I agree, the granting of the exploitation licence is indeed significant. Most significantly, it’s the Governments acceptance of a mine in principal – a statement of intent. Yes of course, the details of a working mine, would then have to be evaluated to assess what level of impact those details will have on the environment at the time of the submission of permit application. This to achieve the correct balance for all, regarding the important environmental considerations.
One never knows for certain, however my guess is, such details in this respect have already been largely negotiated upon and worked through, to see if in fact, whether the input of innovation and investment can achieve the acceptable balance required. The submission for environmental permits therefore, would be BEM’s commitment to the negotiated outcomes on the above, and any subsequent permit grant would be legally binding to the same. It’s difficult to see how other, the process would work sensibly. For the Government to grant the concession against the wishes of the sami, who are after all a political score, only then to learn that any mine in detail would be in violation of their own environmental laws would be incompetence. So, in my opinion any grant of concession would be a SP mover but, that measure would have to be balanced against the wording within the concession. Atb
Fair point, maybe the granting of the licence won't raise the SP as high as people would want, which is what short terms investors will be looking for. But then for the longer term investors it is just a another hurdle cleared. Iron ore prices look fooked until 2020, which would be about when BEM would start delivering product. Very long way to go, but I think a lot of people will be selling post positive result in a few weeks.
The granting of the exploration licence although significant is not the panacea that most people expect. You cannot mine without an environment permit which could potentially be more problematic than the licence. It will take a minimum of one year possibly two and cost up wards of £1m. Of course this will run concurrent with further drilling of the resource. Either way additional funding will be required which will result in more dilution before a partner is found. Just my opinion.
Good post. Yes agree, much is made of Lanstead reducing. Perhaps not altogether surprising given what we do know. That is: page 1 of the investment bible says, information is king to best assess the risk. So, whilst Landstead are reducing some risk, the Swedish investor are only too happy to invest at recent highs, and thus, are somewhat dismissive of a concession ever being denied. This, regardless of Lanstead both, being closer to the inside action and with an apparent sound defensive objective. So PI’s here, as their instincts dictates will naturally raise this question.
Unimportantly, someone told me when Lanstead first got involved here, if they could ever swallow a nail they would then, sh@t a corkscrew. I could never subscribe to this myself, as I’ve no idea what he meant. Atb
Scenario 3 looks the closest to Kurt’s objectives, according to the recent televised presentation. Although LKAB is perhaps the realistic partner, Kurt may very well go it alone with a financial only partner. Atb
As I am Mining Engineer at heart I am always optimistic. As I’ve said there are no positive headlines for the mining industry or commodity markets today, but as explorers and developers we have to look beyond these troubled times, find projects which we can move up the value curve and which will be in production when markets and prices are better. Having experienced the behaviour of majors when swinging from boom to bust, and back again, the diet the industry is on now in terms of cost cutting and lean capex investment programmes, establishes the conditions for recovery. The big miners are still believers in China, they accept markets will continue to be volatile and that there will be shocks, but highlight that the long term fundamentals remain in place for their businesses to perform. For Beowulf, we are clearly not looking to compete with the majors. From Kallak we will produce high quality differentiated products, targeted at different markets, end uses and geographies. Sweden is well known for the quality of its iron ore. The cost structure of Swedish iron ore is under scrutiny and Beowulf has much work to do on the design, engineering and economics of Kallak, but we have the orebody and have demonstrated the quality of the products we can produce from it.
one to add to your list...... ANI;s satstus granted
The Sweden-focused miner declared that the society had seen its Kallak North and Kallak South iron ore deposits in the north of the country designated as an Area of National Interest. This should help the company, it notes to protect against 'competing land use and measures that may hinder future potential mineral extraction' in the area. It was granted because the society decided that the area contained 'deposits of substances or minerals of national interest'
• New management team – Chairman, CEO • Management interests aligned with shareholders – 1/3 salary in equity rather than cash, almost £46,000 sacrificed – CEO’s salary lowest quartile for comparable AIM companies – Reduction in corporate overheads • Accelerated settlement of the Lanstead Equity Swap Agreement • £1m new funds raised this year, March and July 2015 • Enhanced operational controls, new auditor appointed • Improved relations with key stakeholders in Sweden
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