Intl Min&IN Crp Share Discussion Threads

[noirua] 07/10/2015 12:14

Very difficult to add much to the excellent views and information posted here.
So far IMIC have managed to fend off paying out cash for loan notes coming due and putting them out beyond the expected production date.
Only the Chinese can help them here and getting forward orders confirmed by them plus further MOUs might lift the stock price. Especially if IMIC also confirm production costs.
Unfortunately the iron ore sector is only for very low cost producers.

One thing surprises me in that no one has tried to buy Afferro 8% simple interest convertible loan stock. Surely an offer of just 20p for 40p loan stock might well be accepted by many who want out. Is this a bit ominous?

[taffer87] 30/9/2015 14:32

Nav_Mike - sure but what is IMIC. It is just a holding company with a lot of debt and the only asset being Afferro.

They can easily let IMIC get taken over by ex AFF shareholders and set up a new shell company. They will already get preference over any assets that have value via all the debt that has been loaded up.

[nav_mike] 28/9/2015 17:31

IMIC is a far too tightly controlled 'old boys club' for them to risk ceding control imho.

AFF loan note holders are very much the outsiders and not welcome at the table.

[taffer87] 28/9/2015 16:32

if they let shares convert - they are effectively giving up control. If then the management is changed then some of the other loan notes become repayable on demand.

There is also a lot of other debt loaded in the vehicle - mostly by related parties. So one scenario is

1- Afferro related loan notes convert to ordinary shares.

2- As and when the other debt becomes repayable, converts to equity as there is no money to repay.

We are back to square 1 with current IMIC shareholders holding the majority of shares via the debt instruments they have.

[bsg] 28/9/2015 12:29

I think they'll pay us in Smarties.

[horneblower] 28/9/2015 12:24

Ok, so £39M payable less any notes owned by directors etc who might waive payment.

Almost exactly twice the current MCap.

I think they'll find it quite a job to increase the share price from here on in...unless they have pots of cash we don't know about.

[taffer87] 28/9/2015 12:08

The value of the loan notes at par is £33,662,517.60. The number of loan notes is £33,662,517.60 / 0.4.

+ Add interest.

[horneblower] 28/9/2015 11:20

It will be fascinating to see whether your predicted rise occurs prior to the 19th Dec.
One would expect this in normal circs but I wonder if the "usual suspects" who organise these things have much leeway in this case. Hyping the price is presumably done by judicious release of "good" news or by concerted buying at pressure points on the chart. I am scratching my head trying to think up such things but am failing to come up with anything half way credible.

Are you correct in saying that the total amount due to ex-AFF noteholders is nearly twice IMIC's current market cap?

Are not the quoted £33.6M Notes on the Irish Stock Exchange for 40p notes?
This would come to £13.44M net and £15.6M including the 2 years at 8%.
Also, some of these notes are no doubt held by "close" shareholders and directors so they may well accept non-repayment.
(Tell me if I'm completely mistaken in this.)

The current MCap is £19M.

[nav_mike] 25/9/2015 07:10

GB

Yep that sounds about right....most AFF holders guessed that the price would miraculously rise in the run up to the redemption date of the loan notes.

[gheebee] 24/9/2015 22:20

I once said that IMIC had been shafted by Sundance not choosing the China option for the Port and Rail Infrastructure Contract. However, a little earlier this year Sundance offloaded the P&RI part of their operation and, I presume, the Portugese company and South Africa bank it had chosen over the Chinese got offloaded too. IMIC was hoping for a Chinese win and to be part of the consortium and now that's what's happening. International Mining and INFRASTRUCTURE Corporation is playing for time right enough. The price will rise beginning soon, the number of shares loan notes will deliver will be reduced, a discounted massive placing will be got away (AIOG will get its 10% free anyway) and the share price will collapse as everyone bails out.

[noirua] 24/9/2015 11:58

horneblower, It seems IMIC are playing for time in juggling around with their loan book as paying everything back as originally planned would put the whole enterprise under threat.

The loan that is meant to payout cash to AFFerro former shareholders or convert into IMIC shares looks simple as there is a period of time before 15th December to average the share price - the problem as most can see is what will happen to that share price and should holders of shares sell or not.

There are also ongoing negotiations on the other Afferro loan that must be proving difficult. I suppose they will have to agree or risk losing everything and hope, like the IMIC directors, that the iron ore price recovers by 2018 or before.

It is possible IMIC will issue shares to former Afferro shareholders in the form of escrow, that would mean they could not be traded until a certain date in the future, maybe 2018. Or these shares could have restricted voting rights allowing a full issue on 15th december 2015.

[horneblower] 24/9/2015 10:00

Indeed, I'd forgotten that.
Do any of the spread bet companies deal in IMIC?

[robrah] 24/9/2015 09:52

Could it be converted to equity ?

[horneblower] 24/9/2015 09:44

I was just wondering if, being so short of working capial, how they were going to repay our 8% loan in December.

Does anyone have a handle on what that will cost them.

I assume loan repayment would not be classed as working capital but the 8% interest might.

[deltrotter] 24/9/2015 08:11

Looks that way. Not sure that iron ore is the place to be at the moment...

[solarno lopez] 24/9/2015 06:46

That they are short of money and cannot raise from elsewhere