Strategic Minerals Share Chat (SML)

Propinquity, thanks for your reply, will investigate shortly. Mrs got me decorating, 2 weeks to second knee replacement, surprise appointment, it was supposed ro be 2 months, so my jobs list is huge!

If you want exposure to gold stocks, particularly in Australia, a safe jurisdiction, then look no further than ASX-listed CAI, in which you qualify for free shares if you buy into AIM-listed KRS; an example calculation, below, courtesy of Pablo2:

So 1m KRS shares gets one 316,186 CAI shares

Current costs and values : 1m KRS costs about £3,800
316,186 CAI are worth about AUD7905 = £4,300
------------------------------------
Obviously buying 1m KRS now costs more but the exchange rate has actually moved in Sterling's favour since January (unbelievably)
NEW Calcs :
1m KRS now costs £5000
316,186 CAI are worth about AUD11,066 = £6,197

Morning peeps. I an off post thought most stocks seem to be taking a battering due World events, but any of you investing in gold a safer bet so am led to believe. Am in Centamin, but notice funds that are involved are doing very well, we are a broad spectrum of investors, would appriate anybodys views

Toze
Good question to me ,
However better answers have come from others DVH as example
In answer to question do I run large company,,,, at this moment in time , NO
Do I have experience in doing so, Yes
Better question not asked
Were those businesses successful , ,,,some were ,some were not
My reasoning is this
The decisions made for direction when problems occur in any business are monumental as all cost vital ,money ,time and resource. This also deflects you from the general running of the business when all was well
Time will tell
enjoy

Maybe for a long weekend, but no more.

If youre flying SML long haul, then definitely dont want to be out of this for the weekend :D

No Toze, I am a building estimator so work using architects drawings, I like the old fashioned method where they are printed out in large format, these days you tend to view them on a monitor, having spent an inordinate amount of time fishing for the drawings you want from downloads, discs and emails

Hi Fira,
Your message at 10:24 you said “swimming against a tsunami of megabytes”, do I detect an IT person here ? I dealt in yottabytes, lots of fun.

The term does not seem to apply to SML today! One day it will, lokk forward to it :-)

Earny, Nicely summed up - always a pleasure to have your input.

Hope you’re enjoying your few days off.

I know Surprised mentioned that SML has an RSI of 13, denoting it as overdone on the overselling - but RSI to me means: Repetitive Share Injury.

Hi Prop, a few days off work, checked in here to see what is happening , not much , lol ! :) just peeps trying to dig out an understanding of what has happened/happening. To be perfectly frank as disappointing as this all is , we are in the same position at Cobre income wise as we were before the client started except we now have the cash they paid and the magnetite they didn't take, so the question I ask myself is why would you pay for something and not get anything ?... you wouldn't ...so they must be in a bit of a situation themselves with the plant building and funding being released perhaps tied in with the regulatory approvals, but that too is just conjecture.

We have redmoor and LCCM.

I think we may perhaps get a farm in at LCCM, providing cash upfront to move it along and expand it and the guarantee of the vertically aligned customer now getting their copper cement at an even better rate, but again conjecture.... the cash helping the Redmoor purchase

ATB

Nice research, some of which I recall when I initially decided to invest here all those years ago. Was looking to reduce my position here a few weeks ago but have ended up buying another 2.4m 'cheap' shares which I was going to trade but have now become a longer term hold.

Ah, Earny, I was wondering when you would contribute ;-)

Ran out of space!
I, like many others bought shares in this company to hopefully make a profit. I never bought at a placing or IPO where companies raise new money for investment - I would personally call this real investment.
I do not expect a running commentary from the BOD or a weekly update to shareholders - yes - collectively we own the company, and the BOD have a duty to create value for the shareholders, we employ them, and if we are not happy with their performance have an opportunity to make this known at the AGM.

Personally, I am still happy and have faith - maybe not so much as before. I trust they are working hard to make SML successful.

You pay's your money and takes your chance - investing is risky - AIM is riskier. Hoping the risk = rewards - only time will tell.

Let's hope some deals are sorted at the G7 upcoming summit - we do not need a world recession.

Prop - don't know why I am posting in thread titled retirement - and I agree with you - if the BOD need to maintain confidentiality - let them do this. I also saw a tweet from PH (thanks Slurm for the twitter name) saying Cobre main client issues were ongoing.

I do not mind a bit of googling on a rainy day.
Never realised SML had spent a lot on money upgrading the Cobre railway system in 2011 - for US and offshore customers - according to article below
https://www.proactiveinvestors.co.uk/companies/news/29792/strategic-minerals-on-track-for-rail-transport-from-cobre-magnetite-property-by-late-q1-2012-35615.html

I also have read the statement below on mining-atlas.com from 2016
"In 2011 the Company acquired the rights to the Cobre magnetite operation in New Mexico, United States and currently holds, through its wholly owned subsidiary Southern Minerals Group LLC, access to a market ready stockpile of magnetite. Initially the Company sold magnetite product to export iron ore markets but due to the decline in the iron ore price has now refocused its efforts on domestic sales to customers in the United States."

2011 RNS when SML bought the stockpile at Cobre
https://www.investegate.co.uk/strategic-minerals/rns/completion-of-ebony-iron-acquisition/201109050700115855N/

and another interesting article from 2013 - before the current BOD were in charge
https://www.ii.co.uk/discussion/t/minesite-com/741010
"Full scale production from the Cobre tailings started last year after Strategic Minerals rehabilitated the rail spur to allow commercial shipments to the Port of Guaymaport for export (funding it via a £3.1 million placing at 8p)."

I think this shows that the railway goes to a port in mexico. Also read below on another page
"Strategic Minerals (LON:SML) has announced the completion of the rail upgrade at its Cobre magnetite mine in New Mexico. The rail-spur will allow the Company's magnetite, which is under contract to a subsidiary of xxxxxx (I removed cpy name), to be transported by train to the Port of Guaymas in Mexico. In May, the Company raised £3.125m partly to finish the upgrade which is expected to allow the Company to ship 50k dry metric tonnes per month. Shipment of commercial quantities of ore will start over the next 90 days."

I have also read that this port dispatches international shipments to/from China - but no way of knowing if that is where the magnetite is going.

Retirement - I am 9 years away from state pension, but was going to be retiring early shortly, but have had a rethink - glad or I'd spend more time doing what I have searched for above!

Like many - I am now in deep and sitting on a large loss - probably 40%, and I was sitting on a decent profit not too long ago, so I am hoping the strategic review brings good news, and would urge the board not to rush this out - until it is good and ready.

That is my view too Slurm. If LCCM can deliver anywhere near the $6m annual profit spoken of by JP then revenues generated by this asset will dwarf that of cobre when in full production. Not wishing to denigrate cobre as it has and will continue to be a reliable and stable source of income that more than covers corporate overhead costs. There is no reason to believe that this won't continue many years into the future (remember the magnetite stockpile of 711,000 tonnes estimated in April). The receipt of the $4m from the major client would be a bonus although the current share price/mcap has now fully valued the company on the basis of not getting this money or signing a new/revised contract imo. The BoD also recognise that this is a real possibility hence the ongoing strategic review. I expect an RNS next week...

If you listen properly to the interview AB and JP did some time back Oct'18 (they don't do many together so not hard to find) AB tells you its a group concern, they met in Philadelphia, the contact at Company A flew in from Paris, they were upscaling their processes to build a plant , regulatory requirements etc etc

Conjecture to satisfy themselves - no one, except those who work for SML, knows the customer’s name, industry, and situation. Let’s just wait - as has been mentioned numerous time already - for the news, whenever the BoD is ready to publish it.

where did u get that idea out from?

Based on the cost/volume its unlikely it could ever be commercially viable to ship it to china I think that's why its hard to find new customers. If china had to source magnetite from the US then it would be no problem selling the stuff

On top of that why would they sign a letter of intent offering payment upfront? no reseller could afford that.

I admit i dont know whats going on. but I dont need to.

I am past the payment/big customer issue, if it comes, its a bonus, my wish is for LC news, nothing more.

Interesting take on it DJ, let's hope it's not that as I think the trade war will rumble on for a while, your neither side want to show weakness. You but we may never know, JP swarn to secrecy

I will never retire as I’d be bored !

On the major client digging. It seems a lot think the material was sold to China , this sparked something in my head as I remembered China was shutting places down due to environmental issues. Pollution etc.

Lots of articles on it as the are getting tough.link below , time frames look similar to our problems.

https://www.controlrisks.com/our-thinking/insights/chinas-environmental-campaigns-will-continue-to-transform-industry-and-disrupt-supply-chains

I would say so. Well at least a big mid corporate. I bet your Balance Sheet looked a bit better than this one! Do you also invest in bigger Co's with strong Balance Sheets - yielders etc.

Morning Propinquity, hope you don't wish your time away! Once I am back to full fitness, November sort of time, I shall have a strategic review, am a tad young to have full retirement. Do you enjoy what you do for a living Prop? I tended to find myself grinding my teeth in fustration looking churning through emails looking for drawings, time has passed me by

News on a friday mid day ? or Monday Tuesday?

Well, you two retirees, I have - at the very least - another couple of decades before I even consider it.