Member Info for 99icecream

An example of an application of Automatic Trading, is in the delta hedging of Option Traders books. Traders option contracts are delta hedged using long or short position in shares. As the price of the shares change during the day the correct hedge position in shares changes and the traders computer will execute small buys or sells of shares to keep the hedge correct.

There is a shortage of the highest quality Graphite - but Blencowe has that in abundance.

LT - I may be wrong, but its my opinion, if Carlsberg did Potash projects etc. etc.

ATB

LT - Why 70% debt, because the mine will be built by a Chinese State owned entity, and Chinese Dev Banks mission is to support these types of project. The Chinese a doing this for commercial reasons, but also Belt and Road type reasons (i.e. binding Republic of Congo to China politically).

LT - The Debt should be approx $1.35 Billion (70%) funded by Chinese Dev Banks at a pref rate. The remaining 30% ($0.58 Billion) should be funded by a "Royalty deal" (but what is probably technically a Streaming Deal i.e. Off-Take). Note that all of this counts as "provided by the Summit Consortium" as they introduced the Chinese to the deal. I expect Summit gets a fee on all of the funding so I don't anticipate any problems.

I remember that OIA and SQM had first refusal on Off-Take and I assume that is still the case. Possibly they will use money from shares sold to buy Off-Take as part of the Funding ???

It is not necessary to offer any shares when you transfer to the main market. However, I would expect some of the main investors to offer a small part of their holding on listing, say 10% of the current shares (N.B. they have been putting money into Kore periodically this will be the opportunity to get a little cash back). The listing following the funding is the optimal time IMHO as you can market the shares at a higher price (supported by "research") than they would get if you let the AIM investors set it.

LT - Listing on the main market has no minimum size. For example, Blencowe (BRES) joined the Main Market with "a market capitalisation of approximately £1,266,667 on Admission". However, the rules are much stricter and more costly. For the same reason Institutional Investors will rarely buy AIM stocks, but with a proper Main Market listing KP2 would be a possibility.

Note the RNS of 20 January 2025 and ask yourself the question why would KP2 properly survey its Shareholders, for the first time in 7 years, if they were not putting together a Prospectus for a listing?

IMHO the reason for this typical pattern, (a fall in the morning with a rise later in the day), is because buyers will want to see how the US market opens before buying (I certainly do). It is after all a US investment.

IMHO. All is OK, don't forget the size, quality and distance from the coast. The fixed price deal and the financing that does not require massive dilution etc. etc. The only thing that has been the downside (so far) is KP2 have missed nearly every date / deadline that they have ever had ! So if it goes beyond the end of February (which I doubt) I won't be concerned.

FWIW, IMHO THE RNS will announce the Funding and the move to the Main Market of LSE. The requirements of the new listing are what I think is causing the delay.

FWIW the World Bank Commodity Price Data (The Pink Sheet) for end January 2025 was published yesterday. The Potassium Chloride Price CFR Brazil (the Reference Price) was US$ 302.00. The price ( $300 ) will no doubt feature in NPV calculations etc. after the funding has been agreed.

Month End....Price

01/24...... ......296.25

10/24...... ......278.13

12/24...... ......292.50

01/25...... ......302.00

The end Jan 25 price is up 3.2% vs. end Dec 24

The end Jan 25 price is up 1.9% vs. end Jan 24

The end Jan 25 price is up 8.6% vs. end Oct 24 (2024 low)

SO3422 : Unleashing Alaska's Extraordinary Resource Potential can be found here:

https://www.doi.gov/document-library/secretary-order/so-3422-unleashing-alaskas-extraordinary-resource-potential

The Auction process is quite straightforward. Participants put in their bids and offers by a certain time. If the bid prices and the offer prices cross (i.e. there bids higher than the lowest offer) then the auction is successful and the crossing price (i.e. the price that results in the most transactions) is fixed. If not then no trades result. All of the trades that work at then matched at the "uncrossing" price.

The Auctions are an opportunity to deal away from the dealers as anyone with Direct Market Access can participate. So they are more important in illiquid stocks (where the bid to ask spread is typically wide).

For the most liquid stocks that trade on SETS there are Auctions at 8:00, 12:02 and 16:35

For the least liquid stocks that traded on SETSqx, there are Auctions at 8:00, 9:00, 11:00, 14:00 and 16:35.

The prices and volumes dealt in Auctions are denoted by UT.

The 16:35 Auction also sets the closing price for the stock (if it works) otherwise the average of market bid and offer prices just before the Auction is used as the closing price.

After the closing Auction their is the opportunity for others to deal at the uncrossing price if they wish to.

Extrader: You may have missed my post earlier:

Would you be from north of the border ? - I needed a dictionary for "jibbed" !

The point being that jibbed has several meanings.

South of the Border it would seem that jibbed means to turn as in: ".... he jibbed into the wind.."

North of the Border it would seem that jibbed means to be cheated or to have something taken from you unfairly.

4 December 2024

"Graphite exports [to the USA] are not banned entirely, but Beijing is further tightening the restrictions it first imposed in 2023. This poses a significant challenge to the United States."

https://www.csis.org/analysis/china-imposes-its-most-stringent-critical-minerals-export-restrictions-yet-amidst

In the past China has reacted to US restrictions on semi-conductor sales by limiting Graphite Exports.

https://edition.cnn.com/2023/10/20/economy/china-graphite-export-curbs-hnk-intl/index.html

A those of us who are in, and would like to be more in, have run out of spare cash.

Extrader: Would you be from north of the border ? - I needed a dictionary for "jibbed" !

BOTS - High quality Iron Ore is the future, BHP are working with Vale in Brazil, RTZ are invested in Simandou, but Fortescue as far as I know have no prospects of this quality. In 2019, they tried to buy Simandou 1&2 for $9Billion, (see attached). Hence, an investment of $600Million or so in Zanaga seems an obvious choice.

https://www.miningmx.com/news/ferrous-metals/39241-consortium-edges-out-fortesque-metals-with-14bn-bid-for-guineas-simandou/

My thought was that just buying (say) £600 Equity in Zanaga would particularly work for Fortescue (for example) as they can see the long term value here and they lack any similar prospects. As I mentioned earlier, investing say $600 million here is something they would do in a heartbeat (IMHO).

However, to get a good price for the equity Zanaga might wish to get Baowu to bid for the equity. They would probably want to do so if they can also buy part of the off-take from Glencore. I am sure there is a price at which Glencore would accommodate them!