Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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I was just wondering about the news flow and the critical path.
When will funding be needed firstly to ensure the lights remain on and secondly to maintain a schedule.
Obviously the first task is to establish the extent of work needed to complete A1.
This is the independent review process being undertaken now. This due mid Q3. Maybe 2-3 weeks off. Will this be RNS’ed?
Will that have $ figures in, as it would have to be reviewed by the cornerstones?
This would feed into a financial funding gap analysis. I.e. how much the company actually needs.
Then comes the financial agreement(s).
Obviously these will be RNS’ed.
Would all the above be done in one RNS or staged.
They had $93 million cash. How long does that last 4-6 months?
Any opinions?
Has just turned up as a sell and my price includes stamp etc.
At 16.9p. I have managed down 45% of the value of what I held for a 10% increase in the potential loss of everything. In pre 20 for 1, I am back in that 3-4p range when financing was only partly agreed a few years ago. I am hoping HZM survives and one day we get back to 90p. Sometimes to achieve success has its moments when it is near complete failure. Hopefully this turns out okay.
Where does billy get £10 from? According to glencore, last q saw a 10% decrease to lme prices for ferronickel and the company will need to repay over $60m per year just for phase 1, for 7 years. Given expenses above cash cost, like sustaining capex, and the debt it's hard to see from my perspective how the company will do more than pay it's debt given nickel price trajectory. If people still expect the company to fund A2 from fcf they are probably just narrative following from company aspirations. And we know how trustworthy the words are coming from the executives mouths are don't we!
Hazbeen…no you are wrong. Why do I need to ramp? Never have and never will do…stupid school boy remark. I believe this situation will be fully resolved and the deal is done. Save your childish remarks for kindergarten…thanks
Billy ramper,
If so say enough times, you may get it right or even wrong , time will tell
Thanks and agree
I have now set out my stall too and more than doubled my previous holding.
Buy’s definitely showing as sells
Looks like whatever overhang is left is gradually being mopped up
News is overdue. Massive value in this company and I agree it won’t be sold on the cheap. There’s at least £10 value in these shares through the life of production…. The extra funding of £75mn? Is agreed…a no brainier for major shareholders who want the cornerstone investments covered through a share rise…a few RNS on way….expect these to sharply rise and by the eo Nov, 60p…. Gla, the maths is simple when you have Nickel reserves waiting of US$6-8bn….
Any takeover would have to two of the three cornerstones, if not all three. They'll still want a return on their investment - an extra $200m over the LOM and the acquisition of a huge nickel district would not see the asset being sold on the cheap.
Hi Strow, yeah I don't tend to go over to the other thread much these days. Maybe I will pay a visit.
I sold in the sell off and bought back at the bottom, now got more than ever and lower average price as I don't believe this is an end point for HZM, more an unsavory staging point. Being forced to announce the funding gap without a funding plan created a severe response. However at this price I think its massively oversold.
The companies wording in the 2nd Oct and the recent update hints towards strong cornerstone support, additionally I feel construction continuing is another big indicator of the direction.... So for me its all about what is the size and shape - royalty, debt, equity etc. But until we see it I remain nervous.
Likewise I am intrigued by what will happen to the timing of A2 -Its a big kicker financially and would help offset reduced returns from A1 so could be a central point of discussion. A delayed royalty on A1 for a couple of years for example could leave cash flow in yr 1 and 2 to build A2. Lots of clever and influential people in that cornerstone group - so I am very keen to see what the outcome is. GLA.
Hi Craigieboy
Other thread wondering what happened to you
Honestly,you still holding as many as you were ?
I totally agree with Charles Archer that it is no coincidence that this finance and Stage 2 bfs being announced at the same time.
The first we all heard of the cornerstones pushing hard for stage 2 to be brought fowards was at the investor meet presentation literally 2-3 weeks before the now infamous RNS.
It was openly stated by Jeremy and Simon that this was the case.
This funding imv has to be something to do with it because obviously one cannot bring the original plan to fund stage 2 fowards without additionally funding it as cash flow from 1 would not be able to provide enough for this to happen.
It was a given as soon as they both stated that and I’m surprised that no one really asked at the time “how are they going to do that”.
Maybe we are just about to find out.
I hadn't spotted this before, it will be interesting to see Peel Hunts revised price target from 220p when the funding package is unveiled.
https://www.proactiveinvestors.co.uk/companies/news/1028320/horizonte-minerals-tumbles-40-after-cost-overrun-and-delay-1028320.html
One scenario is definitely Glencore just buying the company. Fortunately for us they would have to make an offer that would satisfy the other two cornerstone investors as i can't see a deal going through that would leave them with their holdings in situ.
No idea what the number might be, but doubt it will begin with a 1 both happily and sadly!
Great find PP & Nickle at US$19644.64 we could see a rise & maybe a big bid by Glencore for HZM ….. Who knows but bodes well for us !
Interesting article on where Glencore are up to with Nickel production. I wonder where they could find some more?
https://www.proactiveinvestors.co.uk/companies/news/1031355/glencore-cuts-full-year-nickel-output-forecast-as-last-year-s-strikes-still-weigh-1031355.html
(With thanks to Troajan on the Glencore message board)
Are you planning to drop in at the site to see what's actually going on?
I don't want to cast a dampener on things but the forecast for Araguaia is rain every day for the next 14 days. Which wouldn't duly concern me but I'm off to Brazil a week on Monday!
Agree, and looks like they are reading these boards too!
Apologies for jinxing the mini rally 🙏
If you were going to buy here, you would sit on the bid price or lower to stop market makers moving up the price & making you buy higher. Especially in an environment lacking buying momentum. Think about it.
They will all be buys. There is more than one market maker offering and bidding more than one price, the spread indicated on here is very rarely the actual buy and sell price.
More interesting is the price starting to edge up a little
Very strange that all trades are showing as "sells" even though I brought 12000 at the "sell" rate indicated - any ideas?
Some reports indicate a drought in the area expected to last to December so perhaps rain won't stop work which may help matters.
Https://horizonteminerals.com/uk/en/press-releases/2023/construction-update-for-the-araguaia-nickel-project-3/
If you have a look at the Press release with Picture you will see
"Management discusses the Araguaia Water Storage Reservoir with Senior Lenders and the independent technical engineers."
La Mancha have a seat on the HZM Board and are completely understand the changes in funding and Capex.
The best possible outcome for All Shareholders is that is largely debt and some Equity at a high price so the share price shoot back up to 90p
With respect to A, however there are a few things to consider:
- at this point Orion and La Mancha lose $200-250m they have already put in. So IMHO only, they don't sell for less than this unless it is them doing the buying (which has been highlighted as a risk). They don't own 100% of the shares so there is a base value somewhere where the company doesn't get sold below because existing shareholders will not vote it through (unless of course there is no alternative because their shareholding goes to 0 otherwise).
- in terms of who could bid, lots of suggestions majors would be interested, for example Vale, or Glencore. The best case if it gets sold is of course a bidding war.
I still think a funding solution involving the existing stakeholders is the most likely outcome and between the 3 of them (La Mancha, Orion, Glencore) they hold enough shares that a third party can't force a sale at a price which doesn't suit them (they own >50% of equity here).
Mv01 you don't sound like a rookie. Your questions make sense ;)
I have no expertise in question A. I assume shareholders get all of it distributed equally among all shareholdings and from pickedpeck's calculation it would be a lot more than $100m even in a distressed sale....and hence a lot more than 16p.
It really depends what price you got your 200k for. I got my 600k for >£1/sh (on average, probably, as been adding in the last year or two a lot) so a 50p sale price is not that great for me....