Pure Gold Mining Share Discussion Threads

[puffintickler] 14/5/2015 08:37

I think it must have been done with Google translate!

Seriously though, MMs have marked up this morning to a buy price of 125p, equal to the upper cash return "limit". In principle there is still plenty of upside because of the value of the Prescott operation that will remain, it will be interesting to see if the market agrees and acts, I suspect it will. Even a risk adjusted price should be above 135p.

[stegrego] 13/5/2015 13:37

Tried Google translate but didn't help with above....

[mrthomas] 13/5/2015 13:07

Just brought was going to be after the fire did not still This will be interesting re pay back every etc

[roadster750] 12/5/2015 11:12

Well i finally got my 12p in old money, but not in the way i had hoped for.

[puffintickler] 08/5/2015 10:34

Don't blame you for selling, +100% is quite a jump, but I don't think you will get a price fall from here worth mentioning and there is still 20-50% upside to come.

[bigdazzler] 08/5/2015 08:35

Well sold out after fantastic rise. I'm hoping for a pull back to renter if it doesn't happen and rises not really fussed.

Been in these for some time at one stage a liitle down in value but it's come good for me in the end.

Phoenix out of the ashes eh?

[alan@bj] 06/5/2015 11:49

Summary from Investors Chonicle:-
Given many Swansea customers have moved to competitors since December, pulling out seems sensible. What is less clear is the size or timing of the payout to shareholders. Broker WH Ireland has suspended forecasts, but highlights the Arizona facility, which posted $4m (£2.6m) cash profits in 2014. That's a PE ratio of 12, ignoring the huge cash returns. Buy.

[puffintickler] 06/5/2015 09:38

Agree!!

I think Stegro was just saying that they would not have mentioned 125p unless they thought it reasonably possible. I formed the same view as there is no reason for them to set themselves an unrealistic figure.

[papy02] 06/5/2015 09:28

puffintickler

fair enough. I just think a possible/likely interpretation is "we've modelled a range of outcomes on the liabilities side, and 125p is the highest return on reasonable assumptions".

They don't categorically exclude >125p, so let's hope they can manage that :-)

[puffintickler] 06/5/2015 08:50

Papy, your example is meaningless as it does not correspond with the wording of the RNS. There is no mention of a range or definite maximum or minimum numbers.

[papy02] 06/5/2015 07:13

silkywhite

re 4121. If I told you my height was in the range "above average" to 7ft, would you assume I'm 7ft as otherwise I wouldn't have mentioned the figure? ;-)

Still, good risk/reward here hopefully.

[silkywhite] 05/5/2015 23:39

Announced just b4 the close --Polar Capital increase to over 9%

[silkywhite] 05/5/2015 13:20

They clearly expect to pay back 125p. They are covering themselves a little but they wouldn't have mentioned this figure otherwise. It could be more than this or it could be less but 125p is the ball-park. The broker thinks the rump is worth another 38p, more to an acquirer, which gives 163p in total. A big margin of safety at 110p to buy. I'm expecting at least a 30% return from here.

[roper] 05/5/2015 12:14

Looking good for another leg up...is bid only on the electronic link

[zoolook] 05/5/2015 10:11

I decided to pick some up and got a price of 107.2p but it came up as a sell. Out of interest I tested the sell price straight after and it was 107.25p.

[puffintickler] 05/5/2015 09:39

The price action is very muted this morning, I was not expecting fireworks but the volume of deals is quite low given the circumstances. As one might expect there are quite a few small sellers taking advantage of the price rise but to me it looks like there is a big buyer in the background as the price has remained firm and even risen against a backdrop of four times as many sells as buys.

I can see the price being higher by the end of the day.

[zoolook] 05/5/2015 08:16

Does anybody know how much the factory has received in grants from the Welsh Development Agency and whether the WDA will have a potential claim to some of the insurance monies ie whether it is "(one) of the significant liabilities of the Group that will need to be negotiated and settled"

[eezymunny] 01/5/2015 14:47

An issue I guess is that there ain't a lot of manufacturers of replacement equipment for wafer reclaim. Probably got some crazy quotes and PUR/insurers settled on a sensible number. Given that the useful life of the reclaim equipment may be limited it seems sensible to settle but yes, terribly sad for the employees.

[hutch_pod] 01/5/2015 14:29

Agree Stegrego. It is a bit odd to settle for a discount to the potential full cost of reinstatement but it's hard to tell how close the offer was.

[stegrego] 01/5/2015 14:09

The insurance money was not enough to fully rebuild facility and most of customers have gone elsewhere since fire.

So can't see any point in half building something that might not even be used.

[scott1978] 01/5/2015 13:54

Great, so the company & its shareholders are all ok yet the 110 workers that have/will be laid off through the fire will now be without jobs!!

[stegrego] 01/5/2015 13:46

This represents a highly positive outcome for shareholders," says Eric Burns at house broker WH Ireland.

Once Swansea is closed, Pure Wafer will have a profitable wafer reclaim facility in the US - it made a cash profit of $4 million last year - plus a big cash pile. And while Burns is not yet in a position to reinstate financial forecasts, he is positive.

"Applying a hugely conservative multiple of 4x Prescott's historic EBITDA contribution suggests this business could be valued at $16m (=£10.4m, or ~38p per share) in our view, perhaps much more to a strategic buyer," reckons Burns.

"Added to the proposed return of capital 'significantly higher' than 59.59p, this would likely demonstrate break-up value of more than 100p."

[eezymunny] 01/5/2015 11:04

One would assume that they have done a fairly decent assessment of all the costs involved in closing down Swansea and have concluded that there will be c. 125p available to return. I would only expect a significantly lower number if they've made a complete howler and overlooked something significant. With some clear value attributable to the remaining US biz I can't help thinking selling today at this price (102p) is pretty daft. Time will tell. Not without risk if they've overlooked summat.