Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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Maybe but it also looks very likely to me that a part debt part equity deal is on the cards here after DD and digestion.
20p will be the lowest price per share for equity as they can’t raise below nominal value of 20p per share
Lawrence you forever optimist.
Don't be in It To Win It - Snooze You Definitely Win by not investing in HZM.
Not even buy £1000 worth this is going to rocket.
Overdone on the sell side
My opinion is this will get bridge funding and/or the suppliers will agree delayed payment taking us to end Q1. La Mancha, Orion and Glencore will find the minimum to get this running and each increase their stake by around nominal 10-15%. That dilutes everyone else by 50%.
The banks and other investors have sunk too much into this to walk away or let anyone else’s pick it up on the cheap.
Heading for administration by Xmas
This has to be a good sign as it gives the lenders an opportunity to capitalise on HZM’s misfortune and lend at a premium & knowing interest rates will be coming down over the foreseeable future they can lock in & make a sizeable profit!
The Future Is Looking Brighter By The Day
(even if the SP doesn’t reflect that!)
La Mancha have $100Million which they recently withdrew from another deal so I reckon they would be happy with a 12% + Loan Agreement with this knowledge
Not quite…
1. We are running out of money in a month - NOT QUITE AS THEY HAVE ALSO SAID BELOW MEANING POTENTIALLY FUNDING UNTIL Q1 END, THERE IS A CAVEAT BUT NO REASON WHY SUPPLIERS WILL NOT AGREE TO THIS AS ITS SUCH A SIGNIFICANT PROJECT AND CASH COW FOR THEM.
‘..unless there are positive outcomes from conversations with suppliers, other cash preserving measures, or other financing solutions, which if successful should provide sufficient working capital until late Q1 24 .’
2. It's still a valuable asset with a lot of money spent and nearly ready to go - AGREED
3. Diligence is not complete and is proceeding at a leisurely pace not matched by point 1. - FUNDING POTENTIALLY UNTIL Q1 END WHICH COINCIDES WITH FUNDING SOLUTION.
4. Come and buy us, bargains to be had.
Best ending here for anyone still in is a bid for the company. Right now O and LM would take an offer to recover pennies on the pound rather than be wiped out. Glen would find it cheapest, Vale would be most ironic, Anglo American might like a go too.
There may be a bid. Or more than one. Or none at all. It is the best last hope though.
Where are we now on the Lassonde curve picked?
Magnum - If this is sorted by a share issue near current prices then thats effectively what happens. Say Glencore et al. who own approx 180 million of the 270 million shares each buy 15 shres at 7p for evey shre they currently own they raise over $ 200 million and the small investors who currently own 1/3 of the company end up with 1/35 th.
If you're not out yet then the best last hope right now is a bid. Yesterday's RNS says a few things
1. We are running out of money in a month.
2. It's still a valuable asset with a lot of money spent and nearly ready to go
3. Diligence is not complete and is proceeding at a leisurely pace not matched by point 1.
4. Come and buy us, bargains to be had.
Best ending here for anyone still in is a bid for the company. Right now O and LM would take an offer to recover pennies on the pound rather than be wiped out. Glen would find it cheapest, Vale would be most ironic, Anglo American might like a go too.
There may be a bid. Or more than one. Or none at all. It is the best last hope though.
Why on earth do you think there would be a premium placing?
Billy, you're playing a losing game. Follow the trend, the trend says PIs have been screwed 4 times, every time worse than the last. Do your trustees know your average is 26p?
Nothing to stop them:the big boys always win
Billy your trustees? I hope your mum and dad do not think that you are just on the playstation as you seem to be playing with their SIPP
Https://youtu.be/9-y9TqD6JFg
Watched this through a couple of times last night, if we’re saying the V is only wort what we paid for it at 8 million then at todays market price all this is worth 14 million???
If everyone was concentrating on yesterdays RNS then you could have missed Glencore buying Tecks coal business with a plan to spin it off with their own coal business with both indicating they wish to concentrate on cleaner metal products
https://www.mining.com/glencore-ready-to-spin-off-coal-unit-after-sealing-tecks-buy/
Sepanta dori is head of decarbonation at tech, she was on our board from 2020 to 2022
https://ca.linkedin.com/in/sepanta-dorri-48233910
Billy you seem the literary type - Search for Pyrrhic victory
What’s to stop all the corporate investors forming a consortium divisible by the same proportion of ownership they have now then buying HZM for very little or out of administration?
They're not currently buying and averaging down, so you have to look how the debt is structured.
HZM shareholders are the most likely to lose out whereby the larger investors tend to cover themselves.
Glencore know the value of this hugh asset, otherwise they wouldn’t have taken the significant stake it currently has…
And in the second fundraise:
participating in the Fundraise via the Placing agreeing to conditionally purchase 24,340,744 Placing Shares (the "La Mancha Participation")
That cost them ~£22m (current value at 8p ~£2m).
Good money after bad it turns out? But they're pros.
Interesting... I wonder if I were Glencore here and on presumption of really wanting the asset if I could convince them with a placing of 50-80p. So that's at a discount of 50% of what they paid give or take.
Agree Glencore major shareholder here is a big reason why I think this will survive, and the other investors know that…gla
Premium placings are a facade.. No company ever buys at a loss but they do average up.
CleverThoughts- averaging about 26p now….. Bought a lot more on lows….but probably need to go to my trustees imminently…and lend the company some working capital emergency cash….
So tempted to double down..