Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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My pleasure, ODR, Devex is definitely 'one of the good guys'.
Didn't realise that Devex was another one of those: 'I have been invested in Frontera for seven years' fly by night posters who appear periodically ;).
Joking aside, thanks for pasting across sonnyclimes ... Retireby40 we miss you!
Excellent
Always amazing to me that a de-listed company with life threatening challenges creates such interest - and that people with pretty obvious short/exposed positions still post relentlessly. Also that despite a complete news black out so much is checked out and so many interpretations are made virtually every hour of every day.
Some of Regdiks posting on LSE has been pretty solid in my view - and his “factbase” (posted by dgfletters) difficult to argue with. Readers will know that I have been invested here since 2012 - and I will confess that through the summer I mentally wrote off my investment. I still have - seeing that it cannot be crystallised - but my sentiment has changed considerably in recent weeks. In a nutshell here is what I think has been going on in the last year or so (and apologies if it just repeats what others may have said):
Last year’s drilling was more - much more - about proving than cash generation. And the fact that such a fight to the death is taking place says categorically that the box is indeed worth fighting for
ZM and co thought they were going to get a partner deal but the Georgians were clearly not going to agree re the PSA issues
A partner deal would have meant that Hope could have been managed. That clearly didn’t work in the required timescale
The partner(s) have said that any deal is subject to the Georgians agreeing extended/new PSA terms (and if no realistic partner prospect existed I believe SN/ZM would have thrown the towel in long ago)
concurrently Hope was initially frozen out of the information loop. Then ZM & Co decide that under no circumstances will Hope get any share of a future deal - other than repayment. Also under no circumstances will he become a significant shareholder.
So the legal actions - both planned and reacting to events - were entirely about protecting the asset and buying time. The lawyers will have advised on the news black out - but ZM & Co also lost faith in shareholders - ie they weren’t which shareholders could be trusted - so better to trust no-one.
the legal and advisory costs ramped up generating extreme cash flow issues
but the only game in town has been to see the arbitration through and progress some sort of deal. Real pain and real people clearly hurt - but that was the price
Lots more - and this is obviously a real fight for survival. But the tenacity is quite remarkable - and the fact that a) no killer blow has ye been delivered - 12 months on, b) that the arbitration process is still clearly progressing c) that US pressure on Georgia remains intense and d) that Hope seemingly still wants shares - all says a lot.