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@maddog, you are still, judging by the last line of your post. Complete hogwash.
yes tom /but it has not been cleared up to the banks liking.
Indeed @EV. What I quoted also happens to be the answer to the oft asked question: what if the banks don't sign?
it’s old md… as we said yesterday… the clarification the banks requested back then… is in this thread title…
Thanks for the clairfication Obs, It's what I read in the JRP, perhaps it doesn't apply to the banks then:
"4.5.1.1. Each claim belonging to creditors it will be discounted with thirty percent( 30%), The Discount being applicable in the tenth of this year."
tom/ l agree but 10% of what that is the problem now.
Hmmm yep seems so .... if this continues I may put in a kill or fill order at a further discount & see what happens ...
It only lasted 19 minutes, 9 of which was the intro and exit lol, you didn't miss much @Barksy, and certainly nothing we don't already know.
EV/ so who is FUDING now" it was clear to me that the court were especially aiming at Cadence for clarity in all aspects of the movement of ore hence they want know how much is devs and all the costings ,
were it has been said that this matter has been cleared up it is obvious has not,
But l will say this when making a deal that is as open as this one the buy will tend to try and get the cream off the top of the pie" but in this case it seem the buyers want the cream & a chunk of the pie if they can get away with it,
good luck to them if they can get away with it,
one think fore sure this matter will delay progress to 20% imo way past september,
@EV. My understanding is that the union of banks, as secured creditors, are not taking a haircut - they are subject to a separate negotiation, payment terms and schedules, outside of the terms of the JRP:
"Court Approval to Commence Iron Ore Shipments" (14 April 2020)
https://www.lse.co.uk/rns/KDNC/court-approval-to-commence-iron-ore-shipments-hzouuhfq5grr5eu.html
===[
In addition, the Court has requested that the secured bank creditors reach an agreement with the JV Partners and DEV within 60 days or the Court might rule on the annulment of the Bank Liens and consider the banks as unsecured creditors. As unsecured creditors, the bank's credit will be subject to restructuring plan limits and discounts and be paid from free cash flow from DEV, which may be over fifteen years.
]===
i’m expecting what’s in the jrp and what’s in the settlement agreement to be two different repayment profiles myself… the jrp being the default if the banks don’t settle… which the court will hold 10% reserve… to the point the payments are covered… and made… in line with the jrp…
Ivy , seems to be the way we are travelling at the moment as we have the same problems and queries with the JVs at Sonora . Cadence does ‘obfuscation’ well :)
After receiving my pin code etc at the 11th hour I just couldn’t access the site . I know it must have been my fault (maybe my browser) but it made for one angry bunny yesterday. Let’s hope they put something up on the website .
If I understand correctly the banks are taking a 30% haircut as per the JRP and repayments don't start until year 4.
But surely the liability to the banks, as creditors, is finite and not a percentage of value.
Don't forget, the banks are looking and listening to everything published. If we were seemingly going to make many more millions from stockpiles we maybe wouldn't publish the fact too loudly until post 20%. I'd expect a lot more detail and news flow once the 20% is fully signed off.
Judging by the various interpretations of the stockpile value/ownership/location expressed by
knowledgeable posters, we do seem to be in a position of obfuscation.
Clearly this has ramification for value of kdnc [eventual/imminent?] 20/27% of Amapa.
BOD should update present position as they understand it otherwise sp will continue to languish
on uncertainty.
ev… looks like they’re using gross in your post last night…
quote of $53.65/t… (in the jrp?)…
quote of $88.45/t… (at the time/present day the argument was put to the court)…
fob?… but more likely… at the gate… ;)
https://www.lse.co.uk/rns/KDNC/macarthur-signs-dso-purchase-term-sheet-with-gwr-bamtaemkh2uh1tg.html …
surely they must have completed that… to allow what’s there to be re-allocated to who has whatever guarantees… and release up to $135m of it to gerald…
i had been of the opinion that gerald had an amount in weight not value… not sure where that came from… but that opinion has changed now…
the jrp valuations will have set aside an amount based on the guaranteed credit… so any surplus won’t have been credited to dev yet… one of the known unknowns that’s coming… probably after we take our 20% lol… ;)
This was from 10th May RNS
"As part of providing reliable iron ore stockpile data, SGS Brasil has been engaged to carry out a re-assay of DEV's iron ore stockpiles. This, alongside a more accurate volumetric survey, will allow DEV to confidently market the material, and reconcile any variations to historic assays results."
"Zamin: A disastrous operation in Amapá. Judicial recovery is the solution!" (April 28, 2017 )
https://tribunaamapaense.blogspot.com/2017/04/zamin-uma-operacao-desastrosa-no-amapa.html
===[
Santana's promoter of the Environment, Adilson Garcia, concludes by saying that if we opted for BANKRUPTCY DECLARATION, it would be highly damaging because Banco Intesa Sanpaolo has a fiduciary alienation agreement on top of the US $ 135 million stocks, Banco ABN AMRO BANK has a pledge of $ 50 million dollars and GERALD METALS owns $ 400 million in ore stocks, estimated at four million tons (2.8 million in the yard in Santana and 1.2 million in Pedra Branca do Amapari ).
]===
That "$ 400 million" is presumably BRL, which on that date was around 3.17 = US $126m, which is close enough to the US $135m in this context. As discussed the 2.8Mt + 1.2Mt mentioned is unlikely to be physical ore, but that derived from the US $135m guarantee, which based on likely realised profits from iron ore prices at the time would not surprise me at all if this worked out to be a confused estimate of the 1.39Mt of physical ore at the port which Gerald may have claim over, with the left over being at the rail end/mine - which we would consequently be able to estimate a minimum (1.39Mt * 1.2Mt / 2.8Mt)
Who knows? It's confusing! But to be clear, unless we are RNS'd to the contrary then I'm inclined to believe that the ore DEV is currently shipping for Gerald is separate to the 1.39Mt identified in the RNS's, and that there is now a distinct likelihood that the remainder of this ore after $135m has been shipped will revert to being owned by DEV benefiting the project, and us, once we take our 20% ownership of it. :-)
Ob.
Just have to remember this is judicial recovery. It has been structured in such a way as to ensure the business can resume. The creditors are secondary to the recovery of the business otherwise it would have been a bankruptcy. The courts are there to get it back up and running which is why the stockpile is ring fenced for Dev.
"DEV carried out this trial operation by loading ore owned by a third party. The shipment of this ore is part of the judicial recovery process approved by the creditors in July 2019 and was carried out at a commercial rate. With this increased capacity, DEV will ship its stockpiles at a faster rate than previously expected."
Well yes @EV, that's what I'd like to believe given all of our research to date. But the fact we haven't been told this officially makes me doubt it. It's material either way and should be RNS'd IMHO.
EV, that is my understanding also.
@Obs there is at least 3 million tons probably more. 1.39 of which are set aside for Dev (10% of which is for the banks).
The amounts above 1.39mt at the port and mine belong to Gerald up to the value of $135m.
Any left over after Geralds have their $135m would then be added to that 1.39 for Dev to sell and fund the mine rehabilitation presumably.