Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Chicken, seems sensible to me, however if this is the main driver why not clarify as such to the market? No reason has been given for the decision to place into C&M.
The situation at Buritica certainly does not help but OMI cannot control that. What we can control is timeline for the Anza project. If the 90 day transition timeline was adhered to we would be halfway through Year 1 of Phase 2 right now, meaning MMA would only have another 6 months of sitting on their "care and maintenance" before being required to start making payments to OMI, or indeed OMI taking control of the project as JV manager and having MMA pay the bills.
This is the importance of timeline, critical importance, and one has to wonder if it is incompetence or something else that is driving the current lack of urgency.
18% down in Canada but sure "let's wait and see what MMA want to do" 5 months after the contract deadline expired. Clowns.
To follow-up the bad news RNS with a webinar where no plan was presented was shocking. I understand good will and good faith in business but there comes a time when the gloves must come off. MMA now know they are dealing with clown act poodles. Maybe they are part of Newmont's circus? If not, they certainly represent a nice snack for a hungry bear.
Down 12.5% in Canada, while our genius board think the most important factor is "everyone acting in good faith". It would be laughable if this wasn't shareholder value they are destroying.
Bandit, you say they "must fight to reach some agreement with MMA". Indeed, but they are clearly unwilling to do so, and are refusing to set any type of deadline for MMA to act.
Maybe Brad/Louis have jobs lined up for them at Newmont when this all goes pear-shaped, as long as they do not rock the boat? I have no other idea as to how to explain the lack of urgency.
Phase 1 to Phase 2 timeline is contractually 90 days that ended in Dec 2022! OMI have a strong position to force MMA into action or walk away with 100%. But they are not doing so and cannot articulate why to my satisfaction - some nonsense about everyone acting in good faith. Fine, but when does the good faith run out - next month, next year, when OMI is nearly bust and needs to raise capital at 1p per share?
At least if Phase 2 formally starts MMA have to pay OMI $4m pa to keep Anza on C&M. Quite why they would do this instead of simply advancing the project is beyond me. Maybe the whole thing is a ploy by Agnico to renegotiate to their benefit or indeed take over the whole of Anza for a pittance.
So has Eduardo let it slip that the permits have been received? His words are there for all to see "the MEIA has been secured".
In the statement Eduardo Hochschild states "Immaculada MEIA" has been secured. What is MEIA?
"waiting to see what MMA want to do" is not a plan.
Good luck to all adding here, too much of a gamble for me, and in fact I considering dumping the lot given that our board were not able to provide any timeframes for:
1) creation of the new JV company which starts Phase 2 clock
2) force MMAs hand (default on threat of default on contract timelines and intention)
No details given of WHEN apart from "7-8 months" for new JV company, well 8 months has passed FFS. Again, if it was my company I would have come to the webinar stating clearly that we will give MMA 30 days to accept our offer, or come to some other exit agreement, or start Phase 2, and if none of these happen we start looking at default. Share price would be well over 8p if they had a plan. I would be quite happy to default MMA and look for new JV partners with our 100% holding.
Bhargavi, Aug/Sept? This should be dealt with by now. The longer this standoff goes on the more likely it is that MMA will shaft us. Brad/Louis have no will to fight even when backs against the wall. If it was my company I would be demanding the most senior MMA project owner to my office and make sure he understood if it's not wrapped up in 2 weeks then we default them and walk away with our Anza licences, which our board seem to forget are still legally and fully held 100% by OMI.
Any tips on high yielding miners? I have never invested for yield before but need to diversify a little now I am growing older and poorer after shocking PM miner performance the past 6/7 years
15% down in 3 days on "no news". FFS.
The news about Burritica is terrible for us, even if something is agreed with MMA that leaves us in a position to find other JV partners, the political situation in Colombia spilling over into cartel action on the ground does not make a good sales pitch.
Agree with barhut, too big a drop for a "no news" day. If it is bad news on permit then we are going much lower, maybe it is some other minor bad news has leaked?
Hall, we are all entitled to our own views. The previous investment case based on support of majors with free carry investment of $30m plus cash payments of over $3m is now gone. There are a range of outcomes possible here, worst case scenario is MMA try to play hardball and take 51% while refusing to meet the corresponding obligations to progress Phase 2 drilling. This could result in a protracted legal dispute with 2 of the biggest mining companies in the world while, if drawn out, OMI will need to raise cash to pay for the legal costs and stay afloat.
6000 shares bought, up 12% lol!
I wonder what OMIs proposal was, obviously it is for OMI to take control at Anza, but I hope we havent done something silly like offered MMA a significant free carry.
Karl, that would be the best case scenario. But why would MMA pay $2m just a few weeks ago only to walk away with nothing now? Was it poor decision making on their part, surely not? No, I think they will want their $2m back at least, or some other minor stake/free carry maybe?
What is our relationship with Newmont in a wider context? We have the contractual relationship for Anza, plus they seem to be interested in the Argentina project, plus they are our major shareholder with 15% if I am not mistaken. I have to admit I have no idea whether their shareholding plays a factor in how OMI deals with the current position at Anza. Worst case scenario they dump their shares? I do not know.