The next focusIR Investor Webinar takes places on 14th May with guest speakers from WS Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register 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.
Well, the facts are out there and the. value proposition is compelling.
Agree Shaz I have a feeling he thought that by sending with immediate release would be posted at 7am the following day judging by the time it was released only bad news is ever issued that late when companies are trying to hide the rns. JV manages to keep good news under wraps !!!
I think JV has taken his conservatism to a whole new level now after his latest beauty of releasing such outstanding results at a time where nobody would even notice the company had released anything.
Woodland Capital Limited purchased at 21p in September when they felt it was good value vs assets since then nothing has changed apart from the RNS last night.
The Company generated gross income of £2.394M during the year, an 84.5% improvement from the previous year
Net Profit for the full year was £1.550 million
We continue to be effectively debt free, with working capital of £9.542M
The above alone is worth more than the market cap.
Before Feb 2024 the below will all be cleared up we will either have £5 million call option to add to the above or 20% carried interest in a beast of a mine that’s getting ready for production.
If EDM opt to not exercise its Option, M&F would retain its 20% Carried Interest and the adjusting call options held by Ascendant would be nullified. If EDM exercises its option to the 15% WI then M&F would retain a (net) 5% CI. M&F has the right to sell its (net) 5% CI to Ascendant at a price representing M&F's 5% share of the NPV of the LSP as estimated in the Feasibility Study (using a 10.5% Discount Rate). We currently estimate that this value would be significantly higher than the year end value.
The RNS late yesterday has been missed by many investors this will move later.
I think this RNS reads that if EDM do not take up their offer of a working interest then we automatically get the 20% back?
That's a little different to how i understood it previously.
Shaz, I personally think this could fly tomorrow, and so it should. It's too cheap and seems to have much more potential than the NAV it's reporting.
People criticize JV but he's done a stella job here IMO and good on him releasing the after hours RNS... although I think that is maybe due to timezone differences and not necessarily on purpose.
well, it does surprise me that such a positive rns is issued an hour after market close. i hope this is not another jv **** up.
someone clearly knew something today during ordinary market hours.
it is laughable that mafl is priced at such a discount based on those figures and what we know is yet to come. i am not complaining though!
Misquote, the 20% CAGR is actually almost 30%. I was almost being as prudent as Jaques with that rounding!
SP has pretty much halved this year, yet still delivering CAGR of 20% and trading at 50% of fully diluted NAV. That NAV also doesn't factor in the LS put option.
Surely if that were taken that into consideration, this company could be worth north of 30p today? (Appreciate today's update factors up to end of June 23)
I might be missing something non-financial here, but do hope to pick up a few more around the 12p mark.
I think I may have missed the boat now though, with that cracker of an update!
AIMHO, GLA, DYOR!
Great progress not sure why post it after hours -
We continue to be effectively debt free, with working capital of £9.542M.
With an Option of £5m come feb could be worth more !!
And market cap is £4m
Either way things are looking up again. Even Luca Mining is back to break even!
Thanks Nom but that still has a lot of the usual caveats and non commital statements that make it difficult to discern exactly (or even broadly) how indicative of financing the MLA appointment is in the real world.
I guess what I’d really like to know from an industry expert is, let’s say there is a spectrum that goes from;
Not indicative at all: I.E. If anyone with a hole in the ground that approaches the UKEF will get an MLA bank appointed to look into it and 99% of these come to nothing.
To
An MLA is only appointed once the UKEF has already basically done the due diligence themselves and a formal offer is therefore close to guaranteed.
Which of these statements is closest to the truth?
Florence,
An AI answer to this query: "Analyse this document, highlighting the positives and negatives and explain the significance of the appointment of Banco Santander S.A. as Sole Mandated Lead Arranger for the proposed Lagoa Salgada Polymetallic project ("Project") financing. Max 1000 words"
This RNS announcement from Mineral & Financial Investments Limited (M&F) provides an update on the proposed financing plans for the Lagoa Salgada polymetallic project in Portugal. M&F has a 20% interest in this project, which is being developed by Ascendant Resources.
The key positive development is the appointment of Banco Santander as the Sole Mandated Lead Arranger (MLA) for a potential US$158 million project financing facility, with support from the UK Export Credit Agency (ECA).
Having a major global bank like Santander leading the financing process lends credibility and improves the chances of securing the required funding on competitive terms. Santander brings extensive project finance experience, including with ECA-backed deals, as well as a strong presence in Portugal.
ECA involvement also lowers the risk profile from lenders' perspective, enabling more attractive pricing and terms like longer tenors up to 7.5 years. This funding would cover 70% of the project's capital needs.
Additionally, the ECA requires procurement from UK companies, which aligns with their export promotion mandate. This could benefit M&F if more of its services are utilized.
On the negative side, while the appointment of Santander is a milestone, it does not constitute a firm financing commitment yet. There are still multiple conditions to be met first, like obtaining permits, completing feasibility studies, due diligence etc.
And even if secured, the announced financing would only cover 70% of capital requirements, so further funding would be needed. There is no guarantee the full financing package will come together successfully.
The most crucial next steps are delivering the feasibility study, progressing permitting, and undertaking formal lender due diligence. The ability of the Ascendant/Redcorp team to execute on these fronts will determine if binding financing offers will ultimately materialize.
In summary, Santander's MLA appointment significantly advances efforts to fund development of the Lagoa Salgada project, which remains contingent on clearing several key hurdles still. For M&F, success could boost the value of their minority stake, while delays or failure to achieve financing would negatively impact the investment. Engagement of a leading global bank is promising but some risks around project funding persist.
(964 words)
Claude is a powerful tool
https://claude.ai/chats
Do we have any mining finance industry experts among us that can shed some light on the importance of this step?
Is it the case that once an MLA is appointed a formal offer of funding is pretty much a slam dunk?
Or, do MLAs get appointed all the time without leading to an offer?
It is unusual for MAFL to RNS ASDN news at 7am. Steps in the right direction especially when you bear in mind that the mine plan is being tweaked to extract precious minerals first and gold is at an all time high.
Here’s the link to the June 2017 RNS, if anyone wishes to peruse.
https://www.lse.co.uk/rns/MAFL/investment-update-7vj8spawtyiijgr.html
Referencing the below, does anyone think this may lead to goodwill from EDM, or if the signature/agreement is now meaningless? I note that this passage used to be included on RNSs but has been dropped more recently:
“Redcorp currently owns 85% of the Lagoa Salgada project. Redcorp signed an agreement in June 2017 with Empresa Desenvolvimento Mineiro SA (EDM), a Portuguese State-owned company to re-purchase the remaining 15% of the project resulting in a 100% ownership of the project. The 2017 agreement was subject to the Portuguese Secretary of State’s approval which has not yet been received. Redcorp and Mineral & Financial continue to explore ways and means to complete the purchase.”
Thanks Nom.
I’d say that it’s mostly positive. Sprott are willing to keep funding the project so they obviously see something of value and EDM are clearly still very involved in the conversation as well. I’d have liked to have heard something about the UKEF but, on balance, I’ll take it.
From an announcement by Ascendant this morning:
'Mark Brennan, Executive Chairman of Ascendant stated, "We are extremely pleased by the continued support of our partners at Sprott Streaming to drive the next stage of development at the Lagoa Salgada Project. With this funding in place, we are now able to pursue various work programs that we believe will provide improvement to the operational process that will add significant economic enhancement to the recently completed feasibility study."
Additionally, following a request by Empresa de Desenvolvimento Mineiro S.A. ("EDM"), the Portuguese State Mining Development Agency, for a 60 day extension to its existing option to participate in or sell up to a 15% interest in the Project by making its election by February 3, 2024 (previously December 2, 2023), Ascendant and Mineral and Financial Investments AG ("M&FI") have agreed to amend the terms of their respective call and put options.
Under the amendments, EDM shall have the right and option, but not the obligation to participate in or sell up to a 15% interest in the Project by making its election by February 3, 2024. If EDM elects to exercise its option, then the Company is entitled to exercise call options causing the transfer of M&FI held shares of the Lagoa Salgada concessionaire, Redcorp Empreendimentos Mineiros, Lda ("Redcorp"), to Ascendant such that Ascendant will continue to own an 80% interest in the Project.
The amendments also provide that M&FI shall have the right and option, but not the obligation, to exercise its put option commencing on the date on which EDM makes its election and terminating four (4) months thereafter, to require Ascendant to purchase all of the Redcorp shares then held by M&FI, representing a 5% interest in Redcorp by paying the put price to M&FI.
The put price would be an amount in US dollars, payable in cash, equal to 5% of the post-tax net present value of the Project provided in the then current feasibility study using a 10.5% discount rate (the "Put Option").'
https://www.ascendantresources.com/English/Investors/press-releases/press-release-details/2023/Ascendant-Announces-Additional-US4-Million-Funding-for-Its-Lagoa-Salgada-VMS-Project-in-Portugal/default.aspx
Interesting interview with John Feneck after a Portuguese site visit... first 5 years of the mine will target gold and silver
https://twitter.com/AscendantRes/status/1724426961928261878
https://www.youtube.com/watch?t=443&v=HwJKsKiFtqk
Yes so the discussions with EDM will only effect MAFLs interest, ascendant is set at 80% with the puts in place to guarantee that irrelevant of the outcome with EDM. So we should see some news on that front in the next 6 weeks or so. Exciting times!
So by the 1st December we will know if we have increased our share to 20% or remain at 5%.
5% put option worth approx £5m
20% could be worth £20m plus
With all the current assets worth double the current market cap and the above to be added how the duck is the market cap under £4m.