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22-07-2014, 02:45 PM
(This post was last modified: 21-08-2019, 10:07 PM by cyclone.)
Alliance Mineral Assets Limited
Alliance Mineral Assets Limited is placing out 67.669m shares at $0.23 each. 43.479m - new shares ; balance being vendor shares. The Company is a mining company headquartered in Perth.
Alan Wang is investing in this as well..
http://infopub.sgx.com/Apps?A=COW_IPO_Co...87aP_ldW3g
A lot of IPOs these 2 weeks wor.. another one being Terratech group, marble producer in M'ysia. Probably a good time for companies to get funds now..
Winston Churchill:-
“The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.”
"The farther backward you can look, the farther forward you are likely to see."
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Ever since the Pramoko debacle a few years ago, or perhaps, right from day one, Alliance (now Alita) has only been a story with no sustainable business.
Even though there is market demand for resources, the assumption that a mining company will perform up to its operational/financial expectation is probably misplaced. Just as not all F&B operators achieve the same profitability, not all mining companies/operators are successful. The lesson? choose an established mining operator, if you must.
Nevertheless, mining is an especially risky activity, because whatever that is thought to be valuable is buried in the ground. Estimates of 'proven' resources are not a reliable measure of value. Whatever estimates of the amount of resources there is, is just that; an estimate. It is not the case that the resources are just sitting there in a pile, waiting to be shoveled and hauled away.
They could also be halfway into the dig, and discover that the work is a lot more complex and/or dangerous than first assumed; which means more cost to extract the resources.
Or they could be halfway into the dig, and the price of their resource crashes. Do you continue mining, or do you abandon the mine?
The best mines are those that are shallow, with a high resource concentration, located close to its market, and has an eager buyer. But I don't think these are the mines that get listed. Apparently, at least not on SGX.
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Update on Offtake Agreement and Shipments
Alita Resources Limited said that on 19 August 2019 it has completed a shipment to Jiangxi Bao Jiang Lithium Industrial Limited (JBJLIL) of approximately 10,500dmt of lithium concentrate.
Due to challenging market conditions for spodumene, and in order to continue monetising Alita’s product stockpile, the price for this shipment was agreed at approximately 10% below the previously announced floor price of USD680/dmt (FOB 6%Li2O) (refer to the Company’s 14 January 2019 announcement), with approximately 14% of the price deferred for approximately 6 months from the shipment date. The price was set by reference to the contractual formula applied to on recent lithium carbonate pricing. The previous shipment to JBJLIL at the beginning of August 2019 was at the price determined in accordance with the contractual formula and within the previously announced price range, also had an approximately 6 months deferred payment component of approximately 11% of the price. Both deferrals may be set-off against the balance of the prepayment from JBJLIL under the offtake contracts, if not paid by JBJLIL by their respective due dates.
The Company continues the discussions with JBJLIL regarding the restructuring of the offtake agreement (including the terms of the prepayment) as part of the broader Company refinancing proposals. The Company will make further announcements on the above matters as and when there are material developments.
Specuvestor: Asset - Business - Structure.
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