Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
The Jupiter mines, power metals shares and power metals warrants are all serving as collateral for high interest loans. El Limon will come in very slowly, won’t even cover monthly expenses.We are currently in default on of $2 million to Kansai which is going to make raising funds difficult. Juno minerals will bring in some cash but it won’t be enough and once its gone it’s gone
No word on $2million due to Kansai on Friday. I believe we have officially defaulted on that debt.
I think the big news is China. Whatever was lost when the European laws tightened up will be made up many times over if we get that right.
Now we know why there was a fundraise. Jupiter and POW shares have both been put up as security for loans and there is no more family silver to sell.
Unlucky is part of it but Steelmin was a risk he didn’t need to take. After the refinancing and share consolidation we were all given the impression that the dividends would keep the company going until the Kenya issues were sorted. Instead he flung the money in there, gave a second huge loan that was not RNS’d and then did dead end deals like Amulet diamonds. Then one has to ask the question, would he have been able to draw the salary he takes if we were just sitting on Jupiter dividends, waiting for the Kenya outcome? Is that why he keeps doing deals, no matter how sketchy?
Tomorrow is the last day of the roughly £600k CLNs that weren’t converted. JMS shares already standing security for other loans, so its either bye bye POW shares or significant dilution. If the latter then where does the fact that the CLN’s didn’t convert at .6p leave us?
If he didn’t RNS the sale of Jupiter shares why would he RNS the sale of POW? Some POW warrants were exercised today. Could they be RRR’s?
There is still a big holding of Jupiter shares but they are acting as security for CLN’s, YA loan and God knows what else. That leaves the POW shares and warrants as the only liquid asset left. That is assuming AB hasn’t sold them or put them up as security for another payday loan. Dilution imminent.
The SASA dam is fixed and the small amount leaked must have been cleaned up by now. With a huge cash pile and high metal prices, withholding the dividend for the sake of being prudent wouldn’t make sense. Something else must be in discussion. I am guessing one of these three:
1. Debt restructure. With interest rates near zero and us very solvent, the 4% plus Libor we pay is high. A overdraft type facility at a lower rate or even low interest over a longer period would be good for dividends.
2. An acquisition.
3. A buyback. Given the response to my last post this is not popular with you lot, but right now the shares are so cheap I think this would be a good thing.
Share price low, cash levels high and commodity prices rocking. If the market doesn’t appreciate the value here, surely the directors do. Time for a buyback.
Someone on the other board suggested it’s a hedge fund trying to keep prices low, possibly with a view to a buy out. It wouldn’t be the first time one has done that. If it is the case, hopefully the shareholders realise how much this company is worth and demand the right price.
Otherwise, if the current share price remains, we might as well sit back and take the 10% + per year dividend. 20% once all the debt is paid.
Are we to believe that after 15 years of repeated failures, AB is suddenly going to get 3 successful projects off the ground? One success is possible and I’d buy back in here if just on the odds of that one , but I know that the second any money comes in it will just be wasted on the next pile of sh*t AB finds.
In addition to £11 million earned, some more of the Traxys debt should have been paid. This debt was costing Libor + 4%. Right now we are in a very solvent position and debt is cheap. Hopefully a better arrangement is on the way, ideally less interest over a longer term which leaves more cash for dividends.
What you say is true Charlie, but hindsight Is 20/20. The company didn’t want to be entirely dependant on copper so diversified. When and if they find their next acquisition, they can go to financiers with both mining and tailings experience, as well as a diversified portfolio to act as security to any loans. I agree the per share value would be better today were in not for SASA, but SASA paves the way for us to expand towards becoming big players in the resource sector.
If this is correct there is a month left to pay this money. I guess that means choosing between close to 100% dilution or the sale of the last Jupiter shares.
Even if there is a slight dip in production, zinc and lead prices are low and copper is high, so the losses are on the shallow end of the business. The $1.5 million loss is negligible and should be partly recouped from insurance. If insurance doesn’t pay its less than 1 cent a share. I guess the price hasn’t moved because the market are either focussed on the bigger things going on in the world or waiting for dividend confirmation.
CLN’s nearly due. With interest they’ll be around the £1 million mark. If they know what they’re doing the holders will refuse to convert or roll over. That means all the newly raised money will be gone. Only way forward will be to sell more Jupiter shares.
Hopefully this means the incident has come to a head. The article ends with “the exact cause of the incident has not been confirmed”, but hopefully thats just a formality of not announcing it before it is RNS’d rather than an issue that will delay things any further.
https://seenews.com/news/n-macedonias-environment-regulator-fines-sasa-mine-for-tailings-leakage-715001
I’m going to make the best use of what I am sure is a very short lived bump in SP, cut my losses and get out. Acceptable long term assets but the costs of running this company far outweigh any benefit to ever be gained. By the end of the year, Jupiter will be sold off to pay the CLN’s. No money to develop Congo. If and when Kenya comes off there’ll need to be such a big raise that RRR need another consolidation. In a couple of years time $4 million iron ore royalties could come from Jupiter, but will be squandered on the next go nowhere project AB finds.
If you want a solid investment look at CAML. Copper is their biggest asset, which Helpless so diligently keeps pointing out is the place to be. Difference is this lot actually produce the stuff. The shares crashed recently on a small leak in their tailings dam but it was assessed to be of minor consequence and they are shooting up again.
I wonder if they’ll wait for the third quarter updates to announce the dividend decision. Copper and zinc have both recovered nicely so I’m sure there’ll be a lot of positive news. Maybe wishful thinking, but the combination of not paying a 2019 final dividend, a reasonable first half and an excellent Q3 could mean more than the 6.5p interim they’ve paid historically.