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Do people really think he announced a delay? I always thought the debt was hoped for H1 and the remainder would come later this year so I wasn’t expecting the full package to be until later this year anyway and in reality until you have it all you have nothing so I think this is slightly academic
Where I was a bit more concerned was he seemed to be managing expectations on the pricing the equity would be done at - maybe me reading too much between the lines
The idea that any of those institutions are going to participate in something off market that is such a flagrant breach of the takeover code is laughable
I agree with this. On some boards there seem to be some people operating under the misapprehension that investors can set a target they want to get to and only have to report when they get to where they want to be - that is simply not true. As you say the reports have to be made when thresholds are reached - JPM aren’t going to get this wrong
Whilst news may be on the way, the idea that some people seem to have that significant chunks of stock are changing hands because people ‘know’ what is going on regarding financing seems slightly odd. Those institutions are bound by the same insider trading rules as everyone else. There’s also a very good chance that they are subject to standstill arrangements within the NDAs they have signed as part of the process (although the HZM could waive those). Maybe different parts of Some organisations are able to operate in Chinese boxes and separate themselves out from the divisions looking at funding - but the whole point of the Chinese box would be to ensure they have no inside info. Whilst there might be a bit of extra profit to be made by Breaking the rules or sailing close to the wind (and everyone is always suspicious of AIM) the nature and scale of the institutions here means they aren’t going to risk breaking rules for what, relative to their scale would be a fairly small extra profit.
On the plus side JPM had whatever reason they had for selling which may or may not be bad, the reality would appear that someone else was willing to pick those up in a block trade which is 1) a great sign of confidence from that party and 2) excellent news that JPM didn’t spend months flooding the market
Yes any debt sitting in the project is paid for by both sides so isn’t something a partner actually brings to the table (although they may be useful in helping to deliver it).
My view is it’s a very attractive asset, with lots of different options for funding, lots of potential partners (if that route is taken) and lots of types of partners. Therefore at this stage it’s not really worth guessing from the outside what it’s going to look like. It will be a question of what management and the board think is right at the time and I can’t see any reason not to trust that they will do something sensible
There are lots of ways this can be structured. A lot will depend on what the value is relative to the capex and what the target ownerships are.
For A very simple example if the parties agree the asset is worth 100 and the capex requirement is 100 it would be very simple to structure a 50/50 jv in which HZM contributes the project of the mine and the other party contributes the capex, both would have put in 100 of value and would therefore take 50% each.
In reality the two numbers won’t be the same, if the capex is less than the agreed value and 50/50 ownership were targeted then the partner would need to pay HZM the difference. Debt and other things will complicate it - these examples are really very simple but hopefully give a framework to think around
The key to think about is what are the relative contributions of each party and what structure are they aiming for
Are you on the right board?!
Oldtownhat- were you expecting this PFS to say it’s so good there’s no capital cost?!
EBITDA isn't exactly a relevant metric for a miner at Horizonte's stage of life
Or it might not actually be delayed - the only guidance in the last few weeks has been by the end of the quarter. Previously they suggested it might be earlier in H2 but there is a bit of a history of over optimism on some timetable matters - I'm not sure there's much to worry about or merit in overthinking things
Why don’t you think we’ll get it?
He served in the Clinton White House in his late 20s so I wouldn’t get over-excited
The application of the code has nothing to do with the residency of board members If you look on the website under the rule 26 information it confirms that the code does apply
Trading halt on ASX
Got it, that’s great thank you
Did he definitely say early? I’m not questioning you I just don’t remember the exact words so didn’t know when in the month to expect it Hope you’re right!
To be clear, you find it very hard to believe something therefore it can’t be true and therefore the company is misleading shareholders. You may or not be right but it’s pretty punchy
Would be surprised if it was so soon. In the last interview I saw the CEO said end Q2 maybe slipping into Q3. I can’t remember the exact words but seemed like he was giving himself a degree of margin for error, my guess from that is late June / early July. Can’t wait though!
Aren’t we due one of these soon?