DEG - De Grey Mining
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Whether you sell your shares on market before the event happens, or accept new shares in NST for your holding, either event will trigger capital gains.
As to whether it is beneficial for you, it depends on your time frame, your investment strategy, your current tax position, whether investing in gold companies is still your preference, plus a few other things I have not even thought of.
Me, I would take the money and run.
mick
Thanks Mick
A few issues I need to ponder over
As I said being a novice and still working for a wage, that is my only taxable income, maybe taking the profit for further investment opportunities could be a good direction
I appreciate the insight
Cheers
Thanks Rabbit
I am not needing the money for any outgoings, so maybe holding is more beneficial with the incoming divs
Learning everyday haha
thanks again
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You'll own Northern Star (NST) shares if you hold. If you sell you'll secure your profit but incur a tax on capital gain. A lot depends on whether you would like cash now or prefer to risk investing in potential future rewards.
The advantage of holding NST shares I would say is less execution risk in building of the Hemi mine and plant. Northern Star is an experienced miner and processor and has optimised acquired operations successfully. Northern Star already has three operational centres so any hiccups at at Hemi will be cushioned by production elsewhere. Northern Star will pay you dividends. Northern Star has great potential for the holder looking a few years down the track as it is transforming and massively expanding the Kalgoorlie Super Pit (called KCGM).
Just some notions from a welded on NST holder.
DEG Not Held
The advantage of holding NST shares I would say is less execution risk in building of the Hemi mine and plant. Northern Star is an experienced miner and processor and has optimised acquired operations successfully. Northern Star already has three operational centres so any hiccups at at Hemi will be cushioned by production elsewhere. Northern Star will pay you dividends. Northern Star has great potential for the holder looking a few years down the track as it is transforming and massively expanding the Kalgoorlie Super Pit (called KCGM).
Just some notions from a welded on NST holder.
DEG Not Held
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@mullokintyre @Gmet
It's a proposed scrip deal. Rollover is the norm in my experience?
From.the ATO website:
www.ato.gov.au
It's a proposed scrip deal. Rollover is the norm in my experience?
From.the ATO website:
"Scrip for scrip rollover
If a company in which you owned shares was taken over and you received new shares in the takeover company, you may be entitled to a scrip for scrip rollover. You may also be eligible for this rollover if you exchange a unit or other interest in a fixed trust, for a similar interest in another fixed trust."Investments in shares and units | Australian Taxation Office
Thanks Finicky
As most things with investing, I am not up to speed on the TAX side of investing in shares
Holding the NST shares may be more beneficial for me in the years to come and not worrying about paying capital gains
At present I am trying to invest/compound for a passive income for the future, if that makes sense
Thanks
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You are quite correct, and once again I am wrong!@mullokintyre @Gmet
It's a proposed scrip deal. Rollover is the norm in my experience?
From.the ATO website:
"Scrip for scrip rollover
If a company in which you owned shares was taken over and you received new shares in the takeover company, you may be entitled to a scrip for scrip rollover. You may also be eligible for this rollover if you exchange a unit or other interest in a fixed trust, for a similar interest in another fixed trust."
Investments in shares and units | Australian Taxation Office
Mick
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@Gmet Something I didn't mention is that the first offer isn't always the last and there's also the slim chance of a different suitor outbidding NST.
Also, on the negative side, a few people I follow think that a severe crash has to come sooner or later due to debt piling up. When this happens it'll pound gold and gold miners too - probably not as much is the consensus. The lucky ones then will be those with cash to pick up bargains aka traders like @mullokintyre. So risk is always there with stocks and, my opinion only, this is an increasingly risky time. Been saying that for years though. I'll be holding almost all my shares, including NST, (considering selling 10%) as I already hold some cash and eventually things will spring back.
Also, on the negative side, a few people I follow think that a severe crash has to come sooner or later due to debt piling up. When this happens it'll pound gold and gold miners too - probably not as much is the consensus. The lucky ones then will be those with cash to pick up bargains aka traders like @mullokintyre. So risk is always there with stocks and, my opinion only, this is an increasingly risky time. Been saying that for years though. I'll be holding almost all my shares, including NST, (considering selling 10%) as I already hold some cash and eventually things will spring back.
Thanks Finicky
All the insight from investors like yourself are very appreciated
This gives myself opportunity to learn
Cheers
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that would depend on if you are a 'capital gains guy( gal ) on an investor ( in there for the long term and hope for a few dividends on the way )
now NST has been very nice to me , i bought in @ 87 cents back in February 2013
NST has gone ( while i held them ) from a single gold mine , producing some gold , to what it is now BUT the driving force back then was Bill Beament former Managing Director,Executive Director,Executive Chairman , so a real force in the decision-making , but slower and steadier growth may be a good thing
if you hang in there and grab a handful of NST shares you can choose to sell them at a more convenient time ( or not ) or you could exit now , and have to find a new place to deploy the cash
apart from updating your paper-work the transition to NST shares SHOULD be cost free .
NST is one of the 50 largest stocks ( by market cap. ) on the ASX , in theory a 'blue chip '
Per Share Statistics
As of 16 Nov 2022, 11:00 am AEDT| TYPE | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | TREND |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividends ($) | 0.05 | 0.07 | 0.12 | 0.10 | 0.14 | 0.27 | 0.19 | 0.22 | 0.27 | 0.40 | |
| Franking (%) | 100.00 | 100.00 | 100.00 | 100.00 | 100.00 | 100.00 | 100.00 | 100.00 | 42.00 | -- | |
| Dividend Yield (%) | 2.26 | 1.42 | 2.53 | 1.31 | 1.16 | 2.02 | 1.94 | 3.14 | 2.19 | 3.08 |
future payout GUESSTIMATES
Morningstar™ Consensus
Morningstar Consensus| CURRENT | 2025 | 2026 | |
|---|---|---|---|
| EPS (AUD) | 0.55 | 1.00 | 1.31 |
| DPS (AUD) | 0.40 | 0.48 | 0.51 |
| Franking (%) | 0.00 | -- | -- |
Goldman Sachs
Goldman Sachs| 06/24 | 06/25E | 06/26E | 06/27E | |
|---|---|---|---|---|
| EPS (AUD) | 0.60 | 1.18 | 1.58 | 1.46 |
| DPS (AUD) | 0.40 | 0.58 | 0.61 | 0.55 |
but then you might have a better place to use that cash
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while no guarantee of that .. NST is a better candidate for that than some , one annoying fly in the income ointment is NST looks like it no longer pays franking credits ( but maybe they will come back at a reduced rate )
that passive income is the dream i am chasing as well ( but you still might have to work hard at that )
Hallelujah! I got NST at open time. Now getting more encouragement from the last 2 days trading. I am going for 2 big asks...
NST at $15 n DEG at $1.50 to enter...some may remark..in your dreams...the reply wld be... Dreams do come true.
Sean K
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Will be interesting to see if GOR throws a spanner in the works here.
I am a bit confusedHallelujah! I got NST at open time. Now getting more encouragement from the last 2 days trading. I am going for 2 big asks...
NST at $15 n DEG at $1.50 to enter...some may remark..in your dreams...the reply wld be... Dreams do come true.
I understand buying in DEG at $1.50 to gain access to the offer of 0.119 shares of NST but why buy into NST if the deal with DEG hasnt been finalised
Also on another note are shareholders of DEG meant to be notified of such proposed deals to be voted on or is it up to majority shareholders?
Maybe silly questions but they help me understand
Thanks
In my humble opinion, NST offer is the done deal. It's extremely hard for companies to raise capital funds thru banks besides other way thru shareholders. GOR may have missed all opportunities. We shall wait n see. As for me, it's a relief that finally exit DEG with profit n changing to another Gold stock sigh...with a load off my shoulder...
We venture into stock markets with different tactics, to hold or to Trade, our financial situations, age n lifestyles are vastly different.
I love DEG n if I can buy it at LOW, it will be great, $1.50 is my watch from the sideline n will be adjusted to further downside not upside to suit my pot. I had exited DEG so for now I am more cautious to re enter.
You may go to DEG or NST stock to read the announcements dated 2/12/24.
Hope it helps.
It's good that you keep asking questions. No one will consider it's silly questions. You had declared yourself a newbies.
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I am out at 1.92 with super,nice profit but missed 1.97 due to shitty platform and will not look behind.
I am often too early closing during take over, who knows but happy with the small profit
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Another excellent announcement from De Grey on the strategic plan and direction in moving forward beyond Hemi surface mining.
Generally depressed gold and metal prices did not help the share price but people who have read the report will value the intrinsic strength.
DNH
Generally depressed gold and metal prices did not help the share price but people who have read the report will value the intrinsic strength.
DNH
