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Given Rio Tinto association with Sav, I am assuming that the following opinion of Lee Wild is something to smile about.
'Last year was deffinately one to own the large cap miners. They outperformed the FTSE 100 significantly over the year. I'll remind you. you picked RioTinto (LSE:RIO) as a safe and organ stock for 2019. Now, i tell you the shares are up 12% year-to-date (2019) and returned as much as 35% at their peak. The divided yield of 6% is something for income seekers too."
From iI active investor this morning in my in box.
BSMA, Rio’s Richards Bay plant outputs Titanium sl@g but needs minerals sands feedstock so an increase in output needs a corresponding increase in feedstock. That’s where Mutamba potentially comes in to fill the shortfall. I can’t say whether that will be in a year, 2 or 5 but the day will come as the market forces are aligned. Depends whether your glass is half-full or half empty and that’s certainly where we differ.
Indeed CM. With Zulti north nearing its end of mine life and the ongoing issues around the currently back-heeled Zulti South, this could be a very interesting period.
CM: An alternative proposition could be that an 8% increase in production elsewhere and Richard’s Bay reopening after a closure could be that the last thing RT needs is another ilmenite mine. Wouldn’t be too hard for RT to start foot dragging, scrutinising the contract for get-outs and sending ‘out of office’ replies to all emails in order to bog this down for a year or two. And I’m sure DA won’t grumble while he continues to pocket a wedge every month on the promise of jam tomorrow. Something we’ve all got used to round here... how long is it since people bought into the whole “DA doesn’t take a wage” excitement? 5 years?
I agree, IB, that post licensing they’ll now be discussing the way forward. But the whole point of the PFS is to inform the options; no PFS no discussions. As it was started over 2 years ago, when a decision on ML’s was expected to be c6months away, it should be ready to publish and thus increase our stake in Moz to 35% - a pretty significant issue. The silence on the subject will quickly turn a pimple into a weeping sore.
Far, far too many missed milestones here, while we’ve been busy wandering the globe acquiring the next big project that’s going to make us all millionaires. Not long before the company name changes to Trotter’s Independent Mining ;)
I note that Rio’s quarterly production figures are out today.Reporting a healthy market for mineral sands products-“ Titanium dioxide **** production of 1.2 million tonnes was 8% higher than 2018, reflecting continued operational improvement and the restart of furnaces in line with market conditions. Fourth quarter production was impacted by the curtailment of operations at Richards Bay Minerals (RBM) in South Africa, following an escalation in violence in the surrounding communities. A phased restart commenced at the end of December.”
Also, “ We also boosted our exploration and evaluation expenditure to $624 million in 2019, further strengthening our pipeline of opportunities.” Guidance for 2020 is also up.
Conclusion: we have a well funded partner for co-developing Mutamba with a hunger for mineral sands to keep the furnaces at Richards Bay busy.
https://www.riotinto.com/news/releases/Rio-Tinto-Releases-Fourth-Quarter-Result
I don't think any company will put out an rns out to confirm that a project in unfunded. Rightly, they let people work that out for themselves as it is not that difficult.
Post licences, they are discussing the ways forward and no doubt we shall hear once things are agreed. Personally, I think that the MLs are / have been the key and now that they are awarded and certain, it gives them a chance to redraw the previous map as they launch the new entity, as had been planned for post award.
An enormous body of work was done for the ML application and I doubt that there are many gaps in the knowledge or modelling after all the extensive drilling etc that was done. In many ways as an existing owned asset, it is not as if a PFS / DFS needs to be presented to investors or lenders for massive amounts of funding to ramp up production with its guaranteed offtake partner. I wonder if they will crack on with developing some of the high grade as quickly as possible and use some of the income generated to pay for the more formal documentation and assessments for the file.
It will be interesting to see how this pans out.
Exactly the questions I have asked Mr A by email but as yet had no reply! However, recent news flow has been more positive, we could finally be coming to a turning point for this company.
Hard to imagine anyone being attracted to the Moz operation when it has such a history of missed milestones. Granted, most of the foot dragging has been on the part of the Moz Gvt but the issue around completion of the PFS needs addressing. It was started 2 years ago and there’s no reason why SAV now shouldn’t have a clear idea of when it’ll be delivered. This is supposedly a fantastic value adding milestone for the company that ‘should’ put a solid floor under the SP, and which would improve the position in terms of raising finance for all projects. “No more dilution to fund Portugal” - but what about Moz? When will the PFS restart, what is left to do to complete it, is it funded and when will it land. We need an RNS ASAP but we don’t want one that leaves the important stuff out or which only creates more questions than it answers.
I completely agree. This has the potential to become a world-class mining project. I feel we are all a bit jaded by the time it has taken to get to this stage but now it has it presents a great opportunity. The prominence given to it by Rio Tinto confirms that they are highlighting it to shareholders as a significant non-managed operation and it feels to me that it will be progressed quickly now with Rio’s full support.
You are absolutely right to make this link and at this point. The RT/SAV connection has gradually been given more prominence from the invisible by line a few years ago.
All the other sites show established infrastructure expected at a mining development of scale. Mutamba shows a greenfield site with a JCB in the background so some way to go but the fact that it is given any space at all confirms to my mind that RT are happy to be associated with the potential of the project as current work in progress rather than possible potential as previously.
It’s interesting to see that we share the same page as some pretty big (multi billion £) operations.
https://www.riotinto.com/Operations/non-managed-operations