"They could have come away with $70M cash "
A number of comments:
Where does this $70M cash come from? Are they selling (offering) the rights or issuing them for free to existing stockholders? If just issuing them gratis PAL gets no money until the execution date - how long in the future?
Some additional comments:
- $70M would not be enough
- Cash needed fast. I think they were in worse shape than non-insiders thought. Having a vote, prospectus/paperwork for issuing rights and then waiting for execution date - by then IMO they would have been BK.
- what is different than just having a secondary well below the market (1.20 vs 1.80) and PAL gets money quickly.
The BAM loan as bad as I think it was, was unavoidable given the time constraints. The fact that they agreed to outrageous rates IMO means no one else was willing to loan them money or buy stock in secondary offering.
But that as they say is ore through the mill.
FYI: Guess what hit a new 52 week high - BAM.
What's your take on SWC weakness last 4 days?
It is filed on SEDAR (like our SEC) dated Jun 17 2013 Title Material Document
About 100 pages. I have a copy (in WORD) I can e-mail to you - address? Do not have the amendments.
SA ETFs have stopped any significant buying
Yes, SA mines are ramping back up though will take several months - meanwhile they seem to be able to supply customers from inventory. I also suspect some end users stockpiled as soon as their was unrest in SA.
Increasingly obvious no sanctions involving PD. We surely won't ban imports (and once it's in a cc who can tell where it came from). Russia seems to be retaliating by sanctioning imports (US chicken, now hassling MCD)
Do you mean issuing (for free) a right to buy one share at 1.20 for each share held on the assumption that right holders would immediately exercise?
No craps but do play Texas hold-em. Tight and aggressive of course. :-)
Bain has a bearish tone for Pd going forward doesn;t he?
Big article in today (Wed) NYTimes business about RSH. Pretty gloomy. They say RSH strategy of many many stores was to make it convenient to shop at the a store but now "not as convenient as on your sofa in your slippers". SO they are stuck with a huge number of unproductive stores and the number of closings is limited by the holders of their debt.
Says some of the things I've been saying recently.
True was previous mgt. But look what new mgt brought us (drumroll.....) BAM.
(True they had little choice , just as they have little choice now)
Maudore (MAOMF) still owns them - doing what is called scavenger mining. They are essentially BK. See their latest restructuring PR.
They had to hold the shares for 4 months. By then price was down to .31 Three months later it was .10 Unknown if or when they sold.
As far as fair value for gold properties, long before the sale was announced and PAL hinted at divesting gold properties, estimates on this board ranged from 75M to 125M.
They took a substantial write off.
Remember when they sold Sleeping Gaint, Vezza and all other gold interests to Maudore Minerals for $18M cash and 1.5m shares of Maudore. The price of Maudore stock on the closing date of the sale was 1.02.
Now it is .06. Well done!!!!!!!!
You won't find anything and he will not supply a link because it is a daydream.
And besides, PAL and gold do not play well together.
A R/S does not dilute the stock. However, in my experience an R/S usually takes 30-40% off the price of the stock. Part when announced and part when effective.
The local mgrs will know when they don't receive inventory for the holiday season because suppliers will put RSH on cash in advance.
I understand your reasoning but I think most of the mill costs are variable - electricity to run the ball mill and the flotation line , labor and propane to dry the concentrate. Mill is not new so depreciation should be small. There may be some supervision that would be fixed cost. Looking at H1/14 vs H1/13
H1/14 tonnes milled 1038M Cost/tonne $59
H1/13 tonnes milled 986K cost/tone $56
If much of the costs were fixed then cost/tonne should go down with increasing volume.
Maybe I'll just ask PAL.
From latestt Q report
During the second quarter, 506,945 tonnes of ore were mined at LDI, of which 263,904 tonnes came from underground sources (with an average palladium grade of 4.9 grams per tonne), and 243,041 tonnes came from surface stockpiles (with an average palladium grade of 1.0 grams per tonne). During the second quarter, the LDI mill processed 521,478 tonnes of ore at a combined average palladium mill head grade of 3.1 grams per tonne, at an 83.6% palladium recovery rate, and at a total cost of $56 per tonne milled.
1 gram per tonne at $890USD ($961CAD) and 84% recovery is CAD26 Pd per tonne. Add 30% for byproducts makes it CAD34 revenue per surface ore tonne.
They state that the cost of milling is CAD56/tonne so how is using this low grade stockpile "profitable"?
That's not unreasonable. My point was that there does not see to be a current shortage of physical Pd. No reports of Pd users being on allocation, etc. Agree that current price is factoring in a lot of bullish scenarios. What will a couple of years bring? At 72 I don't look that far ahead or buy green bananas
You means the IMPLATS / PAL silliness? Yeah, see it is gone. The source is a known pump/dump rag that has started other M&A rumors. Market seemed to ignore it anyway.
Was suprised to see weakness in SWC today. Did manage to make about $1200 on a couple of SWC trades just to keep me awake. :-)