Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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Firmly believe Jeremy Martin ceo should be dismissed, buck lays with too guy, destroyed share holders value, he never I believe bought shares I open market, not sure was even purchasing in placings, tells everything, believe even chance project will be mothballed
Yes, it’s official, another really, really bad day in the office. There’s no sugar coating it, it’s bad, a real sh t show. Is there any positives? Sitting here after a day of reading this board and the forthright debate, reading and rereading the RNS. I believe the fear of uncertainty has driven the SP down yet again, but is it justified by the RNS? The RNS only gives an update on timescales for due diligence and financial decisions, and because of these, cost savings are required to keep the lights on. There is no suggestion that a financial solution will not be found. Is the SP now the problem? If the required funds were raised using the value of the company as its current MCAP, then yes. Given that as of tonight the MCAP is only £26 million. There has been endless discussions on this board today of what that could be, so shall not go through that all again, but only to say something creative needs to be found. To sum up my ramblings, I am fearful of the outcome due to the uncertainty, but today’s RNS hasn’t increased that any. What it has done, is to annoy me due to the reaction, as it makes solutions more difficult.
Thanks
With the delay….it was probably £80m so now I would say…..more like £120m…. Just for A1…. But could be as high as £150m..
ElectricLion your argument is very valid, and only the people who either 'knew' another $200-250-as yet undisclosed (m) would be required to complete the build would be in a position to make that assessment. What we know is Orion and La Mancha paid, duly, hundreds of millions of dollars for their shares at £1.40 so if the price was wrong they got that decision spectacularly wrong. And they're pros who apparently do a lot of DD, and site visits, and sit with the management team for hours on end before releasing the funds....
I don't want to be a downer, especially not today, but if you're talking about being logical, well there's *two* logical possibilities. One is that today's share price is not an accurate representation of true value. The other, less palatable, but equally logical, explanation is that it was the £1.40 price that was not an accurate representation of fair value...
For me it keeps coming back to - Orion and La Mancha. Because:
Banks - I understand. Anyone who will pay up the loan they will talk to. So a min sale value $300m - that's not much, when more has been spent.
Glencore - I understand. It might cost them $$$ to finish this project but they can hire people to do that and for them the purchase/sale value isn't a lot. If they are the predator many think they are, their strategy would be obvious at this stage.
Orion and La Mancha I don't understand. Between them, including the convertible bonds (which I assume rank behind the senior debt), they held/hold OVER 50% of the equity here. They would be happy for that to go to 0? Or, they just don't have enough between them to finance the rest (and banks/Glencore aren't playing ball, for different reasons?)
I keep coming around to - if I've lost it all, Orion and La Mancha have lost $250m and I just don't see that outcome, so I still think some kind of financing deal where they do 'ok' (even if, I don't.....)
But if it were easy, we'd already have a financing deal in place......
More Drama-phew !
Well we can’t complain about them continuing people on payroll unnecessarily now can we
Drama to one side and that means all of it,sounds to me that a deal is in the process of getting done here.
The banks and cornerstones do not own Horizonte as a company and we still have another large asset that can be sold once BFS is completed.
Even if you remove Araguaia from the equation then that is still the case.
I’m not going anywhere
Not entirely unexpected I suppose this but drags it all out more-let’s see if the end result is worth the extra wait on the finance.
How much fund they need for the project anyone please ?
That would be the logical conclusion however this AIM corruption that exists shows otherwise.
Tomorrow the recovery starts…this news isn’t news, it was an update but I must confess there should have been more progress. Good things to still come people, back to 20s as DD progresses….. there’s always optimism when they remain in business…and they’re that for sure. The words were when funding is received not if we get it! Enjoy the ride and don’t stress….it’s a long game…🛌 and back for more tomorrow…BRV
There is one good thing about today. All those giving negative thoughts on here will go away tonight in the knowledge that they are such great traders and wont need to come back tomorrow and will leave this board to tumble weed. Who really thinks that will happen? I wonder why not?
It was this value before we knew costs were 33% higher. Still means this share should be 80p plus. Big bounce coming.
People such as Interactive Investor and Hargreaves Landsdown are not large investors.
Their holdings are the pooling of the total number of shares they administer on behalf of private investors
There is lot for the Cornerstone and other key investors. On top of this, there is all the money in Royalties, Convertible Notes, Money ploughed into DFS on Line 2 and DFS on Vermelho.
There is lot to save and PI are aligned to what Cornerstone have to loose.
Even if they are big companies, no one want to lose money, not 10 of millions.
Shareholder Number of shares % of issued capital
La Mancha 62,297,182 23.09
Glencore 47,871,805 17.74
Orion Resource Partners 28,292,291 10.49
Helikon Investments 23,771,706 8.81%*
Hargreaves Lansdowne, stockbrokers (EO) 12,917,689 4.79%
Interactive Investor (EO) 11,409,461 4.23%
Condire Investors 8,891,404 3.30%
azValor Asset Management 8,638,552 3.20%
*4.5% of Helikon Investments shares are held through financial instruments as noted in TR-1 dated 12-10-2023
In terms of AIM Rules published in May 2010 and insofar as it is aware, at 31 October 2023, approximately 52% of the Company’s AIM securities were not in public hands.
Billy, don’t be a hero
How can a company get its project costs so so wrong with the involvement of Glencore and Teck.
I thank my lucky stars I sold 95% of my holding circa 140p.
Something is not right here-who did the original costings,why were they so wrong and why is the CEO who oversaw this disaster still in post and if the project is so appealing why no new finance ?
Either Teck or Glencore will snap this up for a £1 and make large profits down the road
In 100% agreement It will be very very lucrative for Glencore. PIs have been gang raped 4 times now by the Snake, Retter and BoD and soon Glencore will come for the finale. The countdown has started....
CleverThoughts… we know what the market is don’t we…the market seeks to generate panic selling but the wise investor will determine risk vs reward. Big stakes for sure but this will still be lucrative…. we shall see… hopefully will tick up as nerves settle… but it’s another 2 months before outcomes will be determined…
How much you in the red for Billy? Be honest now, this went from 140p to 9p. No shame, all the Snake And Retters fault.
"Plenty of positives"
Can please state was positive today? The wider market disagrees with 50% drop Billy Boy.
Other finance solutions…..maybe? CAPS below provide positives and the only thing that is strange, why they hosted site visits in the past week??
The Company has hosted a series of site visits during the last 7 days with key shareholders and lenders representatives. These groups are undertaking their respective due diligence as part of a funding plan and expect to finalise their respective internal diligence processes in early Q1 2024 with funding completion targeted for late Q1 2024. It REMAINS the Company's objective to put in place a financing solution which will SATISFY the cost to complete requirements and thereby allow the Company to continue to access its Senior Debt Facility.
CEO Jeremy Martin said, "Discussions with the Company's major shareholders and lenders on funding the Project to completion are PROGRESSING. While work on the FUNDING SOLUTION continues, we have elected to focus capital and human resources on the critical work packages. This work is planned is to ensure that we are well-positioned to RESUME full construction activities post RECEIPT of the funding to benefit stakeholders and our community alike. Notwithstanding the expected increase in capital, the Araguaia project remains a Tier 1 nickel project that will produce a high grade, low cost, low impurity FeNi product over a 28-year mine life."
With the cash in hand of $38m only lasting a month and perhaps no funding solution agreed until (Today's RNS " funding completion targeted for late Q1 2024.") perhaps for 4.5 months.....it doesn't look great....doesit?
But worse (IMO) is that the situation was known "long ago" and withheld from the market.....perhaps to allow exiteers out without much loss!
I'd be the first to take a gamble on an "oversold" opportunity.....and of course I could be wrong......but I just don't get any positive feeling.....and therefore am not intending to rebuy a position.....unless and until something positive is released.
My "conspiracy theory" suspicions are in my head whether real or not....feel real to me! GLA.
You have lost an opportunity to make a ton trading SP500 after the latest CPI figure. The funny thing is that when the finance was agreed by HZM everyone was ecstatic and I was saying the HZM was behind the curve - they were late. Now they are paying for it.
The funny thing is that the cost of money will become cheaper as rate cuts are priced in. But the PI's will be long gone.
This is why you never invest in AIM you just scalp for a quick gamble. All garbage.
I am sure many of the mining dreamers are going to move to the next pump which Uranium stocks
“What can trigger going to administration here? “
The BoD no longer considers the business a going concern. The directors now will be taking frequent legal advice to ensure they don’t breach their fiduciary duty to ALL stakeholders and end up with the risk of personal liability.