African Min. Share Discussion Threads

[warwick69] 01/12/2014 11:42

The article by Citibank about iron ore average $60 next year caused the problem with standard chartered bank all was looking good prior to this and they were spooked the business model looked bad at that iron ore price? That's why they could not answer concerns about the company financial position moving forwardHence why suspension had to be imposed Looks like we still need a share sale to get capital

[sweepie2] 01/12/2014 11:37

Always hope until the end, it really wouldn't take much to turn this around imo

[casual47] 01/12/2014 11:34

What can be said is....this doesn't sound like a company that is accepting defeat!

[casual47] 01/12/2014 11:29

Not good about PXF. As the PXF agreement was with the subsidiary, anyone any ideas as to how that could play out and affect the company?

"the Company's subsidiaries have not been able to make in full the repayment under the PXF Facility due at the end of November. The Company is in discussions with its Lenders about this and future obligations under the PXF Facility, however these discussions are only likely to progress successfully once AML and SISG as shareholders of the Project have agreed a financial solution."

[earnestwipplethwaiteiii] 01/12/2014 11:29

Reads well...

[johnwalton] 01/12/2014 11:27

All they need is a buyer for a certain % and a little reverse
in the price of IO.

[stockriser] 01/12/2014 11:22

At least there is still hope after reading that RNS ;-) ;-(

[miamisteve] 01/12/2014 11:00

I think it wouldnt have helped financing, but with SCB having failed and the shares suspended it isn't an issue.

[casual47] 01/12/2014 10:57

SL gov't announced state of emergency a couple of months back so that should surely help their case. I wonder now why they didn't invoke force majeure earlier?

[miamisteve] 01/12/2014 10:51

This would be a sensible move. The Chinese previously hit up the company for $42m for failing to deliver on quota and there is no point to continue to deliver at a loss if they can use force majeur. It would improve their negotiating position with the Chinese as well if they are playing hardball.

Question is whether the workers will be coming back after Christmas.

[casual47] 01/12/2014 10:46

Another example:

"Vale Declares Force Majeure on Iron-Ore Contracts After Storms"

[casual47] 01/12/2014 10:44

Depending on the contract small print force majeure could also possibly be used to suspend paying the PXF

[earnestwipplethwaiteiii] 01/12/2014 10:41

Very interesting, casual47. Apart from using the force majeure clause to avoid being sued for breach of contract, I expect that, by putting operations on C & M, flying out non-essential expat staff while continuing to pay local staff, there is a modest saving to be made too, at a time when every tonne exported is making a loss.
If true in AMI's case, it might also provide some breathing space to get the financial situation sorted out.

[casual47] 01/12/2014 10:16

A poster on LSE mentioned force majeure. It actually makes sense and could be the temporary reprieve AMI is looking for: below article is about another mining company issueing force majeure

[casual47] 01/12/2014 00:08

Curious article, published couple days ago (25th Nov), saying how important West African iron ore is to China, it mentions SISG and African Mineral's Tonkolili, but it's seemingly oblivious to the problems of both companies (AMI's impending doom and SISG's loss of billion yuan in profits in the first 9 months of this year and planned lay off of 10,000 employees next couple of years)...written by a Chinese guy for a shipbroking service company

[casual47] 30/11/2014 23:32

A couple years back Tony Blair organised a "Sierra Leone is open for business" forum (Sierra Leone Trade and Investment Forum in London 2009), it had the backing of the likes of George Soros. Both Tony Blair and Soros were fierce supporters of the then and current president Koroma.

Anywho...at that forum George Soros stated that his Soros Economic Development Fund was committed to investing in SL. It already has done so with a few projects.

What better way to support SL then to invest in AMI, its biggest employer and the government's most important source of revenue? Looking at the fund's investment criteria it certainly looks like AMI fits all the check boxes (although they will need to seriously ramp up its investment limits, currently only up to 10 million USD):



P.S. There are rumours Tony Blair is also getting involved in salvaging AMI, see -- lord help us all! If his help is similar to the "help" he has given in his role as Middle East Peace Ambassador then perhaps we really are doomed!

[newswseller] 30/11/2014 23:06

See post 3991, this was known on Friday

[cantrememberthis2] 30/11/2014 22:54

Sierra telegraph now reporting a demise too oh dear goodbye ami

[kirk 6] 30/11/2014 20:56

I'm sure if it meant long term survive the day repayments could be held off. Even if a deal was to payback slightly more when the good times hit the mine which inevitably will happen soon when IO price picks up and true cost cutting has been applied in full.Not only that Europe markets could boost AMI into a world leader.

[casual47] 30/11/2014 20:28

We don't know how much cash they have left. Perhaps putting mine in C&M and paying monthly PFX off would make sense if they had enough cash left for it.

[kirk 6] 30/11/2014 19:48

Well if AMI go into admin then most of the debts would not get paid.Why not do a deal with all the debt repayments on hold till early next year when IO recovers potentially and resume debt repayments then when the commencement starts.All stakeholders are involved here and it can be sorted if all parties agree on a deal.

[cantrememberthis2] 30/11/2014 19:44

No it isnt how on earth will ami service debt obligations without revenue being generated even at a loss...they neex to keep selling iron ore even at losses

[kirk 6] 30/11/2014 19:26

Regarding the earlier point I made surely it would be better to shut the mine down until the new year? With iron ore prices recovering they will be in profit???

[kirk 6] 30/11/2014 19:21

Who the heck is he?

[casual47] 30/11/2014 17:41

Nothing we can do but wait and see.