Atalaya Mining Share Discussion Threads

[saintb] 14/4/2018 12:57

LLB. Thanks for reply. I mis-understood your "50% discount" comment. So a 50% (approx) reduction in our cash obligation. Great deal I think.

[mds2028] 14/4/2018 12:37

Thanks Husbod, love you wife's saying she got you. Very true indeed!
A great year ahead and hopefully a good strong, on going growth story

[laurence llewelyn binliner] 14/4/2018 11:50

#saintb, Rumbo had their 1st USD500,000 royalty in shares recently, plus this USD4.75M balance to get it gone so it's cost us USD5.25M of shares at today's prices..

So about 50% of the full royalty cap value of USD10M, and assuming Copper stays over $2.60/lb that's where the cap would have cut off, when the share price doubles from here they will have USD10M worth of shares tho'.. :o)

[husbod] 14/4/2018 11:48

Good to hear from you MDS and even better to see your business has gone manic - makes it more difficult to waste time watching this share on a daily/hourly basis.My wife came home with one of those mounted sayings the other day - a pointed comment on the restlessness of my being self employed for the last forty years namely "time you enjoy wasting is not wasted time". So true in the context of ADVFN!

[saintb] 13/4/2018 18:31

This is a good deal for the company and for Rumbo. Rumbo won`t have to wait 10 years for their shares to have a $10million value.

LLB. See 11202. Not sure where you get the 50% discount from?

[rich1e] 13/4/2018 16:15

I’ve not noticed MDS posting lately, I wonder if he’s still around?

[waterloo01] 13/4/2018 16:05

Actually it's 2.19 to sell and 2.21 to buy. The 2.15 trades are a bed and ISA by the looks of it.

[rich1e] 13/4/2018 16:03

Nice little drop today on next to no volume, the stand out trade so far a 17k buy at 222p, following the 57k yesterday at 223p.

[waterloo01] 13/4/2018 15:27

Maybe, but they have waited a long time to see a return so wouldn't be surprised to see them cashing in on some of the $5m

The $1m a year reduction in expected costs x current PE more than offsets it

[laurence llewelyn binliner] 13/4/2018 15:26

#waterloo01, it's possible Rumbo might sell some, but the smart money is keeping them for 12 months and adding 50% to your price.., we shall see, I'm half hoping the share price comes back a little more to 212 so I can top up then ISA again.. :o)

[waterloo01] 13/4/2018 15:20

One does suspect some overhang from Rumbo and why they have dropped it to 2.15. Even if they offload the $5m, it should be fairly easily absorbed IMO. I'm very much in favour of sorting these sorts of costs. The extra shares will soon be forgotten but the improved AISC costs remain improved going forward.

[mronions] 13/4/2018 11:59

BrockWL2 / Lee chap seems to know what he is talking about

[mronions] 13/4/2018 11:58

I did a dummy SELL for 70000 shares, I get a bid 217p and change

BUYER in market for stock

[laurence llewelyn binliner] 13/4/2018 11:10

#Scargs Rumbo had the 1st 2 rounds of USD250,000 cash due in shares too..
This consideration stand alone is 1,600,907 shares at 211.8P and USD4.75M so is in addition to the 1st round .., still a 50% discount tho'..

But what of the 2 off 1.6M shares that went through Monday this week.. these new shares are not added until the 18th..? coincidence on volume ..?

I wonder what's next for Astor..?

Exclusive agreement to provide agency services to Company on all concentrate sold
For the first 932,000 dmt concentrate sales a base marketing fee of EUR11.25/dmt of concentrate sold is payable plus additional escalating fees dependent on copper price
For the remaining balance of 1,438,000 dmt of concentrate sold a commission of EUR22.50/dmt is payable.

#waterloo01, It would be good to get shot of this too, at a discount in shares..?

[scargs] 13/4/2018 10:44

Brockwl2

The RNS says that the TOTAL consideration paid is equivalent to US $4,750,000.

That is less than 50% of the maximum US $10,000,000.

A smart move by ATYM.

[brockwl2] 13/4/2018 10:23

"Yep another astute move by the Board."

Depends how you look at it. Rumbo will have already had 2 payments, so have received 500,000, which actually leaves 9.5m. So we have paid them off up front for 50% of that using shares priced below the current market price. We now need Copper to stay above $2.60 for at least 5 years to break even.

I'd wager very few companies would have bought this out using cash. So I'm guessing it's only happened because.

1. Atalaya management are extremely confident of the Copper price going forward.
2. They could do it using shares.

As a result we have been slightly diluted, and won't truly see the benefit for another 5 years. (I accept it comes straight off the bottom line, but that is counteracted by the share dilution if we use an EPS measure). The dilution and EPS recovery doesn't fully restore until the 5 year payback has completed. Then you start to see the benefit

I suspect Rumbo believe they got a good deal.

For Atalaya I'd say it's broadly neutral, however it does reduce the AISC, which if Copper did plummet means we could stay in business at a lower price, so that must be a good thing.

Lee

[laurence llewelyn binliner] 13/4/2018 10:06

Will the share price hit the 211.8p price for the Rumbo shares on 18.04.2018 issue date..?
Last chance to top up at a sensible price..?

[rougepierre] 13/4/2018 09:21

PS GPM ridiculously undervalued...can buy for 30.3 but NAV 36.74...tick tock...

[rougepierre] 13/4/2018 09:17

C63 AMG roarrrr!

[husbod] 13/4/2018 09:10

Yep another astute move by the Board.

[laurence llewelyn binliner] 13/4/2018 09:06

I see I called that 1 right.. :o), and expected a deal to be done with Rumbo, smart move at 50% total consideration due, and 1 less snout in the trough moving forward..

Overhang..? why would Rumbo sell today what is going to be worth +50% in a year or 2..

Astor brokerage handling fee per DMT next #waterloo01..?

[waterloo01] 13/4/2018 08:25

If we still need to pay Astor (TBC) I hope they do something similar but with cash not shares (wouldn't want them as an over hang) however would they go for getting 50m in one go but giving up marketing rights as the quid pro quo?

[scargs] 13/4/2018 08:23

Re the Rumbo Royalty buyout.

The original agreement was payment up to a maximum of US$ 10,000,000.

The buyout is a total consideration of US$ 4,750,000.

A very smart deal by Alberto.

One more box ticked.

If Rumbo sell their shares they will be absorbed very quickly.

I'm happy with today's RNS.

Scargs