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Unless people have itchy feet, what is the problem? Hardly a company out there that can deliver anything on the exact dates. Throw in COVID and you have to be having a laugh if you think timings will remain the same. There is also goos reasons to delay. Wait for Nickel price recovery on Chinese Stainless demand, countries throwing money at green economies, EV narrative picking up increasing desire for involvement in Vermehlo, getting rid of the seller to get a better starting price for news.
I do not want the finance deal to drop early! I'd love to see the EV narrative take off, EV metals to get a rising price, Elon's 'delayed' battery annoucement (we know will contain Nickel as he has already said he needs more Nickel) might drive people into getting their hands on limited future supply etc. I would prefer to see a deal on Vermehlo that meant little to no dilution for getting phase 1 going. Capitalise on the growing desire for EV Nickel to monitise Vermehlo early to help the rest of the project.
Everyone seems eager to rush a finance deal when the macro conditions are not ideal but have room to improve. There are more reasons to see it delayed than rushed as far as I am concerned. The Nickel has been proven the plans are ready that 'cannot' be taken away from us. Will people trade out to make a quick buck somewhere else...maybe, good luck to them, they weren't really investors anyway. Something could drop anytime. I also don't think it is a good idea to waste value enhancing news when a seller will absorb the liquidity from it and give them a better price. Better to work them out and then when gone ramp up the news flow.
Owlo, I was not trying to suggest any blame or responsibility around a possible delay in announcing a financing deal. I was merely suggesting that I have taken a cautious position and currently do not expect any announcement in Q3 that a comprehensive financial package has been concluded. There are lots of reasons why I could be wrong.
Interesting Orion seem to average 3 to 6 mining deals a year but appear to have done none since HZM last October, market conditions or conserving capital for one big investment?
djryan, I think both the CEO and Chairman have softly hinted at the possibility of delays to the finance deal ( from the wider impacts of Covid on doing business). And given HZM has some past form of its envisaged timings not being met in practice, I'm starting from the assumption we will not see a coherent, concluded financing package unveiled until deep into Q4 at the earliest.
DJ,
Fair points, just feeling a bit jaded I suppose. I liked to think some real news flow would be gearing up soon leading up to the end of Q3 (8 weeks off).
Incidentally we have a mining Director and yet nothing news wise on that side of the business ie program/in house team. Hopefully he’s off securing/looking into cheap equipment in light of the exchange rate.
Katie Millar on the Sustainability side, hopefully more on the ESG and carbon footprint credentials to come. How we might compare on the Elon equation.
Any way let’s hope we are soon shot of the seller and really can see news flow happen ideally before US elections start to drag on markets
Hope you’re wrong on the dates Q3/Q4. As JM has already pushed dates back at least twice. If he can’t get things sorted with Nickel bubbling at $14K, Elon pushing miners to get on with it, EV demand increasing faster than predictions, Stimulus packages in China and US, well we have a problem. He would really need to explain what’s going on. Companies are listing on markets M&A is happening via Zoom, others are raising capital, so it’s not Covid stalling things.
Not saying a few months is in its self is an issue, just would really expect some clarity. The last dates were self imposed and so we should expect a reasonable explanation not just “a few bits need tidying up”. Especially with the pre announcement news flow to build the SP up is still needed to avoid a large dilution (and would be frankly a failure on the boards part with the assets we hold If they haven’t got this going). The only appeasement would be if it’s because the deal is done at a premium to the SP, similar to the Orion announcement.
Bit fed up of opportunities to top up at bargain prices and would mind seeing a bit of valuation parity.
LIVE FUTURES REPORT 05/08: Options expiry sees LME nickel price soar 4% at close; zinc follows higher...
https://www.metalbulletin.com/Article/3945250/LIVE-FUTURES-REPORT-0508-Options-expiry-sees-LME-nickel-price-soar-4-at-close-zinc-follows-higher.html