Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Orion normally negotiates to the last second
Hi Bistob. I agree the negotiations with Orion will be tough. They will negotiate for everything in their favour. Likewise, Craig will negotiate for everything in our favour, be it off the back foot. I do recall Orion buying copper above the spot price from WTI. So perhaps in the end, the negotiations will be a lot more fairer then we expect. I still believe that Orion sees WTI as their vehicle to mine for copper in Africa. And lets not forget, WTI convinced Orion to fund Tschudi and allow them to run it through tough economics times. maybe Orion sees this as their time to grow into big players.
Hi Vanillathunder. Whats do you think will be the outcome of the debt negotiation?
Hi VanillaThunder, your points are logical and does make sense. 1. Orion wont risk 100 million USD 2.Tthey will recover the loan and interest in time. 3. They appear to obtain copper at a fairly competitive rate. 4. WTi is reliable and competent through a tough time. my feeling from all that I read from yourself, TrickyDicky2 and Boffin is that potentialy this company has the makings to win over the sentiment of the market. Lets keep hope alive
Thanks Boffin!
Good Points. Noted. Do we have any info on the inferred copper reserves? "Phase 2 will examine production expansion versus mine life extension options" what do we make of this statement by WTI in the presentation. The purpose of the mining Indaba and the announcements was to raise cash for the projects mentioned as well as to create free cash flow with regard to the long term debt conversion. Would be great if our management team can give us an update of where we are in the process.
Open pit mines do contend with ground water. I'm hoping that they will lower the water table around pit through drilling and pumping as well as upsizing the water pumps inside the pit. these issues can be managed and have been manged successfully at other open pit mines. the ground water was highlighted at the study stage and the management team was aware of this through the design and construction phase. This team has kept Tschudi alive through the "great Recession". They want this to be a success as much as we do.
"In 20 years if Weatherly is comprised of ten well-run Tschudi�s in 3 or 4 lower-risk African countries, delivering consistent strong returns, we will be happy. If we have also scaled-up an operation or two beyond Tschudi-size, funded largely internally, we will be happy. If we have substantially de-leveraged in terms of debt compared to today, we will be happy" From the above, I think, this may be their planl. Orion as a shareholder will partner with WTI to source their copper. This is the beginning. To realise this, Orion and WTI will convert part of the loan into equity with the remainder of the loan being paid over a period of 10 to 20 years. They would have to announce the funding for the new plant fairly soon. Copper is not like shale oil I would assume that WTI are also in discussions with some of the current investors (150 million and 80 million shareholders) for funding along similar lines. I think that this is why Edwin from Orion resigned from the board to avoid any conflict.
Zambia handed First Quantum Minerals Ltd. a $7.9 billion tax bill and said it’s planning an audit of other mining companies going back six years. The Canadian miner’s shares fell the most in almost two years.
1. "the Directors believe that with the support of Orion to defer loan repayments, Tschudi can generate sufficient surplus funds for the Group and parent company to remain as a going concern" I think that they are close to signing this agreement without confirming anything. 2. " The Group and parent company financial statements do not include the adjustments that would result if the Group and parent company were unable to continue as a going concern." I don't believe that the auditors would have allowed this had they not got some form of confirmation from WTI that they are far down the line in signing the long term loan agreement conversion. .3. The Rand will have to factor in the "land redistribution plan without compensation". so in the near future as the election heats up and the debates intensifies, volatility in the value of the Rand will favour WTI.
Market is looking up for copper. https://www.bloomberg.com/news/articles/2018-03-13/vw-secures-25-billion-battery-supplies-in-electric-car-surge "As of next year, the 12-brand group will roll out a new battery-powered model �virtually every month,� Chief Executive Officer Matthias Mueller said at the company�s annual press conference. �This is how we intend to offer the largest fleet of electric vehicles in the world.�"
TDT Do you think that the protectionism by Trump on the steel is confirmation that his $1.7 trillion infrastructure expansion project is close at hand, possibly trying to keep as much of the spend within the US? Regards
Keeping hope alive!
Still close on to 80 million.
Hi MT Sparky 7.5p per share or 75p per share? Kind regards
Will there be a correction of SP based on the 25 million shares sold. Or is the sentiment in that period lost in time forever. Would a pity if it is not taken into account. Would have certainly influenced the market. LSE should have check and balances to have prevents this from happening in the future.