Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Thanks gents, so with 13.3Moz (or is it 12.3 you mentioned previously?) essentially confirmed, the real total could in fact surpass 15Moz you'd imagine, but I guess it's best to err on the side of caution!
Some potential investors may see c15Moz of potential Pd equivalent in the flanks and say, yeah been there before and the potential came to nothing.
13.3Moz of the potential is backed up by previous drilling campaigns and is up dip and on strike from our Loipishnune mining license in MT and on strike continuation from our West Nitts mining license in MT.
If you find areas like this then continued infill drilling tends to increase the confirmed size of the reserves/resources.
On schedule, we are still well within the usual Russian timelines for issuance.
Just see the Tipil licence threads from last week for confirmation.
I must admit I've loved everything DS has ever said about the sale and having shareholders interests at heart throughout. Obviously a cynic could argue of course he's going to say all that, but this is his baby he's been here years and it's in his own interest as much as everyone's for this to work out well. He seems like a genuinely nice and highly intelligent guy too.
When you say licence issue, do you think something is holding it up for some reason then? Or is it still on schedule for a normal time-frame of approval? Going to be so exciting when that RNS lands!
Great thread, & post by OilNovice.
My only extra is the BOD appear to be (& have been) playing for time at all opportunities, always dangling the carrot to keep prospective buyers interested.
Only one reason why - MT Flank licence issue.
No way they will sell the company without this being brought into the valuation (ie..no discounts applied to offer re licence not in our hands) they have worked to long & this is the point of maximum shareholder value.
Thanks again MrYFronts appreciate the clarification so much! Exciting times ahead!
Have a good day all!
Hi ferg,
You've answered most of it yourself, flanks has gone through all the hoops the Russian authorities require and is a sign off as we have been told. Mining license holders have first dibs on 5km area around their license to let them mine a continuation of what might be in the initial area.
Ref increasing Pgm prices.
If you sell something for £1 and it costs you 95p to make you have a 5p profit. If you sell it for £1.20 you have a 25p profit, an increase of X5.
Looking at NAP their net income went from $22.9m for 3 months to end of Sept 2018 to $41.4m for the same period in 2019 due to an increase in Pd price.
I should add, most of me thinks he is just jealous he didn't get in here as I am sitting on a nice profit and tried really hard to get him to look at investing here too but he wouldn't... I won't say I told you so as I say, but I think he missed out here big time on this little gem!
Thanks MrYFronts, That sounds really promising then, you did just make me think of something I wondered myself though about the flanks which hopefully get approved very soon, am I correct that we basically already have the licenses agreed in principle and it's just a case of dotting the i's now? Did EUA have essentially have first rights to these because they own the existing land licence(s)? i.e what stopped/stops other companies trying to take them or bid for them etc?
Sorry for another question!
Reference past performance.
In 2018 they produced 165kg raw platinum at WK, 2019 was 66kg because that was the maximum they were allowed to produce due to problems now sorted.
Aiming to up production to 791kg at 100% of revenue whereas previous years they received 30% of revenue. Pgm prices increasing.
Mt not yet producing but on a different scale to WK.
Considerable extra reserves/resources in MT flanks that because they are a continuation of already proven resources/reserves at MT can be booked with relative ease, 12.3Moz extra of Pd equivalent in the flanks backed up by previous drilling by AA and NN.
Another great post Oil Novice
Hi OilNovice,
Thanks SO much for the detailed reply, that all makes perfect sense and fills in the missing bits of jigsaw that is my brain lol. Your last point is a game changer too, answers everything he can try and throw at me haha.
Thanks again genuinely appreciate it!
GLA
Ferg
Q. "When this was suspended it was due to a possible sale through CITIC, going back to 2019, so I wondered why this didn't ever manifest and the stock was re-listed? He is saying if it didn't sell then why would it now and I don't know how to counter this :/"
A. The current FSP is the result of the CITIC informal approach from a potential buyer. The BoD have said there are several interested parties, not one. My opinion is that a FSP is transparent and allows competition - ie increasing ultimate takeover price. It wasn't that the company 'didn't sell', I believe they had more interest and wanted the competition. Also, the FSP allows for due diligence and allows for other details to emerge (license approvals etc.) which may further increase sale price.
Q. "He keeps referring to their past performance which admittedly doesn't make good reading, but if they're sat on so much potential wealth in the ground, why have they struggled to make profit for a few years? I know they are now debt free which is obviously great news."
A. The history was typical of an exploration company. The easiest form of finance was from equity issue and therefore dilution as a result of financing... The sp therefore suffers. Also, it takes time for a small explorer to build a cash flow positive business. Production has helped them make some revenues / profit and being debt free now is a great achievement. Very good for M&A. The timing is right.
Others have said it before, the demand for palladium has only recently started to rise significantly. As has the price for palladium. Again, the timing is right.
My rebuttal to your friend would be: "Look at the amount of shares the BoD hold. Do you think it is in their interest to achieve the highest possible offer price?"
Fair point, thing is I don't even want to say "I told you so" when this hopefully makes us all rich, I'm not like that, but he's like an annoying fly buzzing in my ear and making me worry and if I could just argue these couple of things back it'd a) shut him up and b) reassure me too!
Thanks all
Good trades/shares don't need you to be an advocate for them,let him have his say n just smile,you could explain but can he understand?
Hi guys, I have a relatively (for me) large amount invested here, and I am REALLY excited by the potential, however I have a friend who keeps telling me this is a "pump and dump" and I want to be able to argue back that it's not so I have some basic questions if anyone can help me with answers! I have tried to do my own research but I can't find answers for the below and I am sure LTH here will understand what happened.
When this was suspended it was due to a possible sale through CITIC, going back to 2019, so I wondered why this didn't ever manifest and the stock was re-listed? He is saying if it didn't sell then why would it now and I don't know how to counter this :/
He keeps referring to their past performance which admittedly doesn't make good reading, but if they're sat on so much potential wealth in the ground, why have they struggled to make profit for a few years? I know they are now debt free which is obviously great news.
If anyone can help me shut him up with some reassuring counter arguments it'd be much appreciated! Thanks guys.
GLA!