Emerald Carrots
09 Aug 2017
Speculators must be crazy >> unless some news has leaked. Very nasty smell around here.No way I'm buying.Alll IMHO.
appamama
09 Aug 2017
Re: Not with a barge pole unless Acacia has not been fined yet. I don't expect the fine to deliver a fatal blow to the company's prospects. Judging by the share price rise, some news about a resolution is on its way.
shugg1e
09 Aug 2017
Re: Now up 10%. Why? nm No ideaTime to go short again
appamama
09 Aug 2017
Re: Now up 10%. Why? nm Gold stocks are typically more volatile than others. Gold is up today. So are all London listed Gold miners. Acacia is up more than others because it had fallen fast.
tornadotony
09 Aug 2017
Re: Now up 10%. Why? nm Emerald it is practicing being an AIM share listing. Last six spikes like this since March were followed by a big drop. It is either a suckers rally, or corrupt insider buying on news to come out later. I am now out of here for good. It stinks to high heaven.
Conchis
09 Aug 2017
Re: Now up 10%. Why? nm Sterling down sharply against the Euro.
Emerald Carrots
09 Aug 2017
Now up 10%. Why? nm .
Emerald Carrots
09 Aug 2017
??? Up 8% Why??? NM
tornadotony
08 Aug 2017
Another solution Bite the bullet with a rights issue. 1:1. Tanzania government agree the price of the right for 50% of the available stock. So 820M shares new total. Barrack does not take up all its allocation and takes some cash instead. Tanzanian public buy at 150p say 205M shares. Non Barrack holders can buy some at prescribed price to keep their 37%. Acacia has less Barrack and its replaced by Tanzanian Government and some independent holders. Again they resolve everything else to make it attractive for people to buy stock.
tornadotony
08 Aug 2017
Re: Not with a barge pole unless To appamama[link] may be a better comparator. The fine on Acacia is way above anything else and is unreal.Indonesia has now stopped 4% of all gold mining production globally as they follow Tanzania. This is now leading to a fall for the first time in annual gold mine supply for 2017 in many years. Clearly a number of governments suspect fraud in the smelting industries. At the very least better regulation might be needed. The only sensible way to resolve this is for Barrack to concede 10% of its stock to the Tanzanian government. In exchange the ban on exports ends, the 1% fee goes but probably Royalties stay at 6%. Tanzania government has a place on the company board. Everything is made more transparent and accountable. They agree a long term mining code that is acceptable to the industry otherwise nobody will develop the assets as seen in other countries who asked for to much. The smelter costs $500M and is completely non-profitable. The country does not have enough power grid supply to support it as well. Instead the whole process could be heavily monitored at all stages which is the least expensive and environmentally favourable outcome to do. A fund internationally is created to generate the same amount of high quality jobs that a smelter would create locally in the resource engineering sector is a better idea. The companies gain from it by recruiting people trained and developed by what is created. That programme could be half government funded and half industry and management function shared. If Magafuli sees the benefit of that approach this whole saga ends and the country does a lot better. As for Barrack yes they lose some assets but if it ends all the arguments for good, they can recover the loss over time.
appamama
07 Aug 2017
Re: Not with a barge pole unless Has anyone compared US fines on banks, BP, and other companies and compared them by putting the numbers in some form of matrix? I am wondering whether Tanzania is likely to take more money, in percentage terms, from Acacia, than US took, on an average, from these banks (or the worst case - BP)?
massmid
07 Aug 2017
Re: IHS Markit article published in June why the 5% rise today?
tornadotony
07 Aug 2017
IHS Markit article published in June [link] anyone who did not see this already.
tornadotony
07 Aug 2017
Re: Not with a barge pole unless EmeraldThe company will have around $180M in the bank. They may have redundancy and other liabities so lets say net that its $150M = 28p share price. On top of that they have property assets in Mali, Burkino Faso and the largest is in Kenya. The fire sale price is around 6p on the share price so that is up to 34p. A proper price on those assets over time gives a more reasonable 40p share price. Acacia however is unlikely to sell them. If the government seize the mines on tax penalty default they would lose billions on future investment and much more. The losses exceed Acacia value by many fold. Instead they will drive Bulyanhulu into closure and see how much pain they can put on the company. Seizing the mines and nationalise with no compensation is to easy. They like to torture their prey first and see if they can bankrupt operations. They are likely to switch off power and all kinds of other antics on Acacia fairly soon or make it so unreliable as to damage equipment and make the mines unsafe to work in.
Emerald Carrots
07 Aug 2017
Not with a barge pole unless very very solid good news here. Frankly I can't see that happening in view of them changing the law over there etc...... Seems to me the mine is worth almost zero?All IMHO.
