Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Apro... nothing to add benefit for tailings or is this free carry to prevent dilution?
Noted Apro, just revisiting the RNS from the 16th April, between West Ridge and Omco we have 5 holes left before moving towards Rockhouse, if the remainder of Olympic looks good, where do you think we will be with the SP?
It would be nice to get an update on plans for RH (unless there is some and I'm being blind) since we probably have just under a month of Olympic left.
@Lukey If GWMO SP was 2p then that would imply £73m MCap which from my 'Comparisons' post yesterday would put us on par with ARCM. This is not impossible by year end, but IMHO would require:
> completion of current & follow-on drill programmes with full assay results
> outstanding confirmed long, high-grade intersects on one preferably 2 targets
> Updated Copper JORC or at least confirmed route to one given good drill results
> Confirmation of an interested 3rd party with deep pockets for Copper JV
ATB APR
Apro. Thanks for research notes. Really useful and appreciated.
Wow thanks all.
Great info.
@Edgar Also check out this paper for explanation of different ways to value explorer/producers and explanation of teh JORC methodology and inferred, indicated, measured and reserve statuses within that ... unsurprisingly it's all about probability and confidence levels that the metals are there. See pages 15-17 to get to the nub of this.
https://www.valuewalk.com/wp-content/uploads/2015/06/Valuation_of_Metals_and_Mining_Companies.pdf
ATB APR
@Edgar I also use comparators especially with Junior explorers as the dynamics and pricing of producers are very different.
If I use 3x exploration companies at very different stages of their evolution exploring for the same metals in the Paterson region, Aussie so that country, law & geology can be ignored. These would be Rincon Resources (RCR), Wishbone (WSBN) and Greatland Gold (GGP) all looking for Copper/Gold mineralisation in and around the NCM Telfer plant so they also all share the same route to market for their products via Telfer toll processing.
(1) Rincon - MCAP = £8.5m & IPO'd in Dec-20 @£7m. Fully funded for 2 years exploration and initial geophysics announced & started, but drilling yet to start. Has 21km of historic drill data from NCM with known mineralisation. MCap had dropped to £5.8m on no news last month prior to exploration programme announcement.
(2) Wishbone - MCap = £21m. WSBN (next door to Rincon) & has completed initial fundraising & geophysics drill targeting work. Recently announced 30km drill programme over 4 years, but no historic mineralisation & modest funding.
(3) Greatland Gold (Explorer moving to mine build stage)
Mar-2020 pre-NCM JV - MCap =£60m after several successful drill intercepts of good grade and lengths.
Now after NCM JVs & 120km+ drilling & 3.5 Moz MRE - Mcap = £800m on GDXJ & owning 'just' 30-35% Haverion, but is very well funded with bulk of exploration and mine build costs picked up by NCM.
Just gives you an idea of what is possible, fortunately these 3 have lots in common with drill, exploration & JV partnering progression being the standout differences as 'markers' on their MCap journey.
For the copper side I use Castillo Copper (CCZ) in Aussie and ARC Minerals (ARCM) in Zambia:
(4) Castillo Copper - MCap = £21m 3x copper projects in Aussie and 1x in Zambia. Drilling already underway last season on one 6-16% Cu grade prospect, but price fell back significantly from £60m over 'closed' season. Has 3.2Mt JORC @3.35% Copper resource identified. Modest funding.
(5) ARC Minerals - MCap = £72m 840km2 of contiguous Zambian Cu and Cu/Co licences previously explored by AAL containing their top 6 targets. Extensive soil sampling and geophysics work complete & more planned. 6km already drilled & 2x Tier 1 targets identified grading circa 0.6/0.7% Copper. In exclusive talks with AAL about a deal & await details/announcement. Also has production 'Ace' up its sleeve and is well funded.
Food for thought as GWMO has historic very high grade gold/silver mining, and is 18 months into exploration with drilling underway, but no drill results (yet). GWMO also has separate copper licences and a modest JORC resource of 4.3Mt grading 0.45% for 19kt copper metal. For comparison we are sat at stage (1) Rincon (£8m) with rapid move likely to (2) Wishbone (£21m) if drill results come back positive across ANY area being drilled.
Clearly AIMHO & ATB APR
Well it’s in the same sector? But given its market cap is 100 times GWMO and mining in a different continent probably not the best....
However... our proposed NED is a link....
Wouldn’t mind the increase in the GWMO MCap to same levels as GGP ....... but don’t believe even the most excitable on here would dream of that!!!
I think comparison is very difficult, usually you pick a neighbour in the same jurisdiction, that may be slightly further ahead rather than the other side of the world, but at the same time our most recent directorate change took on Gemma Cryan who came from Greatland Gold. I suspect there must be something in the ground to take on experts from previous big discoveries and maybe some parallels and JV discussions to be drawn and had. My own thoughts, not advice, i'm sure i'll get a battering from the chat groups de-rampers soon.
As I have said before, this is my first gold / metal share. Am much more used to O&G.
I would like to look at some comparators to try and understand how the market values metal mining companies.
Just because of its exciting rise I thought I would start with GGP. Any other suggestions or anyone want to tell me why GGP is a bad comparison?
Thanks in advance