African Minerals - AMI Stream Log

FT 12.74%, China Railway 12.44%,

AMI's ownership before share suspension was:

Or they may choose to set up a newCo, purchase all the assets and move them to newCo, so I'm crossing my fingers for this scenario to take place and that the assets get valued at a fair price

I guess begger brought the point that I've been fearing the most. That SGIS and other lenders decide to convert the debt into equity and continue working with the mine. If this happens the dilution would almost wipe out our ownership stake and value of our holdings

Begger, if I'm not wrong AML's bonds were convertible, meaning that bondholders could convert their debt into AML equity. It wouldn't be a bad idea for the sake of lowering AML's financial burdens if they were to convert into equity. However, that'd would likely dilute all shareholders' share meaning that we would own lower percentage stake

4unme, during liquidations secured lenders and preferred shareholders get the first dibs, followed by unsecured lenders and other parties that have claim on payables. And what's left over goes for equity holders. I doubt there are legal ways to change this priority

I'd guess SGIS would either purchase coal to blend it with tonkoli or buy it from FT. Marampa's iron ore has better % Fe so it'd make sense for the Chinese in terms of transportation cost to ship something of higher quality

Valuation, given the steep fall in iron ore prices and the fact that SGIS holds control of logistics, I doubt valuation would be anything close to the numbers from a year ago. But I think it should be sufficiently high enough to give us back something

Also given that SISG holds control of the infra a lot of people may deem the mine worthless. However, let's not forget that we still have a claim to 75% of the mine so the infra is also worthless on SGIS' side unless they have full control of the mine. In this case the only parties that would put up money for our stake on the mine would have to be SISG itself or related parties, hence we should stick together and not allow the sale to be significantly less than its fair value

I'm not entire sure this was a set by all members of BoD and management since they were desperately knocking on the doors of almost every PE around the world in order to raise some capital for the mine. Where it gets a bit suspicious is how FT used his funds to acquire Marampa instead of injecting it to the company under the logic that by mixing marampa's high %Fe iron ore with tonkoli's iron ore they could get a premium.