Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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I tried to help by having a little 40m nibble this morning. Very low mcap here and potential to mutibag on the right news. AIM investments are not for the faint hearted!
This mornings 28.5m buyer didn't last long.
I didnt even know there was a proactive one.....:-$ when did that come out ?
Thanks Bricks but it's the Proactive one I can't access.
Here you go Shed...https://audioboom.com/posts/7484804-united-oil-gas-and-europa-metals
I have always thought that about EUZ RNS's and it's probably a good thing, no point hyping things up as it will make no difference to the endgame but I think it does deflate many investors when they come across as flat. They shouldn't be a creative writing exercise of course but perhaps a bit more energy would help. Anyone got a link for the Proactive interview that works? I keep getting bounced to another interview.
Afaics, the market really wants to see the term 'world class' bandied about freely and often in relation to any mining asset, either via RNS and/or interviews via management, etc.
Anything less and the mm disinterest is palpable.
My immediate take on the RNS is that one or more shareholders have put their foot down to any further dilution and cash raises. They want to see the money. So, no more drilling and get it ready for sale. Others have said it's a bust, but this is certainly not the case. I hope those shareholders, whoever they are, want to extract the best deal, not just lost patience and want out.
This...
'marketing the project's potential and viability to both the industry and potential partners'
We can't drill forever, we've reached a point we can move forward with what we have. Good news.
As ever delivered in a flat non-rampy style, what does that tell us? For me look for details like this: "A geotechnical study is currently being completed, to a pre-feasibility study level, with more than 60 samples being tested across four laboratories. This study aims to characterise the rock types of the Toral Project, thereby enabling further review of the proposed underground mining method and design. The report will aid further economic revisions to the mining model, which the Company intends to announce once the initial findings are available". Not terribly exciting on face value but it suggests to me that we have the resource and are now completing the practical groundwork on behalf of someone with the muscle to take this forward. Reading between the lines I'm certain we won't see flag waving "For Sale" signs, it's being conducted much more discretely than that and has been for some time.
The 3 most important points from my perspective and many of you have already touched on them.
1. “The Board sees limited additional incremental value from conducting further indicated resource delineation drilling at this time, with the project's pre-existing resource estimate sufficient for economic modelling and mine development decision-making.” This tells us we have reached the point where no further monies will be spent on proving up the asset. IMO the “silent hand” has seen enough and is busy with a DD and they have enough data to make a decision. Some of you have alluded to it as “ready for sale “ now. I agree.
2. “As announced previously, Wardell Armstrong International ("WAI") made a series of recommendations for a second phase of metallurgical testwork, including amendments to the milling and froth flotation procedure, which could achieve minor but potentially financially significant improvements to concentrate grades. In particular, a small reduction in the amount of zinc reporting to lead concentrate could result in stronger lead concentrate grades and zinc concentrate recoveries”. This tells me the buyer has seen enough from the preliminary Met results and wants to see if WA can get an improvement in grades and recoveries which will help with their purchasing of asset business case.
3. “A geotechnical study is currently being completed, to a pre-feasibility study level, “ This tells me EUZ will not be doing a PFS as it will be the new owners responsibility.
Overall a very informative RNS which we can learn a lot from. I agree the end game is already on us and Goldquest Spain will be sold during the 1st quarter of this year. IMO DYOR GLA.
We have repeatedly asked for an update and Laurence has listened and delivered.
I think that it’s significant that there’s no current intention to start a new drilling campaign and to conserve cash. Onwards!
Quite Numpster on second reading this is what we have all been hoping for. LR said ages ago that there is so much more to making this viable than just drilling, the great news is that we have what we need to deliver a mine and the remaining work will be completing the engineering work, progressing stakeholder engagement etc. The only question now is who, when and how much.
Yes they can say it’s up for sale. I’ve been invested in SOU for years and that’s exactly what they’ve done.
MC “Our next steps are key in furthering and securing the potential development scenarios for Toral. The results from our ongoing work will enable us to further assess both process and development options,”
I think it says “Our work here is done. We’ve proved we have a viable asset with good resource. It’s now for sale.”
Read the RNS title and it is both operational and strategic. The operational side tells us they are stopping drilling. The strategic side says we have a massive amount of data ready for a sale.
This is how I’ve interpreted the RNS anyway. They can’t blatantly say it’s up for sale now can they? They may already have an interested party looking to do DD and hence the lack of a need to drill.
One of the salient parts.
we believe that we can progress the project and advance such important workstreams whilst efficiently deploying capital and marketing the project's potential and viability to both the industry and potential partners."
Numpty
Nothing new, more jam tomorrow, meh.....
Must admit I expected another drill but overall I'm pleased. I said a while back that at some point the Exec's would have to curtail their natural curiosity to maximise the indicated resource at Toral and act in shareholders interests which is to return value to shareholders. This is the clearest indication yet that we have what we need market this.
I think this would take a bit of digesting this morning, it’s not what we expected but it still seems positive in its wording? Good luck all
It tells me it is for sale
Any thoughts people?
Well that’s a bit of an unexpected RNS