Seems Gips share of Stellar is going to be up for sale looking at the recent Gip annual financial report..
page18 on the PDF page 16 on document. Section notes to the financial statement, 2 summary of significant accounting policies b going concern second item in bullet point list.
Realization of non-core assets by March/April 2013 at amounts equivalent to the carrying value of those assets at 30th of June 2012.
Same page the ability of the.... the sale of Non core assets. .. through a combination of some or all of the following.
The list includes the ramp up of the alluvial tin but that will not get going till early February and presumably Gip board did or does not think that, on its own would be enough to pay all the bills when they prepared the cash flow forecast.
Certainly the technical problems that have restricted the alluvial tin to 10 t/m and 12 t/m would have not helped the cash flow.
It is going to come down to what possible bidders will pay for the shares certainly Gip will need sell to the highest bidders.
Best deal for Gip? Well ideally they would need some money to cover the gap before the increased tin revenue kicks in but also some exposure to a future higher Stellar share price.
Maybe a first tranche of a couple of million handed over February march and the greater share handed over a year along the line connected to the Stellar share price at the time.
Certainly it would be mad for Gip to sell all the shares for the present market price which drastically underestimates the potential of Stellar and Heemskirk.
• An equity partner who will invest in the project in return for off-take
The major risk to our valuation is our estimate of the value of the stake in the project sold to an off-take partner and project investor, but our conclusions are robust to our estimate.
If Stellar is going to share equity it would make more sense to have more equity to share especially if it is being considered a major risk to the valuation of Stellar. Plus of course Stellar may well need to block another bidder...
2. RCF Resource Capital Funds http://hotcopper.com.au/post_single.asp?fid=1&tid=1668799&msgid=9629180 http://hotcopper.com.au/post_single.asp?fid=1&tid=1702269&msgid=9839890
16.2 plus Gip share 19.5 would effectively put them in takeover territory. Certainly would be a lot cheaper for them to buy the shares in one block from Gip rather than the open market which would only force the price up. It would be a real shame if Stellar having managed to keep independent and hold on to Heemskirk lost out right at the end.
3.Yunnan Tin
Probably the most likely off take partner for Stellar so would i think a possible bidder for a stake in the company. Yunnan is active in the area as well with their tie up with Metals X and the world’s largest tin producer. http://www.metalsx.com.au/operations/tasmanian-tin/
4.MSC Malaysia smelting corporation http://www.msmelt.com/
The MSC Group is currently one of the world’s leading integrated producers of tin metal and tin based products and a global leader in custom tin smelting since 1887. In 2009, the Group produced 43,862 tonnes of tin metal thus maintaining its global position as the third largest supplier of tin metal.
MSC will pursue its growth strategy on its core business in tin through strategic acquisitions and organic growth where its core expertise, skills and capabilities can add value and make a difference particularly in increasing operating efficiencies, innovating products and services and forging global commercial and marketing networks to ensure its continued leadership position in the industry.
Another obvious candidate.
Well it now looks likely that Gip will not be giving me any Stellar shares (which is a bit of a shame) but i do not rule out buying in direct as Stellar has such great potential, if it can stay independent.
SRZ Price at posting:
8.5¢ Sentiment: LT Buy Disclosure: Not Held
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