African Min. Share Discussion Threads

[kirk 6] 01/12/2014 19:36

English please ?

[cantrememberthis2] 01/12/2014 19:31

Timis gerald link mmmmmmm
income.....for ami?

[hvs] 01/12/2014 18:31

Nah Nah Nah Tiimmis is collecting the dough.

[hvs] 01/12/2014 18:02

Oh it will.

Is he is still collecting the monthly dough ?

[kirk 6] 01/12/2014 17:29

Nothing? Why it's seems very positive today and AMI are making a concerted effort.It may help that Frank has 42m shares

[broncowarrior] 01/12/2014 16:53

What do people want Timis to do about the IO price? People are being ridiculous.

A very honest RNS I thought.

[earnestwipplethwaiteiii] 01/12/2014 16:11

kirk6 - read the L, S, E thread. All is explained there.

[hvs] 01/12/2014 15:55

Nice name Timmis.

U still collecting the monthly dough ?

[kirk 6] 01/12/2014 15:52

what does this mean the OTC market up AML in America?

[kirk 6] 01/12/2014 15:43

Is it? A lot of companies withhold from the stock exchange so the rules must easily be bent

[earnestwipplethwaiteiii] 01/12/2014 15:38

It's obligatory to post an RNS. As for mention of shareholders, that's a token concession.

[kirk 6] 01/12/2014 15:36

it wouldn't be announced on the stock exchange if it wasn't for shareholders LOL.

[cantrememberthis2] 01/12/2014 15:16

Read last RNS

It referred to shareholders...

[earnestwipplethwaiteiii] 01/12/2014 15:12

cant - it's a given that shareholder interests do not even register on the radar at these times - except, in this case, insofar as Timis happens to have quite a lot of now almost valueless equity tied up here....

[hvs] 01/12/2014 14:54

Timmis u are a STAR.

Just look at the share chart.

[casual47] 01/12/2014 14:51

Let's hope there isn't too much bad blood with Shandong. If AMI is only looking at partially selling a stake they will need to work with them as they are 25% partners and AMI has offtake agreements with them.

If AMI is looking to completely sell out then it doesn't really matter all that much, of course.

[cantrememberthis2] 01/12/2014 13:28

Not over till its over.

Didnt SAY FUK ALL about a lack of shareholder equity value left on conclusion.

Loved the STRONG INTEREST statement, is that a firm hit to SISG suggesting to get their act together or else?!!!

[kirk 6] 01/12/2014 12:53

Looks like there is some interested parties and its certainly not all over.

[w1ndjammer] 01/12/2014 12:24

well I am happy with this, bang on the money Thanks.

WJ.

[w1ndjammer] 01/12/2014 12:23

TIDMAMI

RNS Number : 4670Y

African Minerals Ltd

01 December 2014

1 December 2014

African Minerals Limited

("African Minerals", "AML", or "the Company")

Financing and Operations Update

African Minerals Limited, the developer, operator and 75% owner of the Tonkolili Iron Ore Project (the "Project") in Sierra Leone, today provides a financing and operations update.

Summary

Operations to be put on care and maintenance until such time as $102m restricted cash is released and/or, AML secures additional short term funding.

Controlled shut down initiated at operations in Sierra Leone due to insufficient working capital, severely impacted by low iron ore prices, which has prevented implementation of cost reduction strategies.

The Company's ordinary shares will remain suspended while there remains a fundamental uncertainty in the financial position of the Company.

Q3 export sales of 4.4Mt (Q2 2014: 4.3Mt); average direct cash costs of $36/t (Q2 2014: $38/t) and all-in cash costs of $45/t (Q2 2014: $47/t).

Further to the announcement on 20 November 2014, the Company announces that the $102m of restricted cash has yet to be released due to continued disagreements between AML and Shandong Iron and Steel Group ("SISG"). AML continues to use its best efforts to obtain SISG's authorisation to release these funds, however there remains no certainty of this, or of its timing.

As previously announced AML commenced a process to sell down a partial interest in its stake in the Tonkolili mine. AML is talking to several groups who have expressed strong interest, and discussions are being progressed as quickly as possible, though there is no certainty a transaction will be forthcoming.

In the absence of sufficient working capital AML has commenced a temporary controlled shut down of its operations in Sierra Leone. Without a significant injection of working capital, AML is unable to initiate the cost reduction strategies which would return the operations to cash flow positive status even at recent low iron ore prices.

The receipt of funds from shipments in recent weeks, including from SISG, provides the operating companies with sufficient funds to meet critical payments necessary to maintain the security, safety, and, to the extent necessary, evacuation of staff and contractors in Sierra Leone, and to maintain salary payments in the short term. This plan allows for the continued safeguarding of the Company's assets and will allow for a rapid ramp up and resumption of operations when a financial solution is achieved.

With all available funds being used for the security and safety of personnel and assets during this temporary shutdown, 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.

Alan Watling, Chief Executive Officer of African Minerals, said:

"Initiating a temporary shutdown of operations towards care and maintenance in Sierra Leone, while extremely regrettable, is a necessity given the Company's financial status and uncertainty over the timing of the release of the restricted funds. While the operating performance of the Project has been impressive during 2014, with Q3 exports of 4.4Mt at an average direct cash cost of $36/t, in spite of the wet season, the fall in iron ore prices and the operational challenges caused by the Ebola disease outbreak has meant the Project has continued to operate at a loss. While management is convinced Tonkolili remains a world class low operating cost asset, the absence of sufficient working capital has prevented the Company from implementing the cost cutting strategies required to return the Project back to a cash flow positive status even in the current depressed iron ore price environment.

Management is doing everything possible to procure the agreement of a funding solution between AML and SISG. The Company greatly appreciates the support shown by the Government of Sierra Leone, our local suppliers and communities, and all our contractors during what we hope is only a temporary suspension of operations."

Frank Timis, Executive Chairman of African Minerals, said:

"Following my visit to Sierra Leone last week I wish to thank the Government of Sierra Leone and all our local suppliers and communities in which we operate for their continued support and understanding of the situation. We are very grateful that the Government has pledged its assistance to help secure the safety and security of our people and assets in these difficult times. We have allocated all available funds to these critical activities and to keeping the operating assets in a condition that operations can be quickly restarted, which is of fundamental interest to all stakeholders. As part of this, local staff will continue to be employed on normal wages and will be allocated to care and maintenance activities."

Q3 Production and Exports Summary

Despite Q3 being the traditional heaviest part of the wet season, the Company's wet season strategies performed well. 5.2Mt of DSO was mined, along with 1.0Mt of other material, principally saprolitic hematite in readiness for Phase 2 expansion. 4.9Mt of this material was treated to produce 3.3Mt of product - 1.7Mt of lump, 1.3Mt of fines and 0.3Mt of A32, a notable decrease in A32 tonnes from the previous quarter which saw 0.9Mt of A32 being produced.

Total tonnage exported in Q3 was 4.4Mt, a 3% increase from the previous quarter. Dry tonnes shipped were 3.9Mt of DSO.

In Q3, 32% of production tonnage was delivered into the 6.5Mt SISG Discounted Offtake Agreement ("DOTA"), while a further 16% was SISG Equity ore.

Average direct cash costs in Q3 were $36/t, a reduction from $38/t in Q2. All-in cash costs were also down to $45/t, from $47/t in Q2.

Also during the quarter, Plant 1G plant was successfully commissioned and was ramping up to its intended capacity. Together with the 1B and 1D plants, the processing capacity at the mine is now in excess of 27Mtpa.

Contacts:

African Minerals Limited

[phone]

Matthew Hird / Francis O'Neill

Tavistock Communications

[casual47] 01/12/2014 12:14

If they find a buyer for AMI who will be happy to pay 1 billion USD (a sixth of what it was valued at not so long ago) then I may yet make a profit here!

[kirk 6] 01/12/2014 12:08

well that is a relief.

[casual47] 01/12/2014 11:47

(IGNORE this post -- wrong thread)