Pure Gold Mining Share Discussion Threads

[puffintickler] 01/5/2015 10:28

Mach100

I am often guilty of having rose tinted spectacles where the stock market is concerned but your assessment is too negative if the RNS is to be taken at face value; which I believe it is given that they could easily have made a far more modest statement if it were warranted but still have rocketed the share price.

The relevant essential text states:
"the settlement will enable a return of surplus funds to shareholders ... likely to be at a value significantly higher than the average price of 59.59p ... the directors believe the return of surplus funds is unlikely to be more than 125p per share."

I do not believe they would have mentioned 125p if they believed there was any chance they may end up returning less than 100p. Also the return of capital is not limited to 125p, it is "unlikely to be more". For me the range to be considered is more like 100-130p but likely to be to the lower end of this, the figure of 110p mentioned earlier looks a good one to choose that should not prove a disappointment.

Of course a lower return of cash may be a good thing if they find they need to invest heavily in a booming Prescott facility...

[mach100] 01/5/2015 10:01

Anyone who bought in at 60p would be crazy not to take 80%+ plus profit given the uncertainty. "The settlement represents a discount to the potential full cost of reinstatement of the Swansea facility, including compensation for business interruption until full recovery of the Swansea business". We know it will be significantly more than 60p but not more than 125p so probably 86p to 125p Still some downside possible. That said I think once the statement is fully digested, this will move up and possibly quite significantly. Looks like 100p is downside resistance. If it falls through that I expect it to end at 95p today. It will be interesting to see how this plays out.

[hutch_pod] 01/5/2015 09:22

I guess the share price stayed low due to concerns about the length of time for the claim to be settled.

Am still in some shock but the RNS does explain the reasoning very well, and I'm sure they were helped along by the significant stakes the directors hold in the company! Great job.

[puffintickler] 01/5/2015 08:39

100p looks about right for today but arguably PUR will return 150p in the not too distant future so plenty of scope for new investors to pick up a bargain!

Full marks to management for taking the difficult decision to halve the size of the company. Even if it was a bit of a no-brainer in financial terms it is never a given that business emperors will decide to shrink their empire.

I was surprised the the share price stayed as low as it did after the first RNSs confirming the level of insurance cover, I would have bought more but already had too many as I had topped up shortly before the fire on the back of very bullish expectations.

Not complaining though!

[stegrego] 01/5/2015 08:23

I hope the workers bought a shed load of these in the 50s as some compensation for being made redundant.

For once I don't begrudge insider dealing.

[paleje] 01/5/2015 08:22

Both Alan:)

Peeps might be paying a bit too high this morning though?, let it settle, Phoenix yes worth between 30-50p but US interest rates due to rise in spite of the economy dipping so exports will be under pressure and the guesswork on the payout is just that. I thought to add when I saw the RNS but not at this level.

[stegrego] 01/5/2015 08:14

So I think there is a reasonable chance of getting near 125p back, say 110p.

Arizona is probably worth 30p min so these are conservatively worth 140p without even trying.

102 to buy. 40% easy profit with a bit of patience IMO.

[alan@bj] 01/5/2015 08:09

So I said 12th March that "I may add but there's no rush to do so yet". I don't know whether to feel pleased that I continued to hold, or depressed that I didn't buy more!

[bookbroker] 01/5/2015 08:08

It's great, the replacement cost of plant far exceeded the depreciation on the existing machinery!

[bookbroker] 01/5/2015 08:07

Maybe more co. should try this method of operating a business, when you have margin pressure, start a fire, claim the insurance and then close the operation!

[jbarcroftr] 01/5/2015 08:06

Arizona was 44% of turnover but 60% of profit( from memory) so I think it will be worth another 50p
No miserly AIM valuation

[stegrego] 01/5/2015 08:05

Bookbroker, I'm pretty certain they will have already factored that in. Otherwise they would be stupid.

[curlly] 01/5/2015 08:04

book
It's all said in the rns

[bookbroker] 01/5/2015 08:02

What about redundancies, etc.!

[curlly] 01/5/2015 08:01

So am I right
We keep the share we have and get a one of payment of up to £1.25 per share.

[boystown] 01/5/2015 07:56

The phrase "unlikely to be more than 125p per share" tends to suggest it will be pretty close to that - then you have the generally bullish tones about ongoing business via Prescott Arizona - so ongoing business worth at least £6m / 21p per share (they surely aren't going to leave it underfunded after all - with the payout in mind).

All in all, I think it's got to be worth at least 140p over time. I don't think it will go to that today - but FWIW, I won't be selling for anything less.

[janeann] 01/5/2015 07:45

so where will it open this am? Payment between 60 and 129p and still has the existing business. can see why the share price rose when they started discussions with those in the factory!

[hutch_pod] 01/5/2015 07:45

So at say £1 a share, this is $42m returned to shareholders? And the remaining business worth say 30p? $42m would be an impressive payout even considering the interruption cover and especially as net of liabilities.

Explains the recent rush. But wow.

[paleje] 01/5/2015 07:40

No leaks there then, wish I'd kept my full holding now of course, easy with hindsight, couldn't have anticipated this though. Not too late to add, Phoenix still going well.

[jbarcroftr] 01/5/2015 07:38

So we might get 110 p returned
Plus Arizona which is at least another 50p of retained value
I imagine it will be sold or taken private- probably another 75 p
All back on the envelope I stress

[janeann] 01/5/2015 07:33

perhaps they missed the decimal point out;

[stegrego] 01/5/2015 07:19

I'm really wishing I held on now....... Duh.

[curlly] 01/5/2015 07:14

WHAT THE..............
£1.25