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That is a Monster Excavator.
https://www.linkedin.com/posts/mohamed-coumbassa-1267b068_back-to-site-coricagn-activity-7193192602958004224-QJyJ?utm_source=share&utm_medium=member_ios
Https://www.youtube.com/watch?v=LsfQxUPD7IU
Last Dan presentation in Feb 2024
Can I just add that the Vermelho acquisition and the Glencore asset were purchased by HZM and have contingent payments to be paid from Nickel in the future.
Should the business breach these terms by going into administration both the Glencore and Vale owned Vermelho assets would go back to the owners. This is standard in most commercial sales contracts. That is something the Cornerstone investors would not want.
Also some of the equipment packages are may have retention until fully paid for.
Also the mining, operating, environmental licenses to operate are in the name of HZM, have conditions and cannot be novated.
Hence HZM has to remain a going concern.
Also just seen on companies house , HZM have moved their office to a larger open plan office in Knightsbridge.
Registered office address changed from Rex House 4 - 12 Regent Street London SW1Y 4RG England to 1 Knightsbridge Green 5th Floor London SW1X 7QA on 11 December 2023
If anyone follows the filling at Companies house, you will see a number of charges against fixed and floating assets of HZM are secured by all the Banks.
In administration the Cornerstone investors will be wiped out.
Hence HZM will remain a going concern, just a question of how much Debt and equity at what price. Agree that Par is a floor on price.
Nominally, they cannot issue new shares below 20p.
Current Market Cap is £23m.
Which is less than what has been spent on the Line FS at £25m.
The Vermelo FS spend was also another £25m?
Current spend on the Araguia was £429m.
Also money that was in the bank was circa £30m, most of it is committed.
I think with La Mancha now leading with credit lines and money available, we should get some positive developments, although we have not seen the cost to complete yet.
Even if La Mancha, Orion, Glencore issue 2 Billion shares at 10p, to raise the £200m their average share price will be 17p
The only time they will get their investment back, is when they start to generate positive cashflow and start making profits. Hence, Debt may be a better option to get repayment of the investment, or a blend of both.
Also post PFS on Vermelho, you can see some trade sale of all or part of that project to generate cash.
ALL MAJOR SHAREHOLDER STILL HOLDING ALL THEIR SHARES PURCHASED AT £1.40 AND AT £0.90
QTY of Shares % Holding
La Mancha 62,297,182 23.09%
Glencore 47,871,805 17.74%
Orion 28,292,291 10.49%
Helikon 23,771,706 8.81%
Condire Investors 8,891,404 3.30%
azValor Asset Mgt 8,638,552 3.20%
179,762,940 66.63%
QTY of Shares % Holding
La Mancha 62,297,182 23.09%
Glencore 47,871,805 17.74%
Orion 28,292,291 10.49%
Helikon 23,771,706 8.81%
Condire Investors 8,891,404 3.30%
azValor Asset Mgt 8,638,552 3.20%
TOTAL 179,762,940 66.63%
Fair Comments:
Who would take it private?
Would the 3 Cornerstone investors set up a new Holding company?
Orion have non dilutive clauses.
Glencore could go solo.
La Mancha are investors looking to make money and get their original investments back.
At what price would the shareholders need to be paid off?
Current floor for new shares is set at 20p until something different is voted at EGM.
Any changes would need to agreed by so many legal parties, Debt holders will want cast Iron Guarantees and legal indemnities etc.
Best solution is still to put in place some Debt and Equity to allow drawdown of the balance of the debt and complete the project.
Cornerstone Investors only own 51% of the business, hence need a solution to bring all stake holders together and move forward.
I think we all accept this is high risk and await further guidance as to what the Investors and banks can agree on to get Araguia re-started and built.
Should the company be put into Administration, then HZM will Breach hundreds of Contracts, all will have to be renegotiated at higher prices and more cash upfront. Hence it will never happen in my view.
Also In Administration, Vale will take back Vermelho and Glencore take back their deposit due to Breach of Contracts.
La Mancha have put their team in to get Araguia built and u lock the Revenue for the next 28 years.
Dilution is the risk but there is balance between debt and equity, and looking after all stakeholders.
Https://youtu.be/n49U0o8JMeA
Worth a listen from 9 minutes in.
Zak Traders Cafe & Biztech
Https://www.linkedin.com/posts/patr%C3%ADcia-holanda-da-cunha-a56352199_ent%C3%A3o-vamos-falar-que-somos-uma-equipe-ugcPost-7131625291738722304-yInG?utm_source=share&utm_medium=member_ios
Business as Normal at Araguia. Training 4 days ago …..
There is lot for the Cornerstone and other key investors. On top of this, there is all the money in Royalties, Convertible Notes, Money ploughed into DFS on Line 2 and DFS on Vermelho.
There is lot to save and PI are aligned to what Cornerstone have to loose.
Even if they are big companies, no one want to lose money, not 10 of millions.
Shareholder Number of shares % of issued capital
La Mancha 62,297,182 23.09
Glencore 47,871,805 17.74
Orion Resource Partners 28,292,291 10.49
Helikon Investments 23,771,706 8.81%*
Hargreaves Lansdowne, stockbrokers (EO) 12,917,689 4.79%
Interactive Investor (EO) 11,409,461 4.23%
Condire Investors 8,891,404 3.30%
azValor Asset Management 8,638,552 3.20%
*4.5% of Helikon Investments shares are held through financial instruments as noted in TR-1 dated 12-10-2023
In terms of AIM Rules published in May 2010 and insofar as it is aware, at 31 October 2023, approximately 52% of the Company’s AIM securities were not in public hands.
Glencore plc ("Glencore") announces that it has entered into a binding agreement with Teck Resources Limited ("Teck"), for the acquisition of a 77% effective interest in the entirety of Teck's steelmaking coal business, Elk Valley Resources ("EVR"), for US$6.93 bn in cash, on a cash free debt free basis, subject to a normalised level of working capital.
Glencore can do whatever they want, they have so much cash.
Teck dodged the bullet when they sold out their HZM holding.
Https://moderndiplomacy.eu/2023/11/09/indonesia-and-nickel-tracing-the-path-of-sustainability-through-esg-implementation/amp/
ESG is here to stay.
Https://www.greencarcongress.com/2023/11/20231107-sk.html
Interesting read on Nickel content in these batteries.
I am not sure the Cornerstone investors will be happy with Averages of 35p or 45p. They will be looking at futures prices back in the pounds and not pence. Hence, I expect more debt than equity.