Ann: Trading Halt, page-34

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rollacoaster

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02/05/20

11:08

Post #: 44394796
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Originally posted by BMWMPower ↑

Just to contextualise, my view a bit and speak in general terms as I appreciate that my comments may be viewed a bit harsh or dramatic. I view the potential value destruction of the acquisition to in the range of $50-150m, when set against the overall size of NCM, it's not a drop in the ocean, but it is pretty minor in the overall scheme of things.

In terms of share price, today I think it's primarily the PoG driving us down and the joys the rest of the sector has felt over the previous two trading days.

My frustration here is primarily the selection of opportunity and asking shareholders for equity, I don't like the returns, and as PP23Red rightly states we are a miner, not a streamer and the upside is minimal. We should be taking on mining opportunities.

When you benchmark this against the opportunity NCM passed on with KCGM/Superpit (IMHO a great buy for SAR & NST - disclosure i hold both), and have not pulled the trigger on GGP yet is odd. GGP looks to offer a material level value creation if it is indeed the next Telfer. That is a story I would have been happy to hand over cash to buy and bought into.

Adjusting my sentiment to hold given the correction and disclose my intentions, if the PoG rebounds over the next week the equity issue will be in the money and i'll look take up my allocation, however I will probably rebalance my allocation down from there to a similar level to prior to this, but be watching management more closely and with a lower level of confidence going forward.

BLTAH & have a great weekend.

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The SPP will always be in the money for retail holders as it is priced at the lower of the Insto price or a 2% discount to the trading price on closing day.

If NCM is trading at $20 in a couple of weeks then we can buy at $19.60 with no brokerage

NCM Price at posting: $25.15 Sentiment: Hold Disclosure: Not Held
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