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Do those related party rules apply to private companies? I think Ongopolo Mining Ltd is private and now WTI (or what's left of it) will be private as well once delisted... I'm just trying to understand the mechanics here so that I don't fall for a WTI investment case in the future!
That's investors done for I guess. Meanwhile jobs for the boys still. They think they can make Tschudi work, shame the couldn't have done so sooner. Stinks really.
It means the company will be delisted from the London Stock Exchange.
Does rns mean it's guna trade again or not ???
I do not think it is that easy for Orion to buy Tschudi from administrators as it is a related party (largest shareholder and lender). FTI have to get highest price for the assets and invite bids. WTI in administration protects the group somewhat from lender taking control, which could have been one of the reasons for this approach. Generally I would view as the best approach for Orion to fully dewater Tschudi (~$3m cost) and then use cash flows over the next years to pay down as much as possible of the loans. With better dewatering approach mine life would also be longer. Then also develop Berg Aukas to have even higher cash flows for debt repayment. I think there is more going on here than meets the eye.
I'm no expert, but I think Orion will set up a NEWCO, buy WTI for £1 from the Administrators, and take on its (own) 100mn debt, which will be paid by Tschudi's future cash flow. Orion gets back its +100mn debt and will control 100% equity rather than "just" 25%. Just a hypothesis
From the WTI website: The Administration appointment relates solely to WTI with all other entities within the Group remaining outside of an insolvency process and continuing to trade under control of their directors. The Joint Administrators will work closely with the management of the subsidiary entities to establish the optimal strategy for the Group with a view of maximising recoveries to creditors of WTI.
I understand John Sisay was appointed CEO of one of WTI's subsidiaries - not WTI itself: "Weatherly International PLC said its 97.5% owned subsidiary Ongopolo Mining Ltd appointed John Sisay as its chief executive officer. He has also been appointed to the boards of a number of other Weatherly subsidiaries." And Ongopolo Mining Ltd holds the mining licences for the Tschudi mine and the Otjihase project.
Also, the recovery plan refers to Tschudi - not WTI.
So Orion are happy financing the rescue plan with a view to make tschudi financially viable but at the same time are losing all their shares and investment money as in the loan. Am I reading this correctly?
FTI are giving nothing away - just a nod to yesterdays news as being the most up-to-date situation and no comment available on 'press speculation'. I still find it unusual that WTI can say so much to the press yet say nothing through official channels to shareholders?
If WTI falls over and is gone - fair enough, but to rescue it pretty much under the same operating premise as pre-suspension, but dump the shareholders - why?
From what I'm getting from the report, they won't be giving anything back to the share holders?!? Is this it then?
There is more here than meets the eye in my view. I would be very surprised if Orion wanted WTI assets to be sold on the cheap (Tschudi sales prices would be minimal given that water ingress issues have not been overcome yet / Berg Aukas is only worth something once developed). I am not an expert on administration process, but is FTI Consulting assessment not a proposal to creditors and it is up to them to agree to it or come up with alternative plan. This alternative plan could be the 12-week recovery strategy for Tschudi highlighted by press last week. Orion could avoid having to write off most of loan if Tschudi is brought back online and cash flows are used to pay back debt. The Tschudi recovery strategy seems very detailed and press was implying Orion backing this is ignored by the FTI report. Is Orion's issue that administrators now run the show and they would need to come up with alternative plan to avoid firesale; this alternative plan could be what the press articles were talking about? The appointment of John Sisay as CEO was also high profile (his net worth is substantial after netting $95m from selling his 30% Sierre Rutile stake). I do not see him as wanting to oversee a sale of all of WTI assets; he mentioned explicitly that management remain confident in future financial viability of Tschudi mine.
I really don’t get it, new CEO appointed rescue package in place, can’t see any other news official anyway. I was thinking it was going to get turned around especially as Orion are the biggest shareholders and stand to lose the most if WTI goes into administration.
So what of the supposed rescue package? No official news on that at all? Are the administrators aware of this or is it just another load of bull!
Sorry to all holders here. Could the last one leaving turn out the lights.
Very interesting. The big question for PI's is whether this will result in normalisation for the whole company, i.e. will WTI retains ownership of the operating subsidiaries at the end of the administration. If so, will the shares be re-listed?
I hope there will not be some other scheme of arrangement in which PI's effectively get kicked out. Administrators are appointed to manage in the best interests of 'the company' i.e. shareholders, and Orion is by far the largest shareholder.
<br />Weatherly Namibia CEO John Sisay remarked that, with the necessary financial assistance from Orion Mine Finance, the company is confident of implementing the recovery plan and restoring normalised production levels at Tschudi.<br />ADVERTISEMENT<br /><br />The recovery strategy is based on a 12-week delivery and includes water abstraction, related to all equipment and infrastructure required to reduce water levels in the pits and to pump it into the canal that runs along the footwall of the pit; water discharge, dealing with moving the water away from the openpit mining area and discharging it at re-injection areas which have been approved by Namibia’s Department of Water Affairs; and implementation of various supporting actions to improve post-recovery water management.<br />So far, abstraction capacity has been increased from 1 400 m3/h to 3 000 m3/h through the rental of additional diesel-driven pumps and the installation of 1 800 m of high-pressure high-density polyethylene pipelines.<br />A canal and settling dam are now fully commissioned to handle the water discharge, with the canal capable of handling more than 6 000 m3/h.<br />Distribution from the settling dam is maximised, with current installed infrastructure at 2 000 m3/h to direct water to various discharge points through a stormwater pond, with the balance of the water overflowing the settling dam back into the aquifer.<br />Additional infrastructure is planned to increase distribution by 2 000 m3/h from the settling dam by the end of July.<br />Significant progress has been made to design, cost and implement a significant upgrade of the dewatering infrastructure.<br />The system will be upgraded to increase the abstraction and discharge rate to a nominal 3 000 m3/h through a predominantly electric grid-power system.<br />The system will be developed in three phases at an estimated capital cost of N$44-million. This will include an additional grid-power substation to increase power supply to Tschudi by 4 MVA to 12 MVA.<br />Management remains confident in the future financial viability of the Tschudi mine.
WTI recovery plan. Same story printer 2 days AFP Bern cpoied by more mining mags today. Looks genuine.
http://www.miningweekly.com/article/weatherly-progresses-with-tschudi-dewatering-plan-2018-07-23
https://www.miningreview.com/weatherly-outlines-recovery-plan-for-its-tschudi-copper-mine/
Stokes1610....where did you see the news ?
Where do you find this news? I can't seem to find it anywhere
The recovery strategy and expenditure plan, which will require a capital investment of N$14,300,000, has been approved and work is underway to increase pumping capacity to lower and stabilise the water levels in all pits and allow mining operations to regain access to ore.
The plan is expected to restore normalised production levels at Tschudi by December 2018.
Orion Mine Finance remains supportive of management endeavours to stabilise the operation
Weatherly outlines recovery plan for its Tschudi copper mine!
Didn't I hear someone say that "... once there was a dream called Weatherly.."? Or am I getting confused with something from Gladiator?
Many folk in that part of the world are called Moses, Abraham, More Blessings, Bearing Gifts .......Even Gesus