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I did warn about this some weeks ago?
If you have access, see page 2012:
https://www.jusbrasil.com.br/diarios/DJSP/2024/04/29/Judicial-1a-instancia-capital-parte-i
Somebody knows something?
A hint in the extract:
'....which after the work was stopped, did not make the payment and is on the verge of filing for judicial recovery, case no. 505XXXX-15.2024.8.13.0024, which runs next to the Minas Gerais Court of Justice!'
Sorry. Understand Brazilian Portuguese?
Of course everyone understands.
So if writing... Write in English. Thanks
Umm, he did write in English - it was a link to the Brazilian Mistry of Justice pages. Which, annoyingly, you need to have a BR social security number to register with, so I didnt manage to access all of it.
( also a smattering of Portuguese is useful to invest here is it not ? I'm here precisely because I have a Portuguese wife, and thus have learned enough of it over the years to vaguely try and follow the bits which *arent* in English. Seems useful if you are going to invest somewhere. It's also the reaosn why I didnt invest in Savannah doing lithium stuff in mainland Portugal , because I can also read all the upset natives complaining about how they are trashing the place. It might make money, but the ESG credentials are screwed. )
Having said that though, I didnt find anything relevant to Horizonte on that page (or the bit I could see anyway)
My apologies, I gave you the link for DJSP rather than DJGO.
Here's the correct link:
https://www.jusbrasil.com.br/diarios/DJGO/2024/04/29/Suplemento-secao-iii-2-parte
Still search page 2012.
In a nutshell, is HZM still a bad investment or are things looking better?
There is definitely value for shareholders provided fairlplay in asset sale/ liquidation. Resource is intact and already $500-700m spent on the project. NPV is always calculated on industry average, 14k per or 16k per tonne, spot nickel is way high and likely to rise
Perhaps after todays RNS
Language,. “The Company does not believe that any of these options are likely to recover any value for the Company's shareholders”. If they were sure, these options are definitely not going to generate any value for shareholders, It would have been like this. These options are unlikely or very unlikely to recover. Likely is giving positive connotation and perfectly coherent with fundamentals.
There maybe a little value 0.001p per share
Remember 120 and was a good value back in times.so - 99% .
52 week high £1.72.
Today £0.0035
99.8% loss
And I thought I’d slice 😩
If anyone can read anyting positive into any of these statements you are living in a different universe. The vlaue of these shares equal Zero and the company is dead!
The Company Does Not Believe It Will Be Likely To Recover Any Value For Shareholders
Is not the same as - it will likely recover value for shareholders? (Which it hasn’t said)
I read the situation as one that the options approached are dead in the water.
Does this mean that all options have been exhausted? I think not.
Other options will now be considered but I suspect that shareholders may well be disappointed in the long run.
The cornerstones and the lenders could well be sitting around that table now, trying to thrash out a saviour programme. We wait and see.
I’m surprised that is not suspended yet
There are some heavy losses for all parties concerned so why would they not still consider their alternatives. Orion and Glencore are now in a cash rich position for this financial year. Together they could well save the Company, but at what cost to existing shareholders is anybodys guess
What bought at. 172.00 ?
No, but should have sold then. Hindsight is beautiful.
Nickel is another Gold because of massive consumption in EVs, upside potential is massive and lower side is clampdown after sanctions on Russian Nickel which has crucial input 6% to 40%. Now at HZM, total debt $418, and $500 to $700m already spent on Araguia, and Vermehllo is funded upto feasibility study and more. How come BoDs has excluded shareholders from any out come conveniently? Even if assets are sold at $500m , that generates 30p for shareholders after paying all creditors. IMO, projects value is above $1.2B, after all maths, a hefty returns for shareholders, of course on fair play.
Imagine the class suit if the BoD comes tomorrow, announcing a purchase deal of 500mm returning 30p to investors, if indeed fair is the play...
Of the back of that repeated resonating statement:
"The company does not believe there will be anything left for investors".
KRSS I don't know you mate, nor I want to pass judgement, but this is just being so much in denial mate. It won't sell at 30p. There is no such play.
Just a thought, but Glencore had committed to a 10 year offtake agreement with HZM for its nickel.
Now that the Company is on the rocks, can Glencore afford to lose such a vast amount of nickel, or does it have other reliable resource solutions. With Ni inventories to decline within the next 2-3 years as usage increases, prices will rise and the npv from HZM operation still makes viable economic sense. I suspect someone is going to make a huge killing here, buying up the Company at a huge discounted price.
The only doubtful thing for me at this point is if this goes to admin, and the company stops to exist whether you lose all mining licences and what preparatory work has been put to it in that respect.
It's the only value left in the proposition.
The one assumption I am making here, which can be naive, is that if this goes to admin you lose it all and noone can sit for 2-3y to resume. You'd be looking at starting over with the brazilian authorities.
If this holds any water, then yes maybe some entity might be willing to come to purchase. I don't see them coming with a figure to cover former debt given that they know what is needed to complete this.
I further don't see the banks willing to get a nasty haircut and still the bidder leaving monies on the table for the shareholder.
Lastly I don't see the corners taking a bid just to pay off the banks.
So I think it will go to admin. The value of the mine is exactly zero, and they will sell the equipment for scrub.
Anyone interested in this in 2-3y would be with an outlook of first metal in 2032-2034 after regaining all licences.