Member Info for observer842

If anyone is interested in doing their own research (not you @tomcat - I know you know!), they've put their 100% owned Yangibana West in the mining plan ahead of any of our JV's. For instance, it might be instructive to compare the quality and volume of that pit to our adjacent 30% Yangibana North. The best, most economically valuable areas of a project typically get mined first...

That's great then @Dallas! One step forwards it is then ;-)

In terms of ZULU I think we are OK @Bannor: I believe there is no nearby 100% owned land that PREM might consider mining first. However I presume @Dallas's worry comes from that PREM might at some point turn round and say something like: actually we don't feel like progressing ZULU that quickly and would rather we focus our efforts on project B, C or D - perhaps next year we'll do ZULU... Our BoD need to get this eventuality covered. In fact they need to get all eventualities covered for any souring of relationships. Win-win the deal to smithereens! If either party doesn't contribute on agreed timescales certain percentages should be forfeited. In fact isn't something along those lines in the proposed terms...?

Ob.

Perhaps you are right @Dallas - however I think what @Kiran was getting at was that (quite rightly in hindsight!) it would be difficult for someone to risk their reputation on placing value on an asset which may not make it to production if there were a risk that the senior partner might decide to mine their 100% assets first. This has happened to us for both Sonora and Yangibana. Therefore, I repeat, our BoD would have learnt nothing at all if the contract with PREM does not either explicitly or implicitly prevent this from happening one way or another. I'd suggest you contact @Kiran if this aspect is weighing on your mind, but I won't because he really shouldn't answer any more than he already has at this stage! But if you do, and he does, give us a nod and a wink eh? Lol. ;-)

As in buying small amounts of each other's share capital. Total economic interest...

Oh and @Dallas - nothing to stop us buying PREM and them us - but let's hope we all stay best friends forever this time! Lol ;-)

I'm not sure what you are getting at @tomcat. If the deal goes ahead all the way up to 30% KDNC ownership, then it seems to me that we have an option to buy the other 19% at whatever the going rate is. If this is more than we can afford or are willing to pay - say it was £19m, then this pretty much immediately values the whole project at £100m and puts a value of £30m on our 30%. No time limits have been mentioned so far (which was obviously a bit of handicap in the BCN contract)

And of course an option up to 100% would have been fantastic, but on a project this advanced? Surely others must be looking at it?

I get ya @Dallas: Though it seems to me that if we can get it funded to DFS and help fund it to production it could be ludicrous for both parties. Probably one of those too good to turn down plays in our BoD's eyes. A placing might even be on the cards to help fund it. Remember the share price doubled in short order just before we last "placed" on what must have been perceived to be a good deal by our backers. Might be different this time though, meaning we might be looking at (part) selling an asset or two in preference to a placing at today's sp or discount to it! ;-)

Did this Hastings research report get posted?

"Hastings Technology Metals (HAS) Initiation Report - APP Securities" (24 July, 2018)
https://hastingstechmetals.com/download/46/research-reports/2272/hastings-technology-metals-has-initiation-report-app-securities.pdf
https://hastingstechmetals.com/investor-relations/research-reports/

Indeed @tomcat. I meant 49% when I said 50% option... This time it's different. It better be! Lol ;-)

@Dallas. But this time it's different. LoL. By that I mean if investors can see that PREM is worth say £50m off the back of Zulu, but the contribution to our share price is only worth £10m off the back of it, they'll be able to see that we are the better buy by a margin - especially given our 50% option and marketing rights. The problem with BCN was that there always was (and still is to a small degree) uncertainty on what gets mined and when. If our BoD haven't managed to eradicate that doubt in this contract then they really haven't learnt a thing...

Thanks @news. I read that. I'm not sure what interest rate investors were expecting. 8-9% doesn't seem that bad on a project of this scale, which has the potential to be repaid very quickly. If you find were you heard 18% and 28% pop on by to let us know. Seems way too high to be true to me! Got fake news written all over it ;-)

How about this then @FrankieH? Hasting's estimated NPV on the Yangibana project is A$499m based off 7.5Mt of mining from their 100% land. We have a total of 1.5Mt of resource so that means (by some measure!) our NPV on that project could be estimated to be around 499 * 1.5 / 7.5 = A$100m or £57m - if only HAS would play nice ;-)

@news. Thanks for the reply, but I don't know what 2-tier interest rate you are referring to. It was a placing they were doing which fell through - they'd already got a senior debt in place at LIBOR + 8%. Do you have any links? We are talking about BCN funding right? ;-)

@Dallas - @Kiran emphasised that as part of the agreement they won't be allowed to mine any 100% areas nearby. Once bitten and all that! ;-)

Won't be long until I'm valuing our Yangibana assets at between £10 and £20m eh @Bannor. Depends on the news tonight - if it comes! The NPV increased recently which upped my personal valuation a little ;-)

Where do you get "interest rate of 18% & 28%" from @news?

I believe we own 30,000,000 shares of MMS, which is currently 12.38% of their issued shares and @CAD$0.035 are worth around £620k

Makes you wonder.

"AIM chief exec Lofgran breaks ranks to challenge market makers over naked shorts (NTOG)" (July 31, 2018)
http://www.valuethemarkets.com/index.php/2018/07/31/aim-chief-exec-lofgran-breaks-ranks-challenge-market-makers-naked-shorts-ntog/
===[
Naked shorting, which is rumoured to be rife on AIM, sees a market maker sell stock that does not exist in a target firm to retail investors at a higher price until they have built up a large short position. The market maker’s goal is then to close the short by participating in a discounted placing of the target firm and then using the placing stock it receives to settle its open trades, pocketing the difference in the two prices. Such shorts can typically be anywhere between £300,000 and £500,000 in size, although there have been notable occasions when the naked shorts have run into millions.
]===

No idea whether this sort of thing has been/is going on with INSP!