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Now that the facility has lapsed, are we now back to not having the full funding in place for construction?
Looks like it D-T-R.
See my previous post regarding questions for the AGM. I fear that Secker has been less than correct with the facts when stating that we this was fully funded and our share could/would come from the RK Mine financing.
Think it is quite interesting that RK deal has collapsed. Perhaps they don't want to work with Ganfeng or Ganfeng have advised they wouldn't work on those terms? Or the board have realised there is much better financing out there (the RK deal at the time was widely noted as not on great terms but was required due to the small cap nature of BCN). Interesting development...
The RK finance deal no use/too expensive for Ganfeng ? The timing of this ZNWD deal as well, lots going on behind the scenes
The ZNWD deal is a good one but if our 'deal' goes ahead it just means Ganfeng get wildly more for their pittance !
Bit like ordering a BMW 316 base model at a huge discount to list price and then having a BMW M5 delivered to your door !
Yes - too expensive by far ....BUT more pertinently it was never going to be allowed to be the source of BCN's 50% contribution to the build costs - whilst it has a priority charge on the Mine itself. The $400m funding was always going to have to be split 50/50 net of any senior debt raised (not gross) and so we were never fully funded on the BCN side - despite Secker having made clear assertions to this effect. Please see my post history going back 2-3 years where I have repeatedly banged on about this.
In my view now we can be confident that we understand why the BOD are so keen to accept the offer at 67.5p.
Time to dual list on The NASDAQ.
you know as much as we fault the BOD here, I actually am hugely disappointed by UK firms.
I mean VW is out there saying they need to own lithium at source but what about all our UK listed firms? All of those that need to lead green revolution also?
Im not saying this is their expertise but Shell, BP, BHP, Anglo, Rio, you are all listed in the FTSE 100 and every single one of you needs 'green' assets. You have mines across many regions in the world, seriously just step up and fork out a hundred million and get a controlling stake here.
I mean you pay more interest on one bond in a year than buying a controlling stake in assets like this. It's pretty pathetic and yes before people ridicule im not naïve i know its not their 'strategic plan or asset or expertise' but frankly don't care!
@ Zarro - Did we not raise more then our 50% share of our Sonora project during the equity raise?
Foz,
The Board of BCN have stitched up its shareholders at every turn. It is blindingly obvious that Secker & co are going to approve the deal at 67.5p. And I cannot see that the the bid will exceed 67.5p because that is the figure GF are presenting its own shareholders on 28th.
When were you last in a situation when a deal endorsed by the Board of the target company was defeated?
As others have pointed out the tiny net value of GFs bid is made even smaller by the ZNWD holding.
You say that you are surprised that BP etc don't have a go at BCN with their loose change but how can they? Where as the GF shares are omitted from the share count for the 'proposed offer', if anyone else offered the GF votes would be counted - effectively blocking any other interest with an immediate 28.8% voted against.
The board are determined that this deal will go through irrespective of what is in the shareholders interest. I wont surmise why as my feelings are libellous. What is driving Secker and the rest of this board?
I'm sorry but despite our opposition I think this is a done deal at 67.5p, and to add insult we will even be forced to wait for a protracted period for that . Because of that probable delay I doubt the SP will stagger much above 60-61p even when the offer is confirmed.
This is a sad situation for not just BCN but for anyone in the AIM casino.
I am utterly convinced that the whole BOD are on a massive sweetener to get this across the line, THERE CAN BE NO OTHER EXPLANATION ! Given how cheaply Ganfeng stand to acquire this for they could afford to be very generous to get what they want, and YES I think our and other governments are pathetic to allow this to happen.
RedRoo - Total funding costs were $420m (+ say $30m for working capital). 50% from each JV shareholder is $210m. We have $130m available as it stands today.
Hey John, you know my view on BOD! Not a good word to be said from here!!
Mine is more frustrated speculation and therefore idle chit chat!!!
I am merely saying an asset is ripe here, forget the offtake and stake Ganfeng have they aren't in full control. There is lot someone could do such as accumulate enough of a stake to block this bid alone. Take M&G stake, worth with PI voila.
Or even M&G, as iv said before you know if this goes through at 67.5p, M&G return this year on the fund barely breaks even!!! The fees for that fund don't even cover YTD performance remember they didn't buy more at 45p.
That's where im frustrated thought there were smarter HFs out there or some of the other miners or even some of these AM's that could get involved and buy enough of a blocking stake.
To me ... it's jsut good business - 67.5p is wrong, become a thorn in gangfeng side why not?
Hi Foz
i assume that the M&G shares are held in the Recovery Fund? That used to be pretty much the best fund out but it got a bit big and inflexible so became a bit of a joke more recently (I haven't checked to see if it is better these days tbh). Not quite a Woodford magnitude fall from grace but similar.
Have just been web chatting to iWeb and have lodged my AGM votes. Its just a protest vote really as GFs votes will be admitted for the AGM resolutions and Im sure will support the Boards recommendations So immediately there is 28.8% of the shares voting the resolutions through including re-electing the Board Members
ok again im speculating BUT is ZNWD being spun out to sweeten deal with BCN?
I think we might see that based on ZNWD RNS.....
Foz
So young......so cynical.....I'm sure they wouldn't ever think of doing that.....
haha John I think that's what's happening here!!!
I think the sign of required for ZNWD for Ganfeng to own it outright not via BCN isn't a simple process and easier for them to cast it aside....lets see but that's my read here!
Ah yes no RK finance now of £125M. Needed £420m. Our share £210m. Cash in bank atm £130m but if we still had RK finance it would be £255m which is more then we needed(£210m). That is what I remembered during the equity raise. Thanks Zarro.
Dee’s naivete is showing with his suggestion that BCN would have any chance of being listed on NASDAQ. For those who are interested, here is a good summary of the requirements. As it explains,
“Major stock exchanges, like the Nasdaq, are exclusive clubs—their reputations rest on the companies they trade. As such, the Nasdaq won't allow just any company to be traded on its exchange. Only companies with a solid history and top-notch management behind them are considered.”
https://www.investopedia.com/ask/answers/nasdaq-listing-requirements/
Good theory, how would that work ? If all the BCN shares become property of Ganfeng, who would the ZNWD value go to ?
BB - Thats the biggest pile of rubbish I have ever heard - look at some of the basket-case tech companies that have been on NASDAQ !
The lions share of my investment portfolio is OEICs. I have been analysing and picking them for 13 years, and one thing I can say is that I have never held an M&G fund, and every time I look at what to buy in a sector, their stuff is almost always at the bottom of the list. In fact the fund that owns BCN IMO come into the 'pile of poo' list !
@mrcautious -- They were not basket cases when they were listed. You are practicing "whataboutism," which a recent commentary pointed out is the favorite tool of Putin and his propaganda team. (Talk about gaslighting!)
https://www.newyorker.com/news/our-columnists/the-high-cost-of-bidens-meeting-with-putin
So all the tech new-starts listed on NASDAQ had a solid management structure and a track record -- Yeah right !
Mr C
My view on that is that ZNWD is being spun off -
One way I think they could do it is take all off BCN shares and put ZNWD into anther holding company which our friends on the board will magically appear on and will have ZNWD asset in there.....we will be given shares and cash in this new holding company.
I still think the logical conclusion is a tie up in ZNWD with EMH and thus gets spun out.
I mean look at timing of all this stuff its ridiculous!!! None of this sits well with me at all.
RK mine facility we can suddenly get better debt terms can we?????? What happened to doing that in Dec at 68p than letting Ganfeng take controlling stakes????
Now suddenly ZNWD acquires the other 50%....I mean what have the BOD of ZNWD done for last 6-12months? Sat on their hands waiting for a time to take over the other 50%? Surely they should have pushed and got that done AGES ago.
I read it that Ganfeng have approval to own BCN from PRC and to me that is BCN as BCN.
If they take ownership of BCN does BCN exist anymore? Maybe it does for the licensing but im sure its swallowed in Gangfeng asset pool?
As a result they will now be a 35% owner in ZNWD directly - Do they have approval for that from PRC? I Do not believe they do and would require further approvals. I mean easy answer is they get it but what's the point for what's worth £8mn quid to them for hassle factor and tiny in comparison to prize asset they've managed to nearly acquire for a fraction of value.