Chris Heminway, Exec-Chair at Time To ACT, explains why now is the right time for the Group to IPO. Watch the video 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.
@Ivybush: "State of Amapa has extended lock down "to restrict the circulation of people and vehicles"
The port seems to be still operating.... Ultimax has sailed and ES MERCURY (General cargo) now docked..
.... I just hope all the potential outcomes & bases are covered in this because if the banks don't agree......... (& if I was them I'd have been seeking advice on the legal & any prior precedence over similar circumstances both on whether there is appropriate legal power or precedent to demote their creditor status by this court, who it could be appealed to if if ruled such & the cost of any appeal if it occurs, in the answer to those questions lies the banks possible next position/steps) ...... the 20% ownership is a vital & key stage in my opinion & we need to get there sooner rather than later, obviously only once we're certain ALL hurdles, requirements to proceed are covered & also for me hopefully before shipments start or further shipments are approved so soon...... at the moment we have no real monetisable interest in the project other than the bridging loan (which cost us PI's dear IMO ..... again!! .... what with the 'amended' CLN conversion but not least of all because that slimy shyster Gobbygas might have got his grubby little mitts in again!!) ..... however my concern would be & what I hope is covered is that if the project can be seen to move forward /fund itself without our (pittance in the scheme of the whole project) $2.5M &/or additional $3.5M .... we might find ourselves peering in from the outside with little more than a loan to them outstanding & no foreseeable method of hanging on without further significant damage/losses & dilution for the JV's to bear any fruit in 4, 5, 6 .... more years time... we've already sold everything at a loss other than EMH & MMS/MIO & there's limited funds there if the need becomes pressing.
It all rests on Amapa now & I feel we're almost at a make/break point ...... yes even more broken than this mob of a BoD have led us with the near 100% drop current drop from the highest high & current 94/95% drop from a shiny old penny as was .... not good but hey ho there are still those here who think the BoD have done well & achieved much !!!! Achieved much yes ....all of if in the wrong direction ...... to possibly this point...
Of course, I'm not suggesting getting to 20% won't also likely cause a second leg/wind to the re-rate, unless the first was massively over cooked! LoL. Now what was WHI's risked valuation again? :-)
According to my logic we'd wait until the decision is final. But the 20% doesn't really matter at this stage, it's getting the ore shipped that is key to any re-rate here IMHO.
Yes @Obs that's kinda my point, if the creditors don't play ball...
If the court rules in our favour... can the creditors appeal or is it final?
Would we take up our 20% on the court ruling or await the outcome of an appeal if there is one to satisfy this prerequisite?
@Dallas. According to the JRP we can take our 20% ownership at any time which would release our $2.5m from escrow. We are quite rightly not exercising this option until we are sufficiently assured the necessary prerequisites have been met. One of which is resolving the issue of the secured creditors (the banks).
@Ivy. My understanding is that the courts have been operating remotely for some time.
Yes Bannor, I agree that seems a more likely order of events as things stand. Though not what the extract I posted from the RNS intimated..
Re the creditors and our 20% ownership I asked the following back in April...what's your thoughts...
"How long can the creditors delay proceedings?... They have 60 days to agree or the court might (may or may not) rule them as unsecured creditors... If the court rules in our favour... can the creditors appeal or is it final? (Would an appeal affect / delay our 20% ownership)."
We'll see ... but personally I'm still expecting , holdings, banks, shipments RNS's in that order...
...... Dallas ... reckon the Banks were creating a 'blockage' for the release of our $2.5M to settle small & employee creditors & we'd had enough & the courts agreed ... hence $2.5M of the $10M set aside for the purpose our $2.5M was originally slated for ... the courts have put a fair amount if pressure on the banks to agree a settlement IMV the 60 days for them is up prior to our 'stated' schedule for shipment(s) to start .... I think the banks 'HAD' potentially a glimmer of hope in that no-one would do anything anyway without prior payment hence our 'bridging' loan which took care of that aspect & has effectively left them without any form of safety net if they hold out.
The courts (& authorities) are keen to see the project proceed hence the additional $7.5M approved which is likely to be used on what our second $3.5M buy in would've gone to .... I suspect the bridging loan will get rolled up into our 2nd stage increase from 20% to 27%
And why would the court rule that we could only export enough ore to realise US$10M profit.
Surely once creditors agree a settlement we could export as much as we want?
Reads like we planned to start shipments before a settlement decision...
"While we await the settlement with the secured bank creditors, The JV Partners will work with DEV to advance the restart of the Amapá Project using the proceeds of the iron ore, accelerating the production from the Amapá Project."
State of Amapa has extended lock down "to restrict the circulation of people and vehicles"
Unfortunately Covid19 is not yet under control in most of Brasil. Maybe this will create more
delay ----would courts still sit? would grant of licence be a priority?
Presumably you include news related to the necessary licences and permits to ship the ore in your "shipping update" @Bannor? It's a close call whether we'll hear news on that front before the bank update, followed by news we've actually shipped the ore.
And I agree, delay is certainly possible, including all other manner of things that might go wrong - our share price isn't being heavily discounted to what it should be if we had all necessary agreements, owned 20% of the project and were shipping ore, for no reason! Lol. Perhaps everything will go swimmingly this time round? Even bigger Lol...
Ob.
..... actually let me tweak that slightly in that I expect the next RNS to be a holdings one .... then a bank update .... then a shipment update
..... if Amapa does work out as its being positioned, hoped & wanted at least it may provide us with a path & the ability of hanging in there with the JV assets until someone wants to buy them for closer to what they're worth rather than we need to sell them for what we can get..... you never know it might even be possible we can cover our own portions of the JV development/exploitation costs when the time comes.
We have another CLN payment due so I expect the next RNS will either be a holdings one or the Banks .... then a shipment update ..... or delay!!!
And above 80 out to about a year. :-)))).
Meanwhile lithium prices retreating (7.5) and both BCN and EMH looking like years before revenue gets flowing. Go iron!! Lol. Though BCN did once again mention the possibility of 50ktpa in a recent interview, which if they believe their own recent reporting on long term lithium demand should be the minimum of their expansion plans. IMHO. DYOR ;-)
Could be great for us if it all comes together over the next few weeks.
Thanks, yes in this strange world where allegedly China is sinking , it still can't get enough iron ore! Good for us though.
Though hopefully we do start shipping soon as the spot is very favourable at the moment (High 90's) with futures above 90 out to September. Looking good! :-)
@Theleather1. Personally I think we are more likely to hear about this:
"Amapá Iron Ore Project Given Court Approval to Commence Iron Ore Shipments" (14 April 2020)
https://www.lse.co.uk/rns/KDNC/court-approval-to-commence-iron-ore-shipments-lv899dufpruz5g4.html
===[
In addition, the Court has requested that the secured bank creditors reach an agreement with the JV Partners and DEV within 60 days or the Court might rule on the annulment of the Bank Liens and consider the banks as unsecured creditors. As unsecured creditors, the bank's credit will be subject to restructuring plan limits and discounts and be paid from free cash flow from DEV, which may be over fifteen years.
]===
before shipping news. Perhaps imminently so. ;-)
Good morning, well here we are approaching end of Q2. The pile of Iron ore sat on the dockside in Brazil, was targeted to be shipped by end of Q2 early Q3. I know CV 19 is sadly rife there, but does anyone know if its being loaded or anything?. I have looked at the shipping tracker , but it seems somewhat slow to update at times!
Sometimes you just wish time estimates could be on the earlier side for a change, even though you know if there are two choices, it will be the least appealing!