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Hahahahaha. The irony in that statement is magic
Desperately trying to stop a momentum shift here. It’s hilarious to watch. Who now has the heavier hand? The Bulls or the Bears?
Just look at the chart for your answer.
You are literally obsessed with a share that you keep claiming is crap. Makes zero sense. You are either short or want to buy lower. Case closed, thanks for coming.
I doubt you’ll get it looking at the chart. Unlikely to drop below the 50 day MA and other technicals showing this is primed for a rebound with the ABC correction now complete. Just look at the fib levels.
As soon as this clears 0.33p traders will pile in. Otherwise 0.24p would be the resistance and by zone for a number of reasons and would be gone in a flash IMO. Doesn’t look like we’ll head that low after today’s trading and volume rise
You have to be in an open period. Information has been released to the market already.
Piker - think you’re summary is on the money regarding the finance facility.
If anyone thought this was going to be cheap money then they were delusional. The important thing takeaways IMO
- Tranche 1 (BP) - basically equity with buy-back option and potentially capped upside (and no dilution if repaid). I say capped as the target is to refinance it and limit Atlas’s exposure to diamond project(s) (and others) realised value. Conversion time period will most likely run to 12 months post T2 as Atlas are keen for the Election (good sign for diamonds)
T2-4 - fixed 100% premium plus interest (unless converted).
Couple of things I find interesting.
1. The valuation Atlas are indicatively putting on BP with the structure and terms and terms of the deal (specifically tranche 1). That’s very comforting given it’s not operational.
2. Atlas’s expression to proceed with the Election. You could read a number of things into this but the key for me it signals diamonds are coming and they want equity risk.
In summary whilst this is not a ‘cheap’ deal, Atlas are taking a lot of risk and expect an appropriate return particularly given the size of the deal relative to the current market cap (another positive signal IMO).
GLA
Fantasy - talk is cheap. I agree. But important steps towards actual delivery are being made. Real value from Vast will be realised when these assets are online.
We should find out very shortly what that value is. A lot of traders talking up their positions on here at the moment. Mostly nonsense.
Literally makes no sense particularly considering most backward looking comments are pretty much irrelevant now.
You wanted BP up and running, you wanted a the diamond concession secured. That comes at a cost, particularly given the sp position of the Company for the last 6 months. Posters ****ging off this deal haven’t actually bothered to comment on the assets that it will be delivering. Funny that.
Also anyone who is mentioning ‘death spiral’ is a liar or a tool. Tranche 1 is basically equity with capped upside as it can be repaid at anytime. The structure also ensures Atlas capture the benefit of a higher sp. Wonder why... in any case Vast can refinance probably after a) BP ramp up b) Diamond bulk sampling results c) an equity raise at a higher sp.
Looking forward to the release of the details of our concession which hopefully can put worrying investors at ease and finally give some closure to others
Negativity from people who either know sweet f all about this company or it’s assets and by some who can’t help but have a moan about anything the Company does.
The Company has secured a finance facility to develop its high value assets. Of course it’s not the cheapest senior debt in the market. Shocking that. But getting these assets online is key given their short term cash flow profile.
If this was a straight up equity raise the sp would be higher. Go figure.
:)
BillB - smartest thing written on here in a while
Fantasy - agree they need to focus but disagree with you that diamonds should not be part of that. Think the situation on that front has clearly changed significantly. Looks like funding is sorted for both those projects too. Get fcf from BP and diamonds then the rest will follow.
Well well well. They’ve only gone and done it. Market cap will be north of £100m soon IMO. Haven’t posted here for a while as was waiting for material news to land. Doesn’t get more material than this. Old claims have been ‘settled’ too. Has AP pulled off an absolute blinder? It looks like it. Big sp rise needed to reward long term holders. If one transaction is going to do it then this is it. BP ain’t bad either ;)
Why do you follow Vast so closely Dodge? That was a rhetorical question. I know the answer.
For someone who is ‘experienced’ in corporate finance how is it even possible for you not to understand that RNS and write something that is so wrong????
17 Jan 2019 “Even if you take the very worst case... Vast should have enough money from Bergen and the additional headroom to get Baita Plai into operation - without counting on the T2 Mercuria money or any replacement offtake finance. Yes, the dilution involved would be horrible - another 2.3bn shares on top of the 5.9bn in issue. But Vast's mcap now is only 17m. Vast's mcap would only need to rise to 24m to keep the share price the same as today. IMO, Vast's mcap would be far higher than that if they could get BP working - double, certainly. Notable downside risks: Operational failure to put BP back into production; severe worldwide recession leading to collapse in copper prices (but in that case, the gold price would probably soar, making Pickstone Peerless super profitable). Conclusion: Many things can happen along the way (some better, some worse), but looked at over a six month time horizon, Vast is a good bet. Yes, it's possible that selling now and buying back later on a dip might prove profitable; but it would be easy to get the timing wrong. So, each to their own on that one. Important note: This deliberately doesn't consider the diamonds, as they are not certain yet. If Vast do get permission to mine the Heritage Concession in Marange, then (IMO) Vast is simply a screaming buy.”
30 Jan 2019 “I take your point, but the Marange diamonds is substantially more than a "speculation" or a "rainbow". As well as the deal for the Heritage Concession with Red Mercury, we have supportive statements from the Minister for Manicaland, and a public statement from Minister of Mines Winston Chitando that Vast will be one of the four companies allowed to mine diamonds in Zimbabwe. Additionally, James Campbell of BOD, who is basically the world expert on this kind of alluvial / placer deposit, is confident the concession is diamondiferous (see BOD tweets), and Vast themselves are proposing a viable plan to finance phase 1 of mining. These are facts. All this doesn't guarantee a successful outcome to the diamonds saga. But it's a lot. And if it works out for Vast, the prize is very, very big indeed. So to dismiss it is as foolish as to rely on it absolutely.”
*3-6 months
“I've seen Dodge go from starry-eyed hand-clapper, to realist, and now to wrecker. I'm not quite sure he's really found himself yet.” This made me laugh a lot. It’s a bit like TBTT, if you scroll back 36 months on his history just read the comments he makes about Vast’s asset base compared with how he describes it now. Really is quite funny. Let’s play a game ‘guess the poster’. Posts to follow ;)
Sandy - think you’ve done a top job at referencing and explaining evidence towards Mercuria remaining our offtaker with senior debt finance coming from a different source. I agree that this looks like the preferred and pursued route for Vast. Cleaning up and simplifying the balance sheet was very important for the Company in its position and removing the ridiculous and restrictive terms of the SSGI finance.