Ok, so, if I sell half my holding at 1 cent then I can buy it back at .8 ;)
Right? :)
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Ok, so, if I sell half my holding at 1 cent then I can buy it back at .8 ;)
Right? :)
MAC your numbers are all over the place.
What relevance is discount to dilution????
Assuming NTL raises fully therefore being a producer and funded suggests this pricing is cheap as chips!!! harly derisking a little where the shares issued are back by CASH!
No matter which way the company is valued be it economically mineable resources - aka reserve, dcf basis on near term plan which was spoken at the AGM it appears great value at 1.2 and even better for at .008!! .
32,000 ounces on your pricing previous = how much per ounce in ground? current values appears to rate a measured resource at a higher $$ figure in ground value and well higher for reserves in ground which improve as a company closes in on mining. add back to that a pricing on in ground resources (not reserves) and comparative to peers such is undervalued. There was a table in one of Talismans presos which had this I just cant find which one it was a few years back. As another member pointed out a holding in listed entity on ASX and an unlisted explorer and it just shows how cheap this offer is to shareholders.
I do agree it is commendable that in a short space of time this company has seemingly transitioned from an explorer with very differing skillsets to a very skilled management team able to attract continued investment and progress a project while many many projects are closing down in this market.
I do hope we can apply for overs in the issue. Shareholders are the clear winners by a country mile in this!!!
DYOR - HOLDING NTL, NTLOA, NTLO
If your shares had a share price yesterday at $0.012, then the 50% dilution and the discounted price they are offered at today, means they are worth by calculation around $0.010c upon share issue, or, they are worth whatever the market deems they are worth following what is a de-risking event.
How well you do will depend on what the market perceives the value of NTL to be following this event, the SP is holding up very well following the announcement today at $0.010 so far, although few buyers seem to have fled.
Some caution is warranted though as it is a rights issue in the companies favor not necessarily directly in the investor's;
Compare this rights issue to that of CRP a couple of weeks ago, which IMHO, already had a much better risk/reward position than NTL;
NTL: A 50% dilution at a 38% price discount.
CRP: A 10% dilution at a 60% price discount
Edit: Per good advice from Jonu, share value by calculation is $0.010 and not $0.006.
New Talisman advises that it intends to make a rights issue offer to existing shareholders in Australia and New Zealand of one new share for every two shares held at the Record Date on payment of NZ$0.008 or AU$0.008 per new share.
Where do you get 50% dilution from?
Yes, for every two shares we will have the right to purchase one more at 0.8c (same price for holdings on the asx and nzx). It is better value if you hold NTL.nzx. If your holding is on the asx, and you want to take up the rights, you could ask Computershare's Investor Services (e.g. Charmaine Bartlett in their AKL office) to first shunt across your head shares onto the nzx.
Umm, yes apologies, you are correct a little too, it is a share dilution of 50%, the SP will still devalue as the dilution is substantial and offered at a price lower than the VWAP. I’ll humbly go back and edit my post.
I'm thinking about taking up the offer. What about you cats?
Probably, but without any cat involvement :sleep: