A possible explanation of the adjusted holding of PRCC is that the PRCC shares have an agreed value (much) greater than $1. NZO in passing on these shares to their shareholders at $1 have taken an adjustment to their share of PRCC. Someone with the time might be able to work out the algebra to determine what the agreed value is.
I did it over coffee.
If the agreed share price is Y.
NZO values its holding at 61Y.
Which equals 54Y+32(Y-1)
Therefore Y=~$1.28 as the agreed share price for PRC.
IIRC, the shares held by the Indian partners have been calculated at an assumed price. Those holdings were subject to adjustment to meet the price of the IPO. With the project now presumably worth less due to time and cost overruns, the shares held by the Indians will probably need to increase - the reduction in NZO (and other private shareholders) share presumably reflects that adjustment.
As a NZO investor I was interested in PRC however due to all these delays and excuses I am beginning to wonder whether this would actually make for a good investment - do the staff and/or board seem incompetent? Just wondering if anybody else who was initially interested is beginning to doubt their initial thoughts like myself?
The Mine Manager, Peter Whittall is most able and extremely experienced. He worked for BHP for 25 years and during BHP's copper crisis was able to reduce his coal operation's costs by 40%. He was the first Manager to meet this budget. At the time all BHP's Managers were given this task.
At BHP he dveloped an underground coal mine from scratch right through to production.Very similar to Pike. NZO management did brilliantly in securing him.
Yes good point - so will you be investing in this operation bermuda? Actually everybody reading - what are your intentions at present? I'll most definately be reading the documentation with interest when it comes out...eventually!
I will look at the prospectus very closely & look at the figures, my NZO entitlement is rather modest compared to my other holdings, so i may be prepared to hold til production starts ...
Yes good point - so will you be investing in this operation bermuda? Actually everybody reading - what are your intentions at present? I'll most definately be reading the documentation with interest when it comes out...eventually!
MY intentions are i wouldnt touch it with your barge pole.
Getting the stuff out is to complicated that is the one big reason for me to avoid this share. Macdunk
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