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Out of interest whose responsibility is it to ensure we get the invite to vote? EUA or whoever we hold shares with?
Barclays were very helpful got to chat with someone online within a minute and within 5 they said they had everything needed to pass on. Highly recommend them tbh I’ve never had any problems with them.
Tiger,
I do agree the bidders should be at least announced so we know who is “in the running” so to speak. That M&A link posted earlier states that any company which makes an offer just be publicly disclosed by the target company - but then again until a formal offer is made/put forward to the BoD they don’t technically have to disclose who they’re in talks with.
Have a good weekend all!
Tigerbythetail,
If there wasn’t a (or weren’t any if we are talking about more than one) serious bidder then the company would have called the FSP off already. As they’ve stated multiple times in RNS releases just because there is an FSP it doesn’t mean a deal is guaranteed - but I highly doubt there is a lack of “serious bidders”. As DS said in the proactive investor interview a while back, those who are involved don’t get involved if they don’t see something big. They want their share of the deal too and wouldn’t have invested this long on a success fee agreement without serious bidders.
I could be wrong but that’s my opinion based on the information we all have access to.
“ The announcement that a company is conducting an FSP triggers the commencement of an 'offer period' under the Code. One of the fundamental principles of the Code is that any announcement made by a target company which starts an offer period must publicly identify the potential bidder with which it is engaged in discussions, or from whom they have received an approach. Once identified, the potential bidder is subject to a 28-day 'put up or shut up' (PUSU) deadline, by which it must announce a firm intention to make a bid for the target company or walk away.
However, the Panel can now grant dispensations to a target company which allow it to conduct an FSP without being required to publicly identify the potential bidder. The potential bidder may also not be subject to a PUSU deadline. This enables the potential bidder to take the appropriate time to formulate its strategic plans for the company, and to carry out the necessary financial and operational due diligence.”
Personal opinion NN are the ones they are in discussions with. Who does everyone else think?
“ During the year the senior management team, working closely alongside Endeavour Financial, has made significant progress in advancing the project financing for Araguaia. This financing package comprises multiple components, and these are all progressing simultaneously. The completion of this funding will be transformational for Horizonte, and we look forward to updating the market on our progress later in the year.”
Also Elon and Tesla got a mention in the same RNS haha. Who knows?!
Notperfect,
Excuse the potentially amateur question, but does that mean the company won’t receive the money until these are converted/ 10th July latest, or have they already received the money?
I think the answer to that is quite important because if they’ve already received then as SHs we can reasonably expect them to have placed orders in the long lead equipment they advised us about. If they don’t receive the money until July then what was the point of the placing as by their own advice and target finance should be complete by then anyway so they shouldn’t need extra money by then.
What’s everyone’s thoughts on this?
Bwana,
With regards to the recent placing I emailed the company last week to ask for confirmation on whether (and what) long lead equipment has been ordered as per the placement RNS. No response yet and almost been a week but will keep everyone updated.
I also asked for confirmation of the significance of some dates which were mentioned in the RNS - copy of email below for info:
Hello
The following paragraphs are extracted from from the RNS’ released on Tuesday 09/03/21 and Thursday 18/02/21 respectively:
The Company intends to use the net proceeds of the Offering and the Placing to initiate specific early works and advance long lead items linked to start of construction of Araguaia Project and for working capital and general corporate purposes.
The net proceeds of the Fundraise will be used to initiate specific early works and advance long-lead time items linked to the start of construction of the Company's Araguaia ferro-nickel project in Brazil ("Araguaia" or the "Project"), as well as for general working capital purposes.
Can someone confirm what long lead items have been ordered/advanced with these funds and whether orders have been placed? I was led to believe from the RNS’ that the reason for the the fundraiser was to get some equipment ordered whilst finance deal is being finalised so as to negate and potential delay and “hit the ground running” so to speak once finance is completed.
Also can someone please clarify the significance of the two dates noted below which have also been extracted from the RNS released on Tuesday 09/03/21:
28th April 2021
10th July 2021
They are mentioned in relation to qualifying the underlying shares but I don’t understand what this means exactly?
Thank you in advance,
Not surprising. If we were ranging between 2500-3600 deaths a day due to covid and the government still refused to bring in any lockdown measures there would also be political unrest here I would have thought!
Bolsonaro is a clown and once he jogs on things will settle over there. Luckily Para state hasn’t been hit as bad from what I’ve read but still having a helmet leading the country doesn’t help the wider problem. We’ve already had a slight delay due to covid, we could do without any further (avoidable) delays. Although Bolsonaro will say it’s all fake!
D220,
Well within your rights to be naffed about things. The placing especially took everyone by surprise as there was no indication this was going to be needed. All the news until that moment had been regarding financing/offtakes and delays due to C19 (which was inevitable tbh). The price was even more surprising and disappointing.
The company has stated it needed the cash injection to order long lead equipment - has anyone had any confirmation on whether these have now been ordered and if so, what they are?
Same thoughts here D220. It’s disappointing to be honest, 7.5 should absolutely be the base price for this and should have been from the moment the placing was announced. Patience is indeed required but holders should still be kept more in the loop.
100m cornerstone investor’s name should have been announced as soon as it was announced they had agreement to buy in. Surely not making this information public knowledge allows some behind the scenes to buy in knowing who is about to sign?
Expecting an RNS by next Wednesday latest given the end of March suggestion by JM. This really should be hovering over the 10p mark now not this measly price. All holders deserve this as a bare minimum.
Vermelho news really should be released soon too, and based on the latest RNS it seems they are mentioning other “explorations” does anyone know what this is referring to?
Wouldn’t say no to increased resources :)
2/2
17 Commitments
The Company has conditional capital commitments totaling £7.9 million relating to certain items of plant and equipment. These commitments remain subject to a number of conditions precedent which have not been met at the date of this report.
18 Events after the reporting period
On 23 February 2021 the company announced a fund raising of approximately £18.8 million comprising approximately £12.2m received for the issue of issued 162,718,353 new ordinary shares by way of a placing, alongside approximately £6.6m for a Canadian offering undertaken by way of the issue of 88,060,100 special warrants. The special warrants entitled the holder to convert the warrants into ordinary shares in the company following the publication of a prospectus to meet the requirement of the Toronto Stock Exchange. As at the date of these financial statements the Canadian offering had not closed and remained conditional.
Some interesting information and comments in the latest RNS on 15th March which seems tucked up as you scroll through all the tables and paragraphs. I’ve copied and pasted some below for discussion by all - interesting that their current NPV for Araguaia is $401m based on a nickel price of $14k. The report states nothing has changed between FS publication and date of financial report which is incorrect as we haven’t seen 14k Ni prices since last August so there is definitely reason to uplift that price the NPV is based on. As Wasa has said many times before V isn’t even being considered in current SP and that’s the real carrot!
Anyway here are the extracts (I’m going to assume their covering comment about delay to Araguaia financing is not on top of the existing delay to H1 2021 already announced, but not sure what this “additional funding” is as Araguaia moves towards production, I thought that was what financing was for...?):
Going concern
As at the date of these financial statements the placing had closed but the Canadian offering remained conditional. With this new placing money of £12.2m the Group has cash reserves which are considered sufficient by the Directors to fund the Group's committed expenditure both operationally and on its exploration project for the foreseeable future. However, as additional projects are identified and the Araguaia project moves towards production, additional funding will be required.
Whilst the board considers that the effect of Covid-19 on the Group's financial results at this time is constrained to inefficiencies due to remote working, restrictions on travel and some minor potential delays to consultants work streams, the Board considers the pandemic could delay the Araguaia project financing timeline by a number of months (this will be dependent on the duration of the effects of the Covid-19 virus across global markets). However, the additional funding described above provides sufficient financing to enable the Company to continue its operations for at least 12 months should any additional cost arise as a result of any potential deterioration in the global Covid-19 situation.
8 Property, plant and equipment
The financial results and conclusions of the FS clearly indicate the economic viability of the Araguaia Project with an NPV of $401M using a nickel price of $14,000/t Ni. Nothing material had changed with the economics of the FS between the publication date and the date of this report and the Directors undertook an assessment of impairment for the 2019 audited financial statements through evaluating the results of the FS along with recent market information relating to capital markets and nickel prices and judged that there are no impairment indicators with regards to the Araguaia Project. Since then no impairment indicators have been identified.