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Can’t buy ATM
Here comes the move
Yup that is the way in the region, licenses will be lost, wont happen imo. this will bounce but for LTH that wont matter.
From another bulletin board:
"In order to keep the Licenses and keep the projects, it must be a going concern sale. In case of Administration, contracts gets Breached, licenses and Vermelho will be lost. Hence, shareholders might be happy with 1p and Creditors take a haircut on the debt. Suppliers will get something if the project is restarted.Nickel price heading North with the Russian Ban."
Now its stabilised the mm will no doubt bounce it back to 1p to catch a few. At the end of the day its at 1m mcap here, what's 2 mil or 3 absolutely nothing in the grand scheme of things.
Agreed it does look oversold IMO and it is worth a punt at this level. Just don’t invest more than you can afford to lose
I doubt they will let it go into administration as that would mean breach of the licences, could see a low ball takeover as a going concern? At a market cap of £1m, this could be a fair punt to take for a few grand.
DYOR
Worth a punt. Hit bottom. All it needs is a some tr1 buying shares this low or a takeover offer and BOOM
They need 700 millions to finishe this building so they cant find any source of fund so then they need pay interest end of this month too. That is why this share at 038p now.
If thing good as it sound it was 170p per share now you can but a share at 038p . There was half build so they need more money to finish or abandon the project. On RNS clean state if they can find other fund and find solution there is nothing left to shareholders at all .
That is why this share down on and no hope. On project update they said on 1 May lender can demand take money from secure bank so company left without money at all as the last promise end of this mony they need pay interest or lender will action to secure thier fund.
Abandon ship and they will not pump 20 millions more to keep the light on this company as no hope at all.
Good for me as I put some lunch money in yesterday, but with all the signs it's going under, why is it changing direction?
This will bounce back easily. The plant is in the process of being built, 40% was built in Jan24.
I know In gold mining terms, a plant cost $80/$100m to build.
Does anyone have the stat of this mining operation:
Projected life of of the mine in years? and approx. output per year?
Now it become gambling as 50 /50 and maybe it will return good . As it have same value and if someone jum in and buy all it can give a good trade .£ 5000 buy in is good gamble now if it lose that is we know if it can come back life it crazy up.
As the company has 2 projects, what is happening to the Vermelho project, and what is the likelihood the Chinese will come in and buy this given low MCap of the company. There might still be some life in this share.
Having been invested here for years I finally bailed out yesterday. I’ve lost £200k and in anybody’s view that’s a lot. I know now what I should have done. This has been a very expensive lesson. Since 2nd October I’ve analysed and reanalysed and basically went down the rabbit hole. There were plenty of people talking on each side saying it’ll go bust or everything okay and it be funded. Neither side of the argument could prove their case. I was in the camp of it being funded.
So what are the lessons I’ve learnt.
A) don’t get sentimental over a share. I truly believed in this project for various reasons but lost sight of what I was really here for, that to make a bit of money.
B) don’t overexpose yourself. Decide on what you can afford in one investment and don’t get sucked into investing more and more if it’s doing well.
C) if doing well slice. Always take profit when you can. Set profit goals. That can be 5% then sell the lot or wait until a level is reached to take out your capital.
D) the most important is on bad news always SELL. You can always buy back if things are turned around.
E) if for any reason you missed the opportunity to sell, don’t buy more, just sell. You can always buy back if things are turned around.
Araguaia alone is worth more than one billion dollar after this massive investment, project is profitable even nickel price at 14k per tonne
Emerging scenario, they will try to raise cash from subsidries or sell Aguira, $733n spent on Ag, aleast it should be sold $700m, and $300 should be distributed to shareholders. And Vermello can be developed later on
Bit of a mess, really. But who knows, maybe there's still hope. Could be a takeover in the cards, with the market cap looking tiny. Let's see how it all plays out.
Won't Glencore just do a deal whereby they agree to take the assets for peanuts?
If one had to guess which of glencore vs marandmel are likely to be better overall at understanding and predicting nickel markets and mining project economics & risks, me, i’d guess glencore probably have a bit more experience and expertise in that field than marandmel.
This is an old hat story. Glencore had pumped over £300m into this working operation each year for ten years, but nickel prices and high production costs coupled to a low nickel yield did its undoing. Orion also sold a large stake in a Canadian copper operation for just under $400m recently.
These guys are cash rich but seem unwilling to go the extra mile here. It may cost $40-50m to go into a care and maintenance mode, but HZM mine is higher graded than a lot of other nickel mines. and surely for a couple of years wait, they can assess future nickel prices.
China will take up the bulk of Indonesian nickel going forward and there is the high probability that Ni required by the Western world will start to become more difficult to get. Ni prices will therefore rise within 2-3 years time making HXM a much better cost effective project.
It is a shame that short sightedness is prevailing here. The three cornerstones have had their fingers burnt elsewhere. Maybe now they are being overly cautious here as it will take another 2 years to get HZM into production, by which time futures Ni demand will be much stronger and inevitably, Ni prices will have rebounded.
THE CORNERSTONES will hold their head up high as normal. Honestly this is just business you win some you lose some. Not sure how the rappers here will hold their head high. They need support.
You know what my position was for months even when HZM was at the dizzy highs of 170p. But now we need to support the losers here who have vanished.
Wasa, Lawrence and others you have my sympathies.
Totally agree . How the 3 cornerstone investors can ever hold their heads up high and call themselves experienced mining investment companies beggars belief. All 3 were asleep on the job. Incompetent at best.
All those years of planning to get to the point of building the mine, and it was a massive fcuk up. Monumental, unforgivable, incompetent, shameful fcuk up. You shouldn’t be able to get it this wrong and be allowed to be a director of a public listed company ever again.
300 million market capital to nothing in a few months.
No point crying over spilt milk every one was warned here but some people buy anything I guess
The Company does not believe that any of these options are likely to recover any value for the Company's shareholders.
WTF dont you understand it's plain as English, grow a pair and take it like a man!!