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Any decent management would use the huge amount of cash and revenue and buy into another asset.

Why sell at all?

The BOD's are selling as if the production has already run out, just like they once tried to liquidate the company to the bondholders. When that was kicked into touch they paid off the bondholders in full in a year or two. I think the problem now is that they haven't got a clue what to do with all of the cash they keep generating.

The 6.02p roughly equates to the current cash allowing HUR to cease trading. Then the 6.48p equates to a 17.5% share of the profits UP TO A CERTAIN SUM - but not before decommissioning.

If HUR keep 100% of production and dump this rotten deal the shareholders will get at least 5 x's this sum in dividend payouts and probably more. That's at least 32.5p plus the cash they are holding right now (worth 6.02p).

6.02p (with conditions) on the scheme becoming effective and 6.48p over the next 3 or 4 years (again with performance conditions)

· The Acquisition, assuming full value is delivered by the Deferred Consideration Units, represents a premium of approximately 84 per cent. to the Closing Price per Hurricane Share of 6.80 pence on 1 November 2022, being the last Business Day prior to the announcement of the Formal Sale Process (the "FSP").

· In the event that only the Firm Proceeds are received by Hurricane Shareholders, the Acquisition values the entire issued ordinary share capital of Hurricane at approximately £82.7 million, a discount of approximately 39 per cent. to the Closing Price per Hurricane Share of 6.80 pence on 1 November 2022, being the last Business Day prior to the announcement of the FSP.

To get the full consideration will take at least 2 years and maybe 4 years or more because "The Deferred Consideration Unit payments will be paid biannually in arrears."

It clearly says that "The Deferred Consideration Unit payments will be paid biannually in arrears."

The Deferred Consideration Cash is 6.48p of the 12.50p purchase price.

I am not holding here but it is easy to see that this is a rotten deal. Basically 4p/5p a share.

"I have $65 margin using the $115 and $50 figures and $45 margin using $125 and $60?"

Yes, and if the price of Met coal reverts back to the price in Q3 2022 ($249/ton) then the margin will be reduced by $41 to not a lot!

Everything here rests on the price of Met coal - or rather the continued spike in the price of Met coal. This is the point I was trying to make. Oh, and don't count the dividends yet. They are still a long way off.

I have found a chart listing the consumption of Met coal as recently as 2021 - link below. As the total consumption for 2021 is 1084 mt then the breakdown is roughly as follows:
China - 70%
India - 6.5%
Japan - 4%
S Korea - 3.5%
USA - 1.5%
Europe - 5.5%
Russia - 7%
Rest of World - 9%

It doesn't really matter what "the West" ie USA and Europe think or do anymore.

https://www.iea.org/data-and-statistics/charts/metallurgical-coal-consumption-2018-2021

The price of thermal coal has dropped even without "relying on cheap commodities from unfriendly jurisdictions".

As for "the West" as it happens over 50% of coal usage is consumed by China and over 10% by India (both Russia-friendly) and as for "the West" USA comes in at 8.5%, Germany 3% and the UK 0.5%.

"The West" only like to believe they are running the show these days.

In fact thermal coal had never traded at over $100/ton before the spike in late 2021/2022. I cannot find the long-term price of Met coal but I would hazard a guess that it too was around or even below $100/ton prior to the enormous recent spike. The problem is that a price spike is just that and the higher prices soon prove to be unsustainable.

I think that the only surprise is that the price of Met coal is still holding at $290/ton. It was $249 in Q3 last year and to be honest even $200/ton would be a very spikey and extremely high price but just think what that would do to BEN's margins (and all hope of a dividend).

AJMO

It'll be alright if the price of Met coal holds. However, the price of thermal coal has slumped to pre-2022 prices at around $140/ton from highs of over $400/ton and even the current price is twice what it was 2 years ago before the rise (in Q2 2021 the price was around $50/$60/ton).

Met coal was trading at around $130/ton as recently as Q2 2021 and if the price starts to fall to anywhere near this level - as has already happened to thermal coal - then this previously bankrupt coal mine will again be unprofitable.

I certainly wouldn't be spending the dividend payments as yet. Anything could happen to derail this project.

With so few shares in issue dilution is far, far less of a problem than insolvency. I see the RBL doesn't warrant a mention anymore. Bring on a placing!

A placing would be good news here and is the only thing that might just steady the ship. Maybe £4/£5 Million at 5p. After all there are hardly any shares in issue since the consolidation and £5M at 5p is only another 100 million shares so still only just over 400 million shares in issue.

Good volume too - 27 million traded (UK 52 million) considering it is not an official listing.

Just needs one of the 3 markets to start to rise for the rest to follow. Then BOOM.

The clocks have changed in North America. Until they change in the UK the UK and Canada will open at 13.30 GMT.

According to the figures on this website, which may or may not be entirely accurate but are certainly something to go by, there are 1728 million shares in issue and Johnson has 76 million, which works out at roughly 4.4%. Nothing huge, as some CEO's can often own 25% of their company, and with the 3% figure at 52 million there would be more shares that shareholders would not know about than the amount that he would need to sell to get below the 3% notifiable interest.

Equally no one will know here if he sells to below the notifiable interest 3% level..............

I also feel that Paul Johnson misled shareholders when he included the link to the Sirius Resources nickel/copper discovery when he announced the planned new drill campaign at Molopo Farms.

PJ was very happy to lead shareholders on that MFC might be a similar discovery. I certainly bought in on the strength of this mega-discovery.

My prediction is for PJ to sell his complete holding within 3 months (this is also what he did at GGP a few years ago after resigning from the CEO job there).

On the plus side for existing shareholders, Paul Johnson rescued GGP from oblivion but then resigned and sold his entire holding once he considered the job done. However, the new CEO at GGP then proceeded to acquire the Haveiron Gold prospect for peanuts and we all know what happened from there. Johno though was gone and his fairly substantial holding sold for peanuts.

MAYBE the same may happen here!!

Of all the prospects here the only one that may prove to be another game-changer (like Haveiron at GGP) is the Australian prospect that is pencilled in for IPO as First Development Resources. They have some excellent prospects that include lithium. Maybe the new CEO should consider keeping these prospects as part of POW and throw some cash at the prospects and see what they might have there.

ALMHO

"Even if volume is looking healthier today market seems just a tad depressed today"

The market is very depressed today. The FTSE is down 1.74%, following big drops across the pond yesterday. Something to do with a major Californian Tech start-up bank having difficulties and the whole banking sector has crashed.

Doesn't affect 88E though.

Personally I don't even care. The only holding I have here is from SULA days so I have watched everything that has happened during PJ's tenure.

The writing was on the wall last year when the share price slumped to 0.80p. PJ saw all the profit on his holding disappear from when the SP was 3p and I believe that he looked through the asset base to see if there was anything that might reverse the falls. It was at that point that he came across the apparently forgotten Molopo Farms Complex and the drill in 2020 that found traces and small amounts of massive nickel sulphides. It appeared to be worth a second try so with the help of a lot of complicated geophysics this was ramped back up as the company-making prospect. Unfortunately, that doesn't seem to have happened so rather than lose his money, or any more money for that matter as he was obliged to participate in placings, etc he has quit as he says: "As a result of and to focus on certain critical family health matters".