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I see my favourite Captain Kirk fan is here spouting his usual nonsense and predicting 5p. Excellent news! Last time I encountered this waste of space was on the AAU board and it triple-bagged from there. Keep it coming Noel (filtered again).
Hi bankrupty, I listened twice before writing my posts and to a Proactive interview Vince gave to Andrew Scott a year ago plus I listened to the Q&A.
Also read the recent Financials, the ASX prospectus and the funding RNS.
Weight of evidence and all that.
Cheers, Ash
You’re welcome
Hi Bankrupty, Neil states that PLL are keen to expand and would contribute 50% to exploration of any new assets, but he's referring to the CCLP assets in Ghana.
Think about how this will be structured once mine construction is complete and PLL earn-in to their 50%. At present the Ghana tenements (the CCLP assets) are held by individual companies, which are subsidiaries of 3 companies registered in Singapore (presumably for tax efficiency) and these in turn are 100% owned by ALL ("topco"). I suspect this will be simplified by creating a JV company somewhere below ALL and PLL will then take 50% ownership of this and profit will be shared equally with further exploration costs borne by the JV.
Just to clarify a few other issues as I see them. ALL will presumably account for it's 50% share of the JV profit and net assets and any direct expenses such as Directors' fees will then be deducted to arrive at it's reported profit.
There have also been questions regarding the value to ALL of Ewoyaa per the PFS. The PFS values are at project level only and future revenues and costs will be shared by the JV.
Also, any investment by the MIIF will be in ALL and not in the JV (from the VSA Capital interview).
Lastly, and I could be wrong about this, but assuming we are talking about a JV structure, once PLL earn in to their 50% share, it seems pointless to talk about benefits to PLL or ALL for the 50% off-take to be allocated to PLL or the remaining 50% as the revenues and costs of the JV will be shared. The key thing is that until construction is complete and PLL earn in to 50% of the JV, ALL have control of the process and the project so it is within their remit to agree any off-take agreements for the remaining 50% and derive any funding benefit to help cover their share of any additional capital costs for construction of the mine.
Cheers, Ash
Re the VSA Capital interview with Neil Herbert, he does not state that the Ivory Coast tenements are "included" in the agreement with Piedmont. What he says is that they are "covered" in the agreement. Everything I have read or heard, including interviews with Vince following the funding announcement and the more recent Q&A with Neil, Len & Amanda clearly state that these continue to be held 100% by Atlantic and do not form part of the Cape Coast Lithium Project, which is subject to the agreement with Piedmont.
If you are unsure I suggest you go back and listen to some of these. Hope that helps.
Ash
From the Chairman’s statement:
“Regarding the timetable and funding, I am happy to report that several US, as well as other investors, have expressed interest in participating in a debt instrument to fund the entire capital expenditure needed to put the Empire open-pit mine into production. At $4/lb copper (the price has recently been as high as $5/lb), our current preliminary economic assessment model shows revenues in the first 12 months of production of over $100 million, significantly higher than our estimates for pre-production capital expenditure. This should enable us to keep our promise of getting into production without issuing further equity. Further announcements on this will be made in due course.”
Bring it on.
Hi ShearClass, I’m sure that most shareholders are not unduly worried about the future of Atlantic Lithium. I wouldn’t be sat on 500k shares, if I was, although that might be quite modest compared to many shareholders who have been here for up to six years.
However, I do think the potential of Zaranou and the other gold assets have huge potential and I would like to have 125k shares in Ricca Resources, ideally in the same tax wrapper that I currently hold my IRR shares.
Apologies, if that doesn’t sit well with you.
Cheers, Ash
Hi cdm, that sounds good. Just wondered, however, whether ownership of the shares then sits outside the tax wrapper and whether this actually allowed, if the IRR shares are in a SIPP that is not in drawdown.
My understanding is that an in specie distribution might trigger a CGT liability based on market value, which is fine, if you remain below your annual CGT exemption.
A bit more research on ISA or SIPP transfers has confirmed that it is possible to transfer in specie from the HL platform to another and remain invested (not something that was mentioned yesterday by HL) rather than the shares being sold and the cash transferred. I don’t think I had this option when I transferred from Co-funds to HL because of the funds I was invested in.
Only downside with this type of transfer is a suggestion from AJ Bell that it could take up to 6 weeks so you need to get moving, if you want to do it this way.
Cheers, Ash
Hi Teddy, I had a response on my questions from Andrew Gill at HL. The only question I didn’t ask was whether this scenario was specific to HL or a general rule on overseas listed companies.
I have also contacted IRR through their website this evening, explaining the situation, and inviting them to comment.
You never know….
Gut feeling is that if switching platforms requires all holdings to be sold so the cash can be transferred and then reinvested, if the timing is wrong, the cost of doing so could outweigh the initial lost profit opportunity.
Every man for himself on this one, I guess….
Cheers, Ash
Hi swest, no idea yet how it would work. I assume you have to transfer your whole ISA or SIPP.
When I transferred SIPP funds from Co-funds to HL last year, everything was supposed to be sold at prices within 3 days of the request date, before the cash was transferred. Co-funds tried to tuck me up by using a different date and I had to get help from HL to confirm the date they sent the request. Ended up getting another £4K from Co-funds! I then reinvested the funds in the HL SIPP.
Doesn’t necessarily work in this scenario.
Sorry, if that doesn’t help much.
Cheers, Ash
Hi Ehseem, yes that’s correct. Just the 1 for 8 in-specie distribution, but not the discounted rights issue. This applies to all HL accounts because Ricca is listed in Australia.
Cheers, Ash
Hi Bozi, yeah not great. Just had confirmation from HL that it will not be possible to participate in the right issue. I just wonder, if they realise the value of funds that could be moved to get round this issue - millions at a guess!
Then again, I suppose each individual has to weigh up the value of the lost profit opportunity vs the hassle. For me it’s about £3.4K, assuming an IPO price of 0.20 AUD, but in the long run, that could be a lot more.
Oh well, time to ponder and research alternative providers.
Cheers, Ash
Quick search confirms Ricca Resources Limited was incorporated in Australia on 19th October - not going to be simple, I feel.
Cheers, Ash
https://www.australiacheck.com/business/53617729521/ricca-resources-limited
Follow up question:
“Hi, if the offer to subscribe for the additional shares takes place before the ASX listing, would that be possible or does that depend on where the new company Ricca Resources, is incorporated.
Thanks“
Morning all, response from HL below. I assume, if the corporate action is before any ASX listing, that would be ok, just not afterwards.
Cheers, Ash
“It's our understanding that whilst Ricca will be listed on the Australian market, there will also be a Crest Depositary Interests version. As this version settles in CREST (the UK-based Central Securities Depository that holds UK equities and UK gilts) we should be able to hold it on our platform. We will write to clients when we have more information and will be able to confirm definitively the options available. We believe this is due to complete January 2022.
You wouldn't, however, be able to participate in any corporate actions or IPOs of overseas stocks such as Ricca.”
Evening all, rather than read a lot of speculation about the shares in Ricca Resources, I thought I would just message HL - see below. I’ll let you know what response I get.
Cheers, Ash
“Hi, I hold IRR shares in both my ISA and SIPP. Following yesterday’s RNS and an interview on Proactive Investors with the CEO Vincent Mascolo, I understand that, subject to shareholder approval, I will receive 1 for 8 IRR shares in Ricca Resources Ltd, a new unlisted company, and can subscribe for the same number of shares at 0.10AUD per share in addition. It is then a possibility that there will be an IPO next year on the ASX.
Please would you advise what my options are to ensure I receive my allocation and can subscribe for the additional entitlement, given that I cannot hold and trade unlisted shares in an ISA or SIPP or shares listed on the ASX through the HL platform.
Many thanks”
I take it that the employees concerned are Turkish nationals living in Turkey, who would not ordinarily be able to sell their shares on the usual exchanges. Makes sense.
I would not have thought it necessary for U.K. based employees.
Cheers, Ash
Hi Visitor, just picking up on your query on why they changed the AISC metric as a measure against gold sold, rather than gold produced.
As far as I am aware and from what I’ve read this is the norm set out by the WGC as to how to calculate AISC.
It’s a bit like reporting the cost of sales in the accounts - adjustments are made for stocks and work in progress so that the costs are those that relate directly to sales and not the total costs incurred in the reporting period.
Cheers, Ash
Hi RB, just picking up on your point about the depreciation charge doubling. About £11m of this increase was down to adopting the new accounting standard IAS17, which basically means rather than reporting the cost of assets used by contractors as a normal expense, they had to extract the element of cost related to the assets e.g. trucks and account for the depreciation of those assets rather than the actual lease costs. Complete load of b******s, if you ask me, but that’s the rules.
The other factor is that during 2018 they transferred assets under construction to plant & machinery and infrastructure and would probably only have started to depreciate from that point. The result is you have a full year’s depreciation in 2019, but not necessarily a full year’s charge in 2018.
Then take into account additions to assets in 2019 and you probably have your answer. I very much doubt they would double depreciation to reduce profit. The only exception to the standard depreciation policy would be to recognise the impairment of an asset because it’s economic useful life is less than originally estimated or it’s been lost or nicked!
Hope that helps?
Cheers, Ash
Hi Kadavul, I have to say that has come out of left field a bit. Are you sure you're asking the right person? I did point out that weekends were somewhat sacrosanct and work and investing tend to be put to one side. Once we're out of this damn lockdown, I don't envisage spending much time at all in the house during the day at the weekend.
As it happens, Mrs A and I will be watching Ireland v France on Sunday afternoon so I won't be able to chair, but may be able to join at the start.
Cheers, Ash