There will doubtless be times when stock market investors wished that their portfolios only consisted of companies with solid cash flow, a clear corporate strategy and management that has the ability to ability to surprise on the upside.
A small mining development company that has sufficient funding to see through the development process of a massive project. The massive project in question is Kun Manie, a nickel-copper sulphide asset in Russia.
In particular, Amur’s $4.67m investment via a Convertible Loan Note in Nathan River Resources (NRR) (who own Roper Bar) carries a 14% coupon. The return on this should amount to quite a tidy return in terms of bankrolling Amur’s flagship Kun Manie project.
That is not to say that Roper Bar is insignificant in its own right, being a 446m tonne JORC resource. Added plus points are that the project in Australia is set to commence production imminently, and as Amur has a CLN, should things blossom with Roper Bar, it has the option to convert into an equity share and then get paid a dividend.
There is also the maths of Roper Bar to consider: 4-5m tonnes of production annually, at an iron ore price of even $100 a tonne or more, and revenues are pretty substantial at $500m a year. Amur’s 19% share of Roper Bar means it could earn close to $100m per annum.
Perhaps the icing on the cake though is the way that the deal to buy into NRR involved multinational miner Glencore (GLEN), and the process clearly brought Amur closer to the giant company in terms NRR’s offtake agreement being with it.
Amur Minerals Corporation (AIM: AMC) announced it has appointed Mr. Adam Habib as President and Executive Board Member to the Company.
Effective 1 September 2020, Mr. Habib will continue to guide and advance funding and strategic partnership considerations allowing for the continued development of the Company’s far east Russian Kun-Manie nickel and /copper sulphide project.
The Company’s focus will be on the execution of Binding Offtake Contract(s) and funding of the mutually supportive Russian and Western Definitive Feasibility Studies.
Amur Minerals Corp (AMC.L ) Is Kun Manie Now Fully De-Risked
Mr. Adam Habib was appointed Advisor to the Board on Transactions and Corporate Development in February this year and has successfully delivered the investment, alongside Glencore, into Nathan River Resources Pte Limited (“Nathan River”) which owns the Roper Bar Iron Ore Project located in the Northern Territory in Australia.
Mr. Habib is an experienced senior banker having 17 years of investment banking experience (Credit Suisse, Lehman Brothers and recently ICBC Standard Bank) with a proven track record in the energy, mining and infrastructure industries. Most recently he was a Senior Adviser to the Board of Cofely Endel Engie (formerly Cofely Endel GDF Suez 2015-2016), part of the Engie Group which is one of the largest energy utility companies in Europe with a market capitalisation of c.€38 billion (c.£34 billion) and annual revenues of c.€61 billion (c.£54 billion).
During Adam’s time in investment banking he led both the Capital Markets and Investment Banking teams as part of the management distribution committee in Europe for Credit Suisse Investment Bank. Adam is a specialist in Energy and Mining finance transactions (acquisition finance, development finance and project finance). He has worked on some of the largest Engineering & Procurement and Mining transactions in the world in Russia, Africa, Latin America, Central Asia and the North Sea. Adam’s extensive relationships across the banking and mining industry will further enhance the Company’s business network and are expected to bring significant new value to Amur.
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