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I hope Nio is ready to repay that PPP loan in a hurry.
“It is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith, and such a company should be prepared to demonstrate to SBA, upon request, the basis for its certification.”
“Any borrower that applied for a PPP loan prior to the issuance of this guidance and repays the loan in full by May 7, 2020 will be deemed by SBA to have made the required certification in good faith,” the SBA said.
https://www.cnbc.com/2020/04/23/us-issues-new-guidance-for-small-business-loans-to-make-it-harder-for-public-companies-to-get-funds.html
Brazen.
Over $1.2B at least based on what I’ve found. Dilution varies, I never said equity offerings were a bad thing when the company was overvalued. I’ve only ever disputed the commonly held notion that Mountain Pass was funded entirely with debt. It was not. Moly didn’t start accumulating any debt worth mentioning until the Neo deal while depleting their cash reserves at the same time.
$400MM in IPO.
https://www.bloomberg.com/news/articles/2010-07-29/molycorp-reduces-planned-rare-earth-ipo-by-18-to-394-million
$500MM in secondary offering. Later upgraded to nearly $600MM.
https://www.businesswire.com/news/home/20110609006885/en/Molycorp-Announces-Pricing-Secondary-Offering-10000000-Shares
38,000,000 shares at 6.00 in 2013.
https://m.marketscreener.com/MOLYCORP-INC-4885620/news/Molycorp-Inc-Molycorp-Prices-Offerings-of-Common-Stock-and-Convertible-Senior-Notes-15966449/
All this while executives were selling.A good legal read here:
https://www.rlf.com/mobile/showarticle.aspx?show=6133
Finally the Neo deal. More dilution and $650MM in debt:
https://www.jonesday.com/en/practices/experience/2012/03/molycorp-acquires-rare-earth-processor-neo-material-technologies-in-cdn13-billion-us126-billion-transaction
All of these can be verified elsewhere with some DD.
The Neo acquisition was potentially the single largest contributor to the Chinese domination. Neo wasn’t much more than a shell company for the Chinese run Magnequench. Further, Molycorp had very little debt prior to the acquisition. Project Phoenix was entirely funded by equity. The Neo acquisition was the first major debt that Molycorp took on. Subsequent debt deals prior to bankruptcy were simply efforts to hold up a failing company and was largely a battle between to competing funds to acquire the assets in order to hedge losses.
They paid a measly $3k. The state has almost certainly spent more than that reviewing the application.
They were also warned years ago that this review would take longer than usual. Way back before FS1. Back when they were masquerading as an environmentally conscious company trying to dump underground mineral laced water into the Missouri River. Back when Honan disregarded the Sturgeon habit in the river and tried to compare street salt to their continuous operation of dumping salt into a freshwater river.
ESG? Their reputation suggests otherwise. Have you ever taken a look at Sims role in the “Western Business Roundtable”? Google it. Barbara Boxer owned him in his senate appearance on that one. Profit and personal gain is the only thing these guys care about. Don’t kid yourself about ES&H.
Mortality rate is directly related related to modern medicines ability to treat this. If even 1% of the country becomes ill at the same time the mortality rate will be disproportionately high versus a scenario where diagnoses come at a pace similar to the flu. Many of us are immune to multiple flu strains. Right now the evidence suggests the only humans that have immunity to this virus are the few that have caught it and recovered.
It has a lot to do with NioCorp.
Denial of reality.
Gobble, Gobble.
Dead money for five years? That sounds optimistic. Did you turn bullish?
First of all, Cleanteq doesn’t “keep dropping”. The company had a significant drop when cobalt prices collapsed and another drop due to the engineering delay and apparent poor decision of hiring MCC as EPC.
The only point I want to make with this is that CLQ is tied to fundamentals. Cobalt at $15/kg does not work for this project. Hence the current price. The good news for investors is that the long term cobalt predictions are still right in line with the FS projections. Work is well underway and they continue to put capex into the project even without a final financing deal. Off the top of my head I believe they have $70M aud in cash at that moment. RW may correct this but they are clearly not cash strained.
NioCorp on the other hand has less cash in the bank than many of their investors. $53k as of the last filing. The share price is completely separated from reality. Aside from Smiths shares the rest of the ownership is nearly completely retail investors and the share price is a reflection of the overabundant enthusiasm for a get rich quick scheme propagated by management.
Dang, Sims says there’s dozens AND dozens of permits left. I only said a dozen or so. Must be worse than I thought.
That info is straight from FS3. Page 455.
But you’re right, just like the rest of the company it’s probably not credible.
There’s at least a dozen permits they still need before they can produce anything. The DHHS permit for the uranium waste is probably the most significant and should not be taken lightly. There’s also local building permits they don’t have that technically don’t make this shovel ready like MS said. They anticipated these would come with the zoning permit but per the PR that does not appear to be the case. I don’t imagine there’s any risk to securing the local permits but it does call into question the shovel ready comments.
Kudos to the genius at spin for actually putting some cautionary language in there. and is not necessarily indicative of any specific outcome or timeline
After the innuendos at the AGM, the interview with Bill Kelly, and most recently the Brecht Arnaert video this was badly needed. MS has been pushing the limits of “forward looking statements” as far as he possibly can.
Just don’t forget our deal.
In addition they really shot themselves in the foot with the repeated statements that financing does not require the air permit. Now most of the board thinks once NB has the air permit then financing is eminent. If financing doesn’t require the air permit then how is the air permit going to make any difference in gaining smart money?
I agree with you there. I’ve just heard too many code departments quote frost lines like it’s a regular occurrence that it’s become a pet peeve. For much of the Midwest the numbers on your site are more like once in hundred year numbers. It takes a long dry cold snap for them to occur.
Not that I think it matters in this case, but this is incorrect. That’s a maximum for building code purposes. Average is 12”. I did a bit of research on this topic a few years back for an unrelated project.
https://pbs.twimg.com/media/DWqpsOPX4AUrGHO?format=jpg&name=medium
https://www.weather.gov/mbrfc/frost
https://www.weather.gov/ncrfc/LMI_FrostDepthMap
I’m sorry for your loss.
Let it be.
An echo chamber doesn’t benefit anyone. If the consequence of avoiding group think is the village “dissenter” then so be it. An investment community with a singular opinion is not an informative community.
Financing of all types regularly has an effective date, is done in installments, and interest is accrued per terms. It is nonsensical to assume NioCorp would pay interest on $1.5B the day they sign a financing agreement. There is 0% chance that financing is being delayed by winter weather.
The additional permits are all in the regulatory filings for those that have done their DD. IMO the most significant is the one from the Department of Health and Human Services for the uranium.
Paper gains, but congrats. It’s always nice to be on the right side of a speculative trade. Now keep drinking that grape flavor right to the bank and you can pat yourself on the back for making a successful investment as many others here have already done. The broader investment community figured this one out a long time ago, as soon as some of the larger retailers start selling this may go down in a hurry.
You have about three major events coming up. The air permit, but you’ll have a bare minimum of thirty days notice before that’s a reality, the 10q most likely the first week of February (those statements are almost certain to be abismal, and finally the day(s) of reckoning starting on 2/14 when the .85 CAD warrants start to expire. If holders don’t exercise these warrants there will be a serious cash crunch and immediate need to raise capital in a hurry, and it’s not coming in the form of a billion dollar check.
ge is trying to kindly tell you that those two filings are completely unrelated to Nb. Most likely a mistake by the person that uploaded the documents. When you download them you can see the facility ID handwritten in the top right portion of the document. It doesn’t match. Not to mention if you read just the first paragraph you would realize this is for an ethanol plant outside Minden. Last I knew an ethanol plant 200 miles from elk creek wasn’t part of the mining plan.
You have me on one point. I freely admit I fell for the tactics by the genius at spin. Thank god he was kind enough to suggest I wisen up.
As for the rest, it is imperative that the reader seriously considers why a Bloomberg reporter that has consulted with local resources, industry experts, and geologists would consider this project a long shot.
If it’s not a long shot then what is it? It appears the reporter solicited opinions from analysts, geology professors, and local politicians; all of which look to have no financial interest in the project. He included a lengthy section promoting the company via comments from the annual meeting.
“Substantial doubt” is not boilerplate language. I’ll let you research it a bit. Every company puts out some sort of disclosure about assumptions of continuing as a going concern, but the substantial doubt statement is very significant as far as accounting goes and is directly tied to the auditors opinion of the company’s ability to continue operations.
Finally, I think the author did an injustice to shareholders and the citizens of Nebraska by only referencing the 10k. The 10q statements are much worse with $43k in cash and roughly $3.2M in accounts payable.
The comment about junior miners incurring losses is accurate, attributable, and newsworthy. The subject of the article is ultimately about a dumb corporate tax incentive provided by the state. As such, readers following the tax advantage program may not be familiar with the mining industry which makes these statements critical to those reading this article from a crony capitalism interest as opposed to a junior mining investment interest.
Those are harsh statements. What part of the article did you think was unprofessional?
For reference:
https://news.bloombergtax.com/daily-tax-report-state/mining-venture-draws-200-million-in-tax-incentives-and-red-flags
Stop the presses! Are you saying a professional analyst in this very specific sector is following more than one company? He needs to be tarred and feathered for this!
I, Christopher Ecclestone, hereby certify that the views expressed in this research report accurately reflect my personal views about the subject securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or view expressed in this research report.
It’s a model portfolio. They have zero financial stake in it. All the rest are good points though.
Hallgarten & Company or persons associated do not own securities of the securities described herein and may not make purchases or sales within one month, before or after, the publication of this report. Hallgarten policy does not permit any analyst to own shares in any company that he/she covers. Additional information is available upon request.
Who knows. That was a general statement.
I beg to differ on that one. Money has a very mysterious way of making hurdles and problems disappear.
You should cite the article you reference instead of cherry picking quotes.
https://www.fnarena.com/index.php/2012/08/02/rare-earths-done-and-dusted-or-is-it-xeno-time/
A company that Bloomberg has relied upon as a reputable source. Do your DD.
You now have the national media that you’ve wished for.
It’s a common phrase in economics.
They have clearly consulted with experts that have made mining their career. These aren’t random bloggers.
By the way, I’m a native Nebraskan. Does that also tell you all you need to know?
The author was not but if you look towards the end he gives special credit to Tripp Baltz. Tripp was the one at the meeting.
And for the other side of the story:
We would note that on an online forum the CEO of NioCorp accused us of being “disgruntled former Molycorp shareholders”. Firstly we are insulted that he thought we might be foolish enough to have bought Molycorp in the first place. We never did....
Secondly, find us a (latterdays) Molycorp shareholder that is not disgruntled? We find this bizarre accusation to be nothing more than reverse sour grapes.
http://hallgartenco.com/pdf/Mining/NioCorp_Jan2020.pdf
Bloomberg reiterates their long shot comment. I’d laugh if the state and so many investors didn’t have so much at stake. They referenced the “disgruntled former Molycorp investor.” Talk about the “substantial doubt” inclusion in the 10-K. A comment from a professor on scandium. (Side note I need to look him up. He may have been the one that made me aware of elk creek 20 years ago). All of this plus suspicious activity with the state government.
Unfortunately for shareholders, Sims refused to comment on the article.
All this talk about Bloomberg, NioCorp, and bragging about DD and it seems like nobody here has even set up google news alerts.