Member Info for StarBright

Strong again today - a really good sign. This was oversold at 75p ahead of the trading update, and is recovering nicely.

I'm pretty sure they were sells, executed via one of the MM's and reported in real time. Quoted spread at 0947 was 70.7 / 71.9 so 71p is at the lower end of the range.

Perhaps Rathbones still reducing? If so we might see another TR1 soon. They've been unloading enough to sit on the price in recent weeks. At some point they'll get below the threshold they are comfortable with. In the meantime they are a source of shares for other buyers to lean into.

Running yield is back toward 11%, which looks great to me. I didn't think the opportunity would last this long.

There you go!

+12% today is great news, although volume wasn’t huge. Let’s hope the move attracts the attention of II’s such that some recycling of holders can take place. Sometimes this takes time as the company’s brokers look to find out who is serious and who is just flirting…

Thanks @Ex. I hope that 10% is a staggering number… Enough - along with the jobs created etc - to satisfy those who will look at the economic outcomes for the people of Congo Brazzaville. I’m not squeamish, I just think this will attract critical attention. Let’s hope that ZIOC itself can stay out of the harsher glare. It’ll be a good problem to have I guess!

Isn’t it most likely that all of the “old” agreements are relevant only as context and support for initial bargaining positions? That - in reality - all of this will be repapered should a deal be done, and the outcome may bear little resemblance to the shape(s) envisaged years ago?

For me the biggest - and perhaps least discussed - unknown is how the “financial objectives” of the host nation (& its leaders…) will be met. They will want their pound of flesh for sure, and they will find some way of extracting it.

My take is that a lot (a huge amount!) of bad news has been priced in here. Sentiment is as -ve as you ever see. Yes there are challenges - US retail performance etc - and the business simply isn't going to generate the returns anticipated when it was floated, but the re-pricing of this may now be behind us.

For LTH's it's a tough story, a reminder of why buying PE exits is rarely a good idea! But the dust looks to be settling now and it's easier to see how SP progress can be made from this point.

Nonsense! In the short term the SP will be driven by dividend expectations. If anything todays trading update is a positive as it suggests management's hand isn't being forced.

Initial sp reaction is positive. If management can deliver a good call / narrative today, the doomsters here and elsewhere may be disappointed....

Far from the disaster many were calling!

Revenue slightly stronger than consensus forecasts and forward guidance held unchanged. Boring, in a good way…

All to play for here, for both management and shareholders.

At least give us a link that works...

Brad was referring to the situation after any potential sale of Newmont/MMA's 51% holding in the JV company. As they haven't proceeded with the JV, Brad's statement doesn't apply.

I think he was outsmarted.

From the 2020 financial statements:

"In September 10, 2018, the Corporation completed an exploration agreement with venture option with Newmont Colombia S.A.S., a wholly-owned subsidiary of Newmont for the Anzá exploration property. The Exploration and Option Agreement includes a three-phase earn-in structure allowing Newmont to earn up to a 75% ownership interest in the Anzá Project by spending a minimum of $30.0 million in qualifying expenditures over twelve years, completing an NI 43-101 compliant feasibility study and making cash payments to Orosur equalling a total of $4.0 million over Phases 1 and 2. In Phase 1, Newmont may earn a 51% ownership interest by spending $10.0 million in qualifying expenditures over four years and making cash payments to Orosur equalling a total of $2.0 million during the first two years of the Phase 1 earn-in period. Upon Newmont’s completion of Phase 1, it may elect, in its sole discretion, to exercise its option to form a joint venture with Orosur. In Phase 2, Newmont may elect to earn an additional 14% ownership interest in the Anzá Project by sole funding $20.0 million in qualifying expenditures within four years, completing an NI 43-101 compliant pre-feasibility study and making cash payments to Orosur equalling a total of $2.0 million. In Phase 3, Newmont may elect to earn an additional 10% ownership interest in the Anzá Project by completing an NI 43-101 compliant feasibility study within four years."

Quite easy to see that they can earn their 51% Ownership Interest but then elect "...in their sole discretion..." as it says - not to proceed to Phase 2.

That's exactly what they have done.

So the relevant audited accounts and the RNS released by the company since 2020 are also wrong? The company has consistently understated its position? It owns 100% of the rights to the ANZA project even though it has repeatedly told the market that it only owns 49%?

The annual reports and RNS are likely correct, not your unevidenced assertion.

Post the evidence and I'll happily change my mind / apologise / grovel etc as would be appropriate.

I think that is wishful thinking @breaktwister.

In a September 2022 RNS OMI said: "Orosur is pleased to announce that further to the announcement of September 6th 2022, MMA has now provided the Company with a Phase 1 Earn-In Notice, having completed all of the obligations under the Exploration Agreement, including the investment of US$10 million in the Project."

Newmont/MMA have therefore earned their 51% interest, by completing all of their obligations in the exploration agreement - essentially by spending USD12m.

They are at liberty now not to proceed to phase 2: "Upon Newmont’s completion of Phase 1, it may elect, in its sole discretion, to exercise its option to form a joint venture with Orosur." OMI is telling us that Newmont/MMA have completed Phase 1, but have not and will not commit to the spending of the USD22m required to earn the additional 14% interest as envisaged in Phase 2.

So today OMI has a 49% interest in the project and Newmont/MMA 51%. OMI are going to have to ask for their ball back. There is a negotiation as to the price for this.

Your assertion that MMA have only an option over the 51% contingent upon them spending an additional USD22m is unevidenced, and materially different to what shareholders have been told in multiple RNS and annual report(s).

If you have a copy of an actual contract that substantiates your assertion then please post a link or the relevant excerpt(s) here so those interested can read it for themselves. In the absence of this your assertion should be disregarded, and readers should operate on the basis that OMI has relinquished the 51%.

Sorry - missed a bit….

In the presentation, the $20m is described as the payment for the further 14%:

“ In Phase 2, earning additional 14% interest by sole-funding US$20.0 million within 4 years, completing an NI 43-101 pre- feasibility study & making cash payments to Orosur equaling a total of US$2.0 million.”

@breaktwister - why do you say “…they only earned an option to obtain a 51% stake…”?

OMI’s 2020 presentation says: “Phase 1, earning 51% interest by spending US$10.0 million over 4 years & making cash payments equaling US$2.0 million during the first 2 years. After Phase 1, Newmont may elect to form a JV”

Why do you think that exercising the option requires them to commit to spending the further $20m on Phase 2?

What have I missed / misunderstood?

It's likely that Singer asked them to post on this. It's hard to see any -ve for AVCT in going along with such a request.

Oh - I see! I had read it as 1p per share, my mistake.

Https://www.bloomberg.com/news/articles/2024-01-20/congo-and-china-talking-7-billion-in-finance-tshisekedi-says?leadSource=uverify+wall&sref=v9DhbdG5

China and Democratic Republic of Congo are discussing $7 billion in financing as part of a renegotiated minerals-for-infrastructure deal, President Felix Tshisekedi said Saturday at his second inaugural address in the capital, Kinshasa.

Tshisekedi has been pushing for a restructuring of a 2008 $6.2 billion contract between the countries, which he says has provided little benefit to Congo. The original deal promised $3 billion in infrastructure projects paid for by proceeds from a copper and cobalt mine known as Sicomines.

While the mine has operated for years, less than a third of the development money was ever disbursed, according to Congo’s government.

Tshisekedi said a new infrastructure initiative to open up the enormous country would be financed “thanks to the upcoming allocation of funds from the envelope obtained as part of the renegotiation of the Sicomines project and which should reach a total amount of $7 billion.” He did not offer further details.

Perhaps he’s repulsed by the unpleasant and disgraceful behaviour of a vocal element of self-appointed IR representatives in the company’s shareholder base, as exhibited on this forum every day. I am.

Perhaps AS - who doesn’t appear to enjoy the grim reality of being a CEO rather than a scientist - is setting up a lucrative exit (deservedly so, imo) following a paradigm changing commercial announcement/development, and Dr. Coughlin is to be his successor..?