LGL - Lihir Gold

the barry · 16 April 2007

Re: LHG - Lihir Gold

Just went into a trading halt till monday. 4 day trading halt which is bigger than the normal two day obviously. Don't want to be seen as ramping, you can't buy it anyway and come monday we will know if it is true anyway, but i heard the rumour that a takeover is in the air from my broker. Big jump in share price and volume today. One to watch.

Sean K · 16 April 2007

Re: LHG - Lihir Gold

the barry said:
Just went into a trading halt till monday. 4 day trading halt which is bigger than the normal two day obviously. Don't want to be seen as ramping, you can't buy it anyway and come monday we will know if it is true anyway, but i heard the rumour that a takeover is in the air from my broker. Big jump in share price and volume today. One to watch.

Azumah went into a halt a few minutes before. Might be linked. If so, LHG will be buying it, not the other way around. Maybe.

http://www.azumahresources.com.au/

j4mesa · 16 April 2007

Re: LHG - Lihir Gold

kennas said:
Azumah went into a halt a few minutes before. Might be linked. If so, LHG will be buying it, not the other way around. Maybe.

http://www.azumahresources.com.au/

Hi Sean,

just wondering abt how you actually notice that azumah got trading halt before LHG ? ie how do get such information ?
thanks

Sean K · 16 April 2007

Re: LHG - Lihir Gold

j4mesa said:
Hi Sean,

just wondering abt how you actually notice that azumah got trading halt before LHG ? ie how do get such information ?
thanks

Your online broker will have the info somewhere streaming through, or you can check the ASX website under announcements as I did tonight.

http://www.asx.com.au/asx/statistics/todayAnnHeaders.jsp

Cheers.

Sean K · 16 April 2007

Re: LHG - Lihir Gold

The trading halts are for different time frames, so maybe not related. That would mean an overseas company making an offer. Or, it's not corporate action but something significant with their operations. That's not normally good though. I'm sure the media will have a good rumour for us in the paper tomorrow, which will probably be true.

If it's a takeover offer, then expect 30% above the past months average price. So about $4.20 ish.

chops_a_must · 16 April 2007

Re: LHG - Lihir Gold

kennas said:
The trading halts are for different time frames, so maybe not related. That would mean an overseas company making an offer. Or, it's not corporate action but something significant with their operations. That's not normally good though. I'm sure the media will have a good rumour for us in the paper tomorrow, which will probably be true.

If it's a takeover offer, then expect 30% above the past months average price. So about $4.20 ish.

I kind of hope it is a takeover of AZM. Having a quick look at their drill results, they look absolutely fantastic.

I actually don't want them to be taken over as they are one of only two stocks I have currently in my long term holdings, and I doubt I will be able to find a low risk play with as good growth prospects as this one. Plus, it's a great one to use for margin.

Pommiegranite · 16 April 2007

Re: LHG - Lihir Gold

chops_a_must said:
I kind of hope it is a takeover of AZM. Having a quick look at their drill results, they look absolutely fantastic.

I actually don't want them to be taken over as they are one of only two stocks I have currently in my long term holdings, and I doubt I will be able to find a low risk play with as good growth prospects as this one. Plus, it's a great one to use for margin.

Sorry for the following longwinded question...

I bought LHG $3.50 last month. Does anyone know the CGT implications if a takeover were to take place while a shareholder had held for less than 12months?

haemitite · 16 April 2007

Re: LHG - Lihir Gold

Pommiegranite said:
Sorry for the following longwinded question...

I bought LHG $3.50 last month. Does anyone know the CGT implications if a takeover were to take place while a shareholder had held for less than 12months?

unfortunately you'll be taxed at your marginal rate unless there was script rollover relief.

People have jumped on the TO bandwagon pretty fast.

Sean K · 16 April 2007

Re: LHG - Lihir Gold

haemitite said:
People have jumped on the TO bandwagon pretty fast.

Yep, you're right. I've been searching the majors for trading halts and nothing. But, can't really think of anything else. Worst case, operational problems, but no need for 4 day halt for that. Unless it's really, really bad.

chops_a_must · 16 April 2007

Re: LHG - Lihir Gold

kennas said:
Yep, you're right. I've been searching the majors for trading halts and nothing. But, can't really think of anything else. Worst case, operational problems, but no need for 4 day halt for that. Unless it's really, really bad.

I doubt it. I was going to say the price action today said something pretty positive was up. Operational problems wouldn't need a 4 day trading halt. 2 days at most. And most of the time, if it is pretty severe, there is no point in having a trading halt as the media is all over it... e.g. Santos.

Pommiegranite · 16 April 2007

Re: LHG - Lihir Gold

haemitite said:
unfortunately you'll be taxed at your marginal rate unless there was script rollover relief.

People have jumped on the TO bandwagon pretty fast.

eckart · 16 April 2007

Re: LHG - Lihir Gold

If there would be operational problems I doubt the SP would have jumped 5% today. If there is a TO by Lihir of another company again SP speaks against that IMO. The TO of Lihir therefore seams a possibility. But who?
Anglo(would give them No2 on Gold production) or Xstrata(would put them in the big Gold producer league No6).
But all speculation!

rederob · 16 April 2007

Re: LHG - Lihir Gold

kennas said:
......That If it's a takeover offer, then expect 30% above the past months average price. So about $4.20 ish.

I won't be selling LHG anywhere close to $4.20 - maybe $5 is nearer the mark.
With a rising gold price, and LHG one of the few major gold miners with decreasing cash costs, I doubt any offer will be accepted at first or second bid price, unless excessively generous.

the barry · 16 April 2007

Re: LHG - Lihir Gold

The volume of the early trades, there was two early at 500,000 grand a piece suggest to me that the news willl be positive. I dont think it will be to do with azm as they were done 5 minutes apart and announcements of these kind are lodged at the same time. Also it is a normal two day trading halt not 4. Hopefully a takeover is in the wind. Good luck to those who hold.

haemitite · 16 April 2007

Re: LHG - Lihir Gold

Pommiegranite said:

LOL

I prefer "no pain, no pain"

I'm still holding 12000 LHG - probably happily - but if it actually is a TO then the premium is most likely about to fly to the ATO. Unless its say a 1 for 6 deal from NCM

Pommiegranite · 16 April 2007

Re: LHG - Lihir Gold

haemitite said:
LOL

I prefer "no pain, no pain"

I'm still holding 12000 LHG - probably happily - but if it actually is a TO then the premium is most likely about to fly to the ATO. Unless its say a 1 for 6 deal from NCM

I just moved from the UK where everyone is allowed to invest £7K a year without any payment of income tax or CGT on the £7K investment for life!!

So investing in Aussie Stocks will take some getting used to. Whatever happened to governments encouraging investment?

Then again, the ASX seems to be doing well despite the ATO's large slice of this bull market.

bvbfan · 17 April 2007

Re: LHG - Lihir Gold

I'm going to hazard a guess at a large capital raising via a instutional bookbuild for a possible takeover, I say bookbuild because they take a little while to get overseas bidders interested.

bvbfan · 17 April 2007

Re: LHG - Lihir Gold

Quick calculation of dilutory effect has a share price value of 2.93.

Expect it will trade under that though

Sean K · 17 April 2007

Re: LHG - Lihir Gold

bvbfan said:
Quick calculation of dilutory effect has a share price value of 2.93.

Expect it will trade under that though

How do you come up with that figure bvbfan.

You know how much they're going to ask for, if they even do?

bvbfan · 17 April 2007

Re: LHG - Lihir Gold

Current market cap + new value of shares to be issued (1.2billion)

I had quick flick of announcement and they are raising funds at $2.30

so 1.2billion / 2.30 ~ number of new shares

(market cap + 1.2billion) divided by
(number of new shares + number of old shares)

~4.4 + 1.2 / ~0.52 + 1.4
(5.6/1.92)

2.92 that way ( i used excel to get 2.93)

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