Asa Resource Share Discussion Threads

[caedwalla] 01/9/2019 00:03

Making allowances for the knowledge of the average reporter these days I would say their reporting was actually quite good and they deserve a little gold star to stick on their hand. After all, what pedants would quibble over the difference between $6000 and $16000? A mere trifle. On a more serious note, they are obviously looking at the possibility of opening a second nickel mine

[petefurlepa] 31/8/2019 18:43

might be connected

[plasybryn] 31/8/2019 10:21

Do we know why?

[petefurlepa] 31/8/2019 09:55

Bindura went down 8.7% yesterday

[casabella2] 30/8/2019 16:40

ASA as a company must be raking it in.Would love to see us re-list and carry on the good work.
As was posted in an earlier post i would love to see what the share price would be now.

[skidaddle] 30/8/2019 14:38

As a reminder from the Financial results year ending 31st March 2019

"The following factors constitute material conditions that require consideration in assessing the Group’s ability
to continue as a going concern.
• The Company’s cash flows are highly dependent on the Nickel price. During the year, LME nickel prices
remained subdued for the greater part of the year, but started picking up in the last quarter to average
around US$12 885 per tonne for the year (2018: US$11 000 per tonne). Latest forecasts by analysts
predict a steady increase in Nickel prices in the medium to long term owing to expected rise in demand for
Nickel and Lithium particularly given the anticipated increase in the use of electric vehicles in developed
countries.
• In assessing the future cash flows of the Group, an average Nickel prices have been assumed as follows:
US$12 000 per tonne for the period April to December 2019, US$13 000 per tonne for the period January
to March 2020 and US$16 625 per tonne for the period April 2020 to March 2021. These projections have
been taken from a consensus forecast compiled by market analysts."

[skidaddle] 30/8/2019 12:15

I like this bit: ""(Nickel is) tight all the way out to June 2020 now," said a
metal trader."

So pretty much a year of guaranteed high prices. Should pay off a lot of debt with that. Perhaps even get the smelter finished.

[skidaddle] 30/8/2019 12:03

Could be a bonanza for Bindura.

[skidaddle] 30/8/2019 11:59

Nickel LIVE QUOTE
17,518 USD +9.40%

Trade Time 06:58:05 AM

Previous Close
16,012.50

And still going up!

[skidaddle] 30/8/2019 09:11

Nickel PRICE COMMODITY 16,743.40USD
(4.56%)
04:09:31 AM
EDT MI

[loafingchard] 19/8/2019 17:30

We didn't notice their little willies slide right in

[petefurlepa] 19/8/2019 17:14

How did we let the Chinese shaft us. Wonder what the share price would be now with proper management.

hxxps://www.afr.com/markets/equity-markets/nickel-booms-as-supply-deficit-looms-20190816-p52hvt

[jayboy4] 15/8/2019 16:27

Nickel still rising. Someone is going to make a killing here. Don't think it will us shareholders though

[skidaddle] 15/8/2019 08:58

Nickel now $16050.00.

[petefurlepa] 09/8/2019 14:12

Wasn't the Zindeco claim thrown out ?.

Given the spurious tax claim then a takeover by a local Zim company looks a bit dodgy to me. Didn't the current President try to buy it when Mwana originally bought it. Or Mpinga come back.

Would be a great time to buy for any local with the nickel stocks falling rapidly.

Had such great hopes once but 4p would give me a breakeven but 15 odd years of pain.

Good luck everyone

[casabella2] 09/8/2019 11:30

That was round about the type of share price amount i was looking at skidaddle.

[skidaddle] 09/8/2019 10:07

A reminder Rich Pro offer in 2017:
"
2.1 pence in cash for each ASA Share

The Offer values the entire issued share capital of ASA at approximately £35.5 million. The First Closing Date of the Offer is 15 August 2017.

"

So basically we need more than £35.5 million to get a better deal than Rich Pro's offer.

If you read between the lines, either BIND or FRGM would pay off the creditors and the creditor list amounts to £81m or less, then FRGM is valued somewhere around that as well.

So there is a good chance that we could get somewhere around 4-6p per share.

[casabella2] 09/8/2019 10:04

So then if we get BNC sold say,we would still have a mine producing 60,000oz minimun of gold annually.If you say it quickly it sounds ok.Not to be sniffed at.

[skidaddle] 09/8/2019 09:42

Using the current BIND price, then ASA's holding is worth around £81m. I would hope there would be a premium on that as it is essentially a takeover.


Following receipt of creditor claims during both this Administration and the Old Administration,
non-preferential unsecured creditor claims received currently total approximately
£81,570,000. The non-preferential unsecured creditor claims can be summarised as follows:
Creditor Claim
£’000
BNC Bond Guarantee 18,646
Intercompany Loans 8,073
Trade & Expense Creditors 4,369
HMRC 286
Contingent Liability (Zindico) (approx. $20 million) 15,144
Bindura Community Share Ownership Trust 5,915
FRGM & BNC (Damages claim) 20,402
Others (Hong Kong Tax Authorities plus other countries) 8
Others (Employee Related Tribunal Claims - South Africa, France, Hong
Kong)
8,727
Total 81,57013

However the BNC Bond is now £10m and they expect Zindico claim to be thrown out. Also some of the others will be contested or reduced. If any of the Hong Kong claims are from Ning, I would hope they are also thrown out.

The admin have already said that the sale of either BIND or FRGM would completely pay off the creditors. But I would hope that the sale of BIND would also have some left over cash for shareholders.

Any valuation of the goldmine would just be a guess as it is run by the admin. But a working mine producing around 60,000oz at current prices should have quite a bit of cash spinning off each month imho. In 2017 they were talking about all in costs of $1000 per ounce. You do the maths. I make that $30m a year at $1500 per ounce.

[plasybryn] 09/8/2019 09:29

Lets hope we get some more meat on the bone soon. But this must surely be potentially encouraging. About time!

[casabella2] 09/8/2019 09:24

I wonder what a good sale price would be for BNC.