[ASX:A40] Alliance Mineral Assets Ltd (Previously TAW/AMAL)

crushproof

Deanov wrote: »

I have this holding more or less written off....
https://www.afr.com/companies/mining/lithium-bust-puts-bald-hill-mine-on-the-edge-20190814-p52gy3

Same here, first investment I've had to write off. Very disappointed as I had high hopes initially when it was first mentioned on here, fairly certain a lot of other folk were in the same boat.

It's a reality check at least, no matter how much research you do and how much time and money you invest at the end of the day it's all at the mercy of the markets and who's in control of the company. Shambolic leadership for over a year now.

cefh17

News breaking about a HK based equity firm agreeing $60m funding for 20%, allowing ability to clear down debt. Don't have link to hand but search hot copper

cefh17

https://hotcopper.com.au/threads/ocp-asia-turnbulls-keshik-swoop-on-lithium-play-alita-resources.4911976/#post-40047229

Thargor

Looks like a valuation of 20 cents per share which is just below my average, if it spikes anywhere near that I'm getting the feck out and waiting, lithium price still in the toilet. Glad it's not dead though.

bcklschaps

Interesting times. Things looked bad last few weeks with SP tanking and stories of cash flow problems etc.. Everything back on track again now, hopefully a big jump in SP as soon as the trading halt comes to an end.

Will need lithium prices to recover strongly though before we see Aud $0.40 per share again.

crushproof

Administrators appointed. I imagine shareholders will get SFA. Good luck to all.

cefh17

Welp that escalated quickly, expensive lesson learned

Prezatch

Bitter pill to swallow, lost a bit on this and was tempted to double down, glad I avoided it. Some talk of the voluntary administrator being able to buy us some time or get some interest from other interested parties to generate competition against Galaxy, but really I would be surprised to come out of this with anything at this stage.

I'm still at a loss as to how it's come to this really given the mine asset and the amount of stock on hand that surely could have been flogged firesale below market price. Why on earth was cash burn let continue with such a material risk of not being able to pay the loan creditor.

If anyone else here is in AJM I would advise getting out now also - things not looking great there either and their market cap is still quite high at nearly 200m AUD. Could see them dropping to 4c or 5c. Even PLS could be at risk.

bcklschaps

Wow.... there seems to be a game of brink-man-ship going on between A40 Board of Directors and the Debt holders.

Hopefully we the plebeian shareholders don't lose everything

Prezatch

Receivership announced just there, GXY in the driving seat now so that's it. Shocking run of events, from 21c in May to zero in August.

GXY also released some truly horrendous results for the 6 months to June with things only worsening since then.

Gruffalo22

Lesson learned here is not to invest in recommended 'sure thing' start ups. Thankfully I had a tiny position in this and large gains elsewhere to compensate.

Market conditions for lithium, a key ingredient in the battery industry, have worsened because of lower demand from Chinese customers after a change in the country's electric vehicle subsidies and global trade tensions.

Thargor

What a joke, Australian management culture has to be the scummiest in the world, lie through your teeth and pile up the bonuses and rewards while you borrow and dilute the sh1t out of everything, Im never touching the ASX again.

Thargor

Is anyone expecting to get anything back? I knew I should have sold when they changed the name, was hovering over the Sell button for about 2 days aswell... Wonder what the story is with the Cowan shares?

Gruffalo22

I'm not expecting anything back on this. I won't be buying on the asx either. I buy on the US exchanges only as it's very cheap and the US is a huge market and is doing well.
I'll be buying established profitable companies at a discount

littlevillage

Thargor wrote: »

Is anyone expecting to get anything back? I knew I should have sold when they changed the name, was hovering over the Sell button for about 2 days aswell... Wonder what the story is with the Cowan shares?

Would be hopeful of getting something ....on Hot Copper they are talking about a 1c or 2c per share. Remember A40's assets are worth more than their liabilities soo there will be a surplus ....how much of that is eaten up by the cost of going through this administration process remains to be seen.... also legal eagles, outstanding wages, pensions etc. also need to get paid before junior shareholders like us.

If theres one silver lining to any of this, it is that Cowan Lithium was spun off into a seperate company last year so unaffected by any of this. (Well financially unaffected, maybe reputationally damaged though).

pugw

Any update on the alliance situation?? I hadn’t been keeping an eye on them and just saw this thread. Are they totally worthless? What’s the position with the other non tradable Tawana shares ! Is this the spin off company?

Heiser

So it looks like we're going to do ok out of this, how well depends on a few factors but it's no longer a write off

Heiser

FIRB rejects Austroid takeover of lithium miner Alita ResourcesEXCLUSIVEBy TANSY HARCOURTSENIOR REPORTER7:02PM JULY 20, 2023

The Australian Foreign Investment Review Board has rejected a stealth bid by a China-connected company Austroid to take control of one of Australia’s only in-production lithium mines – Bald Hill – owned by Alita Resources.The knock-back sends a clear message about the Albanese government’s view on foreign ownership of Australian critical minerals companies.In a notice on the Federal Register of Legislation, Federal Treasurer Jim Chalmers rejected the application by Austroid, which owns all the debt in Alita, from taking the company over via a deed of company arrangement.It’s been a messy battle for control of the lithium miner, which collapsed in 2019 when prices for the precious mineral, which is critical for making batteries for electric cars, slumped.Since then lithium prices have surged to more than $US6000 a tonne earlier this year, although they are currently closer to $US4500 as countries and companies have sought to buy the commodity needed to help meet zero emissions targets.But despite bumper prices, Austroid signed a secret agreement seen by The Australian to sell its lithium at significantly below market rates, at a range from $US800 to $US1500 a tonne for 6 per cent lithium conIn 2019, China Hydrogen Energy (CHEL) purchased the debt in Alita and made an application to the FIRB to take control of the company, but withdrew it in April 2020 when then treasurer Josh Frydenberg indicated he may move to block the deal.CHEL, which is registered in the Cayman Islands, then sold the same debt to the US-registered Austroid, which shares the same registered director – Mike Que.Mr Que is also a director at Lithco, an Alita subsidiary now running the Bald Hill mine – which is in turn subject to an investigation as to why it’s selling its lithium to China at dramatically below-market prices.Mike Que’s mainland China-based father, Que Wenbin, owns a lithium battery and EV manufacturer in China known as Sichuan Western Resources, according to Morningstar.The decision by the FIRB shows the Albanese government is not afraid to take hard decisions as it navigates trying to improve its fragile relationship with Beijing, alongside Labor’s desire to keep the processing of Australia’s critical minerals onshore.What will happen next is unclear.Austroid could not be reached for comment.However it is likely that the global giants of lithium will be interested in snapping up the debt, as may Chris Ellison’s Mineral Resources.Austroid is understood to have invested heavily in returning Bald Hill to production, and is now believed to be owed as much as $250m, including the value of the original debt bought from CHEL.Canaccord, an equity holder in Alita before it was placed in receivership, and Austroid, has told the Supreme Court the company could now be worth about $1bn.Since Bald Hill restarted production in April 2022, the miner has sold 145,306 tonnes of lithium to the Hong Kong-registered Yihe Cleantech Material Limited, according to customs data. The last shipment was on

roosterman71

What does all that mean?

Heiser

Its most likely the company will be liquidated. The mine will be sold off to the highest bidder and debts paid off. It's estimated the mine is now worth between 1-1.5 billion Aussie dollars and debts are nowhere near that which means the shareholders will get something.

Still a way to go yet but this is great news for shareholders

crushproof

Be mad if it ended up being realised with a massive jump in stock price. What a nice little treat that would be but I still doubt I'll ever see a penny.

beertons

#Believe

Thargor

Wow I did not expect to see this pop up on my radar again, think I lost 15-20K here! Happily up 10 times that on PLS now and they just increased their resource by about 20% last night so still doing well off lithium, I bet we'll only see a pittance though. I keep an eye on Hotcopper most nights so will post if I hear anything interesting there.

Heiser

https://www.boards.ie/discussion/comment/120951158#Comment_120951158

There's a fairly active telegram group too: 40F/A40

Thargor

https://www.boards.ie/discussion/comment/120951170#Comment_120951170

I'm in shock tbh, they bankrupted the company by signing up to a ridiculously low price then they declared a force majeur event where they wouldn't even accept the spod at that price then it turns out instead of the plant being put in care and maintenance it's been tipping away exporting a billion dollars worth of lithium all along! Total ripoff.

Imagine if we got our shares reactivated and the company just started going again.

crushproof

Has been any indication of how much shares would be worth if there was any sort reimbursement? Or heck even any sign if there will be a resolution any time soon? Sounds like one of things that will drag on for years and slowly through a bureaucratic nightmare.

Mad what could have been considering the tremendous growth in lithium since.

Heiser

https://www.boards.ie/discussion/comment/120956798#Comment_120956798

From my understanding the mine was recently valued at around $1-1.5bn, when you remove the debt etc if we got that for the mine it could be worth around $1 per share.

Its very unlikely we'll ever see that amount with the games that will played but we can dream

Heiser

So we should find out over the next few days how much we're getting for our shares. My average was 25c so if we could get that I'd be happy. Here's hoping.

Thargor

https://www.boards.ie/discussion/comment/121303599#Comment_121303599

Thanks. The whole thing was such a sh1tshow but at least its coming to an end now. Im mainly looking forward to getting the fecking things removed from my Degiro account where they've been messing up my portfolio totals for the last few years.

Thargor

https://www.boards.ie/discussion/comment/121303599#Comment_121303599

Actually it looks like tonight could be the night we find out, 01 Nov in Oz.