Atalaya Mining Share Discussion Threads

[acamas] 06/3/2017 12:10

Who or what decides what falls into the category of "excess cash". What if one grows organically and reinvested cash back into the business and declares say £17 as excess cash for payment to Astor in that year and £20 in the following year and so forth. Just what are the limits to which this ruling can be stretched over the life of PRT. Get some other mines working and pay us divis out of the cash these mines generate

[superbobtaylor] 06/3/2017 12:08

Not a good result???

Basically a nice interest free loan from Astor payable only after we have spent $10m a year on new projects and done any upgrades to PRT that we now "need" to make.

No chance of dilution and IF the Cu price were to fall no need to pay them anything.

SBT

[husbod] 06/3/2017 12:03

Haven't looked at the Agreement in any detail but has the judge overstepped the mark/been hunting around for a way of softening the blow for Astor by stating that we should use any excess cash to pay Astor. This seems to be a completely new concept to me in keeping maybe with the judge's reputation for looking at innovative new ways to introduce equity ie "fairness" into the equation.

No wonder the Company lawyers are considering appealing this point as I see no reason why our freedom to use our "excess" cash should be fettered in this way.

Maybe this potential appeal could come into the equation if we are minded to approach Astor to review the whole of the arrangements between us.

Now all we need is for the cretins in the market to realise that an annual growth rate of 6.5% in the existing Chinese economy is probably equal to, in real terms, or greater than 10%/15% in a much smaller economy.

[jwafc] 06/3/2017 12:02

Although the market seems to like it so wtfdik

[rougepierre] 06/3/2017 12:01

I can sell THIRTY FIVE THOUSAND at 150p...Offer 158.5...

Correct dealing spread online in 2500 (NMS) is 152.3/158.88...

[jwafc] 06/3/2017 12:00

Doesn't read that great to me. Seems like we have to start paying now - so long as we're cash generative.

[rougepierre] 06/3/2017 11:58

150/159 on TDDI up 14p.....

[sirmoori] 06/3/2017 11:55

Yup. That's it. So the questions for the board are:a. How best to take advantage of the negotiating position with Astor that now presents itself;b. And how to address the related issue of funding Touro.Good to have the clarity and as Waterloo noted when reading the judgement, any repayment plan is now purely in the hands of our board.

[sithuk] 06/3/2017 11:55

1) The risk of having to issue shares is removed. Only payable from positive cashflow.
2) At current copper price and project op ex, its just over a year of positive cashflow to clear. (Have I got that right?)
3) The uncertainty is removed. The market hates uncertainty.

Significant ruling, and a significant upward re-rating expected.

[rougepierre] 06/3/2017 11:51

That seems to knock dividends on the head for the foreseeable future...

[rougepierre] 06/3/2017 11:48

RNS!

Atalaya Mining PLC

06 March 2017

Atalaya Mining plc ("Atalaya" or the "Company")

Astor Management AG ("Astor") case ("Astor Case") update

Further to the announcement of the Company on 3 February 2017, the Company announces that judgment was handed down in the Astor Case in the High Court of Justice earlier on today.

In summary, the High Court found that:

-- The deferred consideration ("Deferred Consideration"), payable to Astor under the master agreement entered into in 2008 between inter alia the Company and Astor ("Master Agreement"), did not start to become payable when permit approval was granted for the Rio Tinto Copper Project ("Proyecto Riotinto"). In addition, the intra-group loans by which funding for the restart of mining operations was made available to the Company's subsidiary, Atalaya Riotinto Minera S.L. did not constitute a "Senior Debt Facility" so as to trigger payment of the Deferred Consideration. Accordingly, the first instalment of the Deferred Consideration has not fallen due.

-- Astor failed to show that there had been a breach of the all reasonable endeavours obligation contained in the Master Agreement to obtain a senior debt facility or that the Company had acted in bad faith in not obtaining a senior debt facility.

-- While the Company is not in breach of any of its obligations, the Master Agreement and its provisions remain in place. Accordingly, other than up to US$10 million a year which may be required for non-Proyecto Riotinto related expenses, Atalaya Riotinto Minera S.L. cannot make any distribution or any repayment of the money lent to it by its holding company and must apply any excess cash to pay the Deferred Consideration, until this has been paid in full.

As a consequence, the judgment requires that in accordance with the Master Agreement any excess cash (after payment of operating expenses, sustaining capital expenditure, any senior debt service requirements and up to US$10 million (for non-Proyecto Riotinto related expenses)) should be used to pay the Deferred Consideration. The amounts comprising the Deferred Consideration are as fully set out in the Company's announcement of 2 November 2015 when it was first notified of the claim.

Alberto Lavandeira, CEO, commented:

"The Company welcomes the High Court's decision that it has acted in accordance with the Master Agreement and that it is not in breach of its obligations as no instalments of the Deferred Consideration have yet fallen due. The High Court's decision also sets out that in the absence of a Senior Debt Facility, the Deferred Consideration is only payable out of excess cash generated by Proyecto Riotinto. The Board believes this has removed a significant uncertainty as it removed the threat of having to pay the Deferred Consideration as a lump sum or according to a fixed schedule, regardless of the cash generation of Proyecto Riotinto. The Company will however consider whether it is appropriate to appeal the Court's decision that excess cash should be used in this way and will update the market accordingly."

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.

Contacts:

[superbobtaylor] 06/3/2017 11:42

From Onions on LSE

"
- Looks like a favourable decision on trigger article ie we don't need to pay now
- however debt still exists (as expected IMO) and some constraints of excess cash until this debt paid.

So my conclusion from brief chat : Astor lost.
"

[rougepierre] 06/3/2017 11:30

I'm not suggesting the judge can say that. I'm simply saying that given there is an unquestionable liability, it could surely only be triggered on raising Senior Debt or by the last day of the LOM, whichever is the sooner...

I thought in Doll Behr it was 16.5 years...isn't the payment solely in relation to Rio Tinto?

Meanwhile MMs bidding 142.7 for 15,000 offer at 144.5

AIMHO as usual...

[shortarm] 06/3/2017 11:28

I don't think the judge can say when it needs to be paid!The mine life is going to be way longer than 16 years!!

[rougepierre] 06/3/2017 11:27

Confirming sirmoori...from LSE...

"don't know outcome but usher confirmed it was given earlier.sorry I have no other details."

[rougepierre] 06/3/2017 11:25

Somebody is LLB, paying 144.6...

Surely the 50 million is always payable...it's just a case of when?

Best case...16 years' time...

[laurence llewelyn binliner] 06/3/2017 11:24

Is anyone getting twitchy yet..? LOL..
I've read enough into Sirmoori's post for me..!

[sithuk] 06/3/2017 11:10

Sirmoori: can you give us anymore information? Is the £50m still payable? Only now there is a defined payment plan?

[acamas] 06/3/2017 11:09

Husbod,

I had shares in HNR for years and was amazed at the strict policing on the Oz Market

[husbod] 06/3/2017 11:07

Seems to me that simoori is telling us we won but even if this is the case I can't see the share price racing away. I'd love to be wrong though.

Cheers Acamas - all those former criminals and yet they still have a stricter regime than us!

Nevertheless it's an absurd situation which atm is being exploited by uk investors - quel supris.

[sirmoori] 06/3/2017 11:03

It was handed down at 10am. There's a written judgement. Remain calm!

[acamas] 06/3/2017 11:02

I did not know what to expect so your items are not helpful to me. In a sense you have told me nought that is helpful at this moment

[the charmer] 06/3/2017 11:00

Sirmoori. The judgement has not been given yet. How do you know this?

[sirmoori] 06/3/2017 10:56

Sorry. It's just been pointed out to me that it would be better to wait for the RNS. I have too many shares to risk rocking this particular boat. Suffice it to say, judgement was as expected with some clarification of the master agreement.