Adam Davidson, CEO of Trident Royalties, discusses offtake milestones and catalysts to boost FY24. Watch the video here.
I may be wrong, but it’s strange that they have literally 3 days to confirm if the waivers are extended to April or not.
The language used sounded more hard to the senior lenders than PI’s..
AIM reality Unfortunately
Since the pandemic I’ve got the following posture:
Small caps at LSE only the 20k ISA.
Rest of savings NYSE small caps, sometimes goes wrong too, but at least it has volume and SEC.. LSE has none of it..
Araguaia Niquel Metais Ltda (Brazilian Co owned by HMZ. Following link is the report from Brazilian CNPJ (tax number, companies house):
https://cnpj.biz/97515035000103
Hi,
The Brazilian Court Injunction has been granted to Araguaia Níquel Metais Ltda (Brazilian Ltd). The RNS mentioned HMZ (London) may have to apply for something similar in the UK, should another extension or a funding solution is not agreed.
Something interesting is the following:
- all permits and licensing in Brazil has been granted to a ltd Co.
- in Brazil, a LTD’s Co stockholder is liable to tax, financial, and other debts, which differs from the UK, where the stockholders does not heritage the liabilities from a Ltd Co that goes bankrupt, into adm.
I find it interesting because in practical terms, it means HMZ (London) doesn’t own any assets in Araguaia/Vermelho, it owns ANM ltda, which in turn, is now under legal protection. Having said that, I believe that going into adm or bankruptcy, there is no assets to be claimed from senior lenders on HMZ (London).
Can someone share some thoughts please?
On simplewallstreet the data is not updated since October 2023. Since that, the following sh has been added:
Hargreaves Lansdowne, stockbrokers (EO) 7.07%
Interactive Investors 4.81%
HSBC Private Bank 4.5%
azValor Asset Management 3.2% (it was 2.9% oct24)
So, could we assume/speculate that those above where quite informed about the mine since they bought after Oct24?
Hi Strow,
3% of the area is designated as Permanent Protection. https://horizonteminerals.com/br/pt/meio_ambiente/
Also, even if the majority of the project is in pasture lands, the Co got into a compromise with different State and Federal installations in order to replant native species, monitoring the rivers, waist and só on. All permits has been granted assuming the Co would follow a strict management of the area, build roads, etc, in a specific timeframe.
What I’m trying to say is once the Co goes into adm or runout of cash, none of these will be done. Additionally, the Brazilian system means a Co doesn’t have one institution or Ministry to deal with, it’s a maze.
I lived there 20 years, believe me, any major changes to the original timeframe, layout, structure, will lead to an endless legal nightmare, very costly. I believe the major stockholders are aware of that. Basically, if they decide to go into adm, there is no asset for one of them to buy for pennies.
Co going for sale is nonsense. There is nothing to buy, to sell. The only asset is the permits, from approximately 20 different institutions (local, state, federal), no land belongs to AMNL, no machinery on site, and the project is siting in rainforest area, so any more delays the all thing will have only liabilities.
All licensing and permits are hold by a Brazilian Limited Co: AMNL, Horizonte Minerals in London is just a guarantor.
Golden rule doing business in South America, specially in Brazil: stay away from the courts.
If AMNL goes into adm, it may take 3/4 years in court, even a truck driver will be able to disrupt any judicial process, and the courts allow multiple jurisdictions accepting different complaints simultaneously.
No assets for sale in adm, only liabilities.
If a new player want to pick-up the pieces, closing down AMNL, he will have to, most likely, to apply and carry out new environmental studies. In this case, any new Limited Co may be called in court to assume the liabilities from the previous Co.
Unlikely they will ask another 30 days interest waiver extension. All involved already have the info needed, the weather in the Amazon forest also means they cannot work all year around. For good or bad I believe we will know before the end of the month.
Hi Strow,
Can you check this news on Bnamericas website from 07/02/24:
Australian miner Centaurus Metals received the preliminary license (LP) of its Jaguar nickel sulfide project in Brazil’s Pará state.
The license was issued by Pará state environmental agency Semas.
"As a result of receiving the LP, the company can now commence the next stage of the environmental approval process, which begins with lodgement of the installation license (LI) application – in the form of a document called the environmental control plan (PCA) – with the environmental agency. The PCA should be lodged later this month," Centaurus said in a statement…
Hi Gordon,
It may be the case when they are dealing with small projects, local authorities, but in this case, with so many institutions involved.. Brazil is federal state, local, state, and federal environmental agencies. Not counting that mining licensing takes multi Ministerial Assessments. The flexibility you mentioned (envelope), would also put the stakeholders in a very fragile area, if they were to try that way. Once they open that door, it can go anywhere.
I’m following this chat room for a while and would like to ad something about the Brazilian Law.
One of the main arguments for scaring investors is related to the Co going into adm, bankruptcy.
That option is not so easy to the main shareholders, because according to the Brazilian Law, several licenses, like environmental , local, state, federal, have been given to an entity (Horizonte Minerals), and if that entity ceases to exist or becomes financially unable to conclude the different execution steps on the project, there is a real risk of going back to the planning phase from scratch. Which means that an important part of the asset (licensing, permits, environmental studies presented to obtain those) may become invalid. The thing with South America, and Brazilian Laws in particular, are they are so complex that any move to cease HM as a viable entity may incurs finishing off the multiple licensing processes so far obtained.
Disgraceful this turnaround... considering most of the investors had expectations Mr Biles would be reinstating dividends by now..
APD
No idea but one thing starts making sense, in the current situation reinstating dividends became secondary, I doubt mr biles will pay any attention to it.
Hi everyone,
I currently hold 104.000 shares and was on it on the long run but I have to admit that this board doesn’t have any consideration for the retail investors that believed in the company and act simply as a Mr Biles private company.
I’m not a professional, does anyone knows if a bunch of retail investors could get together and seek some sort of representation in the company in order to be heard?
Thanks
Luis