Member Info for KnockinOnHeavens

SL,

"Given your stance on Gina's royalty deal, "reasonable" or not I'm surprised that you would support another one"

I specifically said "reasonably drafted royalty agreement", Gina's is clearly not. Reasonable one (e.g. limited to a certain amount of years rather than "infinite" one...) - why not?

In terms of praying, I truly hope you won't be using Lord's name when you read the next RNS :)

Regrads
KOH

Of course, I never claimed that "no mine" would ever be better than "diluted mine" and will always pick "bad" over "worse than bad"....

However it's equally important to highlight the negative effect of that necessary evil and call it by its name.instead of naively praise the alleged positives, let alone claiming that "it matters not in the long term" as some of the bright minds did today ...lol

Night night, boys. Big week ahead of us.

KOH

Captain Marvel,

Read what I wrote in response to SL post. Hopefully it's not beyond your cognitive abilities.

KOH

"but what about the derisked effect and the capital gain"

Sure, SL. I think we should clarify something here:

If the company is up against the wall and the ONLY solution available in order to successfully complete the project is to introduce billions of shares then yes - at the end of the day "diluted" mine is better than no mine.

However, if we are talking it broad terms of what's good and what's bad in general, we can't really say that that introducing tons of equity is "good". Yes, it's good from the company's perspective because as you stated reduces debt levels, interest levels and have all those lovely effects on the company's future balance sheet.....Of course it does, it's a "free" money, share holders pay for it. No interest expense in P/L, no hassle - easy.

From the the shareholders point of view however it means lower SP, lower Div/share, lower future returns and no guarantee of future buyback and that's never good. Especially in Sirius case, it's not like in case of some companies where the money from new equity is used to support an expansion and future growth that would translate to increased share of the future market that would in turn mean higher future ernings & SP.....
Sirius won't expand further, grow or be any bigger than planned thank to that equity rise - it will just built facilities that will allow it to operate as planned.

Hope this make sense.

KOH

Ok Captain Marvel,

1) More debt. In any form.
2) Reasonably drafted (I repeat "reasonably") royalty agreement.
3) Dilution (only if everything else fails)

That's how you really preserve shareholders value long term. Not by diluting one's holding for the next 100years for the sake of raising a few hundred millions today.

It's a no brainer, this will generate so much cash in the future it could support even bigger debt than needed. Sirius will easily pay it off in a relatively short period of time anyway.

The alternative would be to introduce a new equity today but with a some sort of guarantee of share buybacks in X years time. That could raise the necessary funds today giving some sort of assurance and something to look forward to for the long term holders. I'm not sure it deals like could be made but it would make sense.

No need to dilute our holdings for the next century without any guarantee of future buybacks and introduce billions of shares at 20p or so....

As stated before let not pretend it doesn't make any difference, it makes a huge one to both, future SP and future Div/share.

KOH

Haha, another preacher of "tremendous value" of new equity rise"...:)

"
2) Less debt
3) Fewer liabilities
4) A stronger balance sheet
5) An increased asset value
6) A greater ongoing financial robustness
7) An increased shock resistance
8) An earlier dividend
9) A superior future investment proposition
10) A derisked share price
11) A reduction of PI free float
12) Probity for additional contingency requirement funding
13) Unconditional funds (no lien against assets) "

Yes, and YOU are going to pay for every single one of those :)

LOL

KOH

"Debt equity mix as a sensible mix, it matters not in the long term. this is colossal"

Of course it does. It is "colossal" vs diluted colossal, we will pay for it dearly in the long run.
Let's not comfort each other acting as if it didn't make any difference:).

Just saying.

Regards
KOH

A footage of the mine is West Sahara,

Far from great quality but you can see the elements of the infrastructure + belt itself (last 40sec)

https://www.youtube.com/watch?v=sYXokyXwpGw

"Multiple runs of independently powered belts (to accommodate initiation torque and take-up) would be my guess"

Yes definitely, logically it will have to be made of multiple small and preferably uniform elements that will be easy to transport / replace in underground conditions.

"We will have to be patient with regard to stage 2 and the extra funding - Bankers, Government departments and Lawyers work at their own speed"

Yup, City boys are probably just coming back this weekend after the Christmas in Caribbean.. :)

And obviously If the quarterly update is delayed we are likely to experience a little panic as the days go by, sometimes bad news are better than no news.....

Hopefully that won't be the case and all Sirius addicts will receive the long-awaited injection of certainty....:)

GLA
KOH

As per RNS 19/01/2017:

"Going forward the Company will provide general development and construction updates to the market on a quarterly basis. These will be in addition to updates on key Project milestones, as they occur. In addition, the Company will regularly update its investor presentation, other content on its website (www.siriusminerals.com) and social media channels, as the Project develops"

Looks like the quarterly RNS updates were introduced by the company in an attempt to increase transparency and assist a better flow of information between company and the rest of stakeholders. I don't think that particular "quarterly" format is obligatory but certainly companies are obliged to disclose any information that can be considered "price sensitive".......

The whole chapter about "Disclosure obligations" if you are bored on Friday evening:

https://uk.practicallaw.thomsonreuters.com/6-101-7488?transitionType=Default&contextData=(sc.Default)&firstPage=true&comp=pluk&bhcp=1

Oh, definitely Stanley67

Bless him for all of his abundant contributions! :)

KOH

Myo,

Out of curiosity - do you have some sort of notifications set up on all those pages or do you keep checking them every day like crazy?

You seem to have a very good reaction time when it comes to various news posted on different sites and i'm not only taking about youtube, twitter but also less popular ones showing planning permissions etc

The video was published an hour ago.

KOH

P4R,

lol

Fair enough Jesse11,

I should be more precise by saying: "The deepest sections will burrow almost 1,150ft and at an average depth of over 800ft below the ground"

Thanks
KOH

"Cycling or even better walking 23miles gives persepective on the true size of this project"

Still can't quite see the logical link to to excavation of 23 mile underground mineral transportation system. Could you elaborate further?

Thanks
KOH

"try cycling 23miles, it is miles"

Could you elaborate further on common denominators other than number "23" logically linking the act of cycling for 23 miles to excavation of 23 mile underground mineral transportation system 1,150ft beneath Yorkshire Moors?

Thanks
KOH

Thanks Speedy

Dilution - decreases share value / decreases dividends / increases no of shares
Consolidation - decreases no of shares & increases share price
Share buyback - reverses dilution

Regards
KOH