Member Info for Robdog67

Interesting 🤔. GS have 0.5% short and they may be buying to close their position which would be a good signal.

It looks like Maven Inv had up to 1.65 % short bet and they closed that on Dec 20. If either really believed this was going to zero they would have kept their short position open 🤔🤔

Agree, it would be addressed as a package.

I don't think you would necessarily have to find additional money to cover those debts at mo. I can't see how any of these loans could of been repaid until the mine is generating revenue . There may be some agreement on deferral of interest or extended period of loans due to the 6 months delay. Difficult to say really without inside knowledge. Obviously if they were to go bust the loanees would lose everything unless they were secured, which I believe they may be. But they would have the security of a half finished mine. I suspect that's not as good as a finished mine 🤔

Gold decisively over 2100, hopefully this is the start of the next commodity boom in PMG . If this sticks then it should drag the other metals along with it . Good starting point for reinvestment, me thinks 🤔

Yep, you are probably correct with that assumption.

Generally companies that run out of money don't have much of a future, but I think the banks may see a good future here 🤔

Tuan , somebody bought £7600 worth shares early doors , very risky if they are long , could be GSA covering their short , that would be a good sign though 😂

It needs to breakout above 2100, hopefully this week🤞

As you say 777 there will be no good options here if you are still holding shares.

At best it's going to be a severe dilution the worst is bust ,

You only have read the news today to see the risks , SED gone into admin today ; 6 months ago they were high growth co.

It could go either way , but I am afraid that when a company has run out of money they are not in a good position to negotiate a good deal . Any potential creditor will will walk away unless they get a good deal . I wouldn't recommend anyone to buy the shares at the moment in the hope of a bounce, but if your investment is now only worth tens of pounds it might be worth holding as you might get preferable treatment in any placing .

I think there will be some banks that may be willing to lend , as there is a good business going forward .

Most businesses that run out of money will go bust as the ongoing business can't generate enough revenue to make an ongoing profit. I don't think you can say that about Hzm.

It is still priced to fail as the co has issued the usual caveat ' may not be successful ' .

I doubt there will be any announcements now before the publication of final result at the end of March, so the price might even drift lower. If it starts to increase then the chances of a deal are good.

It will interesting to see if the price pricks up next week 🤞

I don't think the placing will be the difficult part. It is likely the new bank loans that may be the problem as the bankers will not want to sign up for anything until they know that the co is safe investment again. They will want to know the placing will be successful before agreeing anything . That may mean the trio having to agree to taking a larger slice of new equity , which I guess they wouldn't be averse to.

As I say if the mm's get sniff of a deal they will gradually move the price up towards the end of the month 🤔🤔

I think you are right that the trio are desperate for Hzm not to go bust , firstly because it would be really bad for their reputations esp LM and O who are supposed to be expert mining investors, and admin opens up the bidding to outside miners some of which would love to pick up the assets .

Where the price is pitched makes very little difference to the trio . The amount the 3 have to put in is the same whether the price is 2p or 20p. I can see them getting a placing away at 2p but at 20p the brokers wouldn't be able to sell to new investors. The price should shoot up if and when a placing is announced as the mm's will reprice it as a viable company again instead of one that's on the verge of bankruptcy.

The problem is for the existing shareholders their holding at 125 p is now worth say £30 for every £1000 invested. So if the price doubles to 6p you now have £60, whereas if you decide to to put £1000 in new money into shares at 2p your investment would quickly triple to £3000. That's why placing are generally hated by existing shareholders. I've seen a couple of comments re Avacta and their existing PI's are spitting feathers over the placing at 50p .

i am just taking strow's that they want to be fair to the existing pi's .

that doesn't mean to say there will not be heavy dilution here . **** situation, but see it as a fresh start.

There is nothing stopping, but I suspect his secretary will say he is too busy. In any event he can't tell you anything that is not pubic knowledge. He will just refer you to the info in the update.

Look at the price up to the month end , if it drops it is likely to be bad news, if it increases in anyway then the placing may be above 3p. You need to decide whether to reinvest again . As you say if it's 70% finishing they can't get their sums wrong again 🤔. I get a sneaking feeling if they get this done , they might suddenly find the extra costs aren't that high. But that's me being cynical.

If it were that easy they would have done it by now.

Rover, I don't think you understand the seriousness of the situation. Companies that run out of money normally go bust and are in no position to negotiate a good deal.

They have to take wot they are given.

The company needs new investors. Other than the people on this board, probably a dozen , a lot of the existing 49% will not want to reinvest after the way the old company has just destroyed their investment.

Mining ventures are not popular at the moment and are always high risk so many further investment will have to be at a substantial discount to the current price , I guess 50 % easily. Unfortunately, that's what happens when a company gets it seriously wrong. They get punished.

For East Imp the chap that runs the co has been doing presentations prior to the placing and to give him his due he has managed to up the price from 0.5 to 0.6p .

Advisors/brokers will be doing the same thing for Hzm. Touting round the placing idea to see what price new investors will pay. Then they will do the cap reorg based on their findings /recommendations. To be safe they will settle on new shares at 1p , but hopefully place them at some sort of discount to the prevailing price

Electric L,

It would be the only way to get the placing away . New investors want a discount to the prevailing price . They would never pay 20p when the shares are 3/4p . Just look at say Avacta . At say 100p would investors pay say 400p . Of course they wouldn't . They had to set it at 50p , much to the frustration of the existing PI's

You can change the nominal value of the share by way of a General meeting . East Imperial has just done it on 2 nd Feb.

There share price is 0.5p and the nom value is 1p. They have done a cap reorg and will issued new shares at 0.1p . They haven't placed them yet but the price will be less than 0.5p . Probably not at 0.1p 😲

So if the board a cap reorg they can get the resolution passed , they can reduce the nom value to 1p prior to the placing . I guess as the 3 main investors have 51% it will go through .

You have several problems here ,

The company, not the project, is priced to fail, ie the mm's believe more than likely going into admin, hence the price of 3p .

It's not the value of the project it's the value of the Hzm shares.

However, if the market believes there is a viable solution at the end of the month the price should rise towards the end of the month. Inside info will always leak out to some degree.

I can't see any placing being done otherwise than a discount to the prevailing price at the end of the month. It really does not make a lot of difference to the main players who will have to stump up best part of 100mill for new shares. whether that is shares at 2p or 6p they will have to stump up the same amount of money. They then have to rely on existing shareholders and more importantly new investors to stump up the other half . For any new investors they will want the shares at a discount , which makes it a really attractive deal. You only have to see what Avacta had to price their shares at and they are supposed to be a well regarded stock.

So watch the price during this month to get a feel as to what may happen. Unfortunately, the 3 main players will only look after their own shareholders, that's their remit. They have no remit to look after Hzm shareholders.

Nickel price could motor back quite quickly to 20000 🚀