Member Info for jdt1990

Oh well….no shock a stupidly discounted placing arrives. That’s a 33% discount which was always going to happen when they announced the company was running on fumes.
When you’re 90% down already a 30% drop is less painful haha.
Warrants attached too so it’s even further dilutive. Pound after pound of value in the solar project being diluted away.
Congrats Hanno - who didn’t even take part in the placing. He is one hell of a crook!

Can’t see it being positive whatever plan they come up with. I personally think they are using Akrokeri to distract from the farcical progress at the Homase operation.
Throwing in a few okay drill results when they can’t even economically extract gold at their current operation just shows everything is a bit of a pipe dream and they like to think they can run but can barely crawl never mind walk at the moment.
20k to 14k to sneakily hiding a drop to 7k production target in 2022 is a complete joke!

Yes key point Harchris. Also noting There’s 19.8m in “financial” trade and other receivables as of end June which are classed as current, so due in 15-90 days.
There’s also 44m in inventories, so if demand is there, nothing to say some of that could be used to front run any production shortfall if the load shedding continues.
They just need to get that net debt number down IMO to remove the “headline” shock it causes for people reading the financial statements.
Remove the uncertainties around Orion CLN and production consistency and BMN are on a better track.
Add in BE carve out, VRFB wider uptake globally and hopefully a stronger SP(caveat the last two of these are not a given) and it’s another strong leg up in the business turning things around.
A long way to go but there is light

The Orion CLN debt is chunky no doubt about it. However, when you look at the loss after tax for H12022 of 3.2m that includes depreciation of 9.5m.
So there is cash being generated, and with the major capex out of the way that will most likely be earmarked to pay off debt.
If they can keep production up and V prices stay stable, with the electrolyte plant coming online H1 2023 you can see some light at the end of the tunnel.
Net debt of 74m is no doubt a huge reason for the drag on the SP, so Bushveld and FM now need to prove those funds have been put to good use and the output of that is sufficient enough to start reducing that.
Hopefully some strong H2 numbers will bolster the cash balances!

We’ll as I said….the BOD are full of sh*t and take us all for mugs. Not a peep from them despite and update due in “a few weeks” over a month ago.
Joke!

Tend to agree that the delays in FS isn’t NCM games. It’s in everyone’s best interests to get Havieron into production.
The 5% and funding now out of the way and SD has well and truly stood up to SB who knows the quality of company he is dealing with in GGP.
IMO the fact they state maximising value for the delay actually confirms just how good this last set of drill results are. They have caused NCM to revisit the FS!

Disagree Rover. They explicitly said they have the drill results from the third Homase pit. Why would you tell shareholders, especially when you have form of not delivering on time (and been called out for it) that details would be given in a timeframe, to then miss your own bloody deadline!
The comms of this business are terrible and frankly insulting to PIs.
Yes they’ve done well to become producers but they hide failure after failure in their wider reports rather than coming clean.
CAse in point being at the AGM Bill Trew explicitly said 14koz was still on track for 2022 production. To then sneakily hide a drop to 7koz in the interims (all this from 20koz earlier in the year).
It’s shambolic

Stated in the interims 3 weeks ago....and of course nothing materialised form the company.

"GoldStone continues to focus on resource expansion, and subsequent conversion to mineable resources requiring additional geotechnical drilling which has been undertaken within the first two pits, which subject to the results and subsequent permitting, The results from the geotechnical drilling have been received from ALS Certified Laboratory and analysis and modelling are currently being undertaken and will be announced shortly by the Company."

"GoldStone has also undertaken grade control drilling for the third pit within the Homase Mine to determine the pit planning and to potentially expand the mineable resource inventory. The results of the drilling have been received and the modelling of this third pit is currently underway a press release on this will follow in the next few weeks."

Comms really are pi*s poor!

Coal at $390 per tonne currently would make this a very attractive resource for a miner….have to agree at £4m mcap any deal here would see significant upside.
As with everything NCCL though, this is reliant on them actually getting something over the line!

Fully agree PL75. I reckon some desk jockey has got wind of a placing without any context of the wider deal. Equity raise facilitates the CB which was to buy a profitable business. The cretins didn’t expect that but IMO.
Funded P1b whilst also taking on a profitable business that will provide funds to pay back the principal and interest on the bond. Most importantly, the payback method (cash or shares) is on Avactas terms.
I sincerely hope these bottom feeders have overdone it on leveraged CFD shorts on placing rumour and they get stopped out at maximum pain in the not too distant future.
AS really starting to show he has a plan, ambition and the ability to execute!

Yeah I had a bit of a moment when I first saw the CB monitored but reading the ‘at the company’s option’ in that sentence below gave me full confidence this was astute business from Avacta.
“offering of convertible bonds of £55 million in aggregate principal amount with an issue price of 95 per cent. of the principal amount (resulting in gross cash proceeds of £52.25m) to be issued by its wholly-owned subsidiary Addition Finance (Jersey) Limited, with 6.5 per cent. per annum coupon (payable quarterly in cash or shares at the Company's option) and an initial 25 per cent. conversion premium to the Offer Price, with a 5 year term (the "Convertible Bonds" and the "Convertible Bond Offering").”

amg97 I’m pretty confident that the bond won’t be fully converted to shares so you would expect much less dilution. They’ve bought a revenue generating and profitable business, which from day 1 will provide cash flow.
Over the next 5 years there is no way it would not provide sufficient cash to pay down the bond and interest.
Choice of how to pay is Avactas and simply provides flexibility to hedge against any unforeseen issues/slow growth without impacting the balance sheet which will be needed to fund the main prize AVA6000 and 3996

Agreed Ctw - the expectation of an RNS the day after close date for EOIs is ridiculous. If there had of been an RNS it would be to say “no EOIs received by 30 sept” so in that regard I see it as good news and the BOD are assessing what option(s) on the table are best for the company.

I can see both sides of the argument here but it does just feel a little off to me which is why I sold out at 89p this morning to protect a small amount of profit I still had here. Will be interesting to hear from HZM in this presentation what the rationale for all this is.
Having secured the debt originally, with what was no doubt a buffer for inflationary pressures built in anyway, then you add in the fact a lot of costs are non USD, which with current USD strength only reduces costs. Something doesn't add up. I have a feeling HZM are now becoming a passenger in this journey to production and the big boys are slowly turning the screw.
40% dilution was too much for me to take on the premise this is purely a hedge to withstand "inflation".
The argument I saw earlier of "NPV to Mcap will soon close" needs to factor in any potential further dilution, debt repayment etc etc.
Possibly there is a very valid reason for all this but I would expect if there was, HZM would have been more explicit in the first RNS and not call a meeting at the request of disgruntles shareholders.
Potential here on the projects is significant, I don't argue that. However, it does seem more and more likely the big boys take a further slice of the pie cheaper and cheaper each time until there isn't enough left for anyone else ot really reap the rewards.
Not to mention the fact Jeremy and Co took the most pathetic part in this raise!!

We had better hope they have something up their sleeve with regards to funding. Being a month away from running out of cash is not a good place to be and this statement after your quote CF73 is a little worrying. Currently, this isn't the kind of market you want to be going cap in had asking for funding when you've made it clear you're almost out of cash....
"At present there are no binding agreements in place and there can be no certainty as to the Group's ability to raise additional funding or the terms on which such financing may be available."

Although frustrated....I guess it's only fair to look at some of the positives. Goldstone are producing, and yes a small operating loss but it looks like the gold production process is running at an okay margin given what we knew about the cost of raw materials in Ghana especially the Diesel.
revenue
5,250,298
cost of sales
(3,157,003)

There we go.....production target now stated as a "minimum" of 7000oz. Just cannot catch a break this company.
Terribly communicated as always.
I hope the next few Akrokeri drills are something special and the Homase resource is materially upgraded in the coming weeks from additional drilling. Otherwise its going to be a long old wait for a much needed uplift here!

And they snook in the potential for more funding requirements...FFS!

That’s one way of looking at it but all defaulting does is add an extra couple of percent to the interest accruing, hardly catastrophic.
Would much rather know the reason behind them choosing not to pay this off and extend maturity.
I hope it’s capital preservation for some exciting upcoming work (maybe around Akrokeri?) and not because recovery rates are still **** poor.
Bill Trew at the AGM seemed to suggest 14koz was still the target so I hope we haven’t been lied to here!

CF73 - The solar project is all well and good with some okay economics relative to Mcap.
However, let’s address the elephant in the room, this statement:
“Current cash position provides a working capital runway to the end of October 2022. The Company needs, and intends to secure, additional funding during October 2022, with the Second Tranche being one short term option. Further announcements will be made in relation to funding as required”

200k in the bank, only enough funding for 1 month and an explicit statement of the company “needs” to secure funding over the next 4 weeks. As soon as you say need….that’s alarm bells when Hanno is involved. It’s running on fumes this company and we’re always the ones who take the hit with dilution after dilution!

Was expecting to see interims given they are due by the rules of AIM within 3 months of period end, so where are they?

Even more frustrating, as is always the case with this company is the lack of clarity around why they have extended the loan. Just tell us, or else it looks like you’re hiding something.

Is it low gold production? Apparently at the AGM 14k oz was still achievable this year!
Is it just capital preservation for additional activities? If so, tell us that.

It’s really hard to know how to take this news (given the loan should have been paid off by now per the original schedule). Needs clarity on what gold they have poured to date!