Member Info for salmonn

Ha ha

LSE starred it I wrote the word! It changed to stars when posted.

Hi all, if I remember rightly, this is without checking, so apologies if I've got any of this wrong. The RKEF process will use saprolite ore, which is the lower level of the nickel laterite. This has a higher grade nickel content and is lower in iron. The waste from the kiln (****) is the inert material that JM talked about as being used as an aggregate or binder. The tailings are the ore body under the top soil (over burden). This upper layer of the laterite ore is limonite ore plus the transition layer above the saprolite. The limonite has a lower concentration of nickel and a higher iron content, which can be blended with the saprolite or set aside. The limonite is a suitable feed stock for the HPAL process, providing the concentration of magnesium is sufficiently low so as not to use up too much acid. Whether it is worth trucking up to vermelho or not is an open question, but it will be stored separately and graded, either available for use or replaced at the end of mine life.

(****) is slug with an a not a u it's not a rude word

Hi all, if I remember rightly, this is without checking, so apologies if I've got any of this wrong. The RKEF process will use saprolite ore, which is the lower level of the nickel laterite. This has a higher grade nickel content and is lower in iron. The waste from the kiln (****) is the inert material that JM talked about as being used as an aggregate or binder. The tailings are the ore body under the top soil (over burden). This upper layer of the laterite ore is limonite ore plus the transition layer above the saprolite. The limonite has a lower concentration on nickel and a higher iron content, which can be blended with the saprolite or set aside. The limonite is a suitable feed stock for the HPAL process, providing the concentration of magnesium is sufficiently low so as not to use up too much acid. Whether it is worth trucking up to vermelho or not is an open question, but it will be stored separately and graded, either available for use or replaced at the end of mine life.

Hi john, sorry if I wasn't clearer, the export guarantee as I understand it is to insure the purchase of exports from the country to HZM in case of default, this indemnifies HZM's creditor making it easier for HZM to get finance to purchase their country's exports. e.g. purchase of a furnace from a country if backed by its government because it wants to support its industry exports not HZM's exports from Brazil. I assume there is some kind of understanding between country and banks as the end stage of finance approaches so neither party is left in the lurch. As I said just speculation on my part but I find it difficult to believe that all these parties would be building teams, making orders for equipment, tendering for consultants/contractors unless the banks, post DD audits, haven't informally or stronger given it to be the case that the debt will be authorized. What would worry me more would be external factors outside the control of the process, lets hope none occur in the next few weeks!

Hi john4242 for all the reasons Caterham7 says finance is due soon. Worth bearing in mind the company are doing deals with export credit agencies which are European government entities. I would think it is very unlikely the banks would stand by and watch these deals going through if they were not going to authorize the debt. It wouldn't go unnoticed, I'm sure HZM have been transparent about the funding situation so if it fell through at this late stage, after the DD process, then it would be the banks that would suffer the reputational damage. Speculation I know, but many of us have been following this closely for years and I've yet to hear any alarm bells that this won't cross the line, just a bit of understandable impatience.

Just got in and read today's posts. Feel like I've lost twenty minutes of my life that I'll never get back! Today's 2020 ESG report is yet further evidence of the world class company being built here. That's what is relevant, re today's news and for me at least further confirms my decision to invest and hold for the last seven years.

Perhaps if you guys need some advice on sleep you should ask soundbuy..... zzzzzzzzzzz ;)

Thanks taufour for reminding us. Can't be sure but from other interviews Philip Clegg seems to like HZM, our approach to ESG and the people in the company, and we all prefer to do business with people we get on with. Having said that the hard figures have to add up and business is ruthless, but it helps to have a personal affinity.

Hi Oscar, JM has stated that the finance will be a "traditional" 60 to 65 % debt plus off take and equity. The reality seems to be that to raise the required amount to build A1 the shares issued are likely to approach a doubling, as you say. Like others here and on ADVFN some of us have been following the company for five, ten years or longer and have seen HZM in that time being built from a fairly mediocre asset to the two world class tier one nickel assets we have today, which if developed will put HZM in the top ten global nickel producers. I surmise that the deal on the table is the best available that allows the company to move the project on into production. I don't see any other miners at our stage of development being offered better terms. Personally, with the usual caveats, I think this way is going to optimize the value of the company in the next few years. But everyone will have their own take on this and perhaps should base the amount they might risk on the above.

I don't know how relevant this is, but presumably the nickel matte produced via the RKEF route comes from saprolite ore rather than limonite used in the HPAL process. If so does this divert nickel feedstock away from stainless steel production, so supporting the stainless price? HZM deposits have world class saprolite grades, especially in parts of vermelho.

Good points pp, maybe the webinar doesn't fit with the AGM format? But in any case I hope you are right about some new and positive news. Reading the annual report I'm really impressed with the sheer volume of work the company have managed to get through despite the current restrictions. And to me it strengthens my belief that the aim is to build a significant mining company from scratch rather than sell it on pre production. Even just a round-up of the work done over the last twelve months would count as good news in my book.

My take on Friday's event is that it is the Company reporting to non institutional shareholders as a policy set out in the Annual report. JM has said in the past that he has regular meetings with institutional investors so IMO the above is similar for PIs. As to timing this is around the time of the AGM and if you attended prior to covid JM would give a presentation followed by discussion/Q and A. Others and from about 2015 I posted write-ups of the AGM on the other BB. Can be found via my post history on ADVFN. As to Regulatory News announcements these are separate to the Company meetings with shareholders and I guess follow a different timetable.

https://www.nickelmines.com.au/ Gives an idea of what might be possible.

Webba, I don't think you need to worry too much about your hair. ATB.

Very good point witto. HZM might be on AIM but their corporate standards are way, way higher. I don't yet fully understand what's happened here but going by their past record they have maximized the company's value, often in very difficult conditions, so this is just part of the journey. To me the RNS is telling us, among other things that the finance will be closed in H1.

Thanks for your contribution Aim.