Ann: First Supplementary Bidders Statement, page-6

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kori

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04/03/23

13:07

Post #: 66601007
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Originally posted by kori: ↑

100% correct AussieWazza.

People don’t realise ‘that in life you don’t get what you think you deserve but what you negotiate’. For whatever the reason(s) SGI have managed their operations to the current situation of despair. SGI are in no position to negotiate and to boot they have run out of time!

This bidder’s statement outlines precisely what Danny2503 highlighted for SGI holders… “that 23% of CYL is still worth more than their 100% of SGI in its current standing". Also what really needs to sink in for SGI holders is that SGI has only achieved its annual guidance once in six full years of gold production at the Plutonic gold mine. Furthermore the real kicker is if they say ‘no’ they will be suddenly hit with this realisation: SGI has notoriously dispensed generous salary packages and conditions to its executives; a few years back ex CEO Bradbrook was paid $2 million in severance pay ex COO Boyle got close to a $1 million in severance payments. You have similar golden parachutes for the current executive team together with a termination fee of bidder’s agreement payable to CYL.

(Side note: Highlights the absurdity from the ‘I got it wrong again’ Naysayer who had the temerity to question ‘Is CYL a lifestyle company?’)

Therefore, If the ‘no’s’ win an immediate cash impact of a $2m termination or breakup fee is payable to CYL, together with current executive golden parachutes of around $5m and with only $8m as at 31/12/22 you will have immense concern from Creditors around SGI carrying on as a going concern. Uncertainty = Bleak future! Especially if CYL executes plan B – which is the acquisition of Sandfire’s DeGrussa mine and plant (you will note it twice on CYL’s investor presentation).

Expand

Support the ‘NO’ vote because we are saying:
1. ‘no’ to immediate funding = we don’t have any funding alternatives but may issue a CR @ 17 cents by selling the umpteenth turnaround story to investors!
2. ‘no’ to certainty = patience and arrangements required from anxious creditors who have witnessed a prolonged drain on net cash from $21 to $8m to ??
3. ‘no’ to the current senior management and BOD = we don’t have any replacements nominated to run the company, but don’t you worry about that!
4. ‘no’ to logistical relocation = prefer if my Billabong investment remains managed from Toronto because that has worked out so well in the past.
5. ‘no’ to the offer of equiv. of 40 cents a share = happy to remain at sub 20c or lower until something comes along.
6. ‘no’ to being part of CYL = ignoring analyses that the combined group could be worth $700m in the short term which will equate to min 3X return on SGI’s current SP.
7. ‘no’ to CYL = with immediate effect triggers a termination fee of $2m payable to CYL
8. ‘no’ is a way of saying ‘no confidence’ in SGI BOD/Exec. = massive golden parachute payments circa $5m.
9. ‘no ‘to CYL = CYL to refocus on plan B Degrussa plant leaving SGI with no cards to play with.
GLTA

Last edited by kori: 04/03/23

CYL Price at posting: $1.22 Sentiment: Buy Disclosure: Held
8 Upvote

3 Great analysis

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