Member Info for tomcat-14

it’s a pity it wasn’t reference under jrp also... but as it is the most likely stumbling block in all such situations...
it automatically defaults to unsecured credit anyway... the amount above what can be supported by the jrp... no doubt... (which you must assume is our reasonable and considered offer that’s on the table)... which is... best case... we can support it all as unsecured credit...

great link as always ob... filed for reference...
https://www.lexology.com/library/detail.aspx?g=8028113b-3912-4ae4-b181-cd687061e738 ...
secured credits... up to the limit of the value of the guarantee (the unpaid balance will be considered unsecured credit);...
i asked the question previously... and here is the difference...

i’m sure everyone knows the reason why brasil have both options... or should i say... an alternative option to bankruptcy...

so maybe a bit more black and white then... ruling on the final outcome being jrp or bankruptcy...

possibly... is this secured debt linked to the period around the anglo sale to zamin... which we know all the courts consider that to be a fraudulent sale... are the liens likely to be judged in a similar way... are they the reason... or one of the reasons... the last attempt to recover the project failed...

worst case scenario... the court doesn’t annul the liens and the job stops... none of the historical and small labour creditors get paid... and we get our $2.5m back from the escrow account... is that what everyone except the banks want i wonder...

it was originally timed that way had they settled with the 60day timescale given by the court... at least we know we’ve got a guide date for the court ruling... end june...

a bit like our friend gerald must have done... ;) ;)

although i’m just looking at that $27.8m... thinking we’re paying for the shipping of this stockpile... so any profit over and above the original $60m... is ours... us acting as the intermediary... buying it for $60m net... selling it for $87.8m net... if you know what i mean... ;)

so why would they do that... 16:42... more likely they took the $20m - $30m to add to the $27.8m... for buying out the banks...

apologies... didn’t read that far down...
at $80 per tonne of 62% fe... for the 1.39m t stockpiles that gives us...
$111.20m gross turnover...
$60m net profit...
$51.2m opex...
$36.83/t opex...
$43.17/t net profit...

http://irservices.netbuilder.com/ir/cadence/newsArticle.php?ST=REM&id=2887382 ...
didn’t they use $61 per tonne of 62% fe... in the jrp valuations... for the 1.39m t stockpiles wouldn’t that give... $84.79m gross turnover...
$60m net profit...
$24.79m opex...
$17.83/t opex...
$43.17/t net profit...

there you go then... it’s still only reported at $30m - $40m value of the stockpiles on page 5 of the june20 presentation... https://www.cadenceminerals.com/wp-content/uploads/2020/06/Corporate-Presentation-KDNC-JUN-2020-PUBLIC.pdf ...

i don’t expect they’re too interested in all that... they just want the money they think is owed to them back... regardless... i’m just saying if we thought the stockpiles were worth $60m... but are now worth $70m... but we’re only allocating just $30m - $40m of that value as the contribution towards the project... they have $30m - $40m to negotiate with the banks... which just by coincidence could stretch to the npv0 $40m noted earlier...

it’s definitely worth another listen to those interviews for me then... because that was one of those things that jumped right out at me... although ever so subtly mentioned in the discussion... just to make sure i’m not mistaken...

yes... but the $60m then valued stockpiles... are worth ? at today’s prices...

e.g. my npv0 $40m being equivalent to $135m paid back as the unsecured creditors payment schedule... but without the risk that comes with the time you’d need to wait to get it all back...

sorry... my terminology... npv0 = cash now... on the table... just sign here... and it’s yours to take with you...

well i never... am i right that you’re saying the $135m secured credit... if annulled... would result in the unsecured credit equivalent to npv0 of $38m in today’s money... obviously i don’t think we can get anywhere close to $100m increase... but that does bring another post to mind then... 09jun2020 08:29... in that we are looking to buy them out completely using the proceeds of the stockpiles... which if taken from the value we may have recently discounted from the stockpiles as noted earlier... could be around npv0 $40m...

which takes me back to another thread... and the recently reduced valuation of the stockpiles... we’ve obviously made an offer to the banks discounting their secured credit by x... we know their secured credit is $135m (jrp 1.1.33)... and if their liens are annulled by the courts... as unsecured creditors they would get 70%... (jrp 4.5.1)... that’s about $40m we’re currently arguing over... and now have the time to see if the courts will rule in our favour... but we had the stockpiles at an original value of $60m net... and know that that’s significantly less than it’s current value today... but we’re now reporting it’s reduced value today at $30m - $40m... (joking aside and some of it hasn’t been stolen)... if that’s not the full $40m we’re currently arguing over... it’s got to be close to a reasonable allowance to meet somewhere in the middle... to ease the deadlock with the secured bank creditors... at a strategic time of our choice...