Pure Gold Mining Share Discussion Threads

[hutch_pod] 24/11/2015 09:01

Not sure, but i liked this bit: the Purchaser has agreed to structure the purchase as an acquisition of the shares in the Subsidiary, rather than a purchase of the trade and assets. The structure yields a considerable tax saving for the Company (estimates suggest that this could be up to $2,000,000) and enables the process of returning funds to Shareholders to be accelerated

[papy02] 24/11/2015 08:51

Wonder what corporation tax needs to be allowed for?

[puffintickler] 24/11/2015 08:41

If they have another 30p/share that's £9M, liquidation costs should not do more than make a dent in that.

[hutch_pod] 24/11/2015 08:22

Hopefully the circa 30p per share net cash they were leaving to run the business won't be eaten up by liquidation costs.. as that would give additional above last night's share price of 173p.

[puffintickler] 24/11/2015 08:12

No janeann, market transactions will make no difference to the cash payout, unless PUR themselves indulge in share buybacks of course.

[janeann] 24/11/2015 07:53

and I assume the more people who sell early at a low price (if the price is dropped) the more cash left for the remaining shareholders.

[garbetklb] 24/11/2015 07:51

The announcement is remarkably light in one respect - there's no description of who "Wafer Holdings" are.......
I wonder if they will turn out to be a related party.....

[janeann] 24/11/2015 07:47

no reason they cant be held in an isa pending cash return as far as I am aware. May depend on the individual broker.

[puffintickler] 24/11/2015 07:45

As expected the US business will be sold, the company liquidated and the cash returned to shareholders.

hxxp://www.investegate.co.uk/pure-wafer-plc--pur-/rns/2015-final-results/201510150700283175C/

The value is basically the 140-145p cash return previously announced plus 33p for the US business less costs of liquidation plus the difference between the cash return promised and the value of the whole UK assets (they had to leave cash around to run the whole business).

I think the net cash return should be a bit above last night's share price (173p) but it might be less so we might expect some selling pressure first thing.

Personally I am hanging on.

[pratt2] 24/11/2015 07:38

Why can't we get the full amount if we've got shares in an ISA? Not even sure what the full amount is to be honest.

[allyp] 24/11/2015 07:30

"The Directors are aware that certain Shareholders may be unable or unwilling to hold Shares in the event that the AIM Cancellation is approved and becomes effective. To the extent that Shareholders are unable or unwilling to hold Shares in the Company following the AIM Cancellation becoming effective, such Shareholders should consider selling their interests in the Company in the market prior to the AIM Cancellation becoming effective."

Great so that will provide selling pressure and we won't get full amount? If you hold in an ISA I presume?

[breaktwister] 23/11/2015 22:30

What would happen to a spreadbet long if the company distributed its capital to shareholders and delisted?

[puffintickler] 26/10/2015 10:52

Faced with a large distribution of capital the most flexible optimum method is to issue a choice of:

- B shares which they will buy back at, say, 145p. The total amount issued cannot exceed the amount invested in the company over the years, the "good tax capital" (flotation proceeds + rights issues + placings....)
- C shares which carry a dividend of, say, 145p. These shares will subsequently be cancelled

This takes a while to set up and gain necessary approvals but if this is PURs intention it will hopefully will not take much longer.

[coolen] 25/10/2015 14:08

I've raised this query before as I cannot see how they can repay capital without first distributing their various reserves. If so, there's an array of tax aspects to address.

[hutch_pod] 25/10/2015 08:44

I guess if it is a capital distribution, the net cash pay out could be somewhat less than 140-145 depending on your tax situation.

[shaker44] 25/10/2015 08:01

Seems strange that the PW website has not been updated since 16 June 2015, despite financial results published 15 Oct 2015?
Is there a timetable for returning capital to shareholder? I guess it will not be classed as a divie and taxed?
so why does the 'market' value PW at less than the cash pile, given that Usa is trading profitably and growing? Fear that some/all of the cash may be used for an acquisition with the hazards that entails?
Superficially buying in seems a no brainer. Superficially!.

[puffintickler] 23/10/2015 14:53

Isn't it time we took the (sic) out of the thread header?!

PURE WAFER $$$$$ PURE GOLD (sic) (PUR)

[hutch_pod] 21/10/2015 09:09

I noticed ST uses existing shares of 29.2m to value the cash pile at 188.5p.

It's 173p if you use the fully diluted figure of 31.8 in the results.

I guess it's pretty likely the share count will rise from here, but unsure if it will hit 31.8...

[alan@bj] 20/10/2015 16:22

I don't think so.

[zoolook] 20/10/2015 14:43

Rise probably because it is tipped on the IC website in a subscriber only article written by Simon Thompson entitled "Valuation anomaly worth exploiting"

Thanks for that ST - I've sold

[alan@bj] 20/10/2015 14:12

News imminent judging by today's rise in the share price.

[puffintickler] 19/10/2015 06:15

Agree that Prescott is likely to be taken over, but the buyer will have to pay much more than 25p.

Also, Prescott is viable as a listed company, it is now bigger than PUR was before Prescott was bought (PUR originally was just the Swansea facility). Profitability will improve because business is booming and proportionally interest costs will be lower because the business will be left well funded.

That said the current board overhead is not justified and the UK listing an anomaly for a 100% US business, but management are obviously well aware of this. I anticipate board reductions which will improve profitability still further, partly offset by (deserved!) redundancy costs.

[camerongd53] 18/10/2015 20:03

Market price approx 170p less cash distribution approx 145p

[orange1] 18/10/2015 19:49

Can you explain how you arrive at 25p?