The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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Iron-ore sales reached a record A$103-billion on increased output and an eight-year price high, while gold sales also soared to an all-time high of almost A$16-billion, with prices averaging more than A$2 300/oz.
https://m.miningweekly.com/article/wa-reports-record-resources-sales-2020-09-25
Its all lining up nicely for our first Iron Ore exports in October which will produce a steady cash flow for AMC going forward in TEO at December and BFS next year.
Can I just check something Hughez87? Or with anyone else who has a better handle on this than me.
AMC’s revenue from Roper initially is from the 14% coupon, so 14% of the $4.67mn invested = $654k per annum or $164k per qtr. so until it is up and running profitably and the coupon is converted to equity, the majority of AMC’s operating overhead will be drawn from the other $3.26mn raised through the placing.
Is my understanding correct as, while it’s an interesting investment, I’m not as excited about its financial benefit to AMC when weighed up against the dilution.
The tie up with Glencore of course has amazing potential but am I missing or misunderstanding something?
The exciting part is when it converts to a 19% equity stake in 3 years along with phase 2.
I may need to re-read the RNS, but to me it implies AMC can convert when they want to.
"The CLNs will have a 14% coupon, paid quarterly, and will be convertible at the holder's option at any time from issue until 15 days prior to their maturity date on the third anniversary of issue. Amur's CLNs will be convertible into 19 per cent of the current issued share capital of NRR."
CT from the Equity Placing RNS...I can't figure out if we can convert after three years or within three years:
Convertible after 3 years to 19% of the equity of NRR for Amur (based upon current issued share capital of NRR)
and then later in the RNS:
"Amur's CLNs will be convertible into 19 per cent of the current issued share capital of NRR. Any CLNs not converted by the third anniversary of issue will be redeemable at par."
thanks CPFC84: that clears it up for me. Not sure why I didnt read that part. We can convert whenever we want essentially.
I don't believe that it is in AMCs interest to convert within the next few years as there won't be any dividends as cash reserves will be built in order to fund (along with debt) the capital costs associated with phase 2.
The dividends that could start shortly after could be very large as well as the possibility of the other owners buying us out
Will it be dividends or will it be 19% of profit?
14% coupon paid quarterly.
Faheem Aslam was saying the full 19% is worth $100m USD per annum. That is quite a bit considering market cap is £25m
Who is Faheem Aslam?
https://twitter.com/faslam_aslam/status/1307735595805016067?s=21
Happy to be proved wrong but 100m a year seems fanciful in the extreme. Just seems too good to be true.
Thanks Gunner21
Sorry he didnt say it. He posted it. Still trying to figure out who wrote the artical. Will ask him
Personally i would think if it was 25 million per year it would be absolutely transformational for this company
we could fund nearly what ever we fancy with that sort of income and our overheads
100 million is excessive thats total expected revenue for our 19% holding
less costs ill stick with 25 million, and like i say thats going to be amazing for Amc when it comes imop
https://www.share-talk.com/amur-minerals-corp-amc-l-is-kun-manie-now-fully-de-risked/#gs.h3xqbr
Just after 3-minute mark they talk about AMC get circa 100m a year when its all up and running.
Stu - thanks for this. Although Adam said ‘if’ they get 100m, he didn’t express much other caution. Normally there would be some caveats.
Surely as he says, once the first royalties come our way, a re rate must be a certainty. If these numbers (or even 50%) become a reality, it is incredible news.
The author of the accompanying article to the video that Stu_1978 has posted also states that Amur's 19% stake should generate $100 million p.a. for Amur. Assuming the author has checked the details properly with Adam, very exciting times ahead. £25 market cap will hopefully soon be a long lost memory!
It quite clearly states there aiming for 4/5 million tons a year shipped, $120 dollars ish a ton at the moment, 19% just under 1 million tons our share in the long term
So pretty straight forward from ware i am looking imop
So as long as it costs less than $120/tonne to mine and haul it ..............!!
My post read £25 market cap should have read £25 million market cap! If we ever see £25 market cap last one out turn the lights off!
Correct me if i'm wrong but did i hear shipping from NRR was 'imminent' and hence a revenue stream is also imminent. He also intimated along with this that a rerate short term was eminently possible.
Hi All. I feel there is more to this than meets the eye. This gift to AMC from other parties will be part of a larger deal for our reserves at KM, i just hope the deal is not too weighted against us, we will find out in due time. ATB Speedy
i believe theres something like 195,000 tons stockpile to get there teath into