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BTU - Bathurst Resources

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Looking forward to seeing where this goes over the coming weeks. Things are looking good.
 
jadeey said:
Looking forward to seeing where this goes over the coming weeks. Things are looking good.
Click to expand...

Environmental approvals are the next big milestone.

Shouldn't be taken as a "given" with an active environmental lobby opposed to mining in NZ.

Factors in favour though are a strong pro-mining/employment history on the West Coast where alternative employment options are scarce; a pro-mining NZ govt at present; the fact that the Buller Coal Project virtually surrounds an existing govt owned operation (Stockton) and that infrastructure is already largely in place.

We should know the outcome by the end of the year.
 
Looks like another good move higher on solid volume. Really starting to look nice
 
BTU's SP up another couple of cents this morning on news of OIO approval and Crown Minerals consent to the transfer of exploration and mining permits to BTU.

These would have been regarded pretty much as formalities I would think. The next big issue is still the environmental approvals.

But good news all the same!
 
I suspect that there will be a good deal of selling tomorrow as BTU goes Ex Entitlement. I may do the same if the gap down is not too large.
 
roland said:
I suspect that there will be a good deal of selling tomorrow as BTU goes Ex Entitlement. I may do the same if the gap down is not too large.
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Based on the last sale at 47c the ex entitlement theoretical price is around 41c.

Yes, it will be interesting to see whether the smart money selling was done cum rights.

 
Roland and Oldblue, I don't understand really understand rights issues. I have a small position with BTU. I received a msg from my broker (IB) stating that rights where issued to me on the 10th Oct under the symbol of BTUR, and expire 26th Oct. 1 right issued for every 2 shares held.

If the rights issue is 0.30 wouldn't you be crazy not to exercise this as the current share price is 0.42?

Edit: I swear I bought at 0.271, yet for some reason my broker is now saying I bought 0.215. Does the rights issue have something to do with this???
 

hi gav, I don't believe that the rights issue should affect your previous purchase. As a rule of thumb, it's normally wise to take up the rights otherwise your holdings are essentially diluted.

As to if it's a good choice to do so would really be up the individual shareholder. Remember that the issue entitlement date is the 18th, so at the moment you have no clear advantage to someone yet to purchase stock other than the fact that you have bought in at a lower price than the current value of stock.

I would expect another drop in the SP after the entitlement date - similar to what happens when a stock goes Ex Dividend. So one must keep this expected drop in value in mind when making the decision to take up the option or to pull the pin before the Ex Entitlement date.

Happy to be corrected on my content

Cheers
Roland
 
Just a few points of clarification.

BTU have already gone ex entitlement, ie anyone buying now doesn't get any rights to the issue.

The "record date" of 18 Oct is to allow the registrar to register earlier transfers and to "clean up " the register prior to sending out the prospectus on 21 Oct.

The issue closes on 5 November and the "rights" to the new shares will be traded for a period prior to then. Anyone not wishing to take up their rights can sell them - the theoretical price is around 11c but this will vary of course with supply and demand.

The head share SP has held up well ex entitlement, IMO which should bode well for rights trading but we'll have to wait and see!

 

Thanks for that, so you are able to sell off the rights without having to pay for them?
 
roland said:
Thanks for that, so you are able to sell off the rights without having to pay for them?
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Yes, certainly.

Bear in mind though that brokerage could take a big chunk of the proceeds with the rights price likely to be around the 11c mark. Mind you, if you have several hundred thousand of them that won't be a problem.



The normal procedure is that the application price, 30cps, is added to the buyer's contract note and the buyer's broker handles the application to the company's registrar.
 
If you hold shares on the record date can you apply for your entitlement of new shares in the rights issue but sell your current holding before being issued the new shares?
 
jadeey said:
If you hold shares on the record date can you apply for your entitlement of new shares in the rights issue but sell your current holding before being issued the new shares?
Click to expand...

Yes. Once the shares went ex entitlement on 12 October the rights remain with the owner, regardless of what happens to the head shares thereafter.

On a separate but related matter I note that "eligible shareholders", ie those on the register at Record Date (18 Oct) with a registered address in Australia or New Zealand, may apply for additional shares in excess of their entitlement. Whether or not there are many such shares to go around remains to be seen but it might be a profitable exercise to ask for a few more, bearing in mind the likelihood that such applications will be scaled back.

 
A more careful reading of BTU's letter reveals that the rights are non-renounceable, ie can't be traded or transferred to anyone else.

All the more reason to take them up to receive value, especially as the head shares are remaining firm around 41-42c.

Being non-renounceable may also mean that additional shares will be more readily available from holders who either forget, neglect or can't afford to take up their entitlements.

 

well read oldblue, I'm quite confident to hold and grab the entitlement. It's really quite interesting that in this carbon conscious world there is still so much value in burning coal
 
OK, I got bored with BTU and sold out. Up around 12% and will grab my options. I have a feeling that when the options come onto the market there may be some weakness.
 
Bathurst has requested a trading halt pending an annoucement by the company in relation to an article in the AFR today.
Does anyone have the details of this article?
 
What do you reckon - down to $0.30 by the 5th of November? Almost no volume. One can only imagine that as soon as the option holders pick up their $0.30 shares (if they do) then there could be a large dump.

I'm not holding right now, and holding off to the last minute with my decision on whether to take up my entitlement......
 

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With the SP around 43-44c today I presume you've taken up your entitlement, roland.



I've decided to take a bit of profit today, having taken up my entitlement and applying for a few extra.

Issue closes tomorrow.
 
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