Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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US jobs number out at 1:30pm today. that may shift the market one way or the other.
I agree and hope there won't be an RI. It's a small sum to add onto the overall current debt and covenant renegotiation! TD has openly said he would rather not sell Zama so perhaps the internal deal is a sale of part of the Zama stake not all, withdrawing from the additional Tolmount stake from Dana, and no RI, with a slightly higher interest rate for the debt providers.
"Not sure if they'll still need an equity raise as the purchase price is now 1/3 of original price"
A good question, but they still expect to make a cash payment of $210m with, last reported, c$160m cash in the bank and expected to be cash neutral in the near term. They need headroom, not withstanding the possibility of an additional c$155m (from memory) cash payment if oil breaches $55, although I gather the detail of this option is unknown on this board - I've asked about this before. Anyone know?
I'm invested in the oil sector, but not PMO, so watch developments here with interest as they can reflect on my oil investments.
The Rights Issue has been well flagged so is largely priced into the market. By this mechanism you are offered a fair opportunity to invest/support this acquisition. Far better than a pre-emptive placing at a large discount. Personally, I think it's a good deal in the sector, provided the oil price stages the recovery all oil investors hope for and 3rd party factors don't impact. I haven't looked at the 3rd party factors, but always worth considering where an investment fits into the overall NS infrastructure and it's moving parts.
But I'm not invested here because there are too many other elements to PMO that I'm not able to value - way beyond my abilities.
I'll watch the outcome with interest. A good outcome in the credit revisions will reflect well on the NS sector generally.
Cash......it won’t be the Covenants that hole PMO ( they would not have obtained extensions already if the financial road map laid out to all, looked to be heading for Beachy Head ! ) it’s the POO, and that in the medium term going into 2021, looks positive.
Yes if that's true the Sp will rocket to about 66p. The impending rights issue has weighed us down. Just sit back and wait for the statement saying its not necessary from PO BoD.
Oxygen ,yes its very good news they dropped the 25% purchase of Tolmount - its a shame they didnt drop the purchase of this BP asset but ok, thats something we cant change.
Covenants just can kicking down the road to September - what i want to know is what is their plan then ? Ideas anyone ?
Not sure if they'll still need an equity raise as the purchase price is now 1/3 of original price and they have dropped Tolmount purchase
Good to see they have dropped the 25% interest in Tolmount, originally costed at $191m......Dana won’t be happy though !
So, now more likely to hear news of a Right Issue sooner rather than later?
The RNS wasn’t showing on LSE I when posted. These days you never know if it’s going to be positive or negative!