A lot of posters have been screaming for some sort of update, myself included, so why hasn’t the Company bothered?
~ Although, it does give rise to shareholders scouring the internet for information, and we can produce our own interpretation of an update
~ I’d make a suggestion as to there is nothing to update us on given the recent announcement on FID for Goulamina and the latest quarterly activity report but a responsible update via the website at least to confirm that all the internal reorganising of the subsidiaries and /or the corporate restructuring to allow the transfer of the project licence to be transferred is completed. ~ Cowden’s “10 second sentence” on Paydirt doesn’t cut the mustard in my opinion.
~ My recent correspondence with the Company, they will release an announcement when the licence has been transferredas per Continuous Disclosure obligations. Given that we have to make assumptions the reorganising / corporate restructure has been completed to enable the transfer of the Project Licence, can the delay only be attributed to the DNGM? (National Directorate of Geology and Mines) or is there something else?
@dazaliam one can only hope that it doesn’t take as long as the Finkola Sud tenure renewal, following the expiration of the tenement a request for new tenure was lodged with DNGM on the 5th August. The related mining convention was presented and validated during a workshop with the DNGM on the 7th October and the Company was invited to proceed with the payment of the convention fees, 5 million CFA Franc (A$11,295.50)
~ The process is ongoing at the level of the Minister of Mines
~ It is a little baffling why this was allowed to expire ??~ I must be missing something, as in the Company announcement they state “all tenements are in good standing.”??? But this particular one is showing expired???
Re” “tax bill being forgotten”? I will assume that it is in reference to narratives on the forum as the Company has (IMO) done everything possible to get a satisfactory outcome and there has been 8 announcement with tax related information included. Also some haven’t forgotten the tax bill, I do keep track of company information, because it is easier to find something in one place rather than scouring through announcements ……
Also, as the Company received another partial tax assessment for the year ending 2018, this looks like it is going to be the normal?
A possible tax implication that has been overlooked/forgotten, even by the company as from the demerger time line released in the “Introducing Leo Lithium” announcement on the 16th August, an Australian Tax Office ruling on demerger tax Relief was (indicated) for December that hasn’t eventuated. I would envisage this will appear in the “Short form Prospectus? as it will be important (for some) to understand beforehand,
I absolutely doubt that it will have much impact on the vote on the demerger but it could mean a change of strategy for some investors.
This link maybe helpful to some (good luck trying to decipher it)https://www.ato.gov.au/assets/0/104/997/1030/a3df7b2f-9922-486c-856c-93d3c52d3282.pdf
What comes first the “chicken or the egg?” or in the case of FFX, in-specie distribution or the entitlement offer. It is pretty clear from company announcements that the in-specie distribution will be as soon as the company demergers. From the Introducing Leo Lithium announcement” “On implementation of the demerger, Firefinch shareholders will receive an in-specie distribution (at no cost). It is also currently intended that Leo Lithium will raise additional capital via an entitlement offer to existing shareholders in parallel with its application for listing.”
~ Listing will be approximately 1 month after shareholder approval for the demerger.
Conditions Precedent are getting annoying or the Company finds more?
From the announcement on the 6th December there was only 1 Condition Precedent remaining to completion was the licence transfer BUT in the announcement on the 4th January, wording has changed to the major remaining Condition Precedent to the formation of the JV was the transfer with the transfer NOW expected in early 2022 and upon satisfaction of other Conditions Precedent. I have read all the CP’s and I’ll be buggered if I can find any more??
The parties agreed to waive the FID condition to the payment of the US$91m on formation of the JV – I take the condition waived was Ganfeng subscribing the final investment within 10 business days of FID?
It all comes down to waiting for that dang licence transfer .................. once that is completed it will be circa 2 months and LLL will be listed.
The next couple of weeks/months should be interesting, there is never a dull moment being a shareholder in BGS/MLL/FFX,
Thoughts to ponder or how does that work
~ What I can't get my head around,
(i) how does FFX (the company) become eligible to participate in the Entitlement Offer without actually owning physical shares??
~ they don't get any in-specie shares as they don't own FFX shares, are they exempt from the criteria?
(ii) why do they intend to own up to 20% of the LLL shares?
~ I initially thought it was to thwart any take over attempts, but could it have something to do with the 80% test for demerger tax relief?
Cessation of regular updates to the Top 20 shareholder list on the Company's website. I do know that it is NOT an obligation, a listing rule, a governance rule but was a respectful and very transparent action that was introduced by board #2. Who knows why they Company decided to remove the service but it goes into the "small annoyance" category
Entry into the ASX 300, will there be that much of a FOMO scramble to buy FFX shares? other than the unknown "record date" for the demerger. Given the current macro environment, the likely hood of interest rate rises being imminent, inflation rising, price of staples rising and will continue to do so with the current oil prices that will be getting factored into costs from paddock to plate and the perceived "sovereign risks" that encompasses all of Africa, why would funds be wanting to rush into FFX now? We already have funds invested or as shareholders of the Company, will being eligible to super funds because of ASX 300 status be enough for retail investors to want to pour capital into FFX through their super?
cheers
Sometimes small annoyances that have multiplying effects cloud your vision of the big picture but also, a single small annoyance attached to a low core value enhances your vision to become crystal clear .........
