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ATYM Atalaya Mining Plc

388.00
9.00 (2.37%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Atalaya Mining Plc LSE:ATYM London Ordinary Share CY0106002112 ORD 7.5P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  9.00 2.37% 388.00 383.00 388.00 388.00 378.00 384.00 340,596 16:29:58
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Metal Mining Services 362.13M 33.16M - N/A 0
Atalaya Mining Plc is listed in the Metal Mining Services sector of the London Stock Exchange with ticker ATYM. The last closing price for Atalaya Mining was 379p. Over the last year, Atalaya Mining shares have traded in a share price range of 281.00p to 395.00p.

Atalaya Mining currently has 139,880,000 shares in issue.

Atalaya Mining Share Discussion Threads

Showing 9351 to 9371 of 20975 messages
Chat Pages: Latest  383  382  381  380  379  378  377  376  375  374  373  372  Older
DateSubjectAuthorDiscuss
07/3/2017
09:10
They can spend whatever they like on PRT but there's a limit to what makes business sense. I guess maybe getting the plant to 12mta and some drilling. I also don't think it will hold back Touro development. What we can't do is start paying dividends until it's cleared or renegotiated.
waterloo01
07/3/2017
09:05
Quite right Waterloo. Why would AYTM take out an interest bearing loan?

We can focus on paying our immediate liabilities and spending money on PRT before paying anything to Astor.

One other advantage of this situation is the downside protection it gives us. Should the CU price fall, workers go on strike, etc then we don't have to make any payment. Try negotiating that with Orion.....

SBT

superbobtaylor
07/3/2017
09:03
Waterloo01,

Thanks for that so it is up to management as to how they play it out. But we cannot develop TOURO before we pay off the debt. You can see I am totally confused here

acamas
07/3/2017
08:56
Acamas, we can spend what ever we like on PRT. remarkomsoc, because it's in our control as to when it gets paid and has no interest.
waterloo01
07/3/2017
08:55
This paragraph sums the shareholders up completely.

So in a nutshell the company have lots of breathing space to pay this debt off and it carries no interest. However until they do so the company is blocked from redistributing profit to the shareholders in any form.

No wonder no-one wants to invest in ATYM until Astor is out of the way and fully paid up.

It's been tied up from the start.

Again we are the last to know, they are just playing games with us.

reba
07/3/2017
08:50
SBT,

So we cannot develop the PRT before we pay off our debt. If that is the case then to my mind get rid of the debt instantly.

I was hoping we could use the cash on PRT and make them wait bit of a dog in the manager attitude

acamas
07/3/2017
08:43
LLB / diablo. Would you have preferred AYTM lost and HAD to immediately start repayments that we cannot afford?

The existence of clause 6(g)(iv) meant there was no way the debt would not be liable so this is the best result we could of realistically hoped for.

SBT

superbobtaylor
07/3/2017
08:43
If we had 48m in bank debt at 5% interest would we would be better off? In fact no but in terms of sentiment probably yes. It needs to be put in perspective. All the broker notes I've seen all include the Astor debt as a liability.
waterloo01
07/3/2017
08:41
Acamas - effectively yes. We can't spend the money on anything else until we have paid Astor so the onus is on us to do so.

SBT

superbobtaylor
07/3/2017
08:32
I agree LLB - we have won several points technically and prevented the initial payment and any legal redress but in the end will almost certainly pay the loan back quicker assuming the price of copper holds up though clause was there before as we can now see (protects us if it falls ...)

There is no leverage to negotiate with Astor now (did we try before this came to court ?)

All in all, one aspect of uncertainty is addressed but will not incentivise many investors to buy the shares until the loan is repaid.

Will be interesting to see what changes the brokers make when they revisit based upon this.

diablo26261
07/3/2017
08:31
But what is "free cash" and who decides it ATYM?
acamas
07/3/2017
08:25
LLB,

We never "got handed an accelerated payment plan instead". It was there all of the time. Astor could have blocked payment of a divi and invoked this clause at any point once free cash flow exceeded the payment due under the (now defunct) payment plan.

This way is better for us. We have no deadlines and can pay out of free cash as and when ready.

SBT

superbobtaylor
07/3/2017
08:20
We might have won the 'trigger' point, and the 'reasonable endeavours' point, but it was a bit of a hollow victory, as we got handed an accelerated payment plan instead..!

What we have really won is some time, with no payments and no interest for the 1st and 2nd anniversary points, with no fines or damages..

I don't see we've won much leverage to make many changes to the /DMT brokerage fee, or the +$3.00 Copper payment but I'm sure the company will be trying to use the 'free cash' ruling to our advantage somehow..!

No real winners or losers, and the clue is in the ruling with this in the header.. 'Neutral Citation Number'

I'm pleased to see it put to bed and we can move forward.., now let's just get on with it, pay Astor off, and get the deferred consideration gone..

#SBT, in comparison to the original 6/7 year plan we knew about, I expect this to be accelerated now, interesting to uncover the dividend blocking clause that we didn't know about..!

laurence llewelyn binliner
07/3/2017
08:18
That Orion offer looks awfully similar to the loans they've made to Wetherly (WTI)...
rougepierre
07/3/2017
08:17
Good summary SBT.
shortarm
07/3/2017
08:13
Who “won” and who “lost” is subjective but let’s look at the facts from the judgement.

There are basically 3 rulings made by the judge.

1. Astor’s primary case argued that deferred consideration is payable now and was triggered (in effect) by the equity fund raising as an intra company loan was made.

AYTM won this point.

2. Astor’s secondary case is that AYTM were in breach of contract as they did not make all reasonable endeavours to secure a senior debt facility.

AYTM won this point.

3. Astor looked to re-enforce the fact that clause 6(g)(iv) of the Master Agreement (see below) still stands. This is that, effectively, the debt is still owed and must be paid off before the money can be spent on anything else of benefit to the shareholders.

Astor won this point.

So points 1 and 2 are clear and have been discussed on this board before. Had AYTM lost either of these they would have been in trouble.

Point 3 is the kicker. Most of us wondered how Astor would get their money if the repayment clause had never been triggered. What we did not know about was clause 6(g)(iv) of the Master Agreement. This has been in existence since the start but never disclosed to us. It is, in effect, a clause that gives Astor the power to stop the company paying dividends, borrowing any further cash or investing substantial amounts in new projects without Astor’s permission. [Their lawyers were not that stupid after all] This permission was given for the equity fund raising.

It does not stop AYTM paying off all current debt owed, making good changes on the mine, expanding PYT etc before paying Astor.

So in a nutshell the company have lots of breathing space to pay this debt off and it carries no interest. However until they do so the company is blocked from redistributing profit to the shareholders in any form.

IMO this was a good result for AYTM.

PS – I see Orion were up to their usual tricks and kindly offered AYTM a WTI style $120m loan at 8% interest with a 4 year repayment plan. This was the only other option other than equity finance. Thank goodness they never took that……

SBT

Clause: 6(g)(iv)
"(A) not to make, declare or pay any dividend or distribution or make any repayment of or other payment in respect of loans from members of the EMED Group ("EMED Group Loans") (other than as required for up to USD 10 million per annum in aggregate for EMED Group expenses (excluding dividends or other distributions to shareholders of EMED) related to matters other than the Project ("EMED Group Expenses")), nor borrow or agree to borrow any amount other than pursuant to the Senior Debt Facility or EMED Group Loans without the prior written consent of [Astor] (not to be unreasonably withheld or delayed), until the Consideration has been paid in full to [Astor] in accordance with the terms of the Transaction Documents; and
(B) to apply any excess cash (after payment of operating expenses and sustaining capital expenditure for the Project, debt service requirements under the Senior Debt Facility and USD 10 million per annum for EMED Group Expenses (without double counting EMED Group Expenses taken into account under paragraph (A) above)) to pay any outstanding amounts of the Consideration due to [Astor] (including ... under the Loan Assignment) early."

superbobtaylor
07/3/2017
08:13
You lot don't know your alive...despite being retired, I work 25 hours a day and get up an hour before I go to bed to go down the coalface...while wielding a pick I'm sat on my bike at 13mph driving the generator to power my Sinclair ZX81 just so I can keep in touch on here...meals? I get the odd secondhand chip wrapper and pass it under my nose to keep the hunger pangs at bay...every Leap Year day I'm allowed to share a cardbox with 15 mates who are all invested to the tune of at least 3 shillings and fourpence in EMED..whoever they are...sorry...got to go...got a blister on my nose from the front wheel...
rougepierre
07/3/2017
07:32
cognitive dissonance - you can always tell when some fwit wants to pretend he knows what he's on about!Sees a big word used by some other know it all grease ball and spews it out like he's down the pub with his mates from Oxford.Sorry but what an idiot!
shortarm
07/3/2017
07:14
dofmeister thanks for posting. Lot's of detail and much of the past laid bare.

As is stands, we should be able to pay the full deferred consideration with one years profits. No rush though as there is no interest to pay or penalties, so after funding deferred supplier costs and some further drilling, I'd say it would be cleared in 18 - 24 months or less depending on negotiations and any corporate action to clear it earlier.

The 10m we can spend will be enough to get Touro to the point where we have permits and are ready to do the build. As was suggested here, I think we can fund that with debt/equity/loans/off takes when needed next year.

Further given the profits that will drive through over the next 12 months (assuming working at close to or above 10mta) then we could take on debt to fund Touro and pay off Astor at the same time and leave the company free to pay dividends.

It would leave the business with debts of say 250m euro, still well below the debt ratio of even the most prudent miners.

Lots of options and all within and on our terms.

waterloo01
06/3/2017
22:21
Cleared the decks for a takeover.

Liabilities in the open. Divi's possibly moved further down the line. Take the cash now and invest it straight away for divi’s, if that what is desired, why wait three or four years?

rich1e
06/3/2017
21:27
Well, this BB seems (to its credit) to have been positively sporting (both literally and metaphorically speaking)about losing the case: unlike iii, where, such is the level of cognitive dissonance that they still think ATYM won!

I think I am probably with Lango and will be surprised if there is no appeal.

On iii, queries have been raised about implementation and one of the issues that is not clear in the summary is whether the Judge realized that ATYM had current liabilities needing to be paid out of the early profits: maybe that is covered in the full judgement, which I have not seen (perhaps part of the definition of "free cash").

It has been suggested that ATYM could delay payment, but in many ways, it is better to just move on and get it paid, particularly as it will now be back on the balance sheet and mostly under current liabilities as it is no longer spread over a defined number of years.

If there is no appeal, that would indicate a collective rather than Trafigura dominated decision: others with less "reputation" skin in the game may recognize how detrimental this is re investor sentiment and clogging up management time.

charlieeee
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