Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.
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The danger on the doorstep today is whether the company creditors will walk up knock on the door and demand payment. Unless they can persuade these creditors to walk away as all is well it’s game over no matter what value is in the company.
I truly hope the company can survive this.
In fire sale scenario- Vermehllo will be sold above $200m because mine life 38 years and PFS complete and sufficiently funded. Araguia also will be sold above $200m because it’s already being mined and there is probably substantial concentrate. Now there is also $700m spent as Capital expenditure. Even at fire sale, assets must recover $800m
Harkin,
Thank you for taking the time, firstly by chasing the company and secondly in sharing.
Very frustrated by the reply
we are there with the connection to the power supply, the line is built, from the pictorial updates so is the sub station at the mine and they were using the 25 million from Orion to connect to the Dam however this hasn't been completed months after t was due
removing the NPV calculator is another strange move, its been there for years. why don't they want to let people know we're hugely profitable at today's price. That's without the saving of $600 dollars per ton on the power supply costs being included, its left to Stow and wasarunner to do the calculations, the company certainly isn't shouting about it
World tours to investors but not one Proactive Investor presentation that can be filmed at your desk in an afternoon.
generally i don't think they could have handled more badly if they tried which they might be doing
Question 3: Can we have an update on the Line 2 Feasibility Study?
Given the intrinsic relationship between Araguaia Line 1 and Line 2, the Line 2 Feasibility Study
was placed on hold, as announced on 19 December 2023. In the absence of a financing solution
for Line 1, this is unlikely to change.
Question 4: When will the site be energised?
As explained in response to Question 2 above, following the Company’s announcement on 14
November 2023 to reduce construction activities at Araguaia, only critical workstreams have
been advanced which includes the 230kV power line. The powerline itself has since been
connected to a lower voltage source but the site itself has not been connected to the grid given
the aforementioned reduction in site construction activities. As above, this is unlikely to change
in the foreseeable future.
As Karim said on the 15th April 2024, the Board and management are extremely disappointed by
the results of the effort to attract financing into the Company and regret the impact this outcome
will have on our many stakeholders, including private investors.
The Company will keep the market updated with any developments in due course.
Question 2: Can we have an update around what work has been completed and what is to be
completed?
Regarding an update on construction progress of site, following the announcement on 14
November 2023 where the Company reduced construction activities at Araguaia, only critical
work streams were advanced, including the 230kV power line and water storage reservoir. As at
today’s date, there is no change to construction activities.
At this time and given the absence of a financing solution, the Company is now considering
alternative options for the Company’s subsidiaries in the interest of its secured creditors. Those
options include financing at the subsidiary level, a sale of the Project whilst in care and
maintenance, the
In the context of the above, we are sure you will appreciate that the Company is unable to provide
detail which is not public. That said, we have made every effort to respond to your questions
below.
Question 1: Can the NPV calculator please be updated?
The NPV calculator used figures from the 43-101 Araguaia Feasibility Study filled on SEDAR in
December 2018. While this report was published some time ago, it is the latest publicly available
technical report for the Project and as such, the Company is required to use this information
when creating tools such as the NPV calculator.
As explained above, while the Company has been engaged seeking a financing solution, the
Company does not believe that any of the options it is currently considering are likely to recover
any value for the Company’s shareholders. In view of the current situation and recent public
releases, the Company has determined that the NPV calculator is no longer relevant and has
decided to remove the function from its website.
Dear Michael,
Thank you for your emails. We also acknowledge receipt of your letter to each of Gillian Davidson
and John MacKenzie. This email responds to the questions raised in each of your emails and
letter.
Before doing so, it is important to begin by reiterating the Company’s announcement on 15 April
2024, as this explains the current position of the Company and gives some helpful context to the
responses given below to your questions:
‘The Company has been unable to secure interest in the full financing needed to complete
Araguaia Line 1 or in a group acquiring the Project. In the absence of a financing solution, the
Company must now consider alternative options for the Company’s subsidiaries in the interest
of its secured creditors, which may include raising financing at the subsidiary level, a sale of the
Project whilst in care and maintenance, the liquidation of the assets of the Project, or other
options available under Brazilian laws.
The Company does not believe that any of these options are likely to recover any value for the
Company’s shareholders.
Since the end of November 2023, the new management team has stabilized the business and
undertook a comprehensive audit of the cost to complete and business plan to critically assess
the current viability of the Project. The results of this audit demonstrated Araguaia’s project
fundamentals as a robust 1st quartile operating cost asset, but also highlighted a significant
increase of the cost to complete compared to previous estimates. Following an extensive
engagement and global roadshow where over 150 parties, including over 39 which entered into
non-disclosure agreements (“NDA’s") were approached across both debt and equity, the
Company has been unable to secure the full financing needed to complete the project at this
time. The majority of investors who conducted detailed due diligence on the Project, after signing
NDA’s, cited the unfavourable nickel market environment as the reason for declining to pursue
the opportunity further. Despite nickel’s long-term outlook being strong, investor sentiment has
been dampened by low spot prices and near-term uncertainties which include the supply surplus
from Indonesia, and the consequent downward shift in the cost curve, risks to global nickel
demand and market dynamics of Class I and Class II nickel products.’
The reply is a little big to post on this board so I'll have to split it into sections.
I thinks its worth saying as a comment on HZM's investor relations is that to get this i had to email the repeatedly, cal them several times a day for a few week and eventually write to the independent directors.Perhaps a big part of why we are in this mess
Can’t you just cut and paste?
Just posted a reply from HZM on the telegram group, anyone know an easy way to get it on here??
I do sincerely hope you are right.
We need to hope someone with a large amount of cash comes along.
Maybe we should hope that the BHP Anglo American deal falls through and BHP wants a nickel mine as a consolation. Wonder if Glencore would be happy with that. Or even Vale taking it back.
We can only hope. 😂😂😂😂
Rover? How much sale of assets will recover? Araguia tier 1, $500 to $600m already spent on it, Vermehllo sufficiently funded, mine life 38 yrs, on cusp of PFS, Bods didn’t release it. My calculations $600m to $800m assets sale value
Looks like Brokers have bought back some of clients positions which they sold in anticipation no return for shareholders
Hm
I honestly hope that some value can be realised.
HOWEVER,
In a fire sale I would not be too hopeful that the sale of assets would even cover the debt.
I’m open to being persuaded so please elaborate on your calculations.
Resource is intact, Nickel spot at 19k per tonne, Geo political and consistent demand is going push it much higher. Sell out or administration are both going to generate value for shareholders IMO. Because in Administration, both Araguia and Vermehllo will be liquidated and will generate value for shareholders.
The scenarios have not changed.
Administration, sell out, care and maintainance or cornerstones and lenders produce a package of investment to take the Company through to production.
I do not like the first three options so am hoping that the fourth option somehow takes place, otherwise everybody loses massively.
I would like to take a glimmer of hope but alas I’m failing.
The only way I think of recovering anything is if the company with it’s subsidiaries were structured in such a way that each part was ring fenced and protected from the other without each being a guarantor for them. However I don’t think that is the case.
It depends how we look at the news, First scenario Administration? If Araguia and Vermehllo are sold together, Chances are high for residual value for shareholders. Second Scenario-Liquidate Araguia and pay the creditors and keep the Vermehllo on on going concern, shareholders will be on jam tomorrow. Above all, FairPlay is the key, Nickel is going to shine again.
Announces an update in relation to the interim funding package announced on 27th December 2023, pursuant to which the existing senior lenders agreed to waivers including the deferral of accrued interest originally due at 31st December 2023 to the end of February 2024. These waivers were subsequently extended to 29th March 2024 and 30th April 2024 and the existing senior lenders have now agreed to further extend the waivers until 15th May 2024.
15th May is the next critical date. News before then maybe good after then bad.
Let’s hope it’s not just your buys pulling the price up.GL Anyway
Why not KPMG or PWC or EY or Accenture?