Metals Exploration Share Discussion Threads

[mikey34] 26/7/2010 07:58

Even a cursory glance at the chart will indicate how totally shafted the vast majority here will be if nothing happens.Apart from the handful who got in below 10p back in late 04 and then 05,the only marginal winners are those who bought in late 08,early 09..The median buying price is probably about 25p overall.Now that would be ok if this had been a failure....risk/reward and all that...but it absolutely isn't....this has the makings of a very successful and incredibly lucrative mining operation.Lets just hope that it doesn't get stolen as seems highly likely.

[unconscious] 24/7/2010 19:13

I suppose Solomon may have to potentially offer a touch more for the remaining shares they need to wrap up the deal, but it seems extremely unlikey that another bidder will enter the fray, given that Solomon now control so many shares.

I sold out at 12.75p for a tiny profit, rather than wait around for touch more that may not materialise and will be reinvesting the cash next week.

MTL, who were they? - AIM has plenty more potential multibaggers waiting in the wings.

[wdurham] 24/7/2010 16:38

benson -

The board HAVE no defence. They own too few shares to combat Solomon and its committed supporters.

This is no stitch-up - not by the board, at least.

It's a hostile takeout by a major shareholder that has had enough of AIM and the traders that infest it and is set on taking the company private, where its value cannot be trashed by T+traders and spreadbetters with a 10-hour attention span. Even with just 75% of acceptances for the offer, the company will be de-listed.

[benson384] 24/7/2010 14:55

It beggars belief that the board and the company's own brokers, with others have been telling shareholders over past few years that this company is worth in the region of 40p. Yet in last few days individuals who helped the company by investing at 17p,now believe after further sizing of the mine it is now only worth a very generous "13p".
JB was elected to the board with his many years of experience at Standard Bank to facilitate the project management,sizing of mine and raising of money to develop and produce.The fact that the company has,as yet, not replied to the bid implies that there reply,ultimately, will end in surrender. One assumes that the current encumbents will no doubt retain their jobs,in a private company,unless the Candy's are goingto move their Barrack's development to the Phillipines !!! an build on the mine.
After a successful takeover how many of the big shareholders,like Baker Steel, retain an involvement in the mine going forward ? easily arranged after accepting 13p per share with a wink and a nod for accepting........
If this had happened in any other guise,would there be a case of deception or just staight out robbery ?
We have been told that after financing costs there is at least £350m of Gold, never mind the Molly....in the mine and that is at a $1,000 per oz price.Themine has a life of 10 years plus.
If we do not see any defence from the board,even the "cant raise the money" excuse, then it confirms the stitch up.
Comments welcome ?

[rcktmn] 24/7/2010 11:50

Agreed,..tempting to bail out but I'm staying put..got in 7 months ago @ 13p. not many shares held so happy to see how it goes..can't believe they would sell us all down the river but it happens all too often.!

[fastbuck] 24/7/2010 10:36

As has been expressed most investors were in for the long term and supported the company and paid significantly more than 13p a share and were prepared to support any future equity & debt raising to make the business a success. In return for the risk and further capital raising I was expecting an ultimate multi-bagger.

I hope the company's Board can support the small investor at this time and get a higher payout for all

[chipperfrd] 23/7/2010 19:40

Mikey34 - I agree!

[mikey34] 23/7/2010 18:52

ohisay,
I see no point whatsoever in selling in the mkt.You won't get the full 13p and you,ve got a selling cost.....to achieve the admittedly likely end game slightly sooner.By waiting there is always a chance something might happen and with no downside risk.There must be others who can see the massive undervaluation here and maybe,just maybe,somebody might step in.

[ohisay] 23/7/2010 17:58

From iii/ironaddict.

Unfortunately TW has put out a sell rec on this and knowing the sheep mentality of investors, perhaps it might be time to drop out after all. Shame.

see that the financing climate presently is not ideal for Metals Exploration at the present stage of its development but view Solomon's offer as an attempt to exploit this to get its hands on an attractive asset very much on the cheap. Unfortunately, however, Solomon is in a powerful position here with its current shareholding and having letters of intent to accept its offer in respect of a further 9.03% of Metals Exploration's existing issued share capital. Metals Exploration has responded to the offer by noting it is "reviewing" it and will make a response "in due course". I'm afraid that the company's management must take a large degree of responsibility for the lowly value of the offer since credibility takes a long time to be restored and I consider the unsatisfactory events of November to have been a hindrance ( as has its dire communication (or lack of it) with investors in recent months) to the share price since. Metals Exploration shares currently trade at 13p – but this is game over "sell in the market".

[drm4] 23/7/2010 12:16

tsmith2

Have you heard from JB?

[ploppy nobkin] 23/7/2010 11:07

I'm out with a 12% loss. Put my money into some more UEN - here's hoping....

[drm4] 23/7/2010 10:40

Probably a waste of time but texted J Beardsworth too.

[unconscious] 23/7/2010 10:31

I invested several months ago as I expected significant long term upside.
Now it looks like a very canny investor will reap the benefits.

Ah well, just sold up for a very small profit.

Next.

[chipperfrd] 23/7/2010 10:06

Wendy, I have little doubt that this will have been an unwelcome surprise.

I expect you were present at the recent ProActive presentation by JB. I had a few words with him at that event and I did not get the impression that he would have viewed the potential upside here as being anything less than several multiples of the share price

[wdurham] 23/7/2010 09:58

chip, the tone of - and the words used in - the announcement from the company indicate to me, at least, that this has come as a bit of an unwelcome surprise. They may well not even have known about it.

If the management can enlist support for refusing the offer from more than 25% of shareholders, then the delisting can be prevented. But Candy will still have control.

[chipperfrd] 23/7/2010 09:49

True enough Wendy but worth waiting to hear their response in case they have been able to secure any support from the remaining larger holders.

However, it does look like it is game over I'm afraid.

[benson384] 23/7/2010 09:28

Mikey34
Even your thin brush assumptions are explaining how patient investors are having the p.ss taken out of them. I have waited patiently on 4-5 years to see this company now "nicked", put into private hands, no doubt with larger shareholders taking an interest in private company (ex MTL inst's)
The fact that the Board has to "think" about the offer, makes you wonder if they are reading there lines, of what they have to do as formalities before saying YES.......
Best we can hope for is that it flushes another miner out that understands value and makes a counter offer. Even 20p would still be cheap.
Regards
You know it when you have been scr.wed !

[wdurham] 23/7/2010 09:25

Not sure there's anything at all that management can do about it, chip, unless they can persuade Candy to voluntarily improve his offer, or sufficiently incentivise at least 25% of other shareholders to decline the offer.

Reading the announcement, it looks as if the offer becomes unconditional at 50% acceptance (which they already have), at 75% they will de-list from AIM, and at 90% they can compulsorily acquire the remaining shares.

[seemore] 23/7/2010 09:21

I have no problem with losing money on an investment - it goes with the territory.

But, in this case, there would be an additional very nasty taste left.

FWIW, I have emailed JB to express my feelings. I doubt that Solomon can be put off taking the company private but the board should hold out for a price that does not have a smell about it.

[chipperfrd] 23/7/2010 09:12

The offer is derisory. Let us see what statement management come out with.

[agreeable] 23/7/2010 08:53

the problem here is that with over 50% of shares they control the Board and they have the option of cancelling the Listing which would leave shareholders with nowhere to go. Solomon can then dilute existing holders out of sight.
The reality is that the game was lost as soon as Solomon had over 40% shareholding, I am afraid shareholders should take the cash and move on

[pre] 23/7/2010 08:52

looks like the 100k buyer was fast at making a quick buck (£300)and was in at 12.5 and out at 12.8!!

[mikey34] 23/7/2010 08:35

Just a few back of an envelope estimates;
We are targetting 100k ozs a yr for minimum of 10 yrs.(PLUS MOLY)
cap cost is thought to be $150m max.I'm going to allow $500 oz operating cost(they said $463 before moly credits).So at $1000 an oz for gold(probably conservative),thats $500 oz of profit.....that.s $50m ayear...so after 3 yrs the capital costs are recovered and you have 7 yrs then of $50 m profit a yr, which equals $350m profit.This takes no accouny of the step out drilling mentioned on 12th Dec ...." apossible repeat of Runruno style mineralization,300 to 400 metres east of main deposit".

So for about £30m you get a $350M PROFIT plus potential massive extra thrown in.No doubt some of you could pick holes in these broad brush assumptions but imo they give some context as to just how derisory this is.

[tsmith2] 23/7/2010 08:25

I have sent my thoughts to JB and would encourage everyone to do likewise

[newswseller] 23/7/2010 08:17

What is the % acceptance required for this to go ahead?

At the moment they say they have 44.1% of the shares and have the acceptance of a further 9.03%, taking total acceptance to 53.13%