Member Info for BwanaMakubwa

Rosy Lee-thanks for your post of 14.49 yesterday.As ever very informative.

By the way for those unfamiliar with capital markets-convertibles with premium conversion terms are a pretty common funding instrument-nothing unusual or weird.

Very simply they classify as debt and hence pay an interest rate (coupon) to the holder.
Yes they usually convert at a higher price because you are giving the holder the optionality to buy the shares if he wants to at a later date.Meanwhile he gets paid an interest rate on his debt knowing that he can convert into the shares when he wants to.
Some convertibles have forced conversion terms where the issues can force conversion if he wishes.
Very neat way of giving Teck the cornerstone position without taking them over 30%.
Key issues will be:
1.What interest rate we have to pay on the convertible.
2.What is the conversion price-obviously for us the higher the better and as Wasa and Rover suggest 14p keeps Teck under 30% on conversion.
Why would Teck agree to pay 14p at a future date-because as an industrial player/miner they understand the value of the nickel in the ground.They are not some silly,spivvy little hedge fund that wants a 25% discount to VWAP-so they can immediately trade out at a 10% profit( a la our last set of places),they are a miner who wants a strategic interest long term.If our speculations are correct, this is excellent news.Just need confirmation, followed by Glencore as the off taker.GLA
"The future is bright"-to quote our new PR exec.

Popuo-We believe it means it means that HZM has permission to raise C$125m (US$100m) on the Canadian market.We are speculating therefore that Teck will be the cornerstone through a convertible bond.

....and we have the dream team.

In the words of our new PR exec...."the future is bright" !!!

Agree Bal-must be a Convertible as you suggest.Convertible classifies as debt until converted.Very neat solution if we are correct.The key will be the terms of the convertible instrument.

Webba-expecting/hoping this week or next.

I would expect the final financing to close sometime within the next 3 weeks-the company will be as keen as us to get on with it.Post debt confirmation there will still be a lot of legals to tie up the full package into a fully funded deal with offtakes and cornerstone in place-I assume this is what is taking the time and am sure management is working their socks off to complete.
Meanwhile October has been a very frustrating month with a strong if volatile nickel price, aggressive M&A including on our back doorstep and our shares stuck at 8pish,below the Feb/March highs with so much progress being made.
As Wasa pointed out the other day it would be an interesting calculation to see what Appian received per ton of nickel in the ground when they sold their 2 Brazilian mines-making out like bandits.I will do the calculation over the weekend, but suspect it will make HZM look ridiculously cheap.
I can only conclude that some are still concerned the deal will not close or that they will get in at a discount in a placing.
I am sincerely hoping there will be no discount and no retail offer (we all had plenty of time to buy in the 6s in Aug/Sept).We want to see any shares now going to blue chip institutions who will be ongoing buyers.
Though I understood the last raise at 7.5p and supported the motives for it, it was horribly executed-too many flipper hedge funds and one of the underwritering banks taking on a principal position and flipping for a profit on top of their already bloated fees.I am sincerely hoping management have learnt from that share price damaging experience and that any spare stock outside the cornerstone will be allocated to blue chip institutions and all hedge funds actively weeded out of the book and allocated zero, plus none of the placing banks being allocated principal positions.
Here is hoping for an at least "at market"deal or a convertible with good terms-which will technically class as debt until conversion occurs.

Hazbeen-yes I think once financing is behind us there is a strong possibility of them switching to the Big Board-probably next year.I agree, nothing wrong with AIM, but it can be very inefficient (so good for anomalies and opportunities, but also frustrating),also many funds charters do not allow them to buy AIM stocks, so we broaden our institutional audience if we move off AIM.Personally would support such a move.

Given the amount of "non new issue" equity/cash available do not see the the debt rate much above 8% to be honest-low end of typical African resource debt rates.If I am right on this, very manageable indeed.

Thanks FTC.

...games being played again?

Completely agree Juxtaposition.

Agree Reggie-aggressive bidding war for Noront and Nickel at $21k-we have all got a reason to be mightily ****ed off with a discounted equity offer!!

But for the timbering we apparently remain under the radar....

https://www.lse.co.uk/rns/BHP/update-on-offer-for-noront-resources-limited-dma40t25yb8sxj9.html

There has been a pretty aggressive cash bidding war here. Where do we think BHP believes the nickel price is going?

Very interesting thought TD2 and probably well within the realms of possibility.A1 strategic-Teck,A1 offtaker-Glencore,V strategic-VW.
Now what would that do to the share price?

https://t.me/c/1403976698/9092

....it is a market-anybody can buy or sell when they want.As a LTH traders frustrate me as they inhibit the upward share price momentum, but they have the same right to be here as the rest of us.Please let's just try and keep the board civil for as long as possible though-that way it remains a useful tool to all of us-both negative and positive.

All speculation on my part but I cannot see them not completing the full package by early November.It is in everyone's interest to get moving on construction.I think late Oct for offtakes, early November (at the latest) for cornerstone and equity.In order to keep cornerstone below 30% it either gets done at a premium or through a convertible (classifies as debt not equity until/if converted).If a convertible the coupon and conversion terms-price and timescale will be crucial.Anyway get on with it now JM and team your very loyal PIs have waited long enough.