Asa Resource Share Discussion Threads

[silenzi01] 12/11/2019 09:06

Yes but no answer

[plasybryn] 12/11/2019 08:15

Has anyone had recent contact with the Administrators?

[gpgreen] 05/11/2019 16:05

I am assuming the administrators will have to get another extension. I cannot see this being rapped up by the 29th November.

[parkhurst484] 31/10/2019 18:09

The BNC Chairman said Bindura Nickel was bought by Sotic International.
Sotic Internmational which bought the 74.7% stake in BNC is a Mauritius based company. Sotic owns Zimbabwe's LandelaMining Venture Ltd and is linked to KudaKwashe Tagwirei.

All from Bloomberg

[parkhurst484] 31/10/2019 17:46

The Chairman was interviewed by Bloomberg, so Tagwirei and Trafigura involved after all:

Three companies had vied for Bindura Nickel, Masunda said in an interview. He said the stake was worth between $60 and $75 million. Asa is in administration. The deal involves “a substantial payment” in cash and “a commitment” to provide working capital, according to Masunda.
While Zimbabwe’s economy is on the verge of collapse and its mining companies are struggling because of shortages of foreign currency and fuel, it has some of Africa’s best metal and mineral deposits. Bindura Nickel was once owned by Anglo American Plc and has in the past produced about 6,700 tons of nickel a year.
On Oct. 29 Bindura said in a statement that the stake was sold to “a Zimbabwean based mining entity with interests in the mining and production of ferrous metals, non-ferrous metals and precious metals.”
Landela Mining was this month announced as a partner in a $4 billion platinum venture in Zimbabwe that’s backed by Russian investors.
Tagwireyi didn’t immediately respond to calls made to his mobile phone.

[petefurlepa] 31/10/2019 17:11

Thanks for that. Given how big the potential Zim "liabilities" are and the fact that many of those liabilities are politically motivated ie tax claims, will be interesting how it pans out.

[skidaddle] 31/10/2019 17:04

I would hope it is cash price, otherwise their statement below would be incorrect imho.

ASA Resource Group Plc (In Administration)
Progress Report to Creditors
28 June 2019
Sale of Business

8.10 On current estimations, the sale of either BNC or FRGM would be sufficient to facilitate a financial return to the Company’s creditors. Further sales will therefore increase the return to shareholders (the final amount of which will be dependent on the final sale proceeds for the remaining assets and the costs of the Administration

[parkhurst484] 31/10/2019 16:41

The big question here is indeed whether the cited price was an enterprise value one or a cash price. In case of the former we would still have to deduct a significant amount of debt/liabilities. If cash we only would have to deal with Plc creditors and these wouldn't even add up to L 2m if my memory serves me right.

[silenzi01] 31/10/2019 16:38

I have requested for the debt amount deemed as legitimate debt. Once I have the number I will revert back. Like all the figures we have it's all estimates. However, they are becoming more reliable given actual realisation of the two biggest assets last week. Still, we can only go by on what has been reported. But, as we know the reports of late have been highly reliable (for once!).

[petefurlepa] 31/10/2019 16:31

If all the Zim "liabilities" were included in the sale, anyone any idea how much the other liabilities add up to(very rough figures) as loss track on the DRC etc

[silenzi01] 31/10/2019 16:18

I have confirmation from D&P that sale was on both assets. They are working on announcement due out in a few weeks time. They refused to confirm the sale price. But $60-$75m is probably fairly reliable estimate.

[trevorm2] 31/10/2019 15:55

No mention of freda.

[petefurlepa] 31/10/2019 15:55

Thanks for that. 3p would still be quite a big loss ignoring the lack of dividends/money tied down etc. But better than 2.1p if comes of. The outcome was probably predictable for those that have followed MWA over the years and read the tea leaves. I think Mnangagwa lost out to MWA when Anglo American sold the assets originally and various events since.

[silenzi01] 31/10/2019 15:32

So, I was correct. It was indeed circa 60-75m for both assets. Not for each mining asset!

Looking back through my emails with D&P, share price was 1.92p valuing the business circa £32.5m.

At $60-$75m we are looking at range of £46.4m - £58m. Which equates to 2.74p per share at the lower end to 3.4p per share at the top end before costs.

I think we could be looking at 3p per share as the best prospect.

[trevorm2] 31/10/2019 14:23

Bloomberg! Mnangagwa's adviser buys Zimbabwe biggest nickel mine. 60-75 million dollars.

[plasybryn] 31/10/2019 11:12

Yes Freda is a private Co. A subsidiary of ASA.

[petefurlepa] 31/10/2019 09:55

Isn't the potential buyer the same person who has a share in part of FR as part of the indigenisation game a few years back. Unlike Bindura Nickel, Freda Rebecca isn't listed on the Zim stockmarket so didn't need to be announced. Wouldn't be surprised if DRC is included. A lot of these people are are already involved in DRC from when Zim was "peace keeping" there. I hope but not confident of a fair payout. Going by what we got for FR, I think $250,000 from memory and the convenient timing of the back taxes to be paid doesn't bode well. Just hope more than 2.1p.
Thanks for updating us and contacting the company.

[plasybryn] 31/10/2019 08:10

I'd heard by Christmas but do you have better info on the payout timing I wonder? Anyway not long to wait compared to how patient we have all been so far. GLA

[parkhurst484] 31/10/2019 08:07

You're right Plasybryn, it looks to be the whole thing i.e. both BNC & FRM. I don't know whether that also included the DRC assets which apart from ZK also comprised a 25% stake in MIBA as well a valuable real estate in Kinshasa. I think the expectation that conditions will be met (in a few weeks) is realistic. If all was sold in this deal it could indeed imply a shorter wait for distributions but latter still unlikely before 2nd half of Jan at the earliest.

[plasybryn] 31/10/2019 07:03

But I'd still like to see the Administrators acknowledge the sale and confirm the next steps in the process ending in shareholder distribution and rough timing.

[plasybryn] 30/10/2019 14:43

I believe it is the whole thing that has been sold, but do your own research.

[parkhurst484] 30/10/2019 12:05

In order for above transaction to be completed certain closing conditions will have to be met. Being where we are (Zim) certainly also involves authorities approval of the forex control implications of such a transaction as an example. What conditions precedent are involved (some of which might be Zim.specific) is unknown to me, but it would be prudent to assume that one or the other could easily involve a few more weeks before we get to see more. It would seem from the various news flashes that FRM is not included here and would thus have to be subject of a new different transaction. The Administrator is likely to first want to make sure he's flogged all the assets before embarking on any distributions. This could easily take us till well into the New Year. Judging from the number of mining transactions currently being done it would seem that at the moment a lot of investors are trying to pick up mining assets in Zimbabwe..

[casabella2] 30/10/2019 10:27

Yes it would be a nice little xmas present.

[plasybryn] 30/10/2019 10:01

Perhaps they will work through the creditor claims first before announcing the shareholder settlement. I suspect we will have to exercise a bit of patience, but I doubt it will take that long, as all the claims are known. Money for Christmas if we are lucky perhaps. Fingers crossed we made the right decision to hold on.It will be a relief to have this behind us and move on. Good luck everyone.

[plasybryn] 30/10/2019 08:59

Yes. The administrators must be obliged to inform Shareholders fairly soon after its announced in the press. Normally the other way round.