Hello Paul and others - I chose this thread as it seems appropriate. We have just been given alternatives in FML and if we don't like the deal we can vite against it or move on.
I was asked a question - by kevqaz on another thread so I address this in here rather than start another post...
Hello kevqaz,
I have not sold any shares what we are seeing is a 'reaction' by some retail investors. It was another 700k shares not $700,000 of shares I added so not a $50k loss. I do not have that sort of money for any one stock I maintain a balanced portfolio as my members know. This is one thing I teach, $700k (maximum weighting) would require $7M total fund and I am not there, not yet.
Shareholders have just been given a choice. That is why it was respectfully put to you / us this way - to reject or support the 'offering' made to you as owners of this company. DT could have placed a tad under 15% without approval from us the owners and stepped it up with them over time however this was not seen as ideal or honorable. A 15% share holder can also exert a massive amount of influence something many here have not considered - look at Gina Rinehart for instance.
Xenophobia ran amok here this week - Chinese. Good and bad in each race including Australia make no mistake. DT has been dealing with various Chinese groups since the 60's and knows business at a high level. What he has done is to select a high ethic group very carefully and we can see a hint of this in his presentations and the report.
DT has dealt long term with another Chinese group in the textiles industry and they have been fantastic, never any hint of misuse of power or untoward games at all. Those that have been close to Shandong during this process are apparently comfortable.
Look - men are renowned for their conquest of women (as an example) and yet there are gentlemen out there (here too) that can be trusted with your wife or daughters - not to make an 'approach' and to treat them like a sister out of a sense of ethics and respect. The 'norm' is the former and yet the ethical male is everywhere amongst us so don't stereotype OK. Assumptions either way are foolish, yes we have to assess.
In the cool hard light of day we can see a few things. The $600k cancellation fee (if WE don't approve it) is a mark of business ability on the part of DT who is a master at this. Normally the non acceptance terms on such a large deal would be in the $millions. And he has been knocked for raising $227.5M as a first offer on these terms - in this financial climate - I would love to see the credentials of those who deride his ability to secure this initial offering.
Shandong have shown excellent grace to accept that - this is now out of their control and yet they only seek return of costs without penalty if WE don't approve the deal presented to us.
Do I like the deal (?) you ask. I am still assessing and will either vote for this or against it. I have been talking and learning and analyzing instead of 'reacting'. Taken up in the heat of all that I admit I added 700k shares and to an extent that was a reaction so I don't claim infallibility either. I voted with my feet instead of sitting back for longer to assess - and I have a small paper loss on that parcel (ouch) and the 500k shares I added last week on technical base of that flat top triangle FML had formed.
This is an 'offer' and a better one may yet come to light - DT has put a floor of 5c value per share at this level - amongst the big players. I will calmly sit back now and work out what this means for the operations and potential of the ground position which is what I have been basing my research and comments in here on all along - have not changed my view on any of that - but this is a game changer so time for an assessment.
Shandong have not played games here they have been straight up from the start - no last minute dither and play - thorough DD and independent geo as well and straight to it. They have offered, deal initially secured at about $100 per resource ounce - $227.5M for half of 4.3M ounces and this is a top end deal.
To put this in context we paid the Canadians about $30 an ounce and CRE about the same - so this is NOT a 'distress sale' as is falsely being touted by some who do not understand quite frankly. I state this confidently because FML are banking money at present.
Shandong have offered fair value and want to see the FML team with the capital required to reduce their purchase price down to the bone - double the gold in short order and more over time - and to add the Ni which (SS is wrong again IMO) is a fantastic asset. This is the only way they can recoup this investment unless gold goes up and they know that will happen too. Their success will be linked to our success as shareholders. Now I have a lot of work to do to get this right.
Thank you for the question kevqaz, have a great weekend all. Respectfully - no matter what your reaction or view is, CW DYOR&DD
FML Price at posting:
3.9¢ Sentiment: LT Buy Disclosure: Held
(20min delay)