Member Info for slowlyslowly

They tell you exactly where it is: https://hemlomining.com/news/hemlo-mining-corp-intersects-16-1-gt-au-over-8-1-metres-in-newly-interpreted-south-rim-zone-adjacent-to-active-mining-in-c-zone

What colour of the rainbow comes between blue and violet?

What did you just call me? :-)

And we're now clear that both equity and debt finance are binding, the equity is being drawn first (a process that's begun) but in stages to minimise FX risks. That answers that question.

One ounce of silver for every two of gold is a happy bonus I wasn't expecting.

Darren, development time has always been two years, and it remains two today. 2026+2 and all that

They've activated the contract with Lyco. You don't sign the contract to commit to paying your biggest contractor for their part unless you know the funding is over the line.

RNS 20th October

@Magic-orb no, but you need to read that against the backdrop of the RNS of 20th October, as I explained at greater length in my earlier reply to you.

@Magic-orb It's like walking forwards - each leg has to take a turn.

The equity funding partners would not put in project level equity unless they knew that the debt was in place so that their equity would be sufficient to fund the project to production. So they did the debt first. The RNS on 20th October told us that: “Debt capital signed: The co-lenders and KEFI have signed the US$240 million debt offering.”

The debt won't lend the company money until they know that the equity portion has been raised, otherwise they're lending against a project that won't fly, and they risk losing their loan. So they close the equity before they can draw down the debt.

We’re now told that it's standard to draw down the equity first, and then the debt. So that's going to be happening so they can start work this year as promised.

The conditions that still need to be met are the conditions for drawing down the debt, which will be done during H1 2026, so that before the equity funds are all spent they can have access to the debt funding and keep building the mine.

@Robjm66 - absolutely, because in Ethiopia one key requirement is the goodwill of people on the ground, whether that's politicians at all levels or the local people in the areas around the mine. By giving them a stake, they're all on the side of this succeeding.

Thank you Simms. We all (well, those of us who have been following the progress, cashflow and project-level equity requirements) knew that there would almost certainly be one final placing. That's now out of the way. It is the placing to end all placings. The project is fully funded, and the corporate costs are covered until production.

My other observation is that we have managed to retain 83% of TKGP. Given the forecast range was 70-85% (according to KEFI's presentations), this is right at the upper end. The only way we managed that was by putting in a bit more equity into TK during this final stage. Had we waited to raise until after full financial close, that ship would have sailed, and we'd be raising at a higher price but with a materially lower percentage of the project. In terms of projected future cashflow, this makes for a more valuable company.

@Crazyyear - this is not the court hearing, but the meeting of shareholders for the purposes of satisfying the requirements of the future court hearing.

Yes, in June 2024. This is a subsequent offer for a lower sum, and the ball is not in their court because they have made a binding offer subject to the two meetings followed by court approval

Bill, precisely because that was a while back, I think it's highly unlikely that it's anything to do with all that.

Searching for the word "audit", I find 26 occurrence in the report, but not the report. @Atanasoff, do you have a phrase from that section I could use to search for it please?

I'm looking for the auditor's report. That, debt and cash positions are three things I look for first in any annual report. Anyone found it?

Download the AJ Bell Money & Markets podcast from 12th September, and George is being interviewed from 41:42. Nothing new for long-term holders, but a very helpful introduction to Rainbow for those who haven't followed.

Here's one extract: "We do what Lynas from Australia have been doing, and Lynas in Australia (which is about a $6 billion dollar market cap business) are producing about 6,000 tonnes of neodymium praseodymium, and we'll be almost a third of that size. So that's just to give you a comparative size. So we'll be about a third of the size of Lynas, but much much lower cost producer, with a lower lower capital intensity to achieve that."

I was referring to Dave Catterall (KCB) and Steve Smith (Zim Greenstone belts)

"Can't see the final extraction stage technology being allowed to move from the US"

In September, they announced they were going to move the rear-end plant so it's in the same location as the front-end, meaning they can pass some of the separation stages back through the leaching process if that's helpful. So they're no longer producing MREC in South Africa then sending it to the USA to separation. The whole thing will be done in South Africa.