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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.
In for a point out for a penny lol
What can trigger going to administration here?
I think if I were to subscribe to the narrative that glencore can do what they want here, has to avoid that scenario of going to administration.
It becomes more complex, in that a liquidator comes in, they set priorities (say for instance sort debt before equity in liquidation) and bears the risk that if assets are put to auction you get 3rd parties interested to bid.
So if I were glencore, can I get this with avoiding this extra time, delay, third party refereeing (administrator).
Would in the outmost cynical way suit them best to acquire this before the needs of going to admin?
I tend to think its easier to just bid to buy already as a strategy rather than all the uncertainty of admin.
If we go bust in dec, i don't see a lorry or excavator turning on an engine for at least a whole year...
So how much is a year worth to glencore for say bidding 50mil to get the whole thing 20p a share say... and assume all debt vs the admin alternative?
So a rough 10mil buyout for other cornerstones and no admin hustles.
What else is there even for them to endure an admin scenario. I don't see it going that way. I think a price will be found for a sale to apex.
...who bought their shares at the 2p and
No not the shares, the asset. Hindsight trading is a wonderful thing, but today we're at £25m mcap after 20:1 consolidation. Pre-finance we had £50m mcap. If we'd only invited bids at that point and not attempted to get finance deal (which was obviously hugely dilutive) lets say a 50% premium on 8p we could have had 12p (£2.40 in todays money).
Moral of the story is junior miners who haven't walked the walk before shouldn't attempt $500m mcap projects. Anyone got any counterexamples where this did work out (with this kind of capex)?
Funny thing is, I think we might have grumbled a bit back in the day 'lowball offer of 12p' etc.etc. but quietly we would all have taken the small win (bigger for those who bought their shares
AMC and now this, TDT (Richard) I think we should call it a day with these Nickel stocks, jeeez.
Clever thoughts - you are prob right i am just trying to think of alternatives and hoping that the other big holders might not want to sink more money in and resist dilution of their existing holding. Glencore want project finished more than anyone else. sure if they can buy it on the cheap they will go for it.
if the other large investors make a stand - and say ok..let it grind to a halt? and see if any other competitors want to buy in?
I’m not sure, I think we are likely to get an rns in December saying that this is over
I think we’ve probably lost this. I’m not bailing as I have taken quite a loss already so feel I may as well wait to see what happens. I don’t see this coming good at all though. Can’t believe they screwed up so badly. Always had a lot of faith in them
I think there has been something of an overreaction to the RNS. I think there is broad acceptance that any financing of the overrun is going to need a combination of debt and equity. The banks will want to see more equity, La Mancha and Orion will want to see more debt. So I guess it’s who blinks first and no doubt this will go down to the wire. There is an asset worth saving, I don’t think this is all over yet.
Never seen a mining company go tits up like this before but this is a prime example why investing in companies with lower start up costs is a good idea.
I can see this venture however has massive upside potential if they can secure finances with minimal dilution but even if they sell half the project anyone buying at these levels can still get a good 5 or 10x it seems. So this is on my watch list but it's very painful to watch.
I think you need to educate yourself about our cornerstone investors especially Glencore otherwise known as the apex predator of Apex predators.
Non dilutive.... 😶
Publican...yep maybe clutching at straws. Bad day.
I suspect people have only been on site for 7 days because that is when report of how much extra funding was necessary came out.
The companies have only now started DD with exact figure needed and coming on site to see the progress and what exactly is left to be done.
Of course timing of Xmas etc will slow the DD down as well.
Think it was totally unrealistic of hzm if they thought financing would be agreed on the spot.
My only hope is that the time needed now for any arrangements might favour non dilution. If it was all going to funded by dilution..they probably could have agreed on principle and then the dilution gets adjusted accordingly.
This seems more like a mixture of finances to me?
I wonder if glencore could buy a large chunk and if the other remaining large shareholders hold their ground then maybe some share holder value would be left?
Wasa the RNS literally says by December they need suppliers and other build stakeholders to work on credit for a company desperately trying to find funding and no money the bank. Tens of millions in promises that a financer will step up in April.