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Member Info for Wassatt

Member Since: Thu, 20th May 2010

Number of Share Chat Posts (all time): 27,747
Number of Share Chat Posts (last 30 days): 647

Last Posted: Today 08:43

Post Distribution over the last 30 days

Tue 22:08

Tri-Star Resources* (LON:TSTR) – Key Milestone achieved for Roaster Project

Buy - Target Price 0.70 pence

• A shareholder agreement has been signed relating to Strategic & Precious Metals Processing LLC (SPMP) which is being set to develop the roaster project in Oman.

• The shareholder agreement is between Tri-Star Resources, the Oman Investment Fund (OIF) and Castell Investments.

• The shareholding within SPMP is in line with the MOU with 40% to Tri-Star, 40% to OIF and 20% to Castell.

• SPMP’s board will have 7 members – 3 appointed by OIF, 2 by Tri-Star and 1 by Castell and 1 jointly by Tri-Star and Castell.

• Key strategic and operational issues will require the unanimous approval by all JV partners.

• The Roaster project is subject to certain conditions including securing banking finance and permits including environmental approvals.

• Funding discussions are ongoing with middle eastern banks with at least US$30m of project finance being targeted.

• A number of banks in Oman have been in discussions with the JV partners and have provided indicative terms which are currently under consideration.

• The balance of the capital cost of between US$30-$40m is expected to funded by US$10m of a mezzanine loan from OIF and the balance as equity from JV partners.

Conclusion: This is a key step forward in getting the Roaster built in Oman. The shareholder agreement sets out the commercial terms for the JV partners to operate this project with the Oman Investment Fund taking a key role in terms of shareholding and board involvement.

This should help the project through its financing and permitting process. The next stage will be to incorporate the SPMP, securing bank finance and getting environmental approvals and permitting.

Our analysis shows that the project has strong capacity for cash flow generation at an antimony price of $11,000/t for the metal and $11,550/t for antimony trioxide for the first two years and then moving up from there. While antimony prices are currently lower at around $9,500/$10,000/t for prices trading out of Rotterdam, the economics of the roaster is driven by the uplift in buying concentrate at a discount to its metal value and to on sell part of the end output at a premium to the metal price. The end product for the roaster is a combination of antimony ingots and antimony trioxide with a 50/50 assumption in the base case – the ratio can be adjusted based on market demand.

While there are a number of steps to be taken before the roaster is in construction, we believe this provides strong support for the share price.

*SP Angel acts as Nomad and Broker to Tri-Star Resources
Tue 21:55

I do believe in this more and more. I will be attending the AGM this year, because it's my belief that we are now entering a fantastic phase with TSTR
Tue 21:01

It's not far away now mate......we are now sitting in the cusp of something fantastic.

TSTR will be the largest player in antimony in the western world .... And it's only months away.... In this business that is very close
Tue 19:51

To be fair it doesn't really matter whether you top up at 1,35, or 1.40, as both are extremely low where we are going

So this company will make anyone happy if they buy at these levels...

Easy money IMO
Tue 19:10

Tullow Oil, now there's a familiar name. Where was it a few years ago where they were looking likely to be involved ?

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