Horizonte Minerals Share Discussion Threads

[laurence llewelyn binliner] 20/2/2021 15:16

#Jedi K..., 19.12.2017 200M shares issued to raise GBP7M at 3.5pps
29.08.2019 Orion USD 25M raised for a 2.25% GRR royalty
II placing Feb 2021 - USD 25M raised at 7.5pps
Full funding package raise at ...? pps

[twigs3] 20/2/2021 15:09

Yep noticed them, 2x41=82 so exactly half the shares issued sold?
total of 162,718,353 new ordinary shares in the capital of the Company

[bozzawozza] 20/2/2021 15:08

Yes so although it's showing massive sells, actually there weren't. It was just the transfer of stock onto the books.

[soundbuy] 20/2/2021 13:29

'There were two sells if 41 million at 7.5p wonder what they were'


Part of the placing going through.....

[jedi k] 20/2/2021 12:37

I think was still a fair deal at 7.5p. I could have been worse at 5p or 6p. The funding is still pending and the plant needs constructing and any revenue is still at least 3 years away. Come on guys this is another step in the right direction.Wasn't the last equity raise in 2016 at 2p?

[wooster4] 20/2/2021 11:02

excellence - an open offer is also a lot more expensive.

[jailbird] 20/2/2021 09:24

LLB,

Thats reads spot on

[laurence llewelyn binliner] 20/2/2021 09:03

#Jailbird.. agreed, now the marketing exercise has concluded resulting in a broader II base on the register we will soon see some TR1s to identify the 3%+ holders, and with the balance of the equity raise coming from the same basket of holders, would they want to erode their own discounted gains in the next round..?, I would suggest not..

A strategic move to get everyone onboard that the company need going forward, but at a penalty for the primary round setting the stage neatly for the secondary and balance..

USD 325M bank debt syndicate
USD 15M Orions working capital in hand
USD 25M equity raise
USD 90M balance to come from off takes / equity.. 50/50..?

Construction H2-2021
Mine plant build completes H1-2023
Production ramp up H2-2023
Debt repayment concludes H2-2026
Dividends from 2027...?

[jailbird] 20/2/2021 08:54

Once an institutional investor establishes a large position, its next motive is typically to find ways to drive up its value. In short, investors who get in at or near the beginning of the institutional investor's buying process stand to make a lot of money.
Individual investors should not only know which firms have an ownership position in a given stock; they should also be able to gauge the potential for other firms to acquire shares while understanding the reasons for which a current owner might liquidate its position. Institutional owners have the power to both create and destroy value for individual investors. As a result, it is important that investors keep tabs on and react to the moves the biggest players in a given stock are making.

excerpts taken from
hxxps://www.investopedia.com/articles/stocks/07/insitutional-owners.asp

[dak] 20/2/2021 08:44

Having been invested here for nearly eleven years and a fan of JM,I have
to say that I don't really buy his reasoning for such a discounted placing,
that is,"to attract institutional investors".You would imagine that they would have
be falling over themselves to be part of this.

[bozzawozza] 20/2/2021 08:08

There were two sells if 41 million at 7.5p wonder what they were.

[robertjbeck] 20/2/2021 06:41

Take a look at the volume traded. Over 136 mil shares of which around 100 mil look like sells for a share where the normal daily trading volume is below 10 mil. That doesn't look like PI's annoyed by the heavily discounted placing or hoping to buy back cheaper. I noticed there was no lock in period for the insti's gifted shares @ 20% discount. Hope they have not been flipping for 10% gain but I do not think this placing has been well managed and I hope the Board reflect on this. Given the recent trajectory of nickel prices and forecast gap in supply related to EV batteries they really should have been able to get this away at par or premium. Perhaps they need to beef up their investor relations.

[craigieboy1] 20/2/2021 02:28

I agree, in the end it washes up to institutions punting in £18m at 7.5p. It’s a very strong vote of confidence in the future. They will be seek8ng returns of 3-5 times the investment. Thats good enough for me.

[excellance] 19/2/2021 16:56

It was mates loading up

Placing should have been at a premium not a discount, but it's mates rates, and in any case who cares cos when this is sold they'll all be multi millionaires.

Follow the money folks, my opinion is to pile in.

[soundbuy] 19/2/2021 16:46

US institutions or North American? ie Canadian

(Cant be ar8sed to listen a third time!)

[excellance] 19/2/2021 16:44

Added another 125k at 8.295p

Got to be pleased with that, tho I bought same yesterday at 9.30 ish.

[steeplejack] 19/2/2021 16:25

JMs interview suggested that recent presentations had resulted in some US institutions wishing to acquire stock.This,in part, had triggered the decision to have a placing.Additionally,there was a need to raise money to expedite the dash to production ahead of the Brazilian rainy season.The reasons seem plausible enough.You can't be sure just how much stock is sitting on broker's books.Some is required simply to provide liquidity.Given that JM went out of his way to explain they'd been US institutional interest,one would of thought that the stock has been 'properly' placed with institutions.Thereagain,why these US interested parties should pick up a sizeable slug of stock at a such a discount is puzzling.Maybe they'll be an integral part of further funding down the way .

[excellance] 19/2/2021 16:13

The reason they chose a placing with mates and not an open offer is because they don't want your money. It's called exploitation, is immoral but is perfectly legal.

A real placing at this stage should have been at a premium, but was at a discount for mates, and was totally unnecessary, but hey greed is great, follow the money!

This will be sold by Easter.

[harrisun] 19/2/2021 16:09

ridicule. I know that wording, as it also applies to the US.

With a book build there are no auction competitive processes at work, as the price is already known.

Look matters not now, its done. Personally I'd have preferred one RNS of a placing finished for two reasons.

The first is the fact of pre announcement never in shareholders interest in my opinion.

Second unless there is an acquisition an accelerated book build is seen as a desperate need for cash, which indicates poor financial management. I'm hoping its the former as the latter would potentially damage sentiment.

I think enough time has been put on the bb, and where I still see the company doing well, albeit having to climb from a slightly lower base share price now.

Likewise is there anything in the book build that prevents new holders and institutions offloading for an instant quick profit which may suppress the share price going forwards.

At least this didn't really show signs of front running, which is unusual on AIM.

As they say onwards and upwards

[soundbuy] 19/2/2021 15:40

Where was 'oversubscribed' mentioned? Did I miss it in this morning's update?

[excellance] 19/2/2021 15:32

With nickel prices so strong the recent placing is a mad grab for exposure at knock down price.

Disgusting tho it is we have to recognise why they did it, and my opinion is that we should be loading up with this now while the sale is on.

[uapatel] 19/2/2021 15:08

Thanks JB. All seems a bit weird to me.

I suppose if wanted more, as an Institutional investor you can wait out the initial buy scoop up the sellers without too much effort.

[jailbird] 19/2/2021 14:59

That is a good question Still can have an overhang and be oversubscribed , as there maybe a selling shareholder at the same time

[uapatel] 19/2/2021 14:51

So that oversubscribed placement wasn’t actually oversubscribed hence the overhang?

[jailbird] 19/2/2021 14:49

There is a large seller too or Overhang of stock from the placing which MMS are selling on Quite common for a short while Thus why sometimes the placing price is retested until this overhang stock has been bought .Unfortunately has MMS drop the price it triggers sellers as well Obviously good news supersedes this