The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
For me this is now a done deal and it doesn't come better then this on AIM, RNS CEO states final agreement now with banks for comment and or approval, banks set out terms and we agreed to them,
It's been a lengthy journey for KDNC and the banks know it if they were to pull out it wil be hard to find an to one else willing to buy,
Anyone selling now is mad, anyone buying now easy money
I don't think anyone would be surprised if the share price went to 40p before the news lands
thinking about that for a second…
we have a court approved jrp… that we are now progressing with the shipments of dev owned ore… #4 shipment is due next month…
https://www.lse.co.uk/rns/KDNC/approval-of-judicial-restructuring-plan-amapa-i427sb3g1b3sys4.html …
and we have a binding jv agreement to take up 20% / 27% with a 1st right of refusal and / or default clauses to increase that to 49.9% ownership of the jv holdings company pba…
https://www.lse.co.uk/rns/KDNC/binding-investment-amapa-dg9ha7jyn861mcv.html …
and we have a settlement agreed…
https://www.lse.co.uk/rns/KDNC/agreement-in-principle-to-bank-creditor-settlement-exahnnem98oaz0w.html …
that whilst it has been a long and drawn out process getting the contract completed… the courts are supporting the jrp and allowing more ore to be shipped… until the signed settlement agreement is presented by the banks…
https://www.lse.co.uk/rns/KDNC/approval-of-further-amapa-iron-ore-shipment-q34kfav3o3qtmol.html …
fait accompli or what…
nobody seems forthcoming with any suggestions on what will happen next… if the banks carry on indefinitely and continue to delay presenting us and the courts the signed settlement agreement…
seems pretty obvious to me…
@iamrich, if the banks pull out of the deal now they run the high risk of the courts relegating them to unsecured status, which benefits us. More delays is more likely than them pulling out altogether IMHO. But delays matter much less now precedent has been set for authorising net $10m a go. :-)))
@tomcat: "nobody seems forthcoming with any suggestions on what will happen next…" LoL. Did I nail it?
Courts relegate them to unsecured status - or did you have something else on your mind?
Tomcat/observer yep all in the same boat now, or ship
effectively… that has happened already ob… the banks were given a deadline to execute their guarantees or agree a settlement… the didn’t execute… they presented us with a settlement offer… to which we have agreed… and the courts are continuing to allow dev to dip into dev’s stockpiles… keeping 10% in reserves to pay the banks outstanding credit… until that signed settlement agreement is presented by the banks…
as can be seen by the most recent court decision… they won’t be stopping this operation now… the courts will make sure that the remaining stockpiles will cover the outstanding credit…
the banks have a credit… dev won’t be going bankrupt… the guarantees are effectively obsolete / expired… and the credit will be paid… one way or another… either in line with the jrp or as defined in the signed settlement agreement…
OBS .... with the court ruling 10% of each $10M revenue realised from shipments is withheld for bank settlement purposes I think the likelihood of them being relegated to unsecured creditors any time soon is less likely now TBH .... with a rolling approval to ship $10M revenue if necessary with 10% held back for the banks could continue until the stockpiles are consumed by which time repairs & rehabilitation from realised revenues should be well underway....
at what point would the jrp investors have enough confidence in these court rulings to waiver the dipa condition onto the dipb investment stage… if necessary…
That great Tommy but it doesn’t help the Aim/RNS announcement situation that launches us into space ..at the moment anyway, unless one of our other assets explodes first .
Given that these banks are state owned I highly doubt that they would be pulling out at this stage.
Amazing the SP is flat with EMH stake up 17% over the past 2 days.
it’s a $2.5m gamble ffs… guaranteed by indo if we pull out later… and now covered by the sale profits from the 1st ore shipment… (did i see somewhere… the ranking of the guarantees for the dipa and dipb debt financing we have / will be providing to dev)…
maybe it’s as simple as measuring and labelling the stockpiles… stockpile a : bank / stockpile b : pba… the latter including indo sino’s 1.71mt stockpile… ;)
Agree TC with the courts seemingly backing continued shipments/progression it also removes a huge amount of the risk of that 'gamble' as well IMO ..... maybe that'll happen next & possibly prior to or at the time of the AGM - who knows but I'll be hanging around to find out that's for sure.. :-))
Analysis: This is a coiled spring.
Incredible that anyone is willing to sell this low with company changing news on the horizon.
Unless holding 100% KDNC Mike, I'd suggest selling something else this month end! Even then, perhaps there's something else you can sell on a well known auction site to keep you going lol.
Me too Mike :), all in now
Couldn’t help myself
Another 10,000@29.3p
Come on Kiran let the court’s conclude the deal 20/27% here we come.
Other assets also doing well
I've just made my final top-up or 13,631 shares.
Its been a very long journey since my original investment in REM. However hopefully all the stars are now aligning.
May I pass on my thanks to the regular contributors of this board for sharing their thoughts and research. I am a daily reader, but very rarely post.
Come on Kiran and the KDNC team, let's get this deal done!!!
@tomcat "it’s a $2.5m gamble", but pretty pointless to take IMHO until ownership of DEV has been transferred to the JV, and that can't happen until the deal is done. So we wait. Whilst the project progresses. Making it more valuable. ;-)
Can I just ask again the clever posters this question …. Would you say we are now definitely sitting at the bottom of the J curve as far as Amapa and the other mining assets we’ve invested in ?
Yep, some of the wheels were actually set in motion 1 month ago in this regard. I am very happy with the prudence that has been shown so far, it will be worth the wait.
@Barksy, the market cap is sometimes a self fulfilling prophecy as it makes it difficult to raise equity without significant dilution (hence dropping to 3p in the covid crash). When we get the deal done this will work in reverse and we should be able to raise plenty of cash to fund our JVs (incl 49% if necessary) and that in turn makes the assets more valuable to Cadence and therefore would increase the market cap. This is why the £3-£5 price targets are not impossible once upward momentum is established.
@Obs there's a ship load of them booked now, Pier 2 is going to be incredibly important for us so it's great to have that in action.
the release of the dipa financing held in the jrp escrow account… and transfer of 99.9% dev shares to pba… happen as part of the same sequence of events… and i think it happens in that order…
Thanks EV that’s music to my ears after all this time ;)