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My guess is they wanted to leave all the cash payment until after IPO. No knowledge on that purely my guess.
We had a deal. $165m for KSK. Deal fell through.
We will negotiate a deal with 2 significant changes.
1. Much higher CU prices and confidence/demand for CU assets (esp production ready post BFS work).
2. Yet to be confirmed but very likely much higher recoveries and therfore higher NPV and longer mine life. Importantly TM flagged that these higher recoveries will see much higher cashflow early to pay down any debt finance much quicker.
Given points 1&2 my bet is we will either get a higher valuation for KSK or more cash upfront than the AE deal which can then be swiftly forgotten!
MT are you really calling someone else out for this in your words?
“rude, condescending person like you , with a nauseating, self confessed superiority complex”
Self reflection perhaps?
Head office not hear!
Yep. The local Freeport guys were mega keen but the hear office of Freeport pulled the plug at the time
Berenberg were only 13p at initiation. They have most conservative model re risking adjustments they use. They assume no upside from value enhancements, using inferred etc in their model. Arden had the 24p target. Liberum from memory have reduced from 20p as well.
Very reassuring AGM. The BFS is a base case and lots of room to improve. Conversion of inferred resources to fill the later years of production and the potential to use Albion to attack the 223kt of contained copper not utilised very interesting. Dominics track record here and experience in country is invaluable. Met him for the first time and he is very impressive.
Partner discussions are ongoing both for BKM/KSK and for Beutong. A few options on BKM. TM and Asipac (Bruce) are engaging potential Chinese partners on Beutong.
Story remains the same. Progress the assets then Sell/partner the assets in an improving climate for copper price against the supply deficit v stable growth in demand.
Why a partner will come in. Thanks to aim0raider on twitter/ADVFN
BKM BFS value added opps.
https://twitter.com/aimraider/status/1142426313069867008
Seven year tax holiday for qualifying operators being introduced in Indonesia. This is very positive news
Big help for economics at BKM.
RANGER NICKEL RKEF PROJECT CORPORATE INCOME TAX RELIEF
The Directors of Nickel Mines Limited (‘Nickel Mines’ or ‘the Company’) are pleased to advise that the Ranger Nickel RKEF project’s Indonesian operating entity, PT Ranger Nickel Industry (‘Ranger Nickel’) has been granted material corporate income tax relief for its RKEF project currently under construction within the Indonesia Morowali Industrial Park (‘IMIP’) in Central Sulawesi, Indonesia.
Ranger Nickel is an Indonesian domiciled PMA1 company that owns the 2-Line RKEF project, in which the Company currently holds a 17% interest via Ranger Holdings Private Limited, a Singaporean domiciled company. As announced on 9 November 2018, Nickel Mines has the right to acquire up to an 80% equity interest in Ranger Nickel.
The tax concessions mirror those previously granted to the Company’s 60% owned Hengjaya Nickel project.
Notice of the tax relief was communicated to the Company by official decree from the Minister of Finance of the Republic of Indonesia on the basis that Ranger Nickel had “met the criteria and requirements for the reduction of corporate income tax as regulated in Article 3 of the Regulation of the Minister of Finance Number 35/PMK.101/2018 concerning Provision of Corporate Income Tax Reduction Facilities”.
The corporate income tax reduction will be applied as follows:
? a Corporate Income Tax Reduction of 100% for a period of seven tax years, starting from the tax year in which commercial production is achieved;
? a Corporate Income Tax Reduction of 50% of payable income tax for a period of two tax years, starting from the end of the initial seven year period;
? exemption from withholding and tax collection by third parties on sales proceeds that would normally be remitted to the Indonesian Revenue Department for a period of seven years, also commencing from the tax year in which commercial production is achieved
Once again, it should be noted that these concessions may be revoked and are maximum periods that may be amended or adjusted, if certain conditions are not met, the most important condition being the satisfaction of a minimum investment realisation which the Company’s RKEF Project comfortably exceeds.
Commenting on the granting of this corporate income tax relief for the Ranger Nickel Project, Managing Director Justin Werner said:
“We are extremely pleased that the Ranger Nickel project will benefit from the same material corporate income tax concessions as those awarded to the Hengjaya Nickel project in November 2018. This news is another welcome development following the recently announced fast-tracked commissioning of the first Ranger RKEF line, now scheduled for April 2019, well ahead of the previously advised September commissioning timetable.
This taxation relief will have a positive impact on the project’s profitability and further underpin our objective of becoming a globally significant nickel producer and a tier-1 nickel investment exposure among o
Have Berenberg initiated? Does anyone have the note?
ARS is ridiculously undervalued. Myriad drilling campaigns and serious $$$ spent on proving up resources across the portfolio. A world class board lead by TM who was part of the team who took Oxiana to $6bn mkt cap. He has amazing pedigree with a proven track record in other ventures and has put his own money in here in size. Aligned with shareholders! He has targeted projects with world class resources and is progressing them to production at a time when copper (and other metals) are entering into a period of significant deficit in supply v demand. JP morgan will be the first of many institutional investors that recognise the potential here. This will drive the price much higher. Todays in ground value v recent M&A is min 20p per share. The first project at BKM into production will yield $60m of FCF and fund multiple targets for further resource expansion. Then we have Beutong in Sumatra. A partner will help fund the drilling to prove the asset. Already 2.4mt contained copper. Will be much more after further drilling. A portfolio with a very real prospect to deliver a $1bn mkt cap company. TMs words not mine. JP Morgan Nat resources guru and TM himself have bought in size at 11p per share. They have added substantially on the recent weakness. Copper is moving. This is an absolute steal at 5p. 20p is a min target. 100p is the medium term target with partners, more resource proven up and copper at $4+/lb. STRONG BUY.
?
Exactly. Would avoid further share dilution and immediately place a proper value on Beutong which currently has ZERO value attached to it in the current mkt cap. Then we can get drilling for the high grade core and prove up the project. Look at what happened to SOLGOLD when BHP and Newcrest came in to partner there!
In English?
Thanks for the value add Banter. The detailed analysis and research you have put in is astounding.
From IR on twitter. The participants were mostly existing shareholders and only a few new. All existing notifiable shareholders maintained (including the three big one). No stock has even been issued yet for anyone to sell (not that we think they will)
Market makers wanted loads of it and got zeroed so perhaps they were short and keeping down until they unwind?
Federal govt are supporting them
Long term tenure on KSK
Prod licence on Beutong
Banter. You will have to do better than that. The bargain basement is already in place.
2009 mining law
European trade deal
Mgt 20 year experience in country and well connected with investors in country that they have made hugely profitable returns for.
Why pay a premium? Because its riduculously undervalued so even a hefty premium leaves loads of upside
Etc etc
Yes. Have bought more recently.