Pensana Share Discussion Threads

[sirmark] 18/1/2023 10:57

Getting closer to a full breakout !!

[sirmark] 18/1/2023 10:34

hxxps://www.parliamentlive.tv/Event/Index/d2892bab-5583-431e-bf42-7fa8a93b6a63

[mwj1959] 18/1/2023 10:06

Let's hope that there is more substance (i.e. behind the scenes progress on financing) to this rise than the last time it went from the low 40s to 70.

[mikethebike4] 18/1/2023 09:47

news of financing hopefully soon

[sirmark] 18/1/2023 08:56

Moving well

[mwj1959] 14/1/2023 11:43

I admire your optimism!

[chinasyndrome] 13/1/2023 23:53

Not worried about Funding,
Who is going to win the bidding war ?

[mwj1959] 13/1/2023 17:27

Beggars can't be choosers in this difficult debt raising environment (yields have fallen a bit recently, but they still remain elevated). There's been a lot of talk so far, but if they can't deliver the funding that talk is worthless.

[dmitribollokov] 13/1/2023 15:37

Ha sounds like they need another expert! He seems like he has decent enough experience, not sure why he wouldn’t want the coupon in escrow option, better than chucking away too many warrants or the compounding incurred through a PIK. Anyway massive move today, something afoot?

[mwj1959] 13/1/2023 15:23

He's (Steve Sharpe) meant to be the debt raising "expert" on the board and has been closely linked to the debt raising efforts!

[dmitribollokov] 13/1/2023 15:08

The NED prob should get another job as a NED. They’re not AAPL going for their 30th debt raise.

[sirmark] 13/1/2023 11:03

Moving nicely today, could finance be coming ?? we are due this news but IMO we could see an absolute monster of a day on that news.

This is going to be a huge company in the next 5 years.. paying huge dividends.

[mwj1959] 13/1/2023 10:03

Fine, but the NED I spoke to re this at the AGM, who is heavily involved in this process, didn't seem particularly keen on the idea at the time. I suspect we'll find that beggars can't be choosers!

[dmitribollokov] 13/1/2023 09:01

“ At the AGM I was told that one of the conditions that was being attached to the debt raise was that all the interest payable (this applied to Saltend only I think)was to be held in an escrow account, which meant that instead of raising $200m they needed to raise $250m (the $50m being the interest).”

It’s a tried and tested method for debut issuer. That’s how Fortescue (FMG) did their first debt raise about 15 years ago.Look at the giant they became. Either finance the coupon that way or via a PIK. Pretty standard.

[quepassa] 13/1/2023 07:11

Yawn.

Suggest you read today's FT.

p9

[chinasyndrome] 13/1/2023 05:53

QP: Another RE deposit in a place that nobody will go to !

[quepassa] 12/1/2023 17:23

Lapland rare earths - significant deposits discovered.

[dumbpunter] 03/1/2023 13:44

>>Whether that is the norm for such development projects I don't know.
Very unusual and probably an indication of the high risk.
As an indication of rates, RMM terms from 15months ago were 8% plus 3month us Libor, compounding. So 12.75% today. RMM are a in production copper miner.
If they took a 3 year payment holiday, (monthly compounding) it would add 46% to the loan amount.
Edit.
Charging interest up front is grossed-up (retained) interest.
This is calculated by adding the interest to the capital amount, the interest being charged on the entire capital and total interest for the intial period (when the loan is not serviced)

hxxps://learning.treasurers.org/resources/how-to-gross-up

There is no compounding of interest. However, it results in more interest being due than compounding. The advantage to the borrower is the entire loan and interest can be deprecated from day 1. Most importantly no servicing costs for N months while the build occurs.
For lenders its.. awesome.
This is a bridge loan. Short term lending for construction. Not a bond.

[mhssh] 03/1/2023 12:03

All quite hairy stuff, but M&G don't seem bothered willing to throw another £4m in the ring, leaves me a confused investor, I have to say.

[mwj1959] 03/1/2023 10:47

At the AGM I was told that one of the conditions that was being attached to the debt raise was that all the interest payable (this applied to Saltend only I think)was to be held in an escrow account, which meant that instead of raising $200m they needed to raise $250m (the $50m being the interest). Whether that is the norm for such development projects I don't know.

[mhssh] 03/1/2023 10:14

If, say, £200m at 10% (if lucky) how on earth can PRE service the debt. If they got a moratorium on interest to end 25, just imagine how much they would owe.

[rvsy2] 03/1/2023 09:47

I am a disappointed long term shareholder and believe the execution strategy was fundamentally flawed as the project should have been developed in two distinct phases.

The company should have developed the Angola based operations which could have been funded at a time when interest rates were much lower and generated cash flow by selling rare earth concentrates.