The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Https://international-adviser.com/canaccord-genuity-management-buyout-hits-regulatory-snag/
Any thoughts on Canaccord reducing their position? I'm guessing it's down to a possible management buyout going on but could be something else? Sell off is probably still going on.
I can't see a takeover happening anytime soon and agree it will need 6 months of proven production before any offer is made. But the problem for the buyer will be the share holder register. I think we will see line 2 and a dividend paid. Can't see anything happening to Vermelho for a long time.
11 Convertible loan notes liability
On 29 March 2022 the Company issued convertible loan notes to the value of $65 million at an interest rate of 11.75% with interest accruing quarterly in arrears. The convertible loan notes were issued at a discount of 5.75%. The maturity date of the instruments is 15 October 2032.
The convertible loan notes are unsecured and the noteholders will be repaid as follows:
Interest shall be capitalised until the Araguaia Project Completion date, estimated to be 31 December 2025 (subject to various technical operating tests being passed)
After Project Completion Date, interest shall be paid quarterly only if there is available cash (after the company meets its senior debt and other senior obligations)
After Project Completion Date, principal repayments (including accrued capitalized interest) shall be paid quarterly subject to available cash for distribution. In addition a cash sweep of 85% of excess cash will apply on each interest payment date
Any amount outstanding on the CLN on the maturity date 15 October 2032, Horizonte is obliged to settle in full on the maturity date.
At any time until the Maturity Date, the Noteholder may, at its option, convert the notes, partially or wholly, into an amount of ordinary shares up to the total amount outstanding under the Convertible Note divided by the Conversion Price. The Conversion Price is 125% of the Subscription Price of 0.07 pence converted to US$ at a rate of 1.3493. The Conversion Price is therefore $0.11806.
The convertible loan is a hybrid financial instrument, whereby a debt host liability component and an embedded derivative liability component was determined at initial recognition. As the convertible loan notes was issued close to the quarter end date, the fair value of the financial instrument approximates the cash received.
After the fifth anniversary of the closing date, Horizonte shall have a one-time right to redeem the Convertible Notes, in whole, at 105% of the par value plus accrued and unpaid interest in cash if:
The thirty-business day VWAP of Horizonte shares exceeds 200% of the Conversion Price and the average daily liquidity of the Company’s shares (across all relevant exchanges) exceeds US$2.5 million per trading day over the prior 30 trading days; or
There is a change of control.
Management have assessed the likelihood of the above events occurring is highly improbable and thus the value of the redemption right is immaterial and was thus not considered in the valuation of the instrument.
You might as well ask for next week's euro millions lottery numbers while you're at it.
I think hzm will be too difficult to buy with the 3 main share holders owning 51%.
If nickel is $30,000t as per BOA expectations I can't see anyone willing to pay a premium for ESG credentials.
I think the risk with Vermelho is too great to go down the HPAL route having read about the problems Vale have had with Goro.
I don't see the point in banging on about ESG credentials as Glencore are buying everything HZM produces for the first 10 years.
What HZM will produce is a drop in the ocean to what the rest of the world produces, 29,000t is a tiny part of the market.
The Bank of America expecting EBITDA $200-250m does anyone have any realistic dividend expectations?
Orion didn't average down, bit odd I think. Maybe they are confident on making money at 1.40p.
I think Glencore have 47m?
GLR has 4.6m in cash and a mcap of £17m, how can you seriously compare it with HZM?
Capex for V must be over a billion now?
5p in old money, before the 1 share for every 20 was done.
Lme nickel stocks keep on falling, and the nickel price is also going down slowly. Not sure why nickel isn't going up in price?
I thought it was construction ready when Vale were going to build it? They even ordered some of the plant which then went to another mine.
Can't see the DFS making any difference to the share price. Look at the current situation, money raised, mine in construction, nickel at $22k and we are still at 5p, no change since 2017.
La Mancha 37,956,438 19.93%
Orion Resource Partners 28,292,291 14.86%
Glencore 18,662,914 9.80%
Hargreaves Lansdown, stockbrokers (EO)13,875,139 7.29%
Canaccord Genuity Wealth Management (Inst)13,660,785 7.17%
Interactive Investor (EO)10,427,767 5.48%
Condire Investors 6,283,171 3.30%
Glencore have 9.8%
Teck 0%
Can't see Teck making an offer. I'd like things to stay as they are and for Hzm to pay a divi once producing 28k of nickel.
Yes but to get the best possible price you want to build your 30% position when the share price is low. I can't see Glencore making a cash offer for 90% of the outstanding shares. I'm surprised Glencore haven't increased its position now.