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Since the shares remain suspended there was no rush to comment on the news from AIM and ASX listed Norseman Gold (LSE:NGL) which came out on Friday 14th December. It does not read well but having spoken to the company’s advisors it is not a write off yet. As I shall explain below.
You may remember that while shares in the parent company remain suspended the operating unit is now being run by an administrator. That process, we had hoped, would be over by now but in fact it will drag on until 26th February.
The process behind administration is explained by me HERE
Ron Dean-Willcocks of Dean-Willcocks Shepard who is the administrator has yet to make any firm proposal. He says that in the event that he liquidates the subsidiary “there will be insufficient moneys to pay any dividend to employee priority creditors and unsecured creditors and likely a shortfall to secured creditors” If that happens it is game over for shareholders.
However the advisers still expect that a more likely outcome is that the subsidiary is either returned to the parent ( having been protected from creditors for a while) or sold in a trade sale. And it is the belief that if that happens, since the parent company is the largest creditor, then investors will be left with shares in a cash shell with up to 2p per share cash behind it.
I cannot say with any certainty that this will not be a write off. It has been a dismal tip for me but the game is not over.
For analysis of a gold stock that has cash, is profitable and really is cheap click HERE
Tom Winnifrith writes for a range of US and UK financial websites, He publishes a twice weekly newsletter. The mid-week issue out today 19th December) contains two free share tips.
To sign up to Tom’s free newsletter register here and to follow Tom on twitter for alerts on all his work go to @tomwinnifrith
Kudos to you mom, for letting her do it! Sometimes our kids have thoughts/ideas/paths that are different from ours, and it takes guts to let them be who they want to be. If she’s willing/able to take care of it, a nose piercing is pretty safe. My sister did hers… OMG, 25 years ago. Apparently you can see the hole if you look VEEEEERY closely, but for the most part you’d never know (she doesn’t wear jewelry in it anymore.)
Why do ADVN allow this conman to write here He Must be the worse tipster to ask for money in the interner