Pure Gold Mining Share Discussion Threads

[zoolook] 03/12/2015 11:58

I didn't initially realise (thanks Eezy Munny)that its conversion to an investment company prior to liquidation meant it couldn't be held in ISA (as it is not then listed) so some may be selling for that reason alone. I use IWeb and they are doing a no cost move of the stock out of my ISA wrapper into a normal dealing account though obviously I lose the tax wrapper benefit as a consequence which others may look to avoid.

[puffintickler] 03/12/2015 11:27

The share price at present is irrelevant to holders. It gives no indication of the final value so I more or less ignore PUR now, despite it being by far the largest component in my portfolio. So I am not bothered by price changes.

That said, in my view buyers can pick up a bargain at the current price while sellers can only be those who need the cash or who are uncomfortable holding so much value in one share. I did reduce by holding at 179p for the latter reason.

Given that there is always some risk and there is a lot of value at risk I suppose that the current mean valuation is not that surprising. But it does factor in quite a high "potential management dishonesty" (ie issuing overoptimistic RNS's) risk which in my experience with PUR is not justified by the facts.

[badtime] 30/11/2015 16:33

Nice to see the share price recovering ..glad to have topped up at last weeks lows

[hutch_pod] 24/11/2015 22:49

Ok thanks pt.

[puffintickler] 24/11/2015 19:02

That's my take Hutch

[hutch_pod] 24/11/2015 17:31

Actually sorry, if the cash at YE was mainly GBP (ie the insurance payout), then it would be at 1.57, not today's 1.51, so that would reduce it a touch I think?

[hutch_pod] 24/11/2015 16:43

Getting there.. the exchange rate helps too I think!

Oh do you mean those with holdings considering IHT, as opposed to ISA? I presume the latter is not affected by the change.

[ir35] 24/11/2015 16:41

It shouldn't be a problem to hold in an ISA after delisting while they are being liquidated. I have 2 or 3 companies in my ISAs (with Barclays) that have been in administration for several years.

[eezymunny] 24/11/2015 15:37

Good points HP/SJ . Every time I look there's another little thing that blurs the issue. Lots of known unknowns and unknown known unknowns :)

Good news is that we'll be given notice in a circular (in Dec) of outline numbers before the delisting, so those with ISA holdings have time to mull.

[badtime] 24/11/2015 15:33

Grabbed some more at 161 ..didn't quite manage the low

[sailing john] 24/11/2015 15:28

EM - Sounds like we are on the same page - hard to pin down an exact number but likely to be in the range 195-205 imo

One other variable is exchange rates - I don't know whether cash at YE is GBP or $ or a combination? and can't see any comment in the final results and can't find an annual report - perhaps not bothering

But YE exchange rate was about 1.57 and today is just under 1.51 so a significant factor!

SJ

[hutch_pod] 24/11/2015 15:17

I guess $5m is more prudent if it also may cover any working capital adjustments upon sale. At finals, working capital might have caused circa $5m adjustment if I understand it right, though of course it's a guess as today's situation.

[eezymunny] 24/11/2015 14:33

Sailing John

Outstanding warrants/options a little hard to fathom but 2014 AR shows potentially dilutive total 3.56m. Since then (Jun 1) 2.2m RBS warrants bought back so total share count should go to 28.4+3.56-2.2 = 29.8m

2015 finals however show 28.4+3.4=31.8m

So very hard to pin down exact number. Don't forget that exercising of these warrants/options will bring in some further cash. I think most were 20p strike (but not sure!)so may be another 20p*3.4m= £680k to factor in.

Generally agree with your sums but think $5m legacy/liquidation costs sounds very high. We can only guess but I'd say more like $1.5m

There may of course be unknowns such as big payoffs for directors!

All a bit of a guess.

[blueskyventurer] 24/11/2015 13:31

The company is delisting, hence some people are selling.

There a nice cash return estimated at 180-200 pence for though will to wait.

[hutch_pod] 24/11/2015 13:27

The FTSE is selling off pretty bad I guess.

[breaktwister] 24/11/2015 13:18

Bought in at 164 but worried I am missing the obvious. There must be some reason why folks are selling today?

[flyfisher] 24/11/2015 10:04

EEZY, The company paid $11.2m for Arizona in 2007 and has made several investments in expanding the facility, so the sale of the share capital of the business for $16m should not lead to any CGT on the sale.

[hutch_pod] 24/11/2015 09:35

Agree with that kind of range EezyMunny. The potential upside seems real. I actually thought this looked a weak deal unti i realised it might realise a (much) higher chunk of the cash held.

[flyfisher] 24/11/2015 09:32

Ganthorpe, after issue of options their will be 31.79m issued.

[allyp] 24/11/2015 09:20

Where are you getting $45m from ? They're getting it bought for $16m

[eezymunny] 24/11/2015 09:20

All a bit vague. I'd have thought they could have estimated final payout as they've done before. I've been adding however. I think that's a good price for the US stuff. If final cash proceeds, net of tax, from US are say min $12m (£8m) I'm really struggling to see how final payout is less than current 170p and may well be 200p+. Not enough info to be very accurate.

[ganthorpe] 24/11/2015 09:14

I seem to have got this wrong somewhere.
They were planning to distribute 140/145p per shares before selling Prescott.They are getting $45M for Prescott shares (about £29M) which is about 100p per share with 30M shares in issue.that seems to make 240/245p less selling costs of Prescott and liquidation and associated costs. Surely that shouldn't trim back distributions by more than £5/7M or about 20p per share.
I must be missing the blinding obvious.