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$1.17 flinders mines limited

Well said. If it so expensive to stay listed and as the Board...

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cassidav

606 Posts.

306

05/03/19

23:27

Post #: 37664381
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Originally posted by pe981 ↑

Firstly I agree, I haven't seen any signs of the fat lady singing!!
Personally I am hopeful they won't re apply for a de List in the short term (I can hear the scepticism!) I base this purely on the fact that Directors will not be able to justify borrowing the funds suggested (refer my & others previous posts). Of course damage is done to the SP and perhaps also the resolve of some! (The 12.8% drop on $214 worth of shares is ridiculous, does reflect lack of liquidity but also reinforces that many shares are tightly held - no rush to the exits on a big drop!!)
So what would the plan be to inch further forward & promote the Company to the world?? Maybe it will be a massive CR to fund a BFS (again) as they have already flagged a ridiculous cost of $40 - $50m to complete - sounds like the "maturation" phase & all previous studies were a waste of time or maybe...….. maybe...... ?? who knows??
Now, obviously I could be totally wrong and they plough on with the De List proposal based on the Undertakings.
If so, it is important to look at a few details (the following comments are purely my thoughts and should not be relied on for any decision making whatsoever!!)
The Buy Back is for a maximum of 10% of issued shares which means that assuming all non Todd holders participate the maximum you would be able to sell is 22.5% (roughly) of your holdings for the 7.5c. Obviously, if , for example, OCJ (or many other holders) did not participate that % would increase however it is important that everyone realise they could potentially still be left with majority of their shares to try and sell on market (will be a window) or retain in a Todd controlled delisted Company.
I had a fleeting thought that as TIO NZ would now have restrictions on any increased voting power that occurs due to buy back and the fact the Buy-Back would now be, specifically, a Limit based Equal Access Off Market scheme perhaps they may also participate which would reduce max to 10% for everyone and give most of their loan money straight back to themselves However, obviously this is silly and given other undertakings discounted this thought. Also presume ASX would not approve without another commitment from TIO NZ not to participate (due to loan provision)
One of the other undertakings is that Flinders would seek alternate means for shareholders to trade their shares however cost and compliance can't exceed benefits, so I would not hold too much hope on that little nugget
Regardless of all the other very real reasons why we should oppose a De List proposal such as lack of a trading market, lack of transparency in regard to disclosure and asset dealing etc etc, the simple fact is that based on the undertakings the cost to de list far outweighs the cost to remain listed and the Directors should be well aware of the pitfalls of making a decision obviously detrimental to the financial well being of the Company and one would hope that ASX and ASIC also recognise this.

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Well said.

If it so expensive to stay listed and as the Board want to save costs, why don't they put FMS in care and maintenance for 18 months, just past the expiry date of BBIG's State Rail Agreement by when they must have an iron ore source?

Surely our independent directors have thought of this as a way to negotiate with BBIG from a position of strength.

FMS Price at posting: 3.4¢ Sentiment: Buy Disclosure: Held
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