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Many thanks Southwesterner for your thoughts.
Re using TUN's facilities rather than as yet to be built CUSN plant, it would also seem more likely that the TUN setup would be more suitable as both TUN and Redmoor have low grade ore. But if TUN tries to drive too hard a deal, SML might have the possibility of going elsewhere. All conjecture at the moment....
"Thats 42500t of WO3, 7200t of Sn and 28,000t copper.
At current spot prices that equates to:
$1280m of tungsten
$290m of tin
$270m of copper
So 70% of the contained value is tungsten, 16% tin, 14% copper."
And going back to the compare with Crofty theme for comparison... the 2017 Crofty PEA had around 40,000t of Sn in the mine schedule, in addition to minor copper/zinc, worth around $1600m now. So the overall value of the contained metals is very similar, the difference is Crofty's ore is 98% tin by value, rather than 16% tin as per Redmoor. And Crofty is much higher grade, as its extracting $1600m of metal in 2.5Mt of ore, rather than $1900m of metal in 7.2Mt of ore. So Crofty ore contains around $640/tonne of metal, whereas Redmoor contains around $260/tonne. Remember this does not include mining costs, recoveries, smelting fees, etc. And another word of advice, ignore the declared "SnEq" grades, they are no longer valid due to metal price changes.
I don't think Redmoor has any value in the current share price. This is all about LCCM short/medium term for me. We are awarded the PEPR and we have a saleable asset, we get finance then we start generating cash/profits in Q1 next year (according to the BoD), both scenarios move the share price upwards imo....
Sammy; "I remember our BOD saying about 2 years ago that our Redmoor project was further advanced and potentially as good a resource as the (Strongbow) South Crofty project. So, what I genuinely can’t way up now is why is CUSN (formerly Strongbow) market cap at £75m and yet the SML Mcap remains at a lowly £7m?"
I can't recall the BOD saying that specifically, but I suppose its possible they said something along those lines. However, that doesn't necessarily make it true... Whilst Crofty contains a fairly deep tin resource, which requires significant pumping and shaft refurbishments of considerable technical difficulty to access, it is also already has around half of the resource as an indicated component, and enjoys full planning permission. In comparison Redmoor has no planning permission, and is made up entirely of inferred resources. I don't think anyone can reasonably argue that it is more "advanced" than Crofty -right now. Would it be possible for Redmoor to catch up to the position Crofty is in now, if nothing happens at Crofty, and £millions are ploughed into Redmoor? Yes. But that doesn't seem to be what is happening. Nothing has been spent at Redmoor for nearly 3 years other than a bit of soil sampling done through grants. Presumably partly why the geology team left.
Valu; "Not only will SML be eyed up for its assets, but as CUSN becomes more and more likely to go ahead with re-starting South Crofty, the more likely a process plant for that will become. So SML will be able to transport product to SC for processing. That make a go ahead at Redmoor more likely too. And that is great news for the SML share price."
I think its highly unlikely Redmoor ore would ever be transported the 60+ miles by A-road, west to Crofty when there is a more suitable alternative just 20 miles to the east. The capacity of any future processing plant at Crofty will be far too small to accomodate the comparatively low grade Redmoor ore, and it will be designed primarily for processing tin (and possibly copper), whereas Redmoor ore is mainly tungsten. It may be possible to use ore sorting to reduce the quantity to be processed, but this would require testwork, which has not been conducted.
"Anyone have the figures for likely contained tin/ Tungsten at Redmoor and its value?"
Yes, using the most recent (2020) mining study schedule which is 7.2Mt @ 0.59% WO3, 0.10% Sn, 0.39% Cu.
Thats 42500t of WO3, 7200t of Sn and 28,000t copper.
At current spot prices that equates to:
$1280m of tungsten
$290m of tin
$270m of copper
So 70% of the contained value is tungsten, 16% tin, 14% copper.
Of course that doesnt include recovery factors, dilution, smelter fees or the cost of mining and processing the ore, so do not construe that to mean the project is worth $billions, it most certainly isn't.
Sammy ,I hold both exciting times ahead gl.
I remember our BOD saying about 2 years ago that our Redmoor project was further advanced and potentially as good a resource as the (Strongbow) South Crofty project. So, what I genuinely can’t way up now is why is CUSN (formerly Strongbow) market cap at £75m and yet the SML Mcap remains at a lowly £7m?
Any suggestions or ideas?
Are we massively undervalued and overdue a re-rate?
Would be nice to see some of the CUSN investors buying a few SML shares!