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Reading through the last 2 RNS's this doesn't sound terminal. They have every chance of sorting this out. With the m/cap down from circa £350M a few weeks ago to the current £21.5M this has got to be less than a gamble.
Velocys plummeted recently on funding issues and has 3 bagged in the last few days. The fall here is even greater. Plus nickel is a very pricy and in demand/short supply commodity.
I know that many will still remember SXX and their dismal failure to get their mine funded and built and the cheap sale to Anglo American but that was just a fertiliser mine. This is nickel, currently at a low of $17,500/ton and very much needed for the EV boom. I feel that they will get this sorted and from a m/cap this low there is not so much risk.
News due in mid-Q4 2023 - which is about now by my calculation:
· As stated on 2 October 2023, Reta Engenharia has been retained to complete a detailed capital cost and schedule analysis which is expected to be completed by mid Q4-2023
· Araguaia Nickel Project Line 2 Feasibility Study ("FS"), which aims to double nickel production from 14,500 tonnes per annum to 29,000 tonnes per annum, to be published in mid Q4-2023
29,000 tons per annum at the current $17,500/ton is over $500M annual revenue. Anyone who doesn't think this will get into production is an idiot.
$ 17,000 last time I looked !
ART123, that was my reading of the RNS as well , they have put the project into an enhanced care and maintenance to reduce cash burn and bought themselves more than a few months pending the resolution of their financing issues. even if they went into administration, the receivers should be able to get multiples of the current market cap for the work already completed, plus the asset. The cornerstone investors will insist on that. There may not be a recovery imminent. but definitely a hold for me, (at the price i bought)
Bouthg SXX at 19p and looking at it when they sold . over billion go no where when thing getting wrong. That is big learnning lesson for me too. When something to big gap may be too good but may be it a track and lose money.
Being new here can someone tell me how much of the asset is owned by HZM? Cheers in advance.
NOONE is doubting that the mine will get built.
It will get built but the PI's here will not see the benefits because it will be in someone else's hands by that time.
This is not the debate
The market is pricing in a dilution wipe out for shareholders, even if it's possible for the company to raise the funds needed.
Okay, my research is telling me that HZM still own 100% of this asset. This is probably their mistake then. Do Greatland Gold own 100% of their gold asset in Australia? No, they own just 25%. Maybe it is time to farm-out 25%, 50% or even 75% of the ownership to one of the majors who will then provide the extra funds needed to complete the development and HZM will continue with a percentage of a very profitable mine for the next 29 years.
I repeat 29,000 tons of nickel at $17,500/ton give revenue in excess of $500M per annum.
Araguaia is collateral for the bank debt, so you cannot "farm it out" or sell a royalty on the cashflow etc.
You might sell Vermelho.
The same car or mortgage house that access belong to the bank and you cant sell it. If borrowers cant pay the load Bank will take it sell it to whoever have money to buy it the that is over. That is why it is very risk to buy but if they can find new fund it return very hight. .
your house will go if you cant pay to the bank it is simple way to find out why it lose 90 % over very short of time. . they need someone with a lot money to put it for finish and mine core to sell or it will gho.
It is very unusual for the posters on one of these boards to be even more pessimistic then the management but that is clearly what is happening here. I cannot see any talk of share holders being wiped out or HZM going into administration in any of the last 3 relevant RNS's. In fact the management are clearly confident of getting the required funds.
I'd be interested to know how you get 50 million. "The new delay costs 50 million alone"
I get about $ 2.1 million of interest per month (approx).
The market cap will increase over the coming weeks…full steam ahead from what I believe and heard. JM is beating the drum. Watch this space……..
Billy stop please the ridiculous ramping comments. We know you are desperate to get out but spare the other naive readers who may be new here and looking to grab a bargain. The only thing that Jeremy Martin is beating is other CEO's for the race of "Worst AIM CEO of the year" otherwise known as the award of "How to make AIM uninvestable"
What the Publican said. Just read this no further comments
Ramping…you two are experts at last rights…now watch this space!
Laurel and hardy were more friendly but definitely depressed like the SP….the drum is beating hard…fed hearing all the doom and gloom… this is happening mark my ears…I’m not deaf fortunately…the only ramp I have is to my mansion…we can trade places if you want proof…. but don’t doubt the outcome…
This is exactly why after today I’m off this board.
I feel like I’ve been hung drawn and quartered then shedded for good measure.
I’ll wait for the RNS!
Rover…opinions are opinions…I’ve been in the city for many years…AIM is brutal but when people repeatedly become negative like the market…it’s time to say NO! JM is beating the drum…now this is going to be a very happy ending… under FCA REGS, influencers will be sent to prison…this isn’t happening… watch the recovery but yes if easier stay away from the mayhem!
"JM is beating the drum…"
He's really not though in any way shape or form.
I'll bet he's busy as balls, but as far as shareholders are concerned he's AWOL. He's hiding which is a million miles away from beating the drum.
Slurms - watch this space!
Possible 100% upside today!!