The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
Agreed this is another positive RNS. It shows the board are serious about taking this to development and they’re putting everything in place around the financing deal being signed off, so once it is there is no delay getting started.
Head of Projects appointed for Araguaia and Vermelho. Overseeing development of both.
https://horizonteminerals.com/news/en_20210301-appointment-of-head-of-projects.pdf
JM has consistently led this company through development stages in a professional manner. He promised news flow and this is now underway. I would say onwards and upwards but really it’s onwards and downwards to where the goods are!!
Hi RMR,
Would you mind elaborating on what you said BlackRock are doing please? I’ve not heard of this before...what’s the reason behind it? I assumed they were buying shares when I saw the recent RNS’ and did think the low numbers seemed strange so I’m curious to know what is going on.
Thanks
Brisk
Less shares than we thought initially?
A total of 162,718,353 new ordinary shares in the capital of the Company ("Placing Shares") have been placed with new and existing investors at a placing price of 7.5 pence per Placing Share. The Fundraise raised gross proceeds of approximately £18.0 million for the Company (approximately US$25.0 million/ C$ 31.7 million) (before expenses)?, approximately £12.2 million from the Placing and approximately £5.8 million from the Canadian Offering.
I wouldn’t say they’re burning through cash very quickly, from I can’t recall how much was in the bank just prior to the Orion deal but 10.9m left from 25m after almost a year and a half isn’t bad going in my books. They’re not desperate for the money to keep the company afloat they’re raising money to place orders as per today’s RNS which to me is forward planning - plus potentially bringing in new IIs is a good thing. Strong interest in Araguaia is the key line in this announcement for me.
You might be onto something there ihowells but I would add that some equipment is probably on ridiculously long lead times so I think they have done this to raise money quickly so they can place orders ready for delivery when financing is complete
Two extracts from the RNS which are worth noting:
“ The nickel market has shown its strength, driven by a recovery in the Chinese economy leading to increased demand for stainless steel as well as anticipated demand from the burgeoning EV battery market. In turn, the Company has seen an increased interest from investors due to Araguaia's robust economics, low capital intensity and location in a world class mining district. The Fundraise will inter alia strengthen the Company's balance sheet as it enters a critical phase of financing discussions, enable the Company to commence certain pre-construction expenditures and provide working capital to the group.”
And
“The proceeds of the Placing will, in addition to the Company's cash balance of £10.9 million as at 31 December 2020, enable the Company to commence initial plans for construction of Araguaia, improve the Company's balance sheet ensuring that it enters the next, critical phase of financing from a strong position and creates the opportunity to broaden the Company's shareholder base through the introduction of new investors. The proceeds of the Canadian Offering, if and when received, will also be used for this purpose.”
This BoD are competent and this RNS is a positive in my opinion. Cash has not been burnt through, still got over £10m in the bank as of New Year’s Eve. “Critical phase of financing discussions” I love the ring that has to it!
Blue.
I am invested - I haven’t been here as long as others whatsoever but nevertheless I am in so I am commenting as a shareholder myself.
My post wasn’t negative, it was just correcting a previous comment which stated the “licence is sealed”. The RNS itself is positive - as far as AMC RNS’ go that’s one of the best they’ve put out. I just disagree with incorrect summarisations of its content.
Brisk
Ilovesushi,
Whilst I love your optimism, I think your last post is misleading and in the interest of being open we should clarify that the “licence” is not “sealed” as you said. The full licence being granted depends on the TEO submission and subsequent approval. This licence could still be revoked - albeit that is unlikely.
We all want this to do well but can’t get carried away and misrepresent facts.
If the licence was “sealed” we wouldn’t be sitting here at the best part of 1.5p a share.
Agreed.
All I see in my opinion is RY saying the company is open to acquisition offers. Whether anyone outside Russia/China will entertain this is another matter - but there are probably a few within these two countries who would be keen.
Not sure this will go for the value many believe it should do though, but from these levels I would imagine it’s a few multiples.
Imo - obviously
Anyone else read the below as a hint that they are looking to sell this thing before it gets to production? Or at least JV?
From today’s RNS:
“The combination of RPM's and Oreall's enables the Company to evaluate and compare the Project potential based on both Russian (required by mandatory regulatory considerations) and western funding opportunities for joint venture alternatives, various and combined off take agreements and / or merger and acquisition considerations.”