Anglo Pacific Share Discussion Threads

[swanvesta] 24/2/2021 11:17

OK, so on rereading the ammouncement, the $300m is 'the original investment'. Presumably the investment made by the previous owner. But to me that begs the question whether the previous owner has already recouped part of their investment!

o Anglo Pacific will make ongoing payments equal to 18% of an industry cobalt reference price for each pound of cobalt delivered under the cobalt stream, until Anglo Pacific has recovered the US$300m original upfront amount paid for the stream (through accumulating credit from 82% of the cobalt reference price) through cobalt deliveries; thereafter, the ongoing payments will increase to 22% of the cobalt reference price.

[sammu] 24/2/2021 11:17

I think that the level is set at $300m may be something to do with this original funding deal.


I'm not sure why private seller (is it Pala Investments?) would want to sell for $205m plus $27m

[swanvesta] 24/2/2021 11:10

I say 'notional $300m investment' because that's the level at which the terms change. Actual investment is $205m + potential $27m (only on favourable outcome), and admit I'm not clear how or why that level is set at $300m.

[swanvesta] 24/2/2021 11:05

Yes I heard $23m after mine expansion, but I make it $24m @ $50k * 2600 tpa. That's from 22.8% of revenue and 18% cost. At that rate it will take 12.5 years to pay back the notional $300m investment, after which the terms change to 11.4% of revenue and 22% costs. The current mine life is 17 years (likely to increase of course.)

So it really does depend on Cobalt prices going up substantially!

[laurence llewelyn binliner] 24/2/2021 10:30

#swanvesta, I need to hear it again but thought it was USD18M for the balance of the year and 23M next year with a 7-12% IRR pending on the mine expansion progress and the Cobalt prices..

[swanvesta] 24/2/2021 10:08

What a sleepy lot! I make it $12.5m in the remaining 10 months of the year @ $50k Co pricing and 1600 tpa. Didn't they say $16m?

Does the 7% IRR include cost of funding? Otherwise there's not much room for potential monetary fallout in the next few years.

Obviously there's good upside on Cobalt pricing, and production increase to 2600 tpa.

[deadly] 24/2/2021 09:46

No, you can use any (non-isa) share dealing account.

It's a bookbuilding process so everyone gets the same price, and depends on demand.

[goodgrief] 24/2/2021 09:42

Coco, not understanding what you mean by broker account? I have a bog-standard nominee account with Barclays and was able to participate in an earlier PrimaryBid cash raise.

[sam 4224] 24/2/2021 09:33

I have applied as well. First time. Hopefully they will look after their private shareholders with a fair price discount

[cocopah] 24/2/2021 09:14

Amunro I would be interested in finding out how it goes for you. One needs a broker account to use Primary Bid (not a sharedealing account). I use the latter and don’t have time/inclination to set up a broker account (at the moment) and it wouldn’t be quick enough anyway for me to bid before the end of the day.
Presumably one bids for a specific volume of shares without knowing the price?

[lord gnome] 24/2/2021 09:02

I wouldn't be surprised if the offer closed well before close of play today. The placing will already have been sold in advance to institutions. The share price should respond once the price is announced. Could be a good week next week.

[donaferentes] 24/2/2021 08:54

Me too. Saving the dealing costs will get me another 8 shares!

[amunro] 24/2/2021 08:45

I've applied on PB. They offer same price to PIs as institutions. Lets see what we get price wise and in terms of what we requested? First time I have done this so fingers crossed.

[laurence llewelyn binliner] 24/2/2021 08:31

The book build opens and closes today so it will not take long, new shares issued on Friday, pricing will depend on how oversubscribed it is, so we will find out the price tonight/tomorrow..?

An interesting turn of events, but open market ISA buyers only..

0900 BRR media interview/presentation..

[sporazene2] 24/2/2021 08:21

I am trying to pick some more up via PB. Looks like a decent long term deal and justifies the LIORC deal, which I wasnt that happy about as well given the outlook for Iron Ore and the strong dividend. Looks like 130-135p is going to be the placing price.

[johnrxx99] 24/2/2021 08:18

SP usualy meets placing price. Happy to wait and see.

[w1lbur01] 24/2/2021 08:15

Ps.... I've used primary bid in a similar situation and done well out of it

[w1lbur01] 24/2/2021 08:14

Yes that's correct. I'm torn whether to buy on primary bid with an unknown price with maybe a good discount or in the open market at a known price and available to put in the isa. Need a coffee and a think

[illiswilgig] 24/2/2021 08:13

I may participate on primary bid, have just signed up. But I'll see how things go through the day as I've been topping up a lot recently and have plenty of shares at the moment.

cheers

[rimau1] 24/2/2021 08:12

I’ve applied via primary bid, interesting to see what price they get the book build away at. If there is sufficient demand they should oversize it for additional acquisitions IMO. Excellent acquisition, we have literally pivoted into the EV market overnight.

[rogerbridge] 24/2/2021 08:11

Some here LM.

[donaferentes] 24/2/2021 08:11

Not used to these placings where the price and number are not stated. I guess they expect us PIs to accept the crumbs that have been passed fit to eat from the high table of the institutions.

Looks an interesting company if you want a portfolio of essential base metals. Anyone know if they include Lithium in the mix? Sorry, not had time to research in depth yet.

So, in short, considering it.

[lord gnome] 24/2/2021 08:10

I can't use Primary Bid. I only ever buy shares in my ISA now. You can't buy in an ISA through PB.

[rogerbridge] 24/2/2021 08:03

Futuristic looking deal for the new industries of tomorrow.

[w1lbur01] 24/2/2021 08:02

Anyone doing the retail offer on primary bid?