Liberty Posted August 8, 2014 Share Posted August 8, 2014 Alderon annual meeting presentation (audio + slides): http://player.vimeo.com/video/102775216?portrait=0&byline=0&color=333 Link to comment Share on other sites More sharing options...
Blue Macaw Posted August 10, 2014 Share Posted August 10, 2014 I have to say the video give a picture of debt almost secure. Now with Glencore buying the rest we could see 1 billion from a mixture of canadian and foreign banks and after that equity raise. Debt cannot be used until equity raise is finished. Looking better than I thought actaully Link to comment Share on other sites More sharing options...
nostradamus Posted August 11, 2014 Share Posted August 11, 2014 The video also gave me a more positive view of Alderon's prospects. In particular: 1. The fact that they have got Canadian banks showing interest in financing the project. Until now I had thought that they were pretty much reliant on the Chinese banks. The more competition there is to provide the financing, the better. 2. If they cannot agree on the charges for the rail then there is a goverment run arbitration process. This lasts just 60 days and then a rate is set. Having previously thought that the rail rates could be a stumbling block, it now seems like a non-issue to me. 3. Debt is likely to be issued before the equity on the condition that it is only drawn down after the equity is raised. Making dillution less severe (assuming that the debt financing raises the share price). Almost tempted to buy some Alderon directly, but I think I will stick with just owning ALS. N. Link to comment Share on other sites More sharing options...
SharperDingaan Posted August 11, 2014 Share Posted August 11, 2014 Few other things ..... Expressions of financing interest > what they need, Glencore 'soft' support behind the off-take, & ability to rapidly repay as production comes on line. Most would expect ADV to end up with almost entirely capped revolving FR financing, at a very low financing cost. Sequenced financing. Most would concede that conditional financing, & 100% pre-sold production, will significantly raise the ability to do a private placement. Few realize that it may well already have been pledged - through debt/equity conversion, & an infrastructure purchase (Wabush). Completion of JL negotiation. Can't be far away, & were it transferred to ADV for future royalties, ALS would no longer need its founding stake in ADV. Cash for ALS to pay down its debt, & a worthwhile stake for anyone else who wants into the trench. SD Link to comment Share on other sites More sharing options...
Liberty Posted August 11, 2014 Share Posted August 11, 2014 http://seekingalpha.com/article/2405815-altius-minerals-diversifying-away-from-iron-ore Link to comment Share on other sites More sharing options...
original mungerville Posted August 12, 2014 Share Posted August 12, 2014 I listened to the video and did not get too excited about the financing. The excuse for the delay that Paribas was undergoing regulatory issues was a bit lame. Expressions of interest are good I guess, however, that does not mean they will write a check does it? So they are interested as opposed to disinterested - I guess that is relatively positive. But what I got out of that video is that nobody is signing checks at this point. Am I missing something? Link to comment Share on other sites More sharing options...
craigatk Posted August 12, 2014 Share Posted August 12, 2014 I listened to the video and did not get too excited about the financing. The excuse for the delay that Paribas was undergoing regulatory issues was a bit lame. Agreed that was the weakest lame excuse possible. Day to day, those types of issues do not impact the lower level people who are working on a financing. As for the discussion on financing, I was moderately pleased to know that they are checking things off the list and that they have everything covered so that it could happen at any time. It's true the management is very promotional and that's the sense I got from their presentation, but this is still a project that I think will get built, it just might take much longer than we would hope. I think they are getting EOIs from all sorts of banks, and why not. Everybody wants to know what's happening even if they have very little intention of following through. It seems like they are really pushing hard on lenders in China and Hebei province especially.... and my experience in Japan (I believe China to be somewhat similar) can be that people can move extremely slow for no apparent reason (to us westerners). Then after an agonizing wait, one day out of the blue it can start to move very quick. It usually has the due with the hierarchy within the organization and centralized decision making. Link to comment Share on other sites More sharing options...
original mungerville Posted August 12, 2014 Share Posted August 12, 2014 I listened to the video and did not get too excited about the financing. The excuse for the delay that Paribas was undergoing regulatory issues was a bit lame. Agreed that was the weakest lame excuse possible. Day to day, those types of issues do not impact the lower level people who are working on a financing. As for the discussion on financing, I was moderately pleased to know that they are checking things off the list and that they have everything covered so that it could happen at any time. It's true the management is very promotional and that's the sense I got from their presentation, but this is still a project that I think will get built, it just might take much longer than we would hope. I think they are getting EOIs from all sorts of banks, and why not. Everybody wants to know what's happening even if they have very little intention of following through. It seems like they are really pushing hard on lenders in China and Hebei province especially.... and my experience in Japan (I believe China to be somewhat similar) can be that people can move extremely slow for no apparent reason (to us westerners). Then after an agonizing wait, one day out of the blue it can start to move very quick. It usually has the due with the hierarchy within the organization and centralized decision making. I agree on all three points completely (your first point re excuse on financing is exactly what I was thinking - that high-level stuff rarely affects day-to-day decisioning). Link to comment Share on other sites More sharing options...
Guest Dazel Posted August 12, 2014 Share Posted August 12, 2014 http://www.bnn.ca/News/2014/8/7/Rick-Rules-top-investing-ideas-Dundee-Corp-Delphi-Energy-Altius-Minerals.aspx Link to comment Share on other sites More sharing options...
SharperDingaan Posted August 12, 2014 Share Posted August 12, 2014 Shush !!!! SD Link to comment Share on other sites More sharing options...
TwoCitiesCapital Posted August 12, 2014 Share Posted August 12, 2014 http://seekingalpha.com/article/2405815-altius-minerals-diversifying-away-from-iron-ore This guy references tax havens and a near 0% tax rate on royalty income. I've been assuming rates around 40% to remain conservative and because of prior comment in the thread about high royalty taxes. Anyone have a good understanding of the industry and tax situation? Definitely warrants expanding my 11% position to my max of 15% if taxes are far lower than I was expecting. Link to comment Share on other sites More sharing options...
investor-man Posted August 12, 2014 Share Posted August 12, 2014 http://www.bnn.ca/News/2014/8/7/Rick-Rules-top-investing-ideas-Dundee-Corp-Delphi-Energy-Altius-Minerals.aspx He totally rules Link to comment Share on other sites More sharing options...
ItsAValueTrap Posted August 13, 2014 Share Posted August 13, 2014 http://seekingalpha.com/article/2405815-altius-minerals-diversifying-away-from-iron-ore This guy references tax havens and a near 0% tax rate on royalty income. I've been assuming rates around 40% to remain conservative and because of prior comment in the thread about high royalty taxes. Anyone have a good understanding of the industry and tax situation? Definitely warrants expanding my 11% position to my max of 15% if taxes are far lower than I was expecting. http://www.pwc.com/ca/en/mining/publications/canadian-mining-taxation-2011-04-en.pdf The voisey's bay royalty is taxes at less than 55%: http://www.nr.gov.nl.ca/nr/mineralstrategy/submissions/Altius.pdf Taxation varies from province to province. Link to comment Share on other sites More sharing options...
EliG Posted August 20, 2014 Share Posted August 20, 2014 Alderon Provides Project Financing Update http://www.marketwired.com/press-release/alderon-provides-project-financing-update-tsx-adv-1940247.htm Link to comment Share on other sites More sharing options...
investor-man Posted August 20, 2014 Share Posted August 20, 2014 Alderon Provides Project Financing Update http://www.marketwired.com/press-release/alderon-provides-project-financing-update-tsx-adv-1940247.htm Sounds promising. Anyone familiar with Endeavor? Link to comment Share on other sites More sharing options...
beerbaron Posted August 21, 2014 Share Posted August 21, 2014 Alderon Provides Project Financing Update http://www.marketwired.com/press-release/alderon-provides-project-financing-update-tsx-adv-1940247.htm Sounds promising. Anyone familiar with Endeavor? Not sure I would consider this good news. Obviously Alderon was not happy with BNP but was it for lack of focus on the project or just because the lenders were just not lining up. Their BS excuse about PNB's lawsuit was probably their own interpretation of the lack of effort from BNP, was it justified... Regards BeerBaron Link to comment Share on other sites More sharing options...
alertmeipp Posted August 21, 2014 Share Posted August 21, 2014 >>The termination of BNP's engagement will allow the Company to move forward in forming this club syndicate of banks, with the assistance of Endeavour Financial. So does it mean they can't move forward with the termination... the PR doesn't really give any explanation on why. Why could BNP not able to close something that a smaller outfit can? Link to comment Share on other sites More sharing options...
investor-man Posted August 21, 2014 Share Posted August 21, 2014 >>The termination of BNP's engagement will allow the Company to move forward in forming this club syndicate of banks, with the assistance of Endeavour Financial. So does it mean they can't move forward with the termination... the PR doesn't really give any explanation on why. Why could BNP not able to close something that a smaller outfit can? BNP is a big French bank. I worked in Paris for a couple of years. I does not surprise me that they think a smaller outfit with a focus in mining would be more ideal Link to comment Share on other sites More sharing options...
snowball82 Posted August 21, 2014 Share Posted August 21, 2014 If you like the royalty model you should like Grenville strategic royalty (GRC). We should start a new topic here. This is a next potential comparable to Alaris (ad). Link to comment Share on other sites More sharing options...
Guest Dazel Posted August 21, 2014 Share Posted August 21, 2014 http://www.endeavourfinancial.com/our-experience/by-commodity.aspx All deals are on the table now (you can look at the $28b in deals Endeavour has put together above). Hopefully they listen to SD! I never liked the BNP engagement...not sure why they did that. Had to chime in on this news! Link to comment Share on other sites More sharing options...
original mungerville Posted August 21, 2014 Share Posted August 21, 2014 It doesn't sound "good" to me. They tried with BNP, couldn't get it done, so now they are trying with somebody else. Seems neutral to bad. Link to comment Share on other sites More sharing options...
peter1234 Posted August 21, 2014 Share Posted August 21, 2014 It doesn't sound "good" to me. They tried with BNP, couldn't get it done, so now they are trying with somebody else. Seems neutral to bad. It all depends on whether you think BNP was qualified and put focus and the right people on this project. This project might have been too small and not gotten support in such a big bank. Maybe the sales people over-promised? Link to comment Share on other sites More sharing options...
Guest Dazel Posted August 21, 2014 Share Posted August 21, 2014 OM, Of course anything that is not financing is bad! We need someone to work an SD type deal....they have to be directly involved and creative. What is not being taken advantage of in this process is the size of Alderon's resources...there are another 8mta in off takes that can be sold and JL could be involved to get to 46 mta...the infrastructure is there and Wabush equipment for sale... Scale wins in the new iron ore game and Endeavor will sell this concept to a consortium of the worlds top steel producers....with the help of Hebei and Glencore. BNP would not have been that flexible in the process that is needed. Dazel Link to comment Share on other sites More sharing options...
alertmeipp Posted August 21, 2014 Share Posted August 21, 2014 You could assume if they are close, BNP will have get it to the finish line. Link to comment Share on other sites More sharing options...
Guest Dazel Posted August 21, 2014 Share Posted August 21, 2014 If you are assuming it was going to be a straight debt deal then you should be disappointed...we do not and that's why we like Endeavor in there. Miners need to get creative in this environment and producers and their bankers need to be involved. For example We would like to see Endeavour leverage Glencore to put the consortium together. That would not happen with BNP trying to be the lead. Link to comment Share on other sites More sharing options...
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