Following all the posts this last week, I finally feel the need to add my view.
The views that 51% is everything have validity.
I don't believe that Shangdong will do anything but control for their benefit. Their country's only too willing readiness to threaten the Japanese with violence, economic war, and escalation of public ethnic denigration as an acceptable response to an international political dispute shows what hidden opinions really lie within the Govt and culture, and the contempt they hold for other peoples.
There is a very high probability that, as others have pointed out, they want the gold, not the cash, they will arrange to sell all production to Chinese buyers at market prices (which we all know is under priced), so no misdeeds can be reported there, and with their 51% control plough back 100% of the money (including ,of course, our 49% share) into more production. They will have the company, they will have production, they will use us as unwilling providers of working capital for ever, they will control a $400 million plus company for half the cost, return no capital, pay no dividend thus quite happily screwing the sp and us, and not even go to the trouble of mopping up the rest of the register on market as it inevitably reflects the true state of its "Public Ownership".
I even believe that the games with Stone over the CRE debacle may well have been orchestrated as a spoiler to prevent anything making this event, obviously meticulously planned and researched for a long time now, more difficult and costly than they obviously knew it would be.
This is the reason they didn't try a formal offer to buy out. Too expensive to take out the whole company and then finance the expansion. Much preferable to take control and then use the money saved to finance another "merger", giving them MORE share percentage and MORE gold production. This is a long term approach that doesn't care if it's at break even or even at a loss. It'll be paid for by excess, rapidly devaluing American dollars of never-ending supply, so the faster the better. Definitely a case for FIRB intervention.
Sorry Pinto, CW. I added my name to that show of support genuinely the other week, but now feel that what's good for the company, management and the proposed new controlling shareholders is very definitely the end game for current owners. I don't believe no thought has been given to this by our "highly experienced and knowledgeable" management.
Rather no care. To say they won't invest unless they have 51% holding is disingenuous. Let them buy gold at the gate like every one else, with NO holding at all. If they want access to an increased and secure supply, let them provide the money for expansion through a large hedge position with the company. After all, 500,000 oz a year should return that rapidly.
My choice now is simple. Bolt with what little I have left or hang on in the hope of a rejecting vote.
Our only chance is if the majority reject this travesty of a take over (Sell out?), or if some yank money steps up to the plate to spoil the pitch. If the Chinese had honestly and openly made an offer at 5c, they might have got my shares as my long term holdings have cost me too many opportunities, and I can see the future return now, if ever, being WAY past any usable time frame for me. As it stands now, I'd be susceptible to the price even rising to 4.5 again, and an offer from some entity that screws over these manipulative users would certainly give me some feeling of satisfaction. Especially if it costs the board their jobs! The often observed warning about management that has no skin in the game has been painfully proved only too true!
It's probably been stated here already but when is the vote, please?
FML Price at posting:
3.7¢ Sentiment: Sell Disclosure: Held
(20min delay)