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Woodsmith project
Throughout 2023, we saw continued good progress on the core infrastructure, with capital expenditure of $641 million (2022: $522 million). Sinking activities at the two deep shafts continue to progress well. The service shaft is now c.745 metres deep, having reached the expected depth for the year. Sinking activities on the production shaft began in January 2023 as planned, at 120 metres below the surface, and following a successful ramp-up to planned sinking rates, is now at a depth of c.510 metres.
Excavation of the three shallow shafts that will provide both ventilation and additional access to the Mineral Transport System (MTS) tunnel is complete. The MTS tunnel is also progressing to plan and has now reached c.27.5 km of the total 37 km length.
During 2024, a key focus area for shaft sinking will be on progress through a strata called the Sherwood sandstone, where we expect sink rates to decrease due to the expected hardness of the rock and potential water fissures. This is planned for in progress rates, and the intersection of the strata is expected around mid-2024. On the tunnel boring machine, there is a planned 3-4 month maintenance pause from the second quarter of 2024, during which the tunnel will be connected to the final intermediate shaft, providing further tunnel access and ventilation.
In parallel to the core infrastructure development, we are enhancing the project's configuration to allow a higher production capacity and more efficient, scalable mining methods over time. The required studies for this are progressing well and will ensure that additional infrastructure is optimally designed to enable future optionality and maximise long term value over the expected multi-decade asset life.
The project is planned to be submitted for a Board approval decision on Full Notice to Proceed in the first half of 2025, following conclusion of the study programme.
Capital expenditure of $0.9 billion is approved for 2024, the bulk of which will continue to be invested on shaft sinking and tunnel boring activities.
The project is expected to deliver first product to market in 2027, with a final design capacity of 13 Mtpa, subject to studies and approval.
Market thinks fair value is £17-£18, a £25 bid could be tabled, then maybe nudge it up to £30.
id like to see AAL buyback shares at current levels.
25 is fair value. IMO need premium for bid to be successful.
As were sat at 3-year lows, AAL could become a takeover target, imo as larger miners look to replace resources, AAL would find it difficult to fend of offers around £25, per share imo
Im expecting AAL to follow the Rio tinto path of maintaining decent dividend returns over the next few years.
This morning's buying opportunities don't happen often and when they do take advantage
of them, looks like he did. I did you, did you.
Net asset value around twenty pounds sterling and a good dividend coming soon are just two good reasons to buy.
BUY!!! just gone through, !!!!! serious cash
Exercise being done over aal global operations, maintaining a productive and profitable company going forward over the next few years, a bounce in commodity prices will boost earnings
Out in a couple of days, Dividend still reasonable at current sp ,
Still room for another 40% drop from here.
Shorting, recession, pessimism, mass exodus from UK shares, bad management, too high a pe ratio, inflation stubborn or rising again................
"not been a such a bad year for miners"
Compared to who, Palestinians?
Most of the miners have been mauled YTD and YoY, whether they're base, PGM, precious metals or lithium. Can only get better though...Right?
This morning,
All seem to be doing very well today, must be earnings periods ahead,
not been a such a bad year for miners, Commodities have remained stable these past 6 months
Overhead supply from previous trading , at 2000, expected to provide resistance ahead.
A straight line , drawn through sp, bottom of 13/12/23, and peak of 31/1/24, would imply a sp, target of 2200, by end of March 2024. DYOR.
Are pretty intense reading, one for the weekend, give a great insight to the operations of the mines, health and safety etc.
A return to the twenties should be on the cards over the next few days, and weeks ahead, imo
Next week, we should get the updates were all looking for, Profits?, Dividends? etc. ,etc.
Took some more this morning 1695, very happy with that purchase , so far?
IMO divi covered. CITI today buy 2200.
1700s gone. New trading range in the 16s now.
Sentiment is gone. All about sentiment and shorting at the mo.
If the us market has a correction from highs this will be dragged lower with it.
2020 lows possible ? Then a Big recovery when the next government is elected and interest rates go down.
Ive looked at the last results, and a few of the last rns over the past 12 months, it looks like there will still be substantial profits to be made, ill go for a 55p Dividend ?
I'm expecting the divi to be cut, as profits will be lower. as Gary has correctly stated, dividends are taken from 40% profit, lower profit means lower dividends.....this will be the same for all mining companies right now, not just AAL
Roxi, the last time I looked at the balance sheet net debt was up but was well covered by cash profits (AAL have I think a policy of paying out 40% of profits in dividends). I'm thinking of investing here soon as this has to be a very good take over target for the bigger chaps in this industry.
To answer your question mate next weeks results may mean guidance & the dividend yield will come under pressure.
At todays price the divi is 9.5% so there's room there, albeit none of us want to receive any less.
If I was a betting man I would say the divi will be held, just my opinion but WDIK.
?with the results out next week, does anyone think the 60p dividend will remain intact?
Wordsmith final few years to production ? Heard that before a few years ago. Finnish battery tie up sounds good though.