Once again MMR is treating Anvil Mining shareholders with complete contempt! How dare they continue to just demand acceptance of their offer with no explanation as to why it has been extended. It is obvious that offers have not been taken up by shareholders like they anticipated. Also the contractual issue with Gecamines appears to be a problem for them. The recent Presidential elections a lesser issue.
I wrote to both share registries last week asking how many shares have MMR acquired?. This is their responses.
Computershare: 'Thank you for your inquiry. We confirm that no shares have been taken up by the MMG Malachite Limited Offer to Purchase Anvil Mining Limited as of yet. The Offer has been extended until December 9th......"
Kingsgate: "Unfortunately that information is not available to the public until after the initial take-up of shares......"
Not ONE announcement informing the markets how many shares have been at least 'offered' to MMR. Not a single comment.
Just continued extensions of the Offer. As previously mentioned it is obvious that Trafiguria only wanted to sell to Minmetals and no other party. The other 6-7 possible suitors, potential mergers and a last minute offer was ignored by the Takeover Committee. Why? Because Trafiguria wants to lock up MMR in off-take agreements as MMR attempt to strengthen their foothold in Africa and the DRC.
Then we see a offer price of only C$8 per share. We have all seen the comments from analysts who unanimously said MMR have got a 'bargain'. We have also seen Asset Price Valuations of C$7.40 & C$7.96 mentioned by two analysts. So shareholders get anything from a C$0.60 - $C$0.04 premium! They are giving the company away at cost! So I'm not surprised that this offer is being extended again and possibly until mid-April!
For those of you who are traders and wish to accept this price that's fair enough. You have a made a good profit. And yes if this takeover fails, the share price will drop, possibly substantially. Continued uncertainty in global markets also assists traders and worried investors to accept this offer. To my knowledge no payments have yet been made.
But for those of you who are investors who have been waiting for the Kinsevere SXEW 60,000t cathode plant to ramp-up commercial production to 5000t per month, the cash generation ability of this plant will be spectacular. This plant will be among the lowest cost producers in the world. We know an expansion to 90,000t has been put into motion with equipment already ordered. We are also waiting on the Kinsevere and Mutoshi drilling results. If past announcements and presentations are anything to go by, the results may be 'pretty good'!
Investors who have followed this company also want to know what will happen to all of the social and community development programs that are in operation in the DRC? See previous social development posts.
What will happen to Anvil employees in Australia, Canada and the DRC? Will the Chinese miners come in and as they have done in Angola displace the local population and move in 60,000 Chinese workers? What do MMR intend to do with Congolese workers? Continue with a 94-96% local workforce?
To me, it's not just about a satisfactory offer price that would persuade me to sell.The acceptance or not of our Anvil shares has major consequences for many people's lives. If we are going to sell, make sure it's for a fair price and to a company that has positive plans for the thousands of people our decisions will affect.
Right calmed down now.
All the best.
KKR
AVM Price at posting:
$6.90 Sentiment: Hold Disclosure: Held
