, consolidations tend to get associated with placings or activity of a dilutive nature, even if it’s paving the way for something upcoming, rather than an immediate or associated placing..

This guff about investor perception and large shares in issue co pared to other companies of a similar mkt cap is also less important than is being portrayed.

There’s generally not a good reason for consolidation.. plenty of dilutive reasons though..

L