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Sibanye Gold


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#21 Agent47

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Posted 24 May 2017 - 12:06 PM

What is happening is a travesty (a bit strong). This means that they are forcefully nudging us to take up the offer to make some bucks. Failing which we have seen our portfolio drop by about 32% (i.e. from R28 to R19)  . Eish!!!

They not making money. They bought a mine. They have to pay for said mine.

This is public knowledge for months already. If you are not happy as a shareholder, you could've sold your shares months ago, when this was announced to shareholders.


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#22 Muks

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Posted 24 May 2017 - 11:49 AM

What is happening is a travesty (a bit strong). This means that they are forcefully nudging us to take up the offer to make some bucks. Failing which we have seen our portfolio drop by about 32% (i.e. from R28 to R19)  . Eish!!!


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#23 Rulz3

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Posted 24 May 2017 - 10:59 AM

This stock, eish.

The price is still R27 if you add the rights value to it. Expect it to hold above R16 after right.


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#24 Guest_PlatinumWealth.co.za_*

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Posted 24 May 2017 - 10:50 AM

This stock, eish.


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#25 CrescoRSA

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Posted 24 May 2017 - 09:30 AM

Well, there you have it. Dropped to under R20 - should recover a little today. But doubt it, I would TOTALLY take up the offer. In my opinion, the current share price should drop even more. As you mentioned with more shares being offered as well as the offer price. I wont even buy at R20 now


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#26 Muks

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Posted 24 May 2017 - 09:10 AM

I'm holding Sibanye.  

 

So they are offering shares at R11.28 and the current price is > R25.00.

 

To me this is a bargain; not to be missed. Any comments to my reasoning.

 

I expect the price to drop due to more share being offered; by how much one would not know. Even if it drops to R20.00; the offering is still worth taking up.


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#27 Request4

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Posted 22 May 2017 - 04:26 PM

No you can't add the cash raised to the market cap, it is used to pay off debt. Theoretical market price ex rights should be close to the issue price. The current trading price for the shares carrying rights reflects that.

Yes you do

 

Just read the SENS

"Subscription Price represents a discount of (i) 40% to the theoretical ex-rights price of Existing Shares on Wednesday, 17 May 2017"

 

Sub price is 11.28 so theoretical ex rights last Wednesday was 18.80, share price has dropped since then so 17.50 is reasonable


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#28 diederjh

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Posted 22 May 2017 - 02:49 PM

How does it affect you when you have CFD's when there is a rights offer?


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#29 davey

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Posted 22 May 2017 - 01:05 PM

No you can't add the cash raised to the market cap, it is used to pay off debt. Theoretical market price ex rights should be close to the issue price. The current trading price for the shares carrying rights reflects that.


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#30 Slickjoe

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Posted 22 May 2017 - 10:37 AM

Assuming full take up of rights, would the theoretical ex rights price not be around R17.50?

 

I.e. (Current MV + Cash Raised)/New number of shares in issue

High level" 

Mkt Cap@25.60 = 23.8 bn 

Cash raised@11.28 = 13.44bn

New MBV = 37.3 bn

New # shares in issue - 930mn (existing) + 1,12 bn = 2.125 bn shares in issue


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#31 davey

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Posted 21 May 2017 - 09:53 PM

Anyone studied the SENS on SGL?

 

https://www.moneyweb...-u-s-1-billion/

 

Huge dilution: 9 shares offered for every 7 held. Fully diluted, the price after the rights issue should be around R11.61 based on Friday's closing price of R26.54. The issue price is at R11.28. Any ideas whether the issue will be undersubscribed and there may be a little short there with an overhang of shares below the R11 level?

 


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#32 sommerso

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Posted 25 April 2017 - 10:32 AM

Thank you Rulz. I never read the reconciliation of the shares when the rights were offered. We live we learn. Stillwater was approved. Just waiting on Stillwater to approve it on their side. The stronger Rand might help with the acquisition of Stillwater. 

 

Let's see what the rights come to. I only have about R42K to spend, so can't really take them up on the rights. Just want to get in before the tide turns.


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#33 Rulz3

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Posted 25 April 2017 - 10:01 AM

Does anyone know if the rights will come with a share dilution like Lonmin did? I can't remember what they called it. There is some technical term where the shares get "redistributed" or was it because Lonmin did it differently? 

No with Lonmin there was so many shares in issue after the rights they reconciled 100 shares to 1. Meaning if you had 100 lonmin shares you will only have 1 afterwards. But with this the price if 1c at the time will be 100c in theory after the reconciliation. Normally done when the value per share is so low. Afdawn also done it a while ago. Santova 3 years ago or so.


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#34 sommerso

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Posted 25 April 2017 - 09:43 AM

Does anyone know if the rights will come with a share dilution like Lonmin did? I can't remember what they called it. There is some technical term where the shares get "redistributed" or was it because Lonmin did it differently? 


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#35 Rulz3

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Posted 25 April 2017 - 08:05 AM

It is difficult to guess. I'm very curious. It really depends what the stock is worth at the time of issue. I know ACL had a rights issue the beginning of the year for about 60% of the share price. It really depends. But normally it is below the shareprice to get buy in from shareholders.  

 

Please, anyone, correct my wrongness? 

I haven't seen a rights issue that is higher than the share price at the time of issue. These rights to be issued is killing my investment. Falling from R35 to R27 and seems like market wants it more down.


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#36 sommerso

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Posted 24 April 2017 - 09:41 PM

It is difficult to guess. I'm very curious. It really depends what the stock is worth at the time of issue. I know ACL had a rights issue the beginning of the year for about 60% of the share price. It really depends. But normally it is below the shareprice to get buy in from shareholders.  

 

Please, anyone, correct my wrongness? 

 

 


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#37 du plessis

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Posted 24 April 2017 - 01:03 PM

what amount do you think will the rights offer be maybe R25 


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#38 sommerso

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Posted 19 April 2017 - 09:09 AM

Yesterday's butchering of Gold stocks got me slightly jittery. I cannot disagree, SGL is a good run company with good foundations, but the market doesn't seem to agree knocking it from it's R68 pedestal last year to just about R24 beginning of this. 

 

One would think with North Korea looming, Brexit happening, Junk status and the ever populist uncertainty seemingly growing in the EU that this share would've been above R100 already. 

 

.... I'll just wait to hear what the rights offer is and get back in then. 


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#39 Dividend Master

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Posted 18 April 2017 - 09:08 PM

Foreign currency earnings, bulk gold export from SA taking advantage of the ZAR weakening on the back of the political and economic systems unfavourable outlook, should bolster the share price and handsome dividends. I see this stock getting over the R100-mark before the end of the year. Gold price is on the upward trajectory and Sibanye majority costs  are Rand-based whilst the earnings are Dollar-based. I am grabing them, piece by piece!


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#40 Guest_PlatinumWealth.co.za_*

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Posted 18 April 2017 - 08:05 PM

I am keeping it, it's a good run company and this country is junk so that should help. 

(Granted I am not a fan of gold)


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