RE: News imminent27 May 2025 11:21
hi dav37, i gave the board the benefit of doubt at the agm as prospects for silver & pmg was highlighted. i increased my holding but now i am waiting to see if the share price moves up a tad during june on drilling results from elizabeth hill or a silver breakout.
after reading tp's note and the unexpected placing i doubt i will be holding long term because of two paras:
"the group’s most immediate focus is on its 90%-owned
han**** project, a simple, low-cost, high-grade direct shipping (‘dso’) iron
ore opportunity with substantial exploration upside that is expected to enable
its transition from explorer to producer in 2026"
more jam tomorrow and i won't feel comfortable with my investment unless by chance the share price puts me into profit in june.
"note that alien agreed to make a ‘performance payment’ to windfield metals pty ltd back in august 2023, when it acquired its 90% holdings in han**** and brockman. the financial liability itself was never detailed, so cannot be factored into such economic modelling. being based on mining commencing at han**** within 60 months of the option being taken up,
however, it is presumably something that an incoming funding partner would be required to negotiate directly with
windfield and factor into its joint venture proposal with alien"
now i have a written answer to questions put at the agm about dealing with the performance payment ie they can't get out of it with lawyers and i guess there is not going to be much benefit for me after that performance payment unless project is delay until after 2027.
this is what it states in rns 24 aug 2022 and rns 2 nov 2022 notice to exercise option takes the 60 months period up to 2027/28
" 4. if, within 60 months of executing the option agreement, alien disposes of its interest in the projects, the company will pay windfield a performance payment in addition to the upfront consideration (performance payment).
5. the performance payment is calculated by:
a. in the event of a tenement sale: 50% of the value uplift attributable to the projects;
b. in the event of an ipo/spin-out event on a recognised stock exchange: 50% of the value uplift attributable to the projects; or
c. in the event a decision to mine is made: 50% of the project valuation uplift attributable to the projects.
in each case, the uplift payments are reduced by 50% of the incurred project expenditure".
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