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I think this will end in an asset sale. The implication is that after initial diligence the cornerstones and the banks have not been able to quickly agree a finance package that works.
Reducing to minimum activity will keep the asset valuable, but this seems now to be all about a sale. I am out, at least for now.
Says a lot if one of our cornerstone retail investors is out....
Hope not at a big loss PP....
Extracted what I added on the average down and written off the rest as a CGT asset. What little I had in the ISA was hedged in case it went to zero. You win some and lose some. Publican was right on this one as the company have made a right hash of it. They could not share the figure they needed to completion with us. Suspension is likely to happen next month. So much hope in August has come to nothing.
I reckon you’re probably right, well done for getting out, I couldn’t get a quote so I will see what happens now.
Beyond shocked by another ridiculous RNS having been given false optimism by the BoD.
Seems strange how the project is over 70% completed and now at this price , this surely must have some value as it’s a brand new construction …. Hey ho, wish I hadn’t averaged down .
Beyond Stunned
Do wish the best for remaining holders, you've been treated abysmally by the company. Feel very lucky to have exited after RNS, strange thing with this share is the delay between hammer blow news and SP fall. Up to 10 mins after RNS reaction was minimal. Didn't help they couldn't even stick to norms with RNS timing by releasing it 2 minutes into market open.
On the Bright Side ….. we’re still a Tier 1 Asset 😎
Lawrence stop derampig, we're a 2xTier1 assets. Just no cash to develop them with. what a ****show.
Oversold. I'm in.
GLA
Wasrich,
give us the upside you are good at that
Jesus another oversold guru - Tell us also "seller is out". - For crying out loud do you even know when to buy when the technical condition is oversold? Only when a resistance breaks. Fools ands their money
What are your thoughts on Value Wasa for 2 Tier 1 Assets with bundles of Critical Nickel ? Trading in old money 0.5pps
Does this get sold & what price per share ?
Net Asset Value per Share $1.07= £0.87p according to the last accounts 🤷♀️
At todays Nickelprice the NPV is approx 1.3B USD - however project need now more cash lets give it 1.1B USD as NPV.
I would assume min 20% of NPV or maybe approx £200M GBP.
£200M are £0.74 per share
Lawrence - I used to think even in a sale we would be ok because the NAV and what got sunk in already (which the buyer is effectively buying) must be worth a decent whack . They aren't just buying the Tier1 nickel in the ground asset they're buying a 70% complete mine with +$400m spent on it.
The problem of course is the debt - they have first dibs on the sale value no doubt with penalty clauses. So in a sale my guess is the first $300m goes to the lenders and shareholders get what's left.
It's a distressed sale so who knows. Maybe the smarter punters (no pun intended) were right and this goes to Glen for peanuts or something. I'm pretty jaded about it all tbh. It's a monumental ****up by the mgt team. If you can't develop it sell it so shareholders get something back.....
“I would assume min 20% of NPV or maybe approx £200M GBP.”
You’d assume wrong as any potential buyers are now negotiating with the creditors, not the equity holders - they hold all the cards and have no need to pay anything to equity.
>>£200M are £0.74 per share
Yes but only if they pay that and take on the debt.
For me the only thing that can save is us is that Orion and La Mancha don't want a $0 return. That's it. I do see our fortunes to some extent tied to theirs so lets hope they do want something back for 140p price invested.
“The problem of course is the debt - they have first dibs on the sale value no doubt with penalty clauses. So in a sale my guess is the first $300m goes to the lenders and shareholders get what's left. “
No one is stumping up $300milliom to pay out the banks. The banks will be negotiating with potential partners who can assume the debt as it stands and take the project to completion without taking any haircut, while potential acquirers may want the banks to take some haircut.
The only hope for equity holders is that the cornerstone investors find it useful to keep HZM as a vehicle to maintain liquidity in their shares and avoid complicated change of ownerships processes, but I highly doubt this leaves anything of more than 5-10% of the enlarged share count for existing equity holders.