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Evening fotp
Don't mean to interrupt your thread. Regarding pgms I posted this last week.... Food for thought.
I did a bit of digging around yesterday and found a possible nugget regarding the zim claims. Maybe nothing but from the Nov 22 RNS -
"Zimbabwe is geologically well known as hosting a large number of minerals, including gold, battery metals coal, platinum group metals ("PGM") and chrome resources.
Zimbabwe has the second largest PGM and chrome resources globally."
GB's previous employment was with Karo Power, a subsidiary (or similar) of Karo Mining Holdings..... (Zimbabwe).
http://www.karomining.com/index.php
I wonder if it's a coincidence that these guys are involved with PGM and if there is a potential outlet for additional (or even alternative) mining revenue.
ATB
LB
Slowly Slowly, a pleasure to meet your acquaintance and thanks for answering my question as I would have taken a while to find all the info and work out the potential. So for now it's wait and see what the drill results at Kiyenzi show us and what news we get from the Zimbabwe surveys but yeah I'd be over the moon with a 0.16p SP...and as you say that's just Kiyenzi. Onwards and Upwards.
>> does anyone on this board have an idea of the value of that level of production?
Yes
We've been told that production costs are largely fixed - that's to say it doesn't cost much more as the amount produced goes up.
The 2018-19 FY results show a net sales price of $1812 per tonne of concentrate.
We know that they break even if they produce 110 tonnes per month = 1320 tonnes per year.
So 10,000 tonnes = 8,680 tonnes more than it costs to break even.
Assume for a moment that it costs the same to produce 10,000 tonnes as it does to produce 1,320 tonnes. We know that's not going to be quite the case, but we also know that the cost of those extra tonnes is a lot less than the cost of those first 1,320 tonnes.
That makes the 8,680 tonnes worth 8,680 x $1,812 = $15.7m = £12.1m in profit
380m shares in issue, so that's earnings of 3.2p per share.
At a PE of 5 that would value RBW at 16p, 4x the current sp.
That's based on Kiyenzi alone.
I suspect something positive will come from Zimbabwe it as George Bennett comes across as a shrewd operator given he has taken the cost to breakeven down over 50% ,from 275 tonnes to 105 tonnes. He is saying they hope to be producing 10,000 tones per annum of concentrate from Kiyenzi alone...does anyone on this board have an idea of the value of that level of production?
Good research and nice find.
Or this one:
"For PGEs, almost all the reported production and identified resources are associated with deposits in three geologic features—the Bushveld Complex, which is a layered mafic-to-ultramafic intrusion in South Africa; the Great Dyke, which is a layered mafic-to-ultramafic intrusion in Zimbabwe; and sill-like intrusions associated with flood basalts in the Noril’sk-Talnakh area of Russia." (Source: https://pubs.er.usgs.gov/publication/pp1802N)
So we know about Russia from companies like Eurasia Mining. But only two other known countries with large reserves of platinum group deposits, one of which is where RBW has just picked up new permits.
As I say, just imagine if it "so happens" that they find more than rare earths in the ground there.
Yes, very low cost.
Here is George Bennett in his own words (Proactive interview, dated 25 Nov last year)
"We've managed to peg 10 mining areas, or 10 lease areas, in Zimbabwe. We own 100% of these exploration permits. We've picked them up just for the cost of the permits. So very little money, we didn't have to pay anything for them apart from the permitting fees. Importantly the one area we pegged Gungwa, in 2002 the United States Geological Society (USGS) announced in one of their reports that they believed that area has potential to hold several thousand ppm of cerium and lanthanum, so we think it's a good start."
Exciting times ahead and I hear they purchased the Zimbabwe prospects for very little outlay...so even if nothing was found I doubt it would hurt the share price by much...I like the CEO and I suspect he knows a little more about the Zimbabwe prospects than the markets or we do so I do expect a positive surprise here as it's one of his first moves since coming on board. Going to be a great year.
Now just imagine if we get an RNS saying they've found evidence of platinum group metals in one of the Zimbabwe license areas.
I'm a newcomer to RBW and the bb. I was lucky enough to buy in in Dec and, for once , a share I bought actually went up.
My introduction was the appointment of former ceo ME as the new ceo of Ironveld which I have held for some time. Like many lth's I've seen the value of my holding drop there so I'm not here to gloat at getting the timing right for a change. I looked into the company that ME had left and was really impressed with the potential I saw here. So here I am - for the long haul. Cheers.
Hi there all. I've been invested in RBW for just over a year and have been averaging down as and when so I'm currently about 8% down. I just wanted to say it's fantastic that this stock is finally getting the attention it deserves. There are still a few unknowns of course but I do feel that with the new CEO and with the rare earths and strategic minerals and metals situation we are on to a winner. It will be interesting to see what the soon to be announced drill results from Kiyenzi area show us...I know a few holes have been drilled so far but I'm looking forwards to seeing a bigger picture with regards to that particular area. Once the results are in and areas are more defined I expect to see a dramatic increase in production hopefully by H2. I think it's going to be a good year for Rainbow holders but nothing can ever be taken for granted and of course there are still a few unknowns such as kiyenzi grades, Zimbabwe and we can never rule out unknown unknowns as well which include weather, political interference etc etc. Good Luck to all no idea where this SP will eventually finish but I'm in for the long haul and if the CEO can deliver on his promise of creating the 2nd largest rare earths producer outside of China we will all be laughing all the way to the bank. All the best...stay patient, stay strong.