Member Info for observer842

Indeed @Bannor. Seems to me the courts are adamant the ore will ship so that $10m can be realised for the following - the most important from the point of view of the courts likely being payment of labor creditors and dam maintenance and safety!

https://esaj.tjsp.jus.br/cpopg/show.do?processo.codigo=2S000I22C0000&processo.foro=100&processo.numero=1088747-75.2015.8.26.0100
===[
However, while the Union resolves its differences internally and decides the best way to receive its credit, it is necessary to decide, due to urgency, the request for the sale of iron ore, up to the limit of US $ 10 million, by Recuperanda, with the use of resources for the following purposes (pages 16.908): "(i) payment of labor creditors (USD 2,500,000.00); (ii) beginning of studies to revitalize the Railroad of Amapá, according to the agreement signed with the Government of Amapá (USD 1,000. 000.00) (doc. 01); (iii) investment in dam maintenance and safety (USD 2,000,000.00); (iv) feasability study, so as not to compromise the payment schedule of other creditors (USD 3,000.00.00); and (v) the remaining amount will be allocated to obtaining and renewing licenses for the operation of Recuperanda, payment of court fees and arrears in the port area, payment of current expenses (security, energy, maintenance of the floating platform, lawyers, judicial administrator) and income tax, PIS / COFINS, CSSL and other taxes
]===

For reference our announcement of this news:

"Amapá Iron Ore Project Given Court Approval to Commence Iron Ore Shipments" (14th Apr 2020)
https://www.lse.co.uk/rns/KDNC/court-approval-to-commence-iron-ore-shipments-lv899dufpruz5g4.html
===[
The Court ruled that DEV is permitted to export sufficient iron ore to realise a US$10 million profit from the Amapá stockpiles at the port (after the deductions of all logistical, regulatory, shipping and sale costs).

The first of the net revenues from the sale of the stocks shall be used to pay historic small and employee creditors (~US$2.5 m). Thereafter funds will be used to begin recommissioning studies on the asset including plant, railway and port and to start maintenance and monitoring of the current tailing dam facilities (~ US$ 6 m) and provide ongoing working capital and historic finance obligations.
]===

That's a very good eagle eye'd spot @Dallas! It's certainly possible that having a scoping study commissioned and under our belt ready to be released will help inform our negotiation position with the banks! :-)))

Nope, that's me too @Bannor.

The fact they have put an offer on the table shows willingness to negotiate. Whether we'll accept that offer, or more likely manage to agree something between theirs and ours remains to be seen! I think we'll see shipping news before agreement with the banks, but no way I'm risking being out of here before then in case I'm wrong! ;-)

Sorry, that doesn't read right. It was OK for the court to make the progress with the negotiations public, but it would have perhaps been frowned upon if we had done so before then.

To the best of our knowledge this was only made public yesterday. To make public details of ongoing negotiations is normally frowned upon if the negotiations are progressing amicably.

LoL @jimb & @Cause. Fingers crossed for news soon. Ideally something we haven't already figured out, like agreement with the banks! ;-)

No problem @Bannor. Looks like @tomcat is on the job as well - if only we had someone on the ground we'd have all bases covered! :-)

Great spot @Cause! Coincidentally I was reading the same here when you posted:

https://www.jusbrasil.com.br/processos/65368883/processo-n-1088747-7520158260100-do-tjsp
===[
The sale of iron ore does not violate the terms of the judicial recovery plan, but seeks to respect how much has been agreed and not yet implemented due to the Union's own delay in resolving its internal conflict and come to a successful conclusion in the negotiation with the repossessed. The impasse in the negotiation has the practical effect of harming the collectivity of creditors and others interested in the resumption of the reorganization's activities, requiring cautious but essential judicial action. In this line, the embargoed decision does not remove from the Union the status of fiduciary creditor, does not empty its guarantee or place it in a situation of vulnerability to renegotiate the form of satisfaction of its credit. It only allows the sale of iron ore, taking advantage of the high price in international trade, to support the payment of labor and low-income creditors, an imposing measure in view of the impasse in the negotiations. The proceeds from the sale will be deposited in a judicial account and released under the supervision of the Judicial Administrator, for the satisfaction of the aforementioned creditors and for the operational expenses of the recoveree. In addition, all cautions mentioned by Judicial Administrator 17.231 / 17.232 must be observed, which satisfactorily serve the interests of the Banking Union and other creditors. For this reason, I maintain the sale authorization, with the precautions mentioned above, providing the embargoes in that part. 8- Pages 17.098 / 17.100 (Public Ministry of Labor informs that incident No. 1072816-27.2018.8.26. 0100 was judged and recognized in the amount of R $ 125,000.00 in favor of the ILO International Labor Organization).
]===

So the sale appears to be going ahead :-)))

That's one of the reasons why I posted it last night as I thought you might be interested to know they dates had apparently slipped since your post in the afternoon.

observer842@22 Jul 2020 21:31
===[
Dates slipped? ETA/B 5th August. ETS now 9th August.

http://serveporto.com.br/macapa/
]===

You finally filtered me @Bannor? LoL. I noted that last night and did wonder if some of today's sells were off the back of it.

Ship at port on the 22nd:

https://apps.sentinel-hub.com/eo-browser/?zoom=18&lat=-0.06071&lng=-51.16732&time=2020-07-22&preset=1_TRUE_COLOR&datasource=Sentinel-2%20L2A

Port links:

http://serveporto.com.br/macapa/
http://www.docasdesantana.com.br/index.php/component/content/article/13-informacoes-operacionais/programacao-de-navios/308-ano-2020

Nice interview. I'll be very surprised if BCN doesn't announce plans for 50ktpa in the coming months, he's mentioned that figure enough times now! I've linked to the time stamp where he mentions it. 50ktpa means our JV almost certainly comes into play sooner and in greater volume than the currently planned 35ktpa :-))))

"Bacanora Lithium (BCN) - Strong Project, No Excitement?" (22 Jul 2020)
https://youtu.be/RyEQYztoFaE?t=862
===[
Interview with Peter Secker, CEO of Bacanora Lithium (AIM: BCN)

New lithium projects are finding capital extremely hard to come by in such a depressed lithium market. This doesn't appear to be the case for Bacanora Lithium and its Sonora project. 75% of its US$400M project CAPEX looks to be covered v is a combination of debt financing and management/institutional investment says Secker. He says they have a strong project team and Asian partners. We ask what his partners have agreed to. The numbers on the Feasibility Study look good. Taking all this into account, why has the share price been on a downward slope for the last 2.5 years?

The depressed lithium market has certainly played a big part, and COVID-19 has been deleterious to the EV/battery metals thematic, but what is this story really missing? Should long-suffering retail shareholders stay quiet and wait it out?

Secker is controlling what he can control, with a 5-month of deliverables ahead of him. The permits are all in place, and an FID has been earmarked for Q1/21, with construction commencing shortly afterwards. Bacanora Lithium could be producing LCE by 2023.

Tell us what you made of Peter Secker and Bacanora Lithium? How will lithium perform for the rest of 2020? Comment below and we will respond.

00:00 - Introduction
2:37 - Company Overview
3:21 - The Foundation: Accidental Project Discovery and Business Plan Development
6:17 - Team Experience
8:19 - Tough 2.5yrs: Reasons Share Price Keeps Dropping
10:04 - Mexico Project Breakdown and Plans
11:31 - Exciting the Market: What's Missing From the Story?
15:42 - Mexico as Jurisdiction: Any Problems?
16:13 - Project in Germany: Options and Possibilities
17:32 - Cost of Money: Means of Financing it All
18:28 - Message to Shareholders and Investors: Sit and Wait?
21:15 - A Look at the Macro: Timeline for Lithium Recovery
]===

Nice interview @CruxInvestor, I liked the line of questioning along with the tone of the interviewer and style of the production.

I wonder how DEV's EGM went today?

https://www.jusbrasil.com.br/diarios/306684853/dosp-empresarial-14-07-2020-pg-34

On iron ore September futures (currently the most traded month), because the dip came at the end, it's interesting to note that the close was very similar to the previous day's close, but the settle was 2% up. Custeel has yesterday's spot at $111.45.

@MB. On Brazilian tax and monetary policy: I've looked into it - it's complicated - think I'll leave it to the scoping study!
On LT & LS: Look to the accounts: "Invest £300,000 to earn an incremental 7.5% stake, with the funds earmarked to commence developing Synergy's lithium assets in Australia." Presumably we have yet to invest all of that to take our holding to 31.5%.
On Iron ore prices: didn't quite hold onto the gain, but ended up around 1-1.5%. :-)

Night DCE session which is viewed as the start of tomorrow's session, ended up 2% on top of what I reported earlier. Let's see if it holds.

Per year, at full production of 5.3Mtpa, not life of mine. Mind blowing. LoL.

@Bannor: "we won't see much for some years as the income will ploughed back in to settle debts & fund rehabilitation etc... there's still going to be a lot of funding/debt/loans/dilution required over & above the revenues from stockpiles"

It's possible that at least some of the revenue flow above the $61/t baseline set out in the JRP may flow to KDNC through the JV, pretty much as soon as new production begins currently scheduled in late 2022. We don't know. Of course if by "some years" you mean 2 or 3, then we are on the same page ;-)

Excess EBITDA off the $61/t baseline is currently around $250m. :-)))