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Just read the last 6 months of RNS's. It is all there..if you don't believe what they are telling you (because of the hurt of the last 13 years)., then bail. Yes, it can still all go badly wrong but it is the investors loss on this fantastic opportunity, imo. And they wasted 15 months. The world is crinig out for this high grade iron ore. I remain highly positive (yes, also because of no T3 as yet) and until told otherwise.
Absolutely its all there ATG & I completely understand what the figures & simple arithmetic are telling me & everyone else. The RNS of 28 March sets out two inescapable short term financial facts - we have $491k left to pay all the company's expenses, and when that runs out we need to raise funds. That RNS also clearly sets out that we repaid a big chunk (nearly half) of the Glencore loan in the prior quarter & there is $736k to be repaid by 31 July & money has to be found to repay that by then. But phew the company has already prepared for these eventualities as it has T3 of the share sale waiting to repay them IF necessary. So its great news for realistic investors we know IF there is no strategic investor deal by the time we need funds we have a mechanism in place to provide those funds. There are no 'hoped for' or 'obvious' financial solutions presented in those RNS's outside of the above.
''it has T3 of the share sale waiting to repay them IF necessary''
Exactly. So at the end of March, and end of April it was not deemed 'necessary' to use T3. Not for working capital, and not for paying back the Glencore loan. Considering how long the previous tranches took to sell through, if they did need T3 to pay bills or the loan, they would need to be selling those shares now. They're not selling those shares.
That should instill a lot of confidence that there is something happening in the background where T3 is almost certainly not needed.
Shaun if you look at the figures I have given for the daily sales needed to repay the loan (170k a trading day over 10 weeks) you can see they are easily doable relative to recent active days ie Tuesday at 1.16m or the 3 month average trading volume of 487k daily. So there is still time for T3 to be used to meet the company's proven financial needs in June/July. Absolutely we had no need to do T3 in March or April as we & Elphick must be always hoping the strategic deal will be announced & the need for T3 will disappear. But in the absence of that announcement nobody has yet given an alternative way of financing the company's expenses or the loan repayment except via T3.
So to be clear like others I hope an announcement of a strategic investor will come shortly, but if it doesn't we have the T3 in place to meet our coming financial obligations & that is already in place & is less than a 2% dilution. Which begs the question why does anyone make a fuss about this trivial 2% - its not 20% it 2% - & if we need more time to get a better, more valuable deal isn't it worth it (if say we got a 20% better price in August, isnt that worth a 2% dilution?)
You're the only one here making a fuss about it, because you're the only one that still doesn't understand why they haven't taken it.
It's all very way saying we can easily sell through it in 10 weeks, but the fact remains the previous two took 9+ months. T1 in fact took over 5 months. Therefore, if they envisaged a scenario where they needed T3 to pay bills or the loan, they would have taken it already to ensure a prudent approach to their finances.
It’s you who’s creating the fuss!!!
Jiving the jive turkey who will not stop with the jive talking.
Stating simple facts - ie that the company has short term financial needs it has to meet - is not making a fuss, no rational person should be even challenging it. Its only 2% dilution why act as if it something that has to be avoided, would you rather accept a 20% worse deal than a 2% dilution?. The challenge remains - if he dont trigger T3 how do we pay company expenses beyond June & how do we repay the loan by end July IF there is no strategic investor announcement - answers please?
Shaun they haven't taken it yet because they are leaving it to the last reasonable date to trigger it. Previous tranches were not sold daily but in blocks when they were needed - that is the whole point of this mechanism. We could easily sell T3 in a month if we had to, the discount might be higher but it could be done - thats how markets work that how equity capital markets work. Placing capacity & price is a function of average daily liquidity & discount. Its why companies issue large % of capital at higher discounts - there is nearly always 'a price', so we could place GBP800k of shares on 30 July but we would pay a high discount, I think the T3 drip feed approach is better as the discount is lower.
Sorry, Jiving, you completely, totally and utterly keep missing the point. Nobody disputes T 3 could be used or that is minimal. I will not restate the obvious ( imo!). With respect, this is like trying to describe the colour blue to somebody whose retina is not equipped to see it 😃. Leave it at that 🕊️
Give it a rest, you jive talker.
Jiving , Still got the D 🎩 on then 🤣
No ATG it is you who blindly & consistently have been missing the simple point I have been making all along & which you now finally acknowledge - that we have the T3 mechanism in place to meet our forthcoming obligations if nothing else happens soon, phew at last. What you & others have been arguing is that there is a deal coming shortly that will make it unnecessary - yes I have consistently said I 'hope' thats true - but neither you or anybody else has provided one shred of evidence that it will come before we need to meet our financial obligations. The fact no T3 has been triggered yet could be 2 things; i. what you & others (including me) hope is that an announcement is coming soon; ii. that it is just a sign that Elphick is fine tuning it to the last reasonable moment. As I keep saying - you dont know whats going on, I dont know whats going on & Elphick may still not know a deal date.
Eddsy & Danny no points to make as ever.
Actually I have got some useful info & links on China ore plans & mine valuation which I will condense ^ post in coming days.
In haste, I've got to go out :what's to stop GLEN agreeing a further loan extension...with an increase/adjustment in the working capital element ?
See the backstory on how the loan was set up...
GLA
That is indeed a possibility Extrader. With the repayments we have made we have actually got considerable headroom - the loan amount is for $1.8m & as of 28 March we had only $736k outstanding. If Glencore are feeling positive & bullish about an imminent deal maybe they will be generous by extending & get us over the line without any more dilution, which dilutes their stake by the same proportion as it does ours.
No worries Jiving we live in parallel worlds ❣️Like your style 👍
Jiving, many posters have offered their opinions and clearly outlined a common sense approach to T3 and funding, you have taken your market position and have to live with the consequences!
Do you not think they might already have a buyer for the whole block?
Eddsy I very much hope they have indeed got a full buyout incoming. Of course like others I have no specific evidence for that hope, other than if major players like Saudi & China are convinced the project is sound & meets their objectives why would they not want 100%? But what if they are indeed interested & competing with each other in a de-facto bidding contest, surely its in our interest to let that process continue even if it needs more time (& dilution). It looks to me that a calculating corporate strategist like Elphick could well have spent the last 18 months engineering just such a situation.
Jiving, Iam just referring to the T3 block.
Meanwhile, Reuters headline reiterates the point:
"China iron ore imports likely at peak, demand composition to shift.."
Shift over to you-know-what....
Can't post link atm.
GLA
Meanwhile. what update - if any - on the reports ex AT that there might be a presentation at some point?
ZIOC will have to say something re current outlook/ post balance sheet developments when it reports FY result by 30 June...
Https://www.reuters.com/markets/commodities/china-iron-ore-imports-likely-peak-demand-composition-shift-russell-2024-05-16/#:~:text=China%2C%20which%20buys%20about%2075,billion%20and%20the%202023%20peak.
LAUNCESTON, Australia, May 16 (Reuters) - China's demand for imported iron ore has most likely peaked, but the composition of future imports are likely to shift as the world's biggest steel producer seeks to decarbonise.
China, which buys about 75% of all seaborne iron ore, imported 1.18 billion metric tons of the key steel raw material in 2023, a record high, according to customs data.
But since 2019, iron ore imports have been locked in a fairly narrow range between 1.07 billion and the 2023 peak.
The rest of the article
DECARBONISATION
Within that supply picture there are likely to be several factors of rising importance, namely what type of iron ore is likely to be most sought after in coming years.
Steel production accounts for about 8% of global carbon emissions, and about 16% of China's total emissions, making efforts to decarbonise the industry vital to the net-zero goals put forward by most countries and companies.
The low-hanging fruit for steel makers is to use better quality iron ore in the process, as this increases the efficiency of furnaces and also limits the need for sintering, which is the process of using heat to agglomerate iron ore fines for use in a basic oxygen furnace (BOF).
Chinese steelmakers at last week's event in Singapore were keen to show their commitment to reducing their carbon intensity, while still using much of their existing technology.
This makes sense for them as much of the steel mills' capital equipment is relatively new and has a long lifespan ahead.
One way the mills see to reduce carbon emissions is to use higher-grade agglomerates such as pellets and hot briquetted iron (HBI).
It's possible to upgrade iron ore fines, even lower grade material, into pellets and HBI, and it's furthermore possible to do this using a green energy source such as hydrogen, or a less polluting than coal fuel, such as natural gas.
Major iron ore miners are already taking steps, with Brazil's Vale (VALE3.SA), opens new tab advancing plans to build hubs in the Middle East to produce HBI using natural gas.
There are also studies underway to use green hydrogen to produce HBI in Western Australia, where top exporters Rio Tinto (RIO.AX), opens new tab, BHP Group (BHP.AX), opens new tab and Fortescue Metals Group (FMG.AX), opens new tab have mines and port facilities.
The likely issue is whether the cost of making higher-grade material can be recovered through more efficient steel production, or whether some form of carbon taxes is needed to make the process viable.
The opinions expressed here are those of the author, a columnist for Reuters.
"Meanwhile. what update - if any - on the reports ex AT that there might be a presentation at some point? "
Extrader, did we ever find out whether it was AT or Marty that nibj had communication with?
Not a huge factor, but it would be interesting to know if AT is back concentrating on ZIOC. Most of the past two years his main interest has been Vision Blue, and in my view he would only be back putting serious time into Zanaga if something was imminent.
Hi Mitch 984,
It would seem that MM started the hare with this, on 1st May :
"I understand that ZIOC plan:
An updated Corporate Presentation,
Proactive interview, and
A possible investor call to include Marty."
followed by
.."AT was on WhatsApp and fielding queries on next steps PR. Marty's preferred channel looks to be LinkedIn where he was chatting. On that score Zanaga Iron ore now have a LinkedIn profile..."
nibj had this to say :
.."I had a long call with the company. Dont want to mention anything from the call, as I see those to be one on ones, but got a good detailed talk about recent RNS messages and FS report. I can recommend in case you are in doubts about the RNS released last 6-12 month or have questions to them, that you book a call..."
FWLIW, MM has also said that he'd be getting in touch with both Elphick and Knauth about my observations re Shard [ Ed.: rather than something germane].
He's not commented further, so ..who knows?
HTH and GLA