As of YE 2014, 37M of the 2012 debs , 800K of the T1 and 1.4M of the T2 were still outstanding. T1 T2 holders had very little still in the game.
Any buyer would wait until after the "white knight" deadline of 6/15. Then BAM will buyout the db holders of 6% and the common 2%. At current prices that would be only 1.4M and likely will lower. Then BAM doesn't have to answer to or negotiate with anyone. Then your assumed buyer could probably buy PAL for maybe $150M. BAM comes out (more than) whole since they only have about $135M skin left in the game including the $25M interim loan. I know that doesn't exactly your question but I can't find any value for current stockholders no matter what happens. With the debt gone, differrent mgt, diff top mining staff maybe PAL can survive but current stockholders will not ever see the benefits.
Hopefully production at PAL will continue for the sake of (most) of the employees and the people in TB who service and supply the miners and the mine. Even if PAL shuts down their 200Koz are only about 3% of world production.
The re-cap plan posted 7:00 AM Wed 15th on SEDAR and Edgar has a provision that NAP will ask for their shares to be delisted on the 15th (effective date of the plan). So if you read the filing you knew the stock would delisted. No surprise there.
First it is a rights offering. Second BAM (and others) are backing the offering - that is if no one else is interested they have guaranteed (for a fee of course) to exercise the rights. Don't see how that protects them - just puts them on the hook for another possible $50. But no matter what more dilution. Make current shares worth .001 or less. As each day goes buy without any Superior Offer stock will sink toward that level.
sec DOT GOV /Archives/edgar/data/887701/000119312515130436/d909063dex2.htm
The full re-cap agreement. Before reading make sure your wallet is in a safe secure place.
Edgar has granted a waiver of the Reading Fee.
It may be a foreign stock but is traded (as was PAL) on a US exchange as many others are.
Current quote .0530 - .0544. Broker is looking at worth after deal closes. He is probably doing you a favor.
I'm stunned - a broker with a sense of fiduciary duty.
BAM interest was about $140/oz Not clear if that puts them in the black per oz. They are having production trouble - 45Koz in q1 is just above their lower end annual guidance level (185koz-205koz). But with current stockholders to get just 2% (or about .001/share) seems impossible to buy here and hope to make a profit. Too big a hole to start in. What BAM motive is IMO - let's see another qtr or two - alternative was an immediate shutdown - no money to pay salaries, vendors etc. A closed mine would be next to impossible to sell and BAM would lose it all. At least if still operating (marginally) they could make a pitch telling possible buyer that their (the buyers) new mgt and tech staff could turn it around.
Not quite. PALDF is listed in US on the OTC Pink sheets so no foreign stock fee. Some do charge a small markup. Ask first.
But to play "tennis" requires more than balls. It requires money. Pump? Who is gonna bite a second time around. The immediate 25M is just to keep them going with the hope that the PD fairy will touch their operations with a magic wand. I suspect that their cash position at Q1 end was about 0. Under .04 today is likely and will set off another wave of selling. MF mgrs IMO will wait till after the deal and then talk to BAM about a taking position. More likely big pocket non-junior will be interested post 6/15. At .01 maybe lunch money trade. :-)
On what rational basis? As deal stands now, on June 15 stock will be worth about .001. As soon as the deal closes, I expect BAM to buy out the 6% held by db, the 2% held by stockholders at well under a penny. They then can negotiate without others involved. 25M more debt and 50M rights offering coming dilutioning even further.
Their plans are to start production in Q4. If that happens IMO no more financing will be needed. But with any big project there are always slippages and startup glitches so I'm guessing Q1/2016. When they get into production the weak rand will help - costs will be local in ZRA and revenue for PD at USD price. Until then don;t know if weak rand helps or hurts. Needed equipment may not be made in SA. Until then wait and wait or if aggressive accumulate on dips down (like now from .56)
" Why sell my shares now just to lose the money."
Maybe not to lose more. 2% of current mkt cap is under one cent.
Wow. Then stock would be worth .002 instead of .001. Do you think anyone will believe anything mgt says? And metal prices are anyones guess. Forget this zombie.
Went to SEDAR to read agreement. Before I could read I would have to pay a "Posting Fee" to whomever transmitted it to SEDAR. Then a "Reading Fee" to read it, or a "Reading Break Fee" if I chose to not read it, or a "Early Reading Termination Fee" if I only read part of it. Had to reboot my computer to get out.