If you would like to ask our webinar guest speakers from WS Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund a question please submit them here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
That is the norm at the moment but it used to be up until relatively recently that offtakes would only be agreed after the was finance agreed.
Now it is used as a tool for confirming the projects viability within the junior miners and exploration company spectrum to obtain finance.
So before, you have a financed project and we will take your product at current rates less a small discount to suit us because you are risk free.
Now it is more often than not used as a vehicle to guarantee project finance because someone has guaranteed to take your product but at substantially better rates for those that are committing to take your product because they are taking a risk and reducing your.
Yes like Wolfie I have open spread bets as well as physical positions with IG and there was no change in margin. I also have a fairly decent position in ARCM so would hope to put potential short term profits from there into HZM. Guess it's all about timing but GLA.
Backspace57
It you want a more indepth explanation try the below link.
https://www.investopedia.com/terms/o/offtake-agreement.asp
TDT
Backspace57
"An offtake agreement is an arrangement between a producer and a buyer to purchase or sell portions of the producer's upcoming goods. An offtake agreement is normally negotiated prior to the construction of a production facility—such as a mine or a factory—to secure a market for its future output."
TDT
Wasa - Thanks, missed that. Guess it just feels a while since certain enabling works got under way, following the initial Orion £25m, which I think was about 18 months back now, but obviously my memory isn't great!
I'll certainly be waiting, as patiently as possible, and adding more shares if EUA and ARCM situations play out as hoped. I think there may be a bit of a race to get monies from any ARCM deal over to HZM, and maybe the timing will work well for a change (expectations not high - it would be a first!)
wolfie latest we were told is 31 month build. Assume this includes the long lead items and assuming construction commenced start of March that would put us around Oct 2023 first production. But Pedro has brought mines in under time and under budget so here is hoping for a favourable wind.
I don't know much about engineering on this scale but the mine will definitely not go from 0k/t to 14.5k/t straight away. I'm sure the detail of how the production ramps up is buried in the DFS somewhere and will have to read it up. But I pretty much figured when they start the build H2 2021 (officially) you might be looking at end of 2023 for production with perhaps a first full year of production at nameplate in 2024.
"The placing along with bad luck-the fact IG pulled leverage on 1000 stocks which included HZM-has put pressure on the shares."
Sorry to be picky, but I'm with IG, and have an open long on HZM, and don't think they are on the list, as positions are still open. I had to close on EUA, NCYT and POW, but not HZM. I believe all those that were on the list are now showing as 'closing only, not available to open' - This doesn't apply to HZM, but admit I haven't looked at the list.
Personally, I liked the fund raise, as it further cements the moving onto the construction phase and gets those long lead items procured. That said, I was a little surprised that the presentation today now talks about late 2023 / early 2024 for first production. I was hoping for H1 2023, but I shall be holding my shares for the long term, as I have complete faith that this will be a brilliant investment.
My only other surprise, is that there hasn't been more news about outside interest in Vermelheo yet, but that one could jump out and surprise us anytime.
Thanks again, Bwana, I'll get reading :)
A take off is what the shareprice does when financing is announced (subject to good terms of course ;)
Bod-they said H1-so read that as May/June.Not sure what the price will be-if it is with a strategic investor like Glencore could be at market or slight premium-I hope!!
Bwana, that's an awesome recap, thanks :)
In my experience, the Joint Broker is announced about a day or two before the new placing, so I was surprised to see it so soon after the first one, when the first one had been brought forward (unexpectedly).
Do you think this means the larger placing will also be brought forward, or are you anticipating it to be around May/June?
My thinking is that the first placing has disrupted the sp momentum, so the next placing might be at a further 20-30% discount to the current sp.
A take off is what Elon Musks space rockets do when leaving earth.
Could i ask a little advice please , what is a " take off" ?
Bob-it was generally perceived that the Company would announce the full funding debt/equity/takeoffs in one go around May/June time.However, they surprised the market by doing an £18 million pacing at a discount 2 weeks ago.The placing along with bad luck-the fact IG pulled leverage on 1000 stocks which included HZM-has put pressure on the shares.Many of us believe the shares were not as stickily placed as we wanted. However, the £18 million lets them get on with initial phases and gives a very solid balance sheet for finalising the debt negotiation.We now await finalisation of debt funding/takeoffs and cornerstone equity-should here by June.Plenty of very good tuff on this Board and on the website.Good luck with your investment.
I think you're right, a bit more research needed... :)
*eye roll*
Yes the final one which raises the remaining capex? Probably in a few months time. Now they have a broker in London and one in N America. SHould be able to raise the funds for the $0.5bn mine. $25m was the starters...
Bob-with greatest respect, time to do a bit of background reading I think.
HZM just had a placing... and now there's another one coming?
Errrrr...............kinda the point
Apologies if this is too cynical, but the appointment of a Joint Broker is almost always followed by announcement of a fund-raising placement.
Different brokers = different mates who want to get in a cheaper-than-market price, and then flip the shares after the placing.
Picked your post of Thursday 11:43am" I think we have all made our calculations a bit more Conservative than they were, but the upside is still compelling" I think you have made exactly the right point, my own calculations are indeed a bit more conservative now. However, listening to the latest presentation it does look like the financing is nearly in place now and I feel even more certain that the future here is very bright with still considerable upside-though less than I previously hoped due to greater share dilution. Very exciting times here.