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Nickel is another Gold because of massive consumption in EVs, upside potential is massive and lower side is clampdown after sanctions on Russian Nickel which has crucial input 6% to 40%. Now at HZM, total debt $418, and $500 to $700m already spent on Araguia, and Vermehllo is funded upto feasibility study and more. How come BoDs has excluded shareholders from any out come conveniently? Even if assets are sold at $500m , that generates 30p for shareholders after paying all creditors. IMO, projects value is above $1.2B, after all maths, a hefty returns for shareholders, of course on fair play.
Language,. “The Company does not believe that any of these options are likely to recover any value for the Company's shareholders”. If they were sure, these options are definitely not going to generate any value for shareholders, It would have been like this. These options are unlikely or very unlikely to recover. Likely is giving positive connotation and perfectly coherent with fundamentals.
There is definitely value for shareholders provided fairlplay in asset sale/ liquidation. Resource is intact and already $500-700m spent on the project. NPV is always calculated on industry average, 14k per or 16k per tonne, spot nickel is way high and likely to rise
Emerging scenario, they will try to raise cash from subsidries or sell Aguira, $733n spent on Ag, aleast it should be sold $700m, and $300 should be distributed to shareholders. And Vermello can be developed later on
418m debt, some one mentioned here 150m is not drawn yet, so net debt 268m, if Co goes into admin interest payments will disappear. £258m spent by shareholders. Funny enough, BoDs is only talking about Aguira, not Vermello, and RNS says, no recovery for shareholders
Nickel once went through the roof on LME, mainly Geopolitical risk from Russia, even if Sponge Bob wins the White House, Russia will remain and is a challenge. In a step by step approach, Industrialised Countries will stop buying Premium Nickel from Russia, India is not that big consumer and China already tied up Indonesia. On internal front, La Mancha is aligned with shareholders, assets disposal can generate value for shareholders.
Total funding package so far secured is $700m, equity raise+bond holders+banks, some of credit facility is undrawn. In recent RNS, ctc is increased but how much more they need? Around $250m shareholders funds, anyone interested should pay $250m and take it private. Metals will rise again like nickel and palladium especially