Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Not entirely pointless.We do learn about a second sale (supposedly) to be completed this month
dbh.I hope you are correct because this would be a reasonable outcome
Assuming we now have enough to pay off Atlas one wonders exactly how much more the bank is supposed to be providing and what the money is going to used for, given that the main purpose of the facility was supposed to be paying off Atlas and we can now achieve this in any event.
Exactly what I was thinking Pecten. Would not be the first time that promised finance failed to materialise.
So if the deal is actually turned down on the 16th we have cash in hand to pay Atlas.Don,t know the exact figures but perhaps even enough to pay them off.Is the possibility of the facility being turned down the reason why the placement has occurred today? It could have occurred afterwards and might have been more palatable to shareholders,assuming of course the terms agreed with the bank for the financing are very positive for the Company.
I think there is more to it .He was a regular poster on the HZM board and stopped posting there at the same time as here. So has he just given up posting or is there another more unfortunate for him and his family explanation?I hope not
Crude analogy of course but I was reading about the crusades and I thought about the lot of the humble soldiers .Day after day of trudging along until one day finally thrust in to combat.Suddenly intense activity and survival dependent on a combination of skill and luck.We are currently well in to the trudging stage but not sure when the battle will occur but when it does , fortunately it will only be the fate of our finances which will depend upon how we will perform.Will we sell all ,sell some ,buy more,listen to the inevitable rampers and derampers or simply ignore all around us and rely on our own skill. We know this"excitement "awaits us but when.Our leaders know more about the likely plans but we foot soldiers are left in the dark. So we trudge on .
TDT. Unless I have missed it, you do not appear to have commented on the events of last week and in particular the updated mine plan etc.As the last of our three most respected contributors ( RL and Vertigo having for whatever reason ceased posting) I for one would very much appreciate your assessment.
My hope is following shortly after the EL there will be positive news about the extraction of oil from the existing well and subject of course to covid consequences, drilling plans for next year. They have had over a year to plan and hopefully line up contractors,finance arrangements etc.Perhaps there is the odd NDA in place. Are Petro China involved? We will see
One of the purposes of the Presentation and Q and A Session is stated to be to assist with voting at the AGM but looking at the resolutions I cannot see anything there which is sufficiently contentious to justify the Presentation taking place 2 weeks in advance of the AGM .So the other reason given must apply ie to have the Presentation and Q and A session because Q and A cannot take place at the AGM as normal.But why 2 weeks in advance?.If the TEO issue is anticipated before the AGM surely we would not be having the event tomorrow.So,for what it is worth I anticipate that the TEO will not be issued before the AGM and this will be confirmed tomorrow
I keep pondering the decision not to take part in the fund raise.Adam made a lot of our potential to receive income of up to $100m or thereabouts when phase 2 is up and running. Having not participated in the raise this has reduced by about 25% .It would be helpful to know the extent that we benefit from the $10m investment. All we have been told is that NRR will reach profitably earlier but is the result of this an advancement of funding so that phase 2 happens earlier which will give us an earlier right to dividends once we convert? That would certainly be a benefit.Ideally I would like to have details of the funding plan which must be known to Adam as he now sits on the NRR board.
The reason given for not participating was to preserve our funds for KM but was there the option of another placement to restore those funds and maintain our 19% entitlement? Maybe Adam felt that further dilution would not be acceptable to shareholders.I suppose I would like to have seen us "chip in something" by way of support for the raise and to give us a little more than a 13.4 % entitlement but in the absence of all available information at the time the decision was made this is in no way an informed view.
The main comfort I take from the latest development is that the "certain shareholders" who put in $10m must surely have been able to raise the near $5m for which we acquired our interest in NRR and as already mooted surely they they must be confident of receiving something in return in connection with the future development of KM.If not,apart from the fact that we bring Adam with us,what do they gain?
Conversion is unlikely to take place until such time as a dividend will be paid at a level which will give us more income than we are receiving at present.When this will be depends upon the extent that profits are kept in the business to help finance phase 2. This may not be until phase 2 is actually in operation and the full income potential of NRR is realised.
Sorry.Fingers slipped.Meant to go onto say that I hope they are leaving us with enough to cover operating costs.As to Atlas we know what they are owed and supposedly have in reserve $780 000 from the June fund raise to settle up with Atlas if they elect to convert 10% of what they are owed.Should they do this they can convert a further 10% the next month and so on.In case this happens the debt facility is needed asap.Having said this they have had the right to convert for 3 months and have not elected to do this so maybe they will just let it run
So at present we are indebted to both Companies. Mercuria have been patient and are relying on repayment out of production at this stage,based on the offtake agreement.What we don't know as far as I am aware is how much of the monthly sales will be creamed off by Mercuria to reduce the debt.
Surely exactly how far we are behind HZM also depends on how long it will take us to obtain finance,which I assume will be after we have the BFS. In the case of HZM their BFS was issued almost 2 years ago and they are still waiting for the financial package to be finalised. In my ignorance I assumed that release of the BFS would lead to financing being arranged within a matter of months not years .Perhaps there will be more appetite to fund our mine with the landscape re future nickel requirements having changed.I certainly hope so.
TDT. I have never associated the term "dumb" with you, so the only conclusion is that I am being opaque. I was just intending to make the point that if we do see an sp rise for any reason, then as things stand at present we may not have the drag of an institutional investor selling out,which occurred when HZM spiked to 6p after the Orion deal was announced.