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Want more??????? remember theirs always araguia North / Serra do tapo, the future mine nobody bothers to talk about, trucking distance to the refinery at either mine
https://horizonteminerals.com/news/20210401_HZM-SDT-MRE-NI-43-101.pdf
The Vermelho PFS comprises a planned open pit nickel laterite mining operation that covers a number of different pits. The hydro-metallurgical process comprises a beneficiation plant where ore is upgraded prior to being fed to a centralised High-Pressure Acid Leach (HPAL) and refining Plant which produces the sulphates. The Project will mine a 141.3 million tonne (Mt) Probable Mineral Reserve to produce 924kt of nickel contained in nickel sulphate, 36kt of cobalt contained in cobalt sulphate and 4.48 Mt of a saleable by-product, kieserite (a form of fertiliser) over an initially projected 38-year life. At full production capacity the Project is expected to produce an average of 25,000 tonnes of nickel and 1,250 tonnes of cobalt per annum, utilising the High-Pressure Acid Leach process.
Current price of cobalt is 33000 a tonne, around 41 million per annum or 1558 million over the 38 year mine life with the benefit ours isn’t mined using child workers
https://www.northernontariobusiness.com/industry-news/green/vale-has-a-****-solution-at-its-brazilian-refinery-7632497
full article
yeah, araguia byproducts goes into concrete, vermelho also produces cobalt and the same fertiliser mentioned in this article, at today price you’d think we were only producing the fertiliser
The cornerstones might want to take as much as they can at these prices but is dilution in their interest?
if JM doesn’t pull something out the hat that significantly raises share price we’re raising at a low that hasn’t been seen for years
The last raises weren’t open to private investors only commercial investors at much higher prices than todayLa Mancha bought 71 million worth at around 1.40, I forget the exact number. Today on the open market that’s worth 10 million
What’s to stop another company paying 10 million and owning as much as La Manch Who paid 71?
What I’m trying to understand is why wouldn’t dilution be as worrying to the cornerstones as it would to the PI’s? Wouldn’t they want to finance in other ways toprotect their shares since they have such a large percentage anyway?
Is there a mechanism that they somehow stop the shares going to open market and get them all for themselves?
what’s to stop Vale taking a huge percentage of the company for peanuts?
Of course they knew earlier but PI’s aren’t going to solve the problem, the strategic investors, banks , Endeavour financial are but they can’t discuss anything with the without notifying the private investors .
Hence a rushed RNSl to notify the PI’s that conversations are been had otherwise they would have privileged information
JM has always been honest about the major stakeholders pushing A2 as quickly as possible, it’s the quickest route to increased production and therefore increased profitability and I imaging the sooner A2 is built the quicker they can focus on building the second mine vermehlio , particular if A1 and A2 are throwing out profit to fund it. that’s the quickest way to the highest share price in 5 years time,. I’m sure that’s what the strategic investors are thinking but PI’s tend to think considerably more short term hence the drop in price
The issue is not understanding what the money is required for, is it an overspend on construction to date or is it an improvement over the existing design or one that’s going to get A2 built quicker?
I think I posted above, £150 million has now has only got to improve production by 3% over the life of A1 to be a sensible decision . 1.5% if it affects A2
I get the impression JM woukd make that call, the strategies and banks would strongly support it and take the flack he receives with broad shoulders , he’s done it before with previous raises
JM’s email said we were substantially derisked, one of the many aspects of that is the power, we are in a 10 year power supply contract with a hydro dam
Almost everyone else uses coal to fire the kilns and are dependant on the cost and supply of coal, we are dependant on rain in the rain forest
We have a good idea of where are costs will be in 10 years, Indonesia do not
power line is probably completed, all the pylons are up and Hzm had 5 miles of cable to run 2 weeks ago, transformer is on site,
https://www.lse.co.uk/rns/HZM/long-term-power-secured-for-araguaia-2p0s5sfg4aiy8ez.html
https://www.reuters.com/markets/commodities/indonesia-details-plans-limit-development-nickel-smelters-report-2023-01-13/
https://ourworldindata.org/grapher/coal-prices
I was caught in SXX so remember the project
The obvious things would be
Polyhalite was an unknown market, nicks is not
We are using shallow open pit mining upto 30 meters, we need trucks and a digger who are already on site a trucking and a digging, we’re building up ore stock by . SXX need d to find a load of specialist engineering solutions to build a shaft a mile deep.
SXX need to build a massive rail system to take the product to Whitby, we’re using roads, already built roads. We’ve already spent 8 million upgrading the bridges and roads to site
But they’ve both got nine in the title so yeah, the same
Couldn’t sleep last night so did some googling
https://www.lse.co.uk/rns/HZM/operations-director-appointed-for-araguaia-project-6ibvncc8siak6zf.html
So in august Fernando Marino was appointed as operations director, he got the Onca Puma Nickel mine up and running 250 miles from Araguia, worked with Hatch who makes our furnace and got the whole lot into record production
Now if he’s review our plans, come with some great ‘optimisations’ what does that mean for us
Say all the raise is for A1 and has no benefits for A2 whatsoever at £150 million
At the moment are c1 costs are around 8000 a tonne, nickel 18000. We are planning on producing 14500 tonnes per annum over a 28 year mine life
150,000,000 divided by 28 = 5,357,142
5,357,142 divided by 10,000 current profit per tonne gives 537tonnes, that the amount per annum we have to produce to cover the extra funds
That just 3.7 % of production.
all this extra funding has got to do is increase production by 3.7% and it’s good sense
Again that’s if none of it benefits A2, presumably as per the RNS the costs are in the water pumping and storage which would benefit both
Feasibility study Is due this quarter and their is this
https://x.com/horizonteplc/status/1698994655839363557?s=46&t=naZ5Au0SdRRhFZrowLpBaw
Someone suggested that they had to do a RNS to let everyone else know theirs a problem so they could talk to specific cornerstone investors about it without giving them a favourable advantage, that's why is was so vague. sort of makes sense
I know that the general consensus on the board is he’s a snake but has anyyone got any thought on how JM’s position aligns with ours?
I never begrudged him the big salary even though it was many times mine, people at his level earn that kind of money although the bonuses to him and Simon Ritter for arranging the finance is now massively annoying and very premature and should never have been allowed
Guess if this does go down he will have had more out of it than most but he must have had an eye on getting that salary and more with an easier life running a working mine and those options will be gone up in smoke as well.
If he is a snake hopefully he”ll step up and try and save his own skin and do some good for us as well. If someone else else owns it then someone else is running it and he’s back to square one
could really do with hearing from him soon, never though communication was his strongest quality but could do with hearing something from him soon but would prefer him sorting things with the banks / Cornerstones
Googling fidelity says they do ISA's and SIPPS. I assume this is the PI's that have been posting on the bulletin boards that they have been selling up . I know their are index funds that do hold HZM but its on AIM so the number is extremely limited to some specialist exploratory miner funds .
Take out by Whom, the bigger boys already own it ? 60% is owned by just 4 holders and will no doubt have a bigger when its all said and done.
La Mancha has more the Glencore, Orion and Helikon together have about the same, they are all in for the long haul and aren't going to want to give it up to the other . Just tag on behind, the crumbs will be plentiful
That Last RNS or at least the attachment was full of useful information. JM quoted the robust economics, lets just remind ourselves of that circa 8000 tonne cost, line 1 makes 14,500 tonnes a year, todays price 18,000 a tonne. That's 145,000,000 a year profit line 1
He also told you the shells were on the Furnace waiting final welding, and that the power pylons are up with just 8 km to go before the power lines run from the dam to site, maybe a couple of days work . You can probably see the furnace from the pylon
Hes also told you hes got strong support from the existing cornerstones, who between the top 4 own 60%, Glencore don't need to steal it they've already got 17% plus whatever they might picked up from PI's in the last couple of days.
What the negative people need you to believe is this isn't getting built, that the cornerstones are going to give 280,000,000 a year on Araguia alone for the next 28 years because they cant find an extra 34% in finance.
Remember if this goes to Zero, La Mancha goes to Zero and they lose there $71,000,000, same for Glencore. Even if you think Glencore will run it into the group so they can buy it back later they risk Vale snapping it up cheap and years of insolvency arbitration before they can start work again, v's a 6 month delay if they preserver with JM
For those that haven't been here long Joey2000 and Cont have never had anything to say positive about this company
The AGM is on the 24th May, a little over 2 weeks away, you’ve got to think that JM has enough sense to have a spade in the ground before then. If not the AGM is going to be dominated with question about why not.
assuming he want to be there for it, (would if I was in his shoes) that only leaves a small window to get there, get back and prepare for the AGM.
If he’s not in Brazil already it’s got to be the next couple of days