Member Info for marandmel

Does anyone have any recent updates on the Company. Are the receivers still in control or has this been passed over to a third party for a hopeful onward sale.

I still cannot understand the Glencore position here, nor the other 2 main shareholders that could have gone ahead and funded the project to production. Such a waste of their money when huge profits could have been accrued for a reasonable amount of extra investment.

Interesting update. Have the big three decided to fund this package or maybe the banks?

Anglo American is selling its nickel business to China for $500m. Not only does China want Indonesian nickel but it needs high quality grades as well. There is a huge market out there so why not HZM. Get it funded and it has massive potential. I could never understand why Glencore sat back and allowed HZM to go into receivership. I`m still baffled even now.

Glencore should be bending over backwards to get HZM up and running again. Potentially a highly profitable project that will give huge profits for over the next 20 years? It is insane to me that they are not seriously looking to get ownership here.

I appreciate that my shares are now worthless, but does anybody have any updates as to what the administrators are actually doing ? Is the complex Ion a care and maintainance basis?

I seem to remember that $15m was still in HZM hands at the close of play. Perhaps there have been some directive s from the banks and major shareholders just to trundle along for a few months spending little or no money , but keeping the site secure at best.

Surely after this length of time, the administrators should be able to offer up some narrative .

China will take up 85% of Indonesian grade 2 Nickel. This will leave a world shortage next year.

Beggars belief that the main shareholders could not finf $250m to get this project into production, especially when Glencore will have stopped funding in this month $300m per annum into their loss making New Caledonian gopper mine and Orion received $380m from their sale in another operation. Cash rich.

I still think that they will buy the assets and fund it into production in 2026.

We of course will not receive a penny.

As I have already posted, I believe that big news is not far away.

Lets be brutally honest. The BoD HAD to know that their financial position was not healthy, but they could still put out positive statements to hide the true facts.

I do not believe for one minute that they were ignorant about the true state of financial affairs.

Even worse is the fact that the shortfall of about $130m to complete the project was not acted upon by the big shareholders.

Peanuts for the likes of Glencore et al.

There is still $billions to be made from this location and somebody will snap up the Company for a song.

Watch this space in July for a major announcement.

Glencore indebtedness to New Caledonian copper mine finishes in July. This will free up a huge chunk of investment money going forward.

Whilst they are exploring a possible $1b purchase of a rivals` coal mines, it would not surprise me if they did not go after HZM at a knockdown price.

The Capitol valuation of $200m, plus any goodwill and adding a bit on for Vermihlno site still makes the Company a "good buy" project.

Banks to get something back, but not we small shareholders.

A terrible situation caused by complete incompetence from the BoD.

Many of us will lose thousands of pounds.

Would love to prosecute the board, but not really possible

There should be a mechanism whereby the BoD are investigated for hiding the truth about HZM financial position.

They must have known about the overspend in October. I cannot understand why the big cornerstones nor the lenders have pursued some action.

The Board members should all be prosecuted and barred from holding these type of positions again.

A lot of small shareholders must have reviewed HZM then and invested.

A shocking state of affairs.

Agreed Kriss.

They will company for $1.

They will offer to pay for plant and equipment already delivered and installed.

My guess will be $200m. Banks will get something back. Shareholders will not get a penny.

I wonder what value is put on Vermilho site.

Glencore has been pumping $400m per annum into a New Caledonian nickel mine for 10 years. It owns 49% of the Company and the operation is now on a care and maintainance basis until they can find a buyer for their share. The funding will run out in July, after which time Glencore will have some options available to them for using the freed up money.

Could they make an offer in a few weeks time for HZM? It is a big possibility in my book as the Brazilian mine is class 1 nickel.Much more lucrative as it is higher grade and lately, the nickel prices have been rising, I await with bated breath to see if they make a move in July.

They touted a figure of $600m to complete, but I wonder if some clever accounting here included the $350m alreasy spent, leaving a shortfall of $250m but suggesting a further $600m required. Just a thought. Only time will tell when the mine is eventually sold off.

For the life of me, I still cannot understand how a mining complex, 65% completed at a cost of $350m should require a further $600m to complete the final 35% build.

The first reports coming out of HZM and that video recording suggested a further $250m was needed. About right in my book. Certainly overbudget by about $150m, but not beyond the pockets of the big cornerstones. How could this escalate to over $600m?

Someone pulled a fast one here, and it would not surprise me to find that a cornerstone or other will come in at a ridiculously low price and get a Company that will earn them billions of dollars in the next 28+ years.

What a bargain. Wow!!!!!

Maybe it is sell off from LM, Orion and the last 4% that Helikon still hold.

Could be that Glencore might be the last big holder., maybe buying up cheap shares.

They are currently $300 m a year better off now that the New Caledonian deal is ended in June/July.

$300m per year for 2 years to complete HZM, lenders to be placated for 2 years, over 51% ownership, some royalties to be paid to other cornerstones, and a massive share dilution to give G a 90+ % holding, thus encorporating HZM into the G empire. As for remaining shareholders, a offer to buy up the last of the shares.Even at 10p per share, it is only £12m to G.

Added to this of course is a new nickel operating mine with bags of upside potential that has fallen into the lap of G.

It is ok everybody, it is just me having a lateral thought. It is raining outside and I was twiddling my thumbs, wondering what to do, haha.

But you never know????

Current Nickel price would have given an extra $120m per annum of "free" profit.

An extra $600m of build would have meant a 5 year payback at most.

For a 28 yr. LoM that is an additional $2.6b gross profit, $4b if it was 40 years.

Surely someone will be eying up HZM as a lucrative investment now. Cheap as chips

Now where did I put my wallet, Orion/Glencore?

Another $27m of "free" profit per annum to be had.

In such a short space of time, this now equates to over $100m extra profit per annum.

A 6 year payback on $600m loan from the cornerstones on a 28yr. LOM project.

Lets put it another way, after taxes (even if you use a 50% rate), this would equate to an extra $1.1b dollars profit.

It beggars belief that the cornerstones can walk away and lose money here when all the signs said that nickel prices would rise.

Will they now seriously try to put a package together, or continue to bury their heads in the sand.

Another lost cause sadly.

Since the decision was made to suspend any further investment in HZM, the price of nickel has risen by about $2k per tonne.

Extracting 37k tonnes per annum racks up a further $74m of potentially free profit per annum and minus royalties and taxes, this would give a minimum of $40m extra per year.

This would have reduced the loan payback dramaticall, and any future rise, (which now looks likely) must surely now make some of the 150 potential investors have a re-think.

Perhaps the BoD could discuss this with the administrators and see if there is any mileage here. Maybe even the cornerstones to have a second look at the increased profitability.

I still cannot understand how a joint approach by lenders and cornerstones could not get a concensus to move forward.

As you say though, maybe some group is trying for a very cheap buy up, especially since Ni price is on the rise

In this instance, HZM is the parent, I believe. Araguaia Niquel Metais Ltda, is the subsidiary company developing the mine

The parent (from the sources of external equity, retained profits and bank or other debt) can subscribe both equity and/or debt to finance the subsidiary. It could also persuade a bank (or other lender) to lend directly to the subsidiary.

The scenarios have not changed.

Administration, sell out, care and maintainance or cornerstones and lenders produce a package of investment to take the Company through to production.

I do not like the first three options so am hoping that the fourth option somehow takes place, otherwise everybody loses massively.