Member Info for jazzyjim

"The difference is that HS2 would take public money, whereas SXX only needs underwriting - which won't cost the UK a penny, except in the extremely unlikely event that the project fails.
Right now, the only significant risk of failure is the finance, so if the underwrite resolved the finance, the risk of failure becomes incredibly low.
It's therefore a safe bet for Government; they get a win of securing jobs and lowering trade deficit, while not risking much at all"

Even if the project fails by that stage the mine would be worth more than the debt so they still would not lose. The 500 mill plus the other money that would be released will ensure the asset is worth more than the debt surely.

Would this type of bond give first call on the assets if it did go pear shaped later or is it still Gina.

Gina's investment is secured on the assets so basically she will own most of the mine if there is no other funding found. Won't be much left for shareholders in this scenario.

If producing 2000 bopd that 35% will give 7 mill profit per year. Not to mention the 50% already owned. What will the MCAP be then?

YorkshireLife
"You may be on to something there... only has anyone considered that a dilution and share placing might have "already" been done... instead of Bonds... hence the "significant' drop today - and within a short space of time this will be reported via RNS?
Maybe 10p or thereabouts was the placing price and will underscore the bottom and enable the company to now move forward with all necessary funding in place?"

At this point in time I would take that scenario. Maybe I am just getting desperate and don't care how they get some cash, as long as they can carry on, that is the main thing.

"You don't take on 15 new apprenti es if you are not pretty certain you will still be in business in 15 days time"

They will 100% be in business in 15 days time and beyond. It is more about how much will be owned by existing shareholders.

Anyone know if this bond sale is all or nothing event. If they sell 400 million say what happens then. Can any shortfall be made up with say more shares released.

What was the proposed timeline for getting this started? Is todays RNS an indication that the timeline may be reduced?

"It will be an interesting day on this board if ST2 funding fails for some reason"

Don't think it will fail but it could be delayed further. Anyone know how long our current cash will last for?

Yes Andy, the $250 mill is secured on the assets so if the St2 finance cannot be obtained she will get the mine for a fraction of what was spent on it. I am sure she would have no problem getting finance to finish it then. From the RNS
The royalty component of the MRD entitles Hancock to a five per cent royalty on gross revenues from the Project payable on the first 13 Mtpa of production and one per cent on revenue from volumes thereafter ("Royalty"). The Royalty is secured over the assets of the Project, with such security to be fully subordinated to the stage 2 financing senior debt security once established

Hi, I am assuming that the method of raising the 400 -600m would have to be sorted first before the banks commit. Is that correct?

"The US$50 million equity component of the MRD will be provided once stage 2 financing commitments are obtained to fully fund the initial 10 Mtpa development"

So they are only providing the 50 mill once stage 2 is obtained. Nice no risk investment there when you can get 200 mill shares for 20p each at that point.

And in the unlikely event SXX do not get the financing and the whole project goes pear shaped she gets the assets where 900mill has been spent for her 250 mill. I am sure at this point she could then get the financing to complete. Looks like a win win situation.

"well wouldn't it be good to see the price rise into the "Bond Auto Range Retrieve & Annul" zone"

Hi all, could anyone explain what exactly happens with this process. Are all the bonds automatically converted and shares issued?

Hi all, pretty quiet here but was looking at RPT after the recent reserves update and rise there. It looks to me like the reserves here are similar to the updated RPT reserves but UEN has a much smaller market cap. Am I missing something (I know RPT has a lot of cash in the bank but even so it doesn't explain it).

56 mill shares is a large proportion of shares in issue. How many have been forward sold into the rise and how many left to sell? What is the normal strategy of the loan company, do they go short at this point and sell to drive the price down.

heedtheball
As far as dividends go, I am expecting none for the first few years, then maybe 5p at 10 mt and 10p or slightly more at 20 mt. Not sure how long it will take to get to the 20 mt production though.

Move along. Are the BOD still considering their options? That shouldn't take long when your options are pretty limited. Still waiting for an explanation as to why our expensive asset is sitting adding no value while there is nothing else going on. We paid a huge price in sp collapse already and there is the conversions to come. Vonk are you still around?? Time to make a move.

Yes only 500k left this quarter from loan but what about the 600 mill shares from the placing. Don't forget we are getting double teamed here. Bit more difficult to judge when they will be selling though.

They have no interest in the company. They only care about making a quick profit. Like getting 65 mill shares at 1.1p and currently busy selling them to us at 1.65p.Nice profit and minimal risk. Good deal if you can get it. Unfortunately us mugs can't.

I would suspect that the level of TorPs required to satisfy the banks and the level to satisfy the government guarantee would probably be quite similar. The gov never want it to be used after all. The 6-7 mt probably is needed to pay interest plus a good bit of contingency. 4.7 mt most likely would not be enough to satisfy the banks or the gov guarantee. At this point getting the proven demand is everything.