Ovoca Gold Share Discussion Threads

[mbthedude] 08/6/2016 16:00

as they say bozzy "History has a habit or repeating itself"

[bozzy_s] 08/6/2016 15:21

Yep, results end of June. It's also the date of interim balance sheet - to be published in interims later in the year. If POLY remains in the 900s, the OVG balance sheet will look pretty impressive in the interim results.

They've got assets - listed shares, cash, historical debtors. They've got zero debt and virtually no liabilities of any type. Net sum of these comes to over 20p per OVG share if liquidated.

We just need to see a plan for improving shareholder value in this month's results. Buy back own shares from the market for 25p per £1 of assets? Sale of POLY shares, capital distribution of 10p per share and stay listed as an investment company with a £5m war chest?

In their position there are so many things OVG could do to increase returns for shareholders including themselves. So many of the usual negatives / risks don't apply here - no risk of emergency placing at discount / death-spiral funding with Darwin or whoever. No risk of creditors putting them into administration. No risk of debt-for-equity swap to dilute shareholders. There is basically one risk - the directors continue to drain the company assets with zero return for shareholders. It's clearly what some on this BB expect. It's what I expect in the short term. But I can't see it happening for 5+ years without some sort of payout to shareholders.

[mbthedude] 08/6/2016 15:15

hazl,

Gold has recovered well in the past week but I see little movement here.

In contrast the 3 producers I picked out of the KITCO HUI index have made some decent returns in the past month.

Eldorado Gold + 22%
Company Mines Buenaventura + 18%
Harmony + 12%

If you want something that will rise in tandem with Gold then try a major producer as an alternative to a junior explorer?

[hazl] 08/6/2016 09:23

Annual report due end of the month.

[hazl] 08/6/2016 09:20

I have found these little companies don't stay forgotten for long. 8-)

[bozzy_s] 06/6/2016 16:44

OVG own 775,000 POLY shares @ 891p worth £6,905,250 (plus various other tangible assets including cash of 7.4 million Euros at last balance sheet date 30-6-15)

OVG in it's entirety is valued at £3,976,236 (81,563,806 shares @ 4.875p mid price)

[bozzy_s] 06/6/2016 13:20

POLY up, PoG up, OVG unmoved. Differential between market cap and NTAV the highest it's been this year. Grrrr!

[hazl] 05/6/2016 16:11

Very interesting trades last week, be interesting to see if there is any further follow -through bozz. 8-)

[bozzy_s] 01/6/2016 11:19

What the hell happened to Gold? It was 1250/1260 last time I looked!

We ought to get a holding in company RNS. The 7 trades of 1,000,000 at 5.4p look like, on the face of it, a transfer of shares instigated by the buyer (if it were the other way I'd have expected the price to be nearer 5p).

[hazl] 31/5/2016 21:07

see what you mean! after hours.

[hazl] 31/5/2016 21:05

don't know but gold is up 10.10 points this evening,boz

[bozzy_s] 31/5/2016 19:54

What do you make of all those trades hazl? Looks like a wedge of shares has changed hands.

[hazl] 24/5/2016 14:31

is it my imagination or have we had more positive trades just lately?
We did go through a time with no trades at all but there's a reasonable -sized one just today....just when gold is doing its dip.
Some people have seen it as a buying opportunity though....



imp

[hazl] 23/5/2016 15:29

we are blue......weird but true...

[hazl] 22/5/2016 14:43

BOZZY Please don't worry !
We are human after all and if we have loads of naysayers or the gold market suddenly takes an unexpected plunge then its easy to question your own judgement.'money and markets', I think it was predicted the gold plunge and of course if we were to be generous we could say it was related to the threat of interest rate raises in the US.
I think the truth is nothing goes up in a straight line.
I tend to take a much broader view on my choice of holdings.
I have noticed over the years that some of my financially more rewarding shares have not necessarily those that were promoted as 'the best' by different parties....be those that are experts in the industry or indeed different investors.
If a management are genuine hard working individuals then it would seem hopeful on the surface.
Sometimes you may get managers who are extremely good at marketing or have amazing self-belief that actually do a lot with perhaps poorer assets?
Who can say?
I think that our management here seem canny if nothing else.
Criticisms?
Probably plenty,how can we know sitting miles away from the reality?

I would like more frequent rns and announcements so that we know what is happening.
I will go into wait and see mode.
I don't think you are ramping probably like myself you just want o put OVG out there for those that haven't seen it and let people judge for themselves.
IMO' '

[bozzy_s] 21/5/2016 21:26

Odd that ADVFN deletes the ISDX trades the next day! I pay a monthly subscription, expect to see real trade info!

Ta for the link hazl, and apologies from me. That looks like a 250k buy. Thanks to the incorrect ADVFN info I only saw a 150k sell Thurs, and a 50k buy yesterday.

Fenners was a bit dismissive of my 'things OVG need to change' list. Can someone remind me what % ownership a shareholder or consortium needs to hold, to name a non-exec director? I tried googling "what percentage ownership aim to choose non executive director" without finding the answer.

Yes I am talking them up, but only on here and POLY threads and I hope in a balanced way. I'm not rose-tinted or blinkered. My numbers are facts, not opinions. My list is recognising things NEED to change for OVG to deliver to shareholders, including management.

I hope I'm not in danger of looking like a ramper / scammer / spiv. Trust me I'll talk them down if the board do anything stupid! I only have a small holding of OVG. If there's something positive for shareholders in the June results, and the discount to NTAV / POLY is roughly the same, I might buy a few more.

[hazl] 20/5/2016 19:41

don't forget trades on isdx some yesterday as well

[hazl] 20/5/2016 14:37

I didn't miss it but it was understandable with the threat from the US of interest rate rises.
Today there seems more optimism across gold stocks I notice.

IMO

[bozzy_s] 20/5/2016 14:33

That's a buy today, but you missed the 150,000 sell yesterday @ 4.5p.

POLY has had another good day. OVG's holding now worth 775000 x 820p = £6,355,000. OVG market cap £4,384,055.

[hazl] 20/5/2016 12:17

guess somebody sees a bargain......8-)

IMO

[fenners66] 18/5/2016 18:07

Always optimistic -

"Change of management / board of directors" - why even waste the letters writing this? The idea it could be an option is at best fantasy at worst misleading : the major owners are the directors. This might as well be a private company.

Payment of a special dividend - if this was ever going to happen it would have been years ago. The directors have been far too clever to pay dividends,it goes on.

If you have bought shares then I don't blame you for talking them up. In a "normal" company one might expect the gap between asset value and share price to close , but Ovoca is not normal and the market has it sussed. Sure there will be ebbs and flows as the uninitiated get introduced but in the end I believe the status-quo will prevail.

[hazl] 17/5/2016 11:00

I think they are finding it difficult to hold gold back at the moment.

IMO

[mbthedude] 16/5/2016 19:44

Yes Gold was having a very productive day until someone dumped $2.3bn of fake paper sells on Comex, surely this manipulation cannot continue for too much longer?

[bozzy_s] 16/5/2016 14:26

Thanks for the contrarian view mbthedude. And thanks all for the constructive and polite discussion. This is what BBs should be for. Somewhere to hear honest, thought-out contrarian viewpoints to help balance one's own rose-tinted or overly-positive opinions. Have to agree with you on this "The Company has a successful track record of developing precious metals assets and bringing value to shareholders." - This statement is utter tripe. First part questionable, second part rubbish.

I have to question the judgement of a management which has presided over a continuous large gap between net asset value and market capitalization - and believes it has delivered to shareholders as a result. I'd say they have done zero. If the management was anything from below average to great the share price would be in double figures now. As they've returned zero to shareholders so far, and haven't announced plans to change that in future, the shares continue to be priced at under 25p per £1 of assets.

That's why I have a few of these. If the management were slightly below average, I'd be paying 50p+ per £1 of assets.

The opportunity arose to buy a small stake on the cheap (vs assets), with the hope that something changes to improve investor sentiment. The fact the company is fully funded for a few years increases the time frame for a change to take place.

Again, one or more of these needs to happen to improve OVG's valuation:

- Change of management / board of directors

- Update on projects, future intentions / plans, aggressively try to narrow the gap between share price and net tangible asset value

- Continuation of share buy-backs in the market

- Payment of special dividend, or one-off return of capital to shareholders. As I see it, with a large % holding, this is the quickest route to riches for the management. Much more reliable, safe, easily done than skimming a few hundred thousand per year in salaries + benefits

- Acquisition of, farm-in, or investment in a producing asset at distressed prices

- Resume mining at an existing project