Member Info for JulianM

Hi Speedy. I fully agree with you but will it happen? A year or five and I suppose we should know.

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.

I fully agree TDT

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.

As the maximum production is entirely dependent on the construction of the flotation plant etc it will not be a case of gradual increase but more a leap when the plant is up and running

Encouraging sp rise and volume.Perhaps Plena will convert their remaining warrants and for all we know they could already be in the course of forward selling prior to conversion.

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.

Is that not self evident TDT?

When looking at the HZM SP and wondering about the extent that the AMC SP is likely to mirror it in the future, we should bear in mind that over a period of time and for various reasons three institutional investors sold out and this was a massive drag on the sp. When I first invested in HZM I was influenced by their claims that they had "strong institutional support" which indeed they did and in all fairness still do but this looked even better than it does now until three of them sold.

I am trying to understand the project.Looking at the NRR website under the heading "Development Plan" there is mention of stage 1 involving up to 5 years direct shipping of ore at a grade of 60% fe. We then have stage 2 where a concentrate is produced at an average grade of 62% fe having spent at the 2010 estimate over 1 billion dollars to build the flotation plant etc. Am I fight in assuming that construction of the plant is mandatory because after 5 years or thereabouts the ore grade available is such as to be uneconomical for direct shipping and is dependent on processing to a concentrate? This being the case there will not be a steady ramp up to 5mtpa because this level of production is dependent on the flotation plant being in operation.

Thanks CT. So in excess of 1 billion dollars at 2010 prices. More than my wildest guess would have been so a fair amount to borrow and repay.

I think it was CT who made the point that for the next year or two there may not be much in way of dividend income because profits are likely to be utilised to fund stage 2 .Looking at the NRR website it would appear that costings for stage 2 have yet to be finalised. Would anyone like to hazard a guess as to what the cost of the flotation plant and everything else required for stage 2 is likely to be? Also perhaps funding come from sources other than income eg revised offtake arrangements if the current offtake Agreement does not extend to all future production?

Ah, Kristiansand. Very interesting .Thanks TDT.

As British Marine own NRR I suppose that an alternative title for this thread could be "Reason for the deal from British Marine point of view " and perhaps in his 14.29 post of yesterday TDT gives the answer. If correct does this not suggest that Glencore plan to ship at least some of the matte overseas and not overland eg to China or Korea?If so to where I wonder.

Would have been even better if they had taken up some of the Placing shares .

Like you CBS I will have to defer to more savvy followers as to how good a deal this is but I suppose the short term direction of the sp will be dictated by who has taken up the placement shares and what they decide to do with them.

I think that all transactions around 2.08p are purchases. I say this because one is mine, made in the hope we have reached the bottom of this drift back down.