OK Austin. So if they announce massive oil strike tomorrow.. How does that work with your charts.... charts are just nonsense!
I am astounded at some posts here. Why are you even playing the game if you dont know how it works!!!? oneforall and Alexios. If the SP is below NAV/share it makes sense to buyback as you basically get your own company for a good deal. Read Intelligent Investor by Benjamin Graham. Basic stuff.
It is the reverse of dilution so SP will rise. It is a sound financial operation. The shars still held by the company will go up in value as will all shareholders. They are fully funded through 2015 so this makes total sense. It's a sign of success not failure.
Maybe someone more knowledgable about takeovers could explain.
Below I have posted Irish takeover panel releases I keep getting from KMR - does this mean a shuffle is taking place ready for Iluka?
FORM 38.5(a) IRISH TAKEOVER PANEL DISCLOSURE UNDER RULE 38.5(a) OF THE IRISH TAKEOVER PANEL ACT, 1997, TAKEOVER RULES, 2013 DEALINGS BY CONNECTED EXEMPT PRINCIPALTRADERS WITH RECOGNISEDINTERMEDIARY STATUS AND DEALING IN A CLIENT-SERVING CAPACITY 1. KEY INFORMATION Name of exempt principal trader (GS) GOLDMAN SACHS INTERNATIONAL Company dealt in KENMARE RESOURCES PLC Class of relevant security to which the dealings being disclosed relate (Note 1) 0.06 ordinary shares Date of dealing 12 August 2014 2. DEALINGS (Note 2) (a) Purchases and sales Total number of relevant securities acquired Highest price paid (Note 3) Lowest price paid (Note 3) Total number of securities disposed Highest price received (Note 3) Lowest price received (Note 3) 2,217 0.1375 GBP 0.1350 GBP (b) Derivatives transactions (other than options transactions) Product name, e.g. CFD Nature of transaction (Note 4) Number of relevant securities (Note 5) Price per unit (Note 3)
Even in a situation where there is zero demand growth per annum the titanium ore market should remain under-supplied globally, at least through 2014, Hassan Ahmed, head of research at Alembic Global Advisors, wrote in a company note. As a result, mining companies such as Australian-based firms Rio Tinto and Iluka are greatly inflating the costs of ilmenite and rutile, which contain up to 63% and 95% of TiO2, respectively. Iluka raised rutile prices by 70-75% from July 1, 2011 - to a weighted average of $1,340/tonne (€1,021/tonne) - compared with the first half of the year, and recently announced another 80-85% hike on top of that, effective January 1, 2012. In response to these concerns, several TiO2 producers are backward-integrating to secure raw-material supplies in an attempt to stem future cost hikes. "Mining companies are being much more aggressive in terms of prices," said Luis Rebollar, managing director of Titanium Technologies Europe, Middle East and Africa at US-based DuPont. "We are working to secure supply as the price of ores will escalate Âdramatically."
Agree with Machine100. Illmenite prices are set to rebound. It's perfect buyout time too.... see what happens in two weeks.
Illlmenite prices are set to rebound... see article Bloomberg in April 2014
Thanks janebolacha for that article. Useful.