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Thanks - wrote my q before finding todays interview. That helped clarify. Thank god that Zak summarises it :)
Appears a strong investment case clearly plenty of risk but very strong upside.
I doubt they are fussed to be honest - its chicken feed in relation to the copper we just gave them for £3 million quid.
Market doesn't seem to share your enthusiasm though.
I imagine sandfire aren't too happy at a drop from 2.68p to 1.54p in 3weeks.
I didnt say neartime 3CB, I was decifering the value of the RNS once processes are up and running.
near time is as stated........... the price of the sale of the project
I'm afraid that being a BMR shareholder, I suffer from a rare condition called royaltyitis. It mainly affects small time investors in African mining projects and often in Zambia. Sufferers can go for many years without any remedy although occasionally some do manage to receive the payment pills necessary to control the condition.
Forgive me if I don't share your rosy view of near time payments of 000000s per month HD and DC
If thats right, then 300k per month is great - and we dont have to lift a finger. Certainly helps pay for drilling a huge copoper deposit for example if someone happened to have one?
That together with hopefully selling off Glenover for a few million plus royalty pans out nicely.
"Siege have indicated their intention to commence mining imminently, producing in the range of 6,000 to 15,000 tons a month of saleable ore but it is recognised the initial production may be lower. Processing of ore mined, to seek to enhance its grade above 20%"
"Royalties payable under the Agreement are dependent upon the zinc concentrate in ore sold"
"If the Zinc concentrate grade is 25% for a sale at a zinc price of US$2,500 per tonne this would result in a royalty of US$18.75 / dmt"
The RNS is hard to follow and in the wrong order to read it logically, but the above is what I get from it. I read it conservatively (bearing in mind the JORC info as well), that the Zinc is on average 20% (From JORC, with 350-400k tons), they are going to process it off site to try bring the concentrate up before selling the Ore. Also from the Jorc we know max concentrate is around 40% ore.
Conservatively - Taking those numbers 20% is $16/dmt at 6000 tons a month (current price $2700) = $96k a month for 5 years
Target case – 25% at $19-20/dmt (at $2700 ton zinc) at 15000 tons a month = $300k a month for 2.5 years
The target is good actually, just not as good as our $1m we were all hoping for. You can certainly fund a lot of projects with 300K a month though
My memory may be failing me but I think there was talk of £12m per year from this asset yesterday.
Sorry, should read $3,600,000 - too many zeros.
.
I seriously think we may get a payment from Sandfire quicker than we think with regards the licences we sold to them. They are on a real push to dominate the belt area and reap the rewards from it.
Usual sell in news causing initial drop. Price recovering quickly now. Still plenty if opportunities here.
Well done to whoever it was who identified Siege and Chelwelwa way before this RNS
XTR to LOM?
Assuming 80% of zinc in ground will end up in concentrate, I make that a low ball figure of $36,000,000 to XTR over LOM.
Not a bad deal IMO.
Morning CE - completely agree, seen it before having been in CB's companies for years.
Re SP, keep an eye out for the 500k's, I can almost guarantee the SP won't stay at the current level for long. ;)
This is how CB grew XTR with minimal dilution compared to many AIM companies - get a small but significant ongoing income for zero cost to help fund ongoing projects.
I doubt the SP will stay at the current level for long.
Crank the drill out Colin, get it dusted off and lets get on with KCB. Many millions of dollars worth buried there.
No, i just don't get over excited because things like this happen.... Another disappointment
Do you have split personalities?
Yeah nice drop of 20 percent!
Star zinc is a flop after all that then. Lools like we're just focusing on Copper.