Tribe Technology set to deliver healthy pipeline of orders from Tier-One miners. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
If you're not out yet then the best last hope right now is a bid. Yesterday's RNS says a few things
1. We are running out of money in a month.
2. It's still a valuable asset with a lot of money spent and nearly ready to go
3. Diligence is not complete and is proceeding at a leisurely pace not matched by point 1.
4. Come and buy us, bargains to be had.
Best ending here for anyone still in is a bid for the company. Right now O and LM would take an offer to recover pennies on the pound rather than be wiped out. Glen would find it cheapest, Vale would be most ironic, Anglo American might like a go too.
There may be a bid. Or more than one. Or none at all. It is the best last hope though.
Where are we now on the Lassonde curve picked?
Not quite…
1. We are running out of money in a month - NOT QUITE AS THEY HAVE ALSO SAID BELOW MEANING POTENTIALLY FUNDING UNTIL Q1 END, THERE IS A CAVEAT BUT NO REASON WHY SUPPLIERS WILL NOT AGREE TO THIS AS ITS SUCH A SIGNIFICANT PROJECT AND CASH COW FOR THEM.
‘..unless there are positive outcomes from conversations with suppliers, other cash preserving measures, or other financing solutions, which if successful should provide sufficient working capital until late Q1 24 .’
2. It's still a valuable asset with a lot of money spent and nearly ready to go - AGREED
3. Diligence is not complete and is proceeding at a leisurely pace not matched by point 1. - FUNDING POTENTIALLY UNTIL Q1 END WHICH COINCIDES WITH FUNDING SOLUTION.
4. Come and buy us, bargains to be had.
Best ending here for anyone still in is a bid for the company. Right now O and LM would take an offer to recover pennies on the pound rather than be wiped out. Glen would find it cheapest, Vale would be most ironic, Anglo American might like a go too.
There may be a bid. Or more than one. Or none at all. It is the best last hope though.
Heading for administration by Xmas
My opinion is this will get bridge funding and/or the suppliers will agree delayed payment taking us to end Q1. La Mancha, Orion and Glencore will find the minimum to get this running and each increase their stake by around nominal 10-15%. That dilutes everyone else by 50%.
The banks and other investors have sunk too much into this to walk away or let anyone else’s pick it up on the cheap.
Maybe but it also looks very likely to me that a part debt part equity deal is on the cards here after DD and digestion.
20p will be the lowest price per share for equity as they can’t raise below nominal value of 20p per share
Contrarian. Seriously give it a rest. Taking joy in others losses is unhealthy and unpleasant, and having empathy and pity is more grown up behaviour in a civilised society. Maybe that's something we are taught as children that you missed out on, I'm sorry your childhood created such an urge to gloat and boast.
Spot on they what some 60% construction complete, 100s of £Ms already invested and spent, they are sunk too deep into this, bailing out now simply makes little to no sense!
Especially when you consider its so close to being built…with proven high grade resource and mining life of whole 28 YEARS minimum - extraordinary cash cow!
Read latte part of this para from RNS, now if there wasn’t a chance of agreement with suppliers / cash preservations they wouldn’t have mentioned it including Q1 end funding?
As of 10 November 2023, the Araguaia Project had total liquidity sources of US$169 million comprised of US$131 million undrawn on the Senior Debt Facility ( subject to satisfying drawdown conditions ) and a cash position of US$38 million which should provide sufficient working capital to around mid-December 2023 unless there are positive outcomes from conversations with suppliers, other cash preserving measures, or other financing solutions, which if successful should provide sufficient working capital until late Q1 24 .
I think, realistically speaking the FED will do an emergency cut of rates as something broke behind the scenes. That something is James Martin's reputation and Simon Retter's hairline. This will enable HZM to borrow at competitive rates in a currency of their choosing and avoid a shutdown of a resource so valuable to an ever diminishing EV market (especially the 2nd hand one. Have u seen how much a 1yr old Taycan goes for these days? - no-one wants the damn things)
Latino I am a capuccino man personally
Publican,
I propose a crowdfunding round. Between us we could get the 250mil. Wasa may have to live in a tent for the next decade - I may have to sell the Jag but hey it's worth it for a hole in the ground and some machinery above it
Picked in al seriousness where was your empathy when I was making points you were ridiculing?
Maybe apologise first
IMHO The lenders will be heavily involved atm. If funding is not forthcoming in 2024, they don't want to be left fighting in the courts in Brazil to get control of the assets. So, they will ensure that bills are paid, but also HZM do not make any new commitments.
The EV market isn't diminishing. It's growing world wide rapidly, feel free to respond with facts about aggregate demand daily telegraph pieces about the UK don't count
Slurms, have you seen the serial discounts Tesla is applying to its junk? Nobody wants an EV anymore especially 2nd hand
Many insurers have begun refusing insurance, new regulations for garages specify that they have to be 40-50ft apart, car parks will begin to ban them to special sections because they are a fire hazard
Is it possible that today’s RNS is intended to rattle Orion and La Mancha that they risk losing their holding unless they step in urgently? Even if it is I doubt it will work.
I have to say administration is looking likely - money is running out in six weeks.
Can a company of this size be sold in six weeks? Due diligence seems to take months these days.
I suspect anyone looking to buy the company will prefer to buy it out of administration and take their time. Any reason to jump in sooner than that?
Sadly the company is to blame for all of this. They went to the money markets with a firm plan to build the mine for sum x, and it turns out that the true figure is x +35%. Massive f-up.
Only be sold via Sharepurchase.
I think still Glencore could go hostile and get the company below 40P
I have, I think Musk is having to compete harder with the Chinese.
Aggregate demand is still going up worldwide. Now whether or not that's in part dues to different chemistries I don't know (someone on here will), and I'm sure China is doing a lot of the lifting here but overall EV sales are up and it's projected to stay that way.
I hate linking from my mobile phone so I won't but I'm going off the IEA stats.
Aggregate demand for Evs though probably isn't the biggest issue right now though, so a bit of a diversion. Sorry. Survival is.
I think the best outcome now for shareholders is a buyout good luck.
A lot of unknowns but a valuable asset certainly. Glencore have lots of fingers in this pie….. it’s certainly complicated and offer of 25p would be their first attempt rising to 40p maybe. Unfortunately it’s a bit of cat and mouse stuff now but Anglo could be an interesting white knight….. we will see a bounce to 15-20p …. That’s on the cards as things get ironed out in the coming weeks…..all to play for. The ultimate source of happiness is not money and power, but warm-heartedness…be kind to those who fear a wipeout…however, I look forward to the resolution and an SP of at least 35p as funding gets the green light…..and then £1…
On the company website HZM is described as “the World’s leading nickel investment company” - someone as a macabre sense of humor
The company has also gone very quite on it’s other World leading asset -Vermelho !
What is happening here-could this not be sold off to help fund the “miscalculation” of the costs on Araguaia?
Who did the costings and if an independent contractor is there not a negligence claim against them?
The company could be sold in a month. The only reason to do it quickly would be continuity, ie avoiding lay off and restart costs. An administrator would need a minimal care and maintenance plan to preserve the asset value, once all the contractors leave it will be a mess trying to get them back.
The cornerstones and debt holders will not want this in administration, value drops very sharply if that happens.
Any suitor will need $300 mil for the debt and another 300 to take the mine to production - the cost to aquire all shares is relavely small (between zero and 50 million (20p per share)). So the SP will be manipulated down and up for the next few months but would be a brave trader to buy even at those levels just now. Buy sub 5p and sell at 10p may be worth a call but not for orphans and windows.
Glencore market cap has risen by more than ten times the funding gap so far today. They will want the asset, it's just a question of how do they get it.