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That’s huge. No wonder they were happy to keep going with the resource upgrade and PFS work.
@EV Given section 4.5.2 of the JRP:
https://pje.trt8.jus.br/primeirograu/Processo/ConsultaDocumento/listView.seam
20012416350764800000023996777
it now makes sense that DEV is shipping Gerald's ore, which makes me wonder if the ore is "fungible" in the sense that there is some ore stored in various places but you couldn't point to any particular stockpile and say that one belongs to X, that one belongs to Y, it's deemed a pool of ore. Up until now I had thought that wasn't the case, as the ore at the port is clearly more valuable than the ore at the mine, but now I'm not so sure!
Also, I'm not convinced this is a new $10m. It feels like a continued ratification that in the absence of agreement with the banks DEV can continue to ship up to $10m of "its" ore, whatever, wherever that is, but is able, perhaps now even duty bound to continue shipping "Gerald's ore" if they have requested so.
Do we know how much ore/value of ore, Gerald has claim over? @tomcat?
Ob.
Reported April 2017....GERALD METALS owns $400 million in ore stocks, estimated at four million tons (2.8 million at the Santana yard and 1.2 million at Pedra Branca do Amapari ).
Oh, and good morning ;-)
Morning,
https://administracaojudicial.kpmg.com.br/
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Thanks @Dallas, I knew "I" knew this. ;-) So not so fungible in terms of mine vs port. But within the mine area, or the port area?
@MLQ. Probably down for overnight maintenance.
It certainly reads to me as an extra $10m, I am certain it would have been worded differently if it was referring to the prior judgment. It also removes the problem in the mean time of needing to ship 1/4 of a shipment.
I'm sure we will get an RNS on Monday.
is that stated in the doc in your link ob… 2.8mt gerald’s ore at santana… 1.2mt at the mine…
EV/ if we don't get a rns monday l will have to put you on the naughty step,?
ev/ to be honest we should of had a rns telling us of any changes towards movement of ore no matter who DEV are shipping for ,
the bods no that we are watching all ports & courts so there has to be a change of court actions regarding any movement of ore hence a rns should of been sent out last week.?
Smoke & mirrors @md: When was the last official update on a once in a lifetime super deal?
Smoke & mirrors for a reason?
@EV. You've read the translated pdf with all the font highlighting and quotes intact?
mlq/ and what would that be
We had the RNS maddog we only had permission for four shipments so the other ships including Marlin V were for the third party which I said at last week was probably Gerald and we now know to be the case from the court. We can now book another four or like I say may have had the agreement with Gerald to book them and let them have them if the agreement wasn’t sorted. :
https://www.lse.co.uk/rns/KDNC/results-for-the-year-ended-31-december-2020-w77x5fwr82y6thw.html
"As of the end of June 2021, DEV had shipped three of the estimated four shipments of 58% iron ore required to net US$ 10 million profit. DEV is also contracted to carry out logistical and shipping activities for third parties who have stockpiles held at DEV's port."
Yes @obs in my opinion it quotes the prior appeal as the legal basis for allowing this further agreement.
Well the deal looks like won't be signed off by the AGM then,
Who knows, a lot can happen in a week. I think it will be worth waiting for however long it takes.
yes l read that to thank you for posting ,
but there is a but when will they be shipping our last half or has Lithium sold it to buy his new Ferrari ,
Surely it must be time for a rise pre deal? 40 - 50p
The last half will now be in 3-4 ships time if the agreement allows for a further net $10m.
None of them have left yet. HS could be for Gerald BCR could be for us so we might not have reached the initial $10m yet and I now believe this is $20m so another few months yet before that would be complete.
If we get a positive update on Monday confirming I think the sp would continue to rise yes. My fair value is at least 45p pre deal so I still see the shares as undervalued currently.
Perhaps you are right @EV. However, it seems a little terse on details to be a new $10m for me. What can the proceeds be used for? Anything? Seems unlikely. Regardless of whether it is or not, I don't think it changes the likelihood of when the deal will complete because the courts have multiple cases proceeding simultaneously, just in case delays in others. In particular we have yet to hear the conclusion of 1041359-79.2015, which may or may not be the big one. :-)))) Hopefully next week!
The money will only be allowed to cover the authorised expenses, e.g staff costs and shipping as per the haul. I feel that they are surely confident that the bank deal will be done within weeks knowing that it is daft to stop shipments when it's just about to conclude. If there is no appeal from the banks about this judgement that would be a telltale sign for me.
If you read the parts in bold it makes the most sense Obs, I'll star the parts that make it clear to me that this is distinct from the original $10m:
"Requires the Debtor's *[authorization to continue the shipment of stocked iron ore]*. Basis your request in the favorable scenario of the current market in relation to the price of iron ore); Page 20157/20161 (Trustee is in favor of the request, which will allow the *[continuity of the Company's activities, through the sale of iron ore]* stored until the Debtor and the Banks Union present the agreement signed at the process. Considers that the authorization for sale is necessary in view of the guarantee offiduciary sale of all Assets of the Debtor held by the Union of Banks, added to the absence of the formalization of an Agreement between the Debtor and the Banks Union which prevents the resumption of activities and compliance with the PRJ. It maintains that there will be *[unnecessary costs with the interruption and resumption of activities of the Company under Reorganization]*.
It also informs that the clause of the PRJ that deals with the delivery of ore must be observed of iron belonging to Geralds Metals, under penalty of configuration of non-compliance with the PRJ"
"The order for the sale of iron ore must be granted, being adopted, as a reason fordecide, as stated in the decision on pages 16,544/16,965, item 10, which was maintained by V.Judgment rendered in interlocutory appeal n. 2199480-27.2020.8.26.0000, reported by Judge Pereira Calças:" ....[Quote from appeal]...
"Therefore, I authorize the sale of the recovering company's iron ore stock up to the limit of US$ 10,000,000.00 (ten million US dollars), with a 10% reserve to the Union of Banks, observing theif the procedure suggested by the trustee for proof of expenses and withdrawal of the amount. Int. São Paulo, July 22, 2021."
@EV. I think I'm coming round to your point of view, the judge could have been clearer though! ;-) Is the $10m net? If so why mention staff costs and shipping expenses? It makes sense to me that $1m of the net would go to the banks, and $9m would be held by the courts. Happy days if so, the limbo period always worried me. :-))))
Yes, I see what you mean Obs, the expenses related to shipping to get the net profit.
Presumably expecting the deal soon so the money would be sat waiting and could end up being spent on maintenance, refurb, port, dam etc. Perhaps another petition would be needed to approve those expenses if the deal hadn't come through yet.
If we are aligned and as close to completion as we are led to believe it will be quite telling if the banks decide to appeal this $10m. Though thinking about it, so long as the $9m doesn't actually go anywhere what have they to lose? In fact it's in their interests shipping continues either way whilst iron ore prices are high, and the funds aren't used for anything. Yes, additional authorisation to spend the money would likely be required IMHO.